Home : Blogs : Jennifer Monastero : Jen's Brain. For Sale. CHEAP.

Mortgage Accelerator Scams

So, these have been popping up ALL OVER. People are trying to recruit real estate agents, mortgage brokers and even Bingo Ball cleaners to sell a software program that can 'help' people pay off their mortgages in record time.

This is my take:

If someone were to take every ounce of their paycheck, after taxes and basic expenses, and put it towards their mortgage- they would pay their mortgage off FAST. In fact, I would guess that they would pay it off just as fast as they would if they used this stupid program. Think about it though- instead of having ANY leverage in your house- every penny you make will be tied up in your home's equity. Sorry, there has to be a happy medium. Why would you want to have 100% equity in your home, but no cash in the bank? What is the brilliant strategy there??? I get the 'ownership' quotient, and the value there- but again, you don't need a $3500 program to tell you how to do it. If you have the discipline to use the program, you probably have the discipline to add $800/month to your mortgage payment.

My question is simple- why would someone actually recommend this ridiculous program??? Surely there are less expensive, less vertigo-iducing ways to explain to someone HOW TO KNOCK YEARS OFF OF THEIR MORTGAGE. In fact, I show my clients how to do it for free, and with a few clicks of the mouse. Am I missing some genius formula here? Or is the cow pattie it seems to be?

How long before this scam gets called out for what it is???

If you plan on commenting, and you are a seller of this miracle product- no spam, just the facts please. Thanks in advance.

Posted by Jennifer Monastero on 05/08/2008 09:05 AM

Comments (12)

mma, mortgage accelerator, scams, scam

12 Comments on Mortgage Accelerator Scams

MAY

2008

Jennifer, I have exchanged blogs with someone who does this. I think you hit the nail on the head when you said: "If you have the discipline to use the program, you probably have the discipline to add $800/month to your mortgage payment."

I told that guy that I am not interested in paying off my mortgage and that someone that does, just needs to be disciplined. They did have some website with a program that did all the disciplining for people. and if someone were not disciplined, then i guess it could be good.

BTW, I got your email. thank you so much. I will defintiely be in touch.

unfortunately some people fall for these scams. My father just got taken a similar scam. Thanks for sharing!

I have researched this company and have a friend that is an agent. I have even undergone the free analysis. The reason for this? I'm a mortgage lender and I want to be knowledgeable about what offers are being solicited to my clients.

The program works mathmatically but my only beef is that it costs $3500 which is pure profit to the agent and their higher ups. The program is a an algorithim on a glorified excel spreadsheet. My husband is an accountant and understands the logistics behind it.

Mainly people are not disciplined to stick to a regimented program that requires the understanding and concept of paying your mortgage off with your extra cash flow. The agents for this program are using that as their marketing angle "just let the computer tell you when to make your payements and you'll payoff your house in 10 years instead of 30!"

The sad thing is that because it's so new there is no living example as proof that it works - if there was then it would be more believable.

I agree with your points and find that your arguments are very valid. I urge you to actually seek out a rep, listen to their sales pitch - for the simple fact that now you know the basis behind it and can intelligently explain to your customer why or why not they should do it.
I had a client a month ago come to me asking about it and I told her my thoughts (my main point being that $3500 is going straight into the agent's pocket). She was still curious - because I hadn't totally blasted the program. So I put her in touch with my friend that is an agent - she explained more - and my client signed up.

The good thing is that even if millions do sign up for it - they truly are paying down their homes if they stick to the program and from that aspect then they are being financially responsible.
It's just too bad that it's set up as a pyramid scheme. I think that's the main reason why the general public is so put off by it. Luckily my friend/agent is not in the business to recruit people and she markets herself as a solution to getting out debt.
I believe GMAC mortgage does offer this program as a regular refinance - that may be something to look into - to offer your client an alternate source.

I applaud you for bringing up this topic - it's a great one to discuss and I look forward to seeing what others have to say or what their experience has been.

