From below- getting rid of a mortgage - Posted by Investor-Rama

import · July 14, 2003, 9:52am

Posted by Investor-Rama on July 14, 2003 at 16:19:47:

Ron,

Thanks, I appreciate your candor and others who have commented.

I am no dummy, and though it seemed strange to me, I had to run it by everyone here…never know I suppose!

Poor suckers too… 125% loan, high int rate…about to slip into foreclosure…

import · July 14, 2003, 9:52am

From below- getting rid of a mortgage - Posted by Investor-Rama

Posted by Investor-Rama on July 14, 2003 at 09:52:14:

I was the person below who asked about issuing a bond to get rid of a mortgage. Someone asked about what the investor is needed for. In this case, the loan isnt current, so that is how I found out about this. I still am very unclear about what this is talking about, and frankly it sounds cooky. But here is a link the seller gave me in an email:

http://savetoday.cc/mortelim.shtml

It seems like a dummy put this together, but I told the seller I would at least look at the info, and I also said I would ask some people who might know about this.

So anyone that has heard about this, please comment so I might save these sellers from making a mistake.

The gist of this is that the promissory note is an asset to a bank (us saying we will pay back the mortgage), the liability is created artificially, or that no real funds are created to back a mortgage, rather banking laws of lending that say checking and savings $$$ have to be “X” % of loans…so the bank lends out according to the margin/% rules. So to settle the liability on the books of a bank, an instrument is created that eliminates the mortgage.

Now from what this seller has been told, this company gets a percentage of the home value in return for creating this instrument. I am not fully clueless, but definately want to instruct these people if they are about to be had…

So anyone familiar, share your insight so I might help these people. I have no affiliation with this, nor do I profit from it. The sellers wanted me to help them come current on back ammt owed, so they can do this.

Thanks!

import · July 14, 2003, 2:13pm

Re: From below- getting rid of a mortgage - Posted by Ronald * Starr(in No CA)

Posted by Ronald * Starr(in No CA) on July 14, 2003 at 14:13:21:

Investor-Rama--------------

I barely started to read this and I immediately could see the writing is like the screwloose people who say we don’t have to pay income taxes.

Look, the bank loaned the money to pay for the purchase of the house. They are entitled to get back their money. Plus some interest to keep them interested in making loans to us.

This is, as you say “cooky” or, as I would say “kookie.”

Good InvestingRon Starr*****

import · July 14, 2003, 11:46am

Same old bullroar. - Posted by GL - ON

Posted by GL - ON on July 14, 2003 at 11:46:19:

The person who wrote this site should take some lessons in basic double entry bookkeeping. He would find out that in this system, every “debit” has an exactly equal “credit”. When you add up all the “debits” the total is the same as when you add up all the"credits"

A “debit” is not a debt, and a “credit” is not a credit.

NOW if you want to be the bank, you can create “money” and “credit” out of thin air too. Here is how you do it. Buy some property and get the seller to take back a mortgage.

So, you get the property but you also get a big fat debt that you have to make payments on. The seller gets rid of the property but they get the mortgage which they collect payments on.

A fair exchange is no robbery.

The same goes for the bank. They hold the mortgage on your house, but they have to shell out the cash first. That’s how you bought the house, remember? The seller got the money and you got the house, and now you owe the bank.

You put your finger on it when you said a dummy put this together. Conspiracy theory is the sophistication of the ignorant, and this is typical conspiracy theory.

import · July 14, 2003, 10:30am

Re: From below- getting rid of a mortgage - Posted by Lyal

Posted by Lyal on July 14, 2003 at 10:30:58:

IR,
You’re wasting valuable time that you could be using to find real deals. Just because the seller is adamant about this doesn’t mean squat. There are people that are adamant that there are aliens living among us… so what! (unless of course they want to buy or sell a property…). Don’t worry about “instructing” them. Tell them you think it may be a scam if you want, but rest assured they’ll do what they want and you won’t stop it.
Wish the sell the best of luck and move on.
Lyal