Is the Inverse Mortgage a Scam? New Program Promises Mortgage Payoff inside of 5 Years

If a mortgage could be paid off in five years or less, without it costing homeowners an extra cent, why wouldn't every homeowner in America be doing it? Because they don't know, or because they're too wise? Although the former may be the case for many, I certainly hope the latter is the answer for most.

A real estate finance consultant company, who shall remain nameless here, claims it has the secret to paying off your mortgage in five years or less, without you paying any more on your monthly payment or adding to the principal mortgage of your real estate loan. They call it an inverse mortgage.

Now, this company, which is not a mortgage brokerage or a bank, claims that all you have to do is pay your mortgage payment every three weeks, instead of every four. In addition to this one tiny change, you'll need to go to work for the company, recruiting other people to do the same. Of course, they say this is not a pyramid structure, although the way you cut into your mortgage and build wealth is by banking some of each payment that comes in for everyone you recruit, after the initial three. Incidentally, this company will take one of your payments at the end of the year for hiring you to recruit more people into their program.

Hmm, not a pyramid scheme or multi-level marketing? I don't claim to be an expert in these areas, but I certainly know the basic structure, and you probably do too. Doesn't a program requiring you to get others to buy something with the idea of you receiving a residual benefit from each recruit sound a lot like multi-level marketing? It does to me.

I may be a skeptic, but there are a few basic problems with the inverse mortgage and with this real estate finance program.

1. This company has been around for less than one year, and after some exhaustive research, I can't find one person who has ever actually made money or cut into their mortgage as quickly as the company says one can.

2. In the last 20 years, there hasn't been a revolutionary idea for reducing your mortgage, without paying more or without doing something like a bi-weekly mortgage (a completely legitimate, if unnecessary, approach to mortgage reduction). Why is it that this new company ? not even mortgage people ? has suddenly come up with something that true experts with 50 or more years of experience in the industry have not?

3. This one is the most alarming reason to be skeptical. In addition to the strange notion of recruiting people to take part in this program, the sponsoring company wants you to turn over your bank account information, so it can debit your account monthly to supposedly pay your mortgage.

So, is the inverse mortgage a scam? I can't say unequivocally that it is, because I don't have any true evidence to say so. The many years of experience in mortgage and investment real estate that I do have, though, tell me to beware of any program that looks too good to be true. This one does.

Mark Barnes is an investment real estate and real estate finance expert. Get his free mortgage finance course at http://www.winningthemortgagegame.com. Mark is also the author of the new novel, The League, a shocking, sports-related conspiracy. Learn more about his suspense thriller at http://www.sportsnovels.com.

---

Refinance Your Home Mortgage Online

The largest financial obligation most people ever take on couldn't... Read More

Home Equity Loan or Home Equity Line of Credit ? Which is right for you?

The most common type of home equity loan is the... Read More

Mortgage Cycling May Be Your Best Bet For Equity Buildup and Investment Real Estate

Mortgage cycling is a system that relies on solid budgeting,... Read More

Should You Refinance Your Mortgage if Interest Rates Drop?

Mortgage refinancing is when you take a mortgage of a... Read More

Apply For Home Mortgage Loan Online With Bad Credit - Things To Consider

So, you've found the perfect home. You've already decided where... Read More

Bad Credit Home Financing - Get The Mortgage Loan You Want Even With Poor Credit

Having poor credit alone cannot hold you back from getting... Read More

Guide to Remortgages

Here is a useful guide to remortgages. What is a... Read More

Refinance Your Mortgage to Rebuild Credit

Refinancing your mortgage is one way to rebuild your credit,... Read More

Home Loans and Mortgages ? Watch Out for Dangerous Subprime Loans

With the growing interest in real estate purchasing and speculation,... Read More

What Length Mortgage Is Right For You?

You've found the home that is right for you, and... Read More

Kingsland Georgia Mortgage Company Information For Homebuyers Transferring to Kings Bay

If you are transferring to the Kings Bay Georgia Naval... Read More

First-time House Buyers: to Buy or Not to Buy; that is the Question

Buying your first house is always a difficult time. There... Read More

Refinance After Bankruptcy

Refinancing your mortgage after bankruptcy is actually the same as... Read More

Remortgage Debt Consolidation - The New Recourse For Credit Crunch

Shakespeare once said about human nature 'with nothing shall be... Read More

What is a Fixed Rate Mortgage?

As the term implies, with a fixed rate mortgage the... Read More

Real Estate Tip: Escrow Accounts -- Do You Really Need Them?

If you have a mortgage on your property, whether it's... Read More

A Mortgage and Bank Trick You Should Avoid at All Costs

Once you've purchased your home, you will begin to get... Read More

Home Loans and Mortgages ? Beware of Deed Theft Scam

The average home in the United States has a value... Read More

No Money Down Mortgage Loans - Ways To Get Approved For a Home Loan Online With Zero Down

No money down mortgage loans enabled more people to own... Read More

Buying a Home With Poor Credit Is Easier Than Ever

Buying a home with poor credit is easier than ever... Read More

Benefits of a Remortgage

There are many benefits in choosing a remortgage, some of... Read More

Buying a Home? Dont Get Saddled with Two Mortgage Payments

I have a lot of friends and family who are... Read More

Bad Credit? Qualify Yourself For A Zero Down Mortgage Loan

I decided to write this article today after closing a... Read More

Refinance Benefits - Refinancing Could Save You Money

The most common reason most people refinance is to save... Read More

Mortgage Cycling ? Brilliant or Risky

With mortgage rates near 20-year lows, competition in the mortgage... Read More

Finding the Best Mortgage Lender Online

Finding the best mortgage lender online is simply a matter... Read More

Home Equity Lines of Credit - the Basics

A Home equity line of credit is a loan which... Read More

Mortgage Questions to Ask Your Lender

Buying and financing a home today can be overwhelming. Here... Read More

Be Prepared when Seeking a Mortgage

When you're looking for a mortgage, whether it's a first... Read More

First Time Buyer Mortgages ? Transforming Homeless into Property Owners

Having just settled in life, you are finding the rentals... Read More

A Guide to Direct Homeowner Loans

Are you considering applying for direct homeowner loans? Perhaps you're... Read More

Financial Rebirth Through Remortgage

Seldom in ones life do we get a chance to... Read More

Why Get Pre-Approved For A Mortgage?

One of the most important steps in the home buying... Read More