Peter- great to hear from you! Glad you agree with me on this :)

Dean- what upsets me is when people take advantage. Especially now, when people hear the words 'debt', 'mortgage', along with terms like- do it all without changing your lifestyle! or, this is the miracle you've been waiting for! I get really peeved. This is not a magical wonder- it is common sense. No one should have to pay for this kind of stuff- not $3500 anyway. I hope your father gets his money back, or at least makes such a stink about it, he drives the company out of town.

Sarah- I have researched it, and that's how I came to my conclusions. They make it so complicated that people feel THEY MUST BUY THE SOFTWARE. If your friend had scruples, she would market herself as a debt management consultant, not a salesperson of this particular product. She could help people, and still make money, by teaching them how to work toward their goals in a realistic manner. Thanks for your thoughts though, I think we agree on the fact that the price and the 'pyramid' element make it less about helping people get out of debt and more about making money. These days, I can't get down with that. There are enough schemers and scammers out there, I'm not going to add to the pot.

Also, how often do people actually stick with the program? they get their ALOC, they get their $3500 to pay their agent... and then what? Who's to say they even break even??? I heard from one rep that 90% of users stick with it. Full throttle??? I doubt it. Maybe they pay a little extra, but not every possible penny. So, instead of the 'pay your mortgage off in 8 years!' they'll probably be looking at 25. Big deal. They could do that in their sleep without wasting $3500. Did I mention I had a real problem with the price??? :)

MAY

2008

I agree with you Jennifer. I can't see why someone with even half a brain would want to pay $3500 for a computer program to do what they can do for themselves. Just my take on the issue.

I get a pit in my stomach everytime I see a blog related to this software program...spoke with a Pastor last week who is selling it and when I raised my concerns he started crying...he was so embarrased that he had presented it to people in his congregation. He didn't even know the basics, just the buttons to push and viola, your mortgage disappears.

your PASTOR!?!?!?!? Please tell me you are joking! Have your fellow congregants call me instead. For free, I'll tell them how they can do the same thing.

This type of program does have it's foundation in reality.

I have looked at what certain companies offer and the math is there to reduce the time to pay off significantly if the program is followed without impacting monthly expenses.

That being said this is a piece of software that should be between 250.00-500.00, not 3,500.00.

At 3500.00, its time to start learning how to use your excel spread sheet. Not as user friendly, but workable.

Anything that is set up as a pyramid scheme should be a turnoff. If the program is legitimate, they won't need to sell it that way.

I have not seen the full presentation for the software, but I heard it works in conjunction with a 2nd lien HELOC... which I assume isn't included with the price of the software?

There are some lenders who offer legitimate mortgage accelerator options if Borrowers are so inclined, but this doesn't sound like it.

JUL

2008

What's truely sad is that you really dn't understand the concept. This system actually works. I don't agree that U-First and their MLM process of recruiting deciples of the faith is necissarily the best way to sell it; However, there are several alternatives that are equally effective and much morre affordable.

We use Mortgage Accelerator 2008. It's been awesome......

Check them out...

www.mortgageaccelerator2008.com

JUL

2008

You can do the same thing by paying off a bill and then applying that money to the next bill until it is paid off - or when the first bill is paid take 1/2 and apply to another bill and the other half to you mortgage (principle) and then when the second bill is paid take 1/2 of what you were paying on your bill and put that towards the payment on the other bills and the other 1/2 to your mortgage. You may not pay if off in 10 years but you will have money in your bank, pay off your bills pay extra on your mortgage and not change the way you spend.

Example:

car payment $600

Credit card $6000 with payment of $300

House $1000

You pay off the car so you pay your bills like this:

Car payment 0

Credit card $6000 now payment is $600

House $1300

It will pay it off faster and you can put money in the bank.

SEP

2008

United first is such a HUGE scam.....they attach to the ignorant, and the "associates" all have a cult like zeal for defending the "program" which is nothing more than a glorified excel spreadsheet. I have a friend that is considering becoming an U First associate and it's scary how hypnotized he is. Its like an invasion of the body snatchers movie and the "U firsters" are going to change the world with their secret formula to pay down debt.

Do it yourself kids!!!!! It ain't rocket science.

Leave a response…

Name:

Email:
(optional)

Comment:

What does the graphic say?