Mortgage Elimination Systems and Services - Do They Work? … by neil smith

11/27/07

I got a phone call the other day from a former colleague touting a plan to rid me of my mortgage burden in just a few years, and her new company would handle everything for the low, low price of only five thousand dollars!

Now I had barely known this person when I did work with her, and the website for this “company” was emblazoned with the oh-so-professional “Go-Daddy” logo, and I had discovered shortly before my departure from our mutual former company that our former company had been in kahootz with a known felon peddling a credit repair program which may or may not have been reputable.

I had heard about mortgage elimination schemes, but never knew how they worked, and because I did not trust this person nor the company she kept for obvious reasons, I did not get all the answers, but I did get a rough overview of “the pitch” via a 2-hour conversation where she pulled out all the stops to try and get me obnboard.

This whole scheme revolves around the checks you get from your mortgage lender to write against the equity in your home and also checks issued to you by your credit card lenders to access the available credit in those accounts.

With many credit cards, there is no interest charged if you pay the balance in full each month. Therefore, the scheme is to put as much of your mortgage debt onto your credit cards as possible (by paying with your credit card-issued checks) and then pay the credit cards off with the checks from your mortgage lender each month to avoid paying interest on the credit cards. During the time the debt is on your credit cards rather than your mortgage, you are not accruing any interest charges on those amounts and therefore, more of “your” money that would normally have gone to pay down mortgage interest can now go to pay down mortgage principle instead, thus paying down your mortgage debt faster and eliminating your mortgage in a much shorter period of time.

The $5000 fee this company was charging, was for their team of “experts” to time the sending of checks between the mortgage lender and credit card companies for maximum impact. Their pitch was that the timing was different for different lenders and they had a “custom-written software package” that calculated just the right times to write and send the checks so as to avoid exceeding credit limits and to obtain the maximum benefit possible.

I personally do not have the nerve to try this one out on my own and was not about to trust the aforementioned group of persons performing this “service” so I really don’t know if this works in practice or not. But I will say that the theory does seem plausible if you really can time these transfers right.

I would love to hear from anyone who has tried something like this and what their results were. Have you had success? Were you taken by a shifty, fly-by-night company? Enquiring minds want to know!

As always, please share your thoughts and help grow this blog into a community where we help each other not only avoid pitfalls and scams, but share ways to make money and live better in general.

Please visit my flagship website at http://www.letsgetahead.com for more great articles like this one!

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