ok... so the old adage if it sounds too good to be true, it probably IS too good to be true!
I sought out some information on a company today because I just can't seem to grasp the concept. With a background in Mortgage and Title - and now a Realtor - I thought I had a pretty good understanding?!?!
TUC, The United Cities Group, a Florida based company,has launched a new financial mechanism based on private currencies which are backed by the total net worth of their network.
So basically, they are helping homeowners who either are unable to catch up their mortgage or those who have ARMS that are about to adjust and they are unable to refinance the mortgage.
They are not under the jurisdiction of the Federal Reserve, but are insured by the FDIC. For whatever that's worth right now??? So they offer one rate, claiming they are eliminating the middle man, and lending their own funds. This is all regardless of your credit history or qualification ability. They purchase your home for cash and quit-claim the deed back to you, for the first 12 months you make no payments and starting month 13 you start making payments at the rate assigned (currently 4.5%) amortized over 29 years vs. 30.
So what's the catch? I spoke with my attorney, he states that yes, basically any individual can hold a mortgage, ok knew that... but what other risks are involved?
If you have had any experience with this company, I would love your feedback!
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