Boy this “Bad” economy is really bring out worst in all of us and scams are coming out to the wood-work!
I love discovering new scams and I was just presented with one a little while ago. Because I can smell a rat a mile away, and thank God or Al Gore (lol) for the internet, I decided to looking into this New Scam.
This scam is not only targeting Realtors, it’s targeting Homeowners. If you want to read how the entire scam works go to The Fraud Files Blog or click here!
They promise that you can....... “Pay off your 30 year mortgage in as little as 6 to 12 years”, “No alteration to your current standard of living......with no change to your lifestyle, without increasing your income or monthly mortgage payment or refinancing of your existing mortgage.”
Or watch this:
Or from their website: http://www.mathnotmagic.com /: ....... “Use your home to pay your way to your Financial Freedom! Introducing the Money Merge Account System from United First Financial®. The Money Merge Account®(MMA) is a unique proprietary program designed to cancel thousands of dollars in interest you would of normally paid on your existing mortgage allowing you to pay off your home, free and clear, in as little as 7-11 years......”
Here’s a website defending this program! Perhaps she sells the program and has to defend it—she does a great job but I don't buy it. My understanding of how the program works is that you use a HELOC to pay for your first loan.......wait a minute, that doesn’t sound right or even smart, does it? For more details on how this scam works, read it here. But the best explanation is here at:Rip off Report
It makes me sad to know that these poor people who get suckered into this type of scam really think that they’ll be paying off their 30 year mortgage in five years! You know, that doesn’t even make sense!
Anyway, I am not 100% sure on how this scam scams the Realtor but you have to recruit people to make money! I know Multi-level marketing (MLM) schemes are not new—and will never go away. If you think that this type of program is a legitimate way of making money in the real estate field—please think twice or even three times. I know times are tough for everywhere and for everyone; but don’t get into something that could potentially put your license at risk. Trust me—no matter how hard of a time you’re having right now—having a real estate license is the best thing for your long--term career. Things will get better and when they do.......only the ones who do the right thing will remain standing! Keeping your real estate license clean is the best thing for longevity in this business.
Remember if it sounds to good to be true.......it probably is not true! Ok maybe this scams is not sooo new but it’s new to me. So I thought I’d pass it on! I would love to hear your thoughts on this! Take care and God Bless!
Update: I wrote this post on 2/18/09 and found it in my drafts....wondering if this scam is still going around. We should really help to clean up our industry, I know that it gets hard to be “the real estate police” when we get busy. It happens to me! But I try to help in anyway I can and if by spending a little time spreading the word about these types of scams helps a little, then I feel good because I’ve made some contribution, as little as it may seem.