These commercials that advertise Pay off Your Mortgage in 5 years! and debt to wealth, etc.

[Al Neri]

I hear these commercials all the time:

e.g.

* Transfer all of your debt into an income
* Pay off your 30 year mortgage in as little as 5 years


now I would assume that either: they must be selling something legitimate to some extent or they are working around a ton of loopholes to market their product.

What the heck are these "systems?" If they don't work, how do they still exist? etc.

Thanks,
Don R.

 

[mugs]

I've always wondered what kind of snake oil they were peddling... probably just common sense financial tips. The people who claim to have paid off their mortgage in 2-5 years would be considered "non-typical" results (i.e. people whose mortgage is less than their annual salary)

 

[Greenman]

I'd like to know as well.

 

[isekii]

Maybe they don't pay the Property Taxes.

let the state/town seize it, then just pay the tax on it and reclaim it ?

is that possible ?

 

[Greenman]

Originally posted by: isekii
Maybe they don't pay the Property Taxes.

let the state/town seize it, then just pay the tax on it and reclaim it ?

is that possible ?

That won't work in CA. When the state seizes your property here it's auctioned off, and the cool part is the state keeps all the money. So if you owed 5k in taxes, and the state got 500k for your house, they make a very nice 495k profit. And it DOES happen.

 

[jpeyton]

Pay just 3 easy payments of $19.95 (plus shipping & handling) to find out.

 

[FoBoT]

mostly pyramid schemes

 

[spidey07]

Originally posted by: mugs
I've always wondered what kind of snake oil they were peddling... probably just common sense financial tips. The people who claim to have paid off their mortgage in 2-5 years would be considered "non-typical" results (i.e. people whose mortgage is less than their annual salary)

What's even worse is paying off a mortgage that early is a terrible idea financially.

If the goal is to build wealth then simply outpace your interest in other investments. I'd never be so foolish as to pay of a mortgage early. It's like free tax deductions and free money if you keep it. 10% > 6%.

 

[paulney]

I don't know about mortgage schemes, but debt reconciling agencies work like that: they tell the creditors: either take this amount of money, or see nothing at all. A lot of creditors prefer to get some portion back. Then they pile everything that's left into one lump loan. Of course, this shots your credit history to hell for the next 10 years or more, but this part they don't advertise.

 

[sao123]

Originally posted by: paulney
I don't know about mortgage schemes, but debt reconciling agencies work like that: they tell the creditors: either take this amount of money, or see nothing at all. A lot of creditors prefer to get some portion back. Then they pile everything that's left into one lump loan. Of course, this shots your credit history to hell for the next 10 years or more, but this part they don't advertise.

except that most of these programs advertise that they will not harm your credit rating... there has to be another way.

 

[sdifox]

Originally posted by: spidey07

Originally posted by: mugs
I've always wondered what kind of snake oil they were peddling... probably just common sense financial tips. The people who claim to have paid off their mortgage in 2-5 years would be considered "non-typical" results (i.e. people whose mortgage is less than their annual salary)

What's even worse is paying off a mortgage that early is a terrible idea financially.

If the goal is to build wealth then simply outpace your interest in other investments. I'd never be so foolish as to pay of a mortgage early. It's like free tax deductions and free money if you keep it. 10% > 6%.

Wish I had that luxury. Up here mortgage is not tax deductible so pay off as fast as possible makes more sense.

 

[cKGunslinger]

Originally posted by: paulney
I don't know about mortgage schemes, but debt reconciling agencies work like that: they tell the creditors: either take this amount of money, or see nothing at all. A lot of creditors prefer to get some portion back. Then they pile everything that's left into one lump loan. Of course, this shots your credit history to hell for the next 10 years or more, but this part they don't advertise.

Still better than bankruptcy, I would imagine.