So, you done everything it takes to live your American Dream. You sacrificed, saved and scrounged up money to put down on that home that you've always wanted. You've worked hard to make sure your credit was in order before you were to be approved for your mortgage (or maybe you did not before the current mortgage crisis). Now, you're faced with the challenges that come with home ownership. There are the unexpected bills or maybe you've been laid off. You may or may have not saved enough for a rainy day and at the same time you've always been at least somewhat responsible for your money. Most of your savings were squandered away or politely and legally sifted from your hard earned income; if you're like most people. No one ever plans to not have the ability not to pay their mortgage nor do they ever anticipate on being able to pay their mortgage off before the standard thirty year time from that are given to most home owners in traditional fixed mortgages. In fact, historically the idea is for most homeowners has been to stay in their homes without the idea or fantasy of paying off their mortgage in say eight to ten years. This type of homeowner is loved by the banking industry for the simple reason that the banks will make the maximum amount of money that the can and more as long as the homeowner stays in the home. The past few years have began to change the old paradigms and recent events have made people realize that the slightest shift in their circumstances (from lay offs or illness) can have seriously negative impact on their ability to pay off all their debts. Ironically, the ideal situation would benefit banks and put the rest of us in deep debt. Although, most hard working people are just two paychecks from becoming severely past due on their bills; most people don't know how to make the shift to the track of living debt free. Since so many of us have fallen into this category at one point of another; it would be hard for us to conceive that we could break free in a manner of a less than a third of the time. We will take a very short look at the evolution of debt in this country and we will look at the alternatives that hard working people like you have taken to get their debt under control and pay it off. The Mortgage: All pain for us; all gain for the banking industry Mortgages have been around for a really long time. The first mortgages came out of England in 1190 (A.D.). The mortgage was meant to benefit the mortgage holder from the very beginning as it was a conditional sale to the borrower. If the borrower forfeited or fail to pay then full ownership would revert back to the mortgage holder. Mortgages were as the continue to be until the present day; a contractual agreement to pay a certain amount of money on a certain time schedule (usually monthly) to the lender in exchange for the eventual ownership of a certain property. This type of agreement almost always benefits the lender disproportionately compared to the borrower. Some have said this is almost like punishing the middle class or poor for not being rich and rewarding the rich for taking advantage of the fact that most of us don't carry around enough money on us to purchase a house, property, or consumable goods outright. Mortgage literally translates into the word "Death Pledge" ("Mort "coming from the Latin word death and "gage" coming from the same root language meaning "Pledge"). Those ancient mortgages always benefited the mortgage holders as their wealth flourished as they were paid hefty amounts of interest while the "owner" would ultimately attain ownership of the dwelling; the "Banker" would have made far more money than the value of the property. This is still the case to this very day.
Fast Forward: The Evolution of the Modern Day Mortgage "Death Pledge" Since the first Colonists arrived here in the United States; property ownership has always been viewed as the first distinction of wealth. This concept continues until today. In the 20th Century; several developments occurred. The US government started agencies to over see and regulate the mortgage industry. The reason was because the predatory lending practices of many mortgage holders. It was only a matter of time before the banking industry would figure out alternative ways to make money. The classifications of borrowers to be charged more for the credit history and the quality of their personal credit was an instrument that bankers/mortgage holders and other creditors use to determine how much profit through interest they intend to gain. If a borrower has good credit; he or she still pays more for their home, property, or consumable goods than it cost to produce it. If a borrower does have such good credit; he or she will pay as much as three times more than the person that has good credit but the holder of the debt still benefits. To Refinance or not refinance There are many pros and cons to refinancing however, the idea is counter intuitive to building wealth. The primary goal is to get a lower monthly mortgage payment. Some refinancing allows an owner of a property to take out the accumulated equity to do with as they see fit (pay off bills, take vacations, etc). Still other refinancing offers made by other lending institutions charge a fee which goes to the new mortgage holders accounts. The new mortgage holder still retains the property and the borrower may lose some or all of her equity to "start over" with a new loan that will take longer to pay off. This type of deal makes sense if you need immediate access to the equity you have built up over time. It makes entirely no sense to use this approach if your main goal is to stay out of debt and build wealth. This approach does not take into consideration that an emergency may come up later. The once available money that you've amassed through consistently paying down your mortgage would be evaporated and inaccessible in case of an emergency. This approach totally ignores other debts and often encourages consumers to go further into debt. Mortgages are just one form of debt.
The Next Step: Paying it off faster by paying a little extra Consumers who want to pay off their mortgage by paying a little more on the mortgage once or twice a year. This seems to be a good idea at first and it is definitely a better alternative than paying extra interest but this idea is outdated. http://www.bankrate.com/brm/news/DrDon/20070103_biweekly_bimonthly_payment_a1.asp On average most consumers would shave about eight years off of their mortgage by using this approach. This is a good idea but, what about credit card debt, tuition, and car notes? In this economy and any other circumstance can we say with certainty that can still employ this method?(Perhaps)
The last stop: Debt Management Companies Debt management companies (like In Charge) and non-profits (like Consumer Credit Counseling Services, Inc) have come to rescue of the past thirty years or so. They are great over all alternatives to bankruptcy or when a consumer has become drowned in debt with no way out. Employing a debt management agency often entails surrendering complete control of your financial information. DMAs (Debt Management Agencies) sometime charge a monthly recurring fee for the benefit and privilege of their piloting of your finances. Unfortunately, these are not the only cons to this approach. There is always the possibility that your creditors don't have to accept the arrangements that the DMA negotiates. If you are late with the DMAs payment; they are late with the payment to the creditors and nine times out of ten the creditor will cancel in that scenario. DMAs are always used in 911 scenarios. Are there any takers for this option? The Giant Evolutionary leap forward began Down Under The necessity to create a mortgage that would insure the flow of money between lender and borrower put the borrower in control with great flexibility or the mortgage and personal debts. This was and is not another fancy new mortgage, debt management plan, and with the Australian mortgage the consumer typically never has had to radically change their lifestyle or change banking institutions. The Australian Mortgage is simple software that uses complex algorithms to help consumers pay off their debts faster than conceivably possible with other methods. When the so-called "Australian Mortgage" came to the United States; a few financial institutions adapted the idea with their own unique products. A few of those institutions still primarily focus on the mortgage. The reason why these companies and institutions' product focus has stayed on the mortgage is because the traditional mortgage is the single largest debts that most people will ever acquire in their lifetime. This originally was a good idea but most people have many more debts than just their mortgage. The Australian Mortgage; in its original form is very limited. Forward thinking institutions created the second generation of the Australian mortgage which has become known as the accelerated mortgage account in many mortgage circles. The accelerated mortgage takes into account the homeowner has more than just mortgage debt. The typical benefits are a shift in thinking for the debtor, financial empowerment of the debtor, and rapid pay off of debt. Many mortgage holders can pay of all debt in less than a third of the time in many cases. The accelerated mortgage takes into account the long term goals of the debtor or client. The accelerated mortgage can create a new paradigm for most families who follow the parameters laid out in the program if the debtor is qualified to enroll and use the account. A free sneak peek at the Accelerated Mortgage in action It is best to always do one's due diligence when looking at alternatives to getting out of debt. The most important thing is to have a road map that will lead the debtor down the most rapid path to finally taking control of their finances. If you are one of those debtors and wish to receive a free and no obligation detailed analysis; there are two immediate options available to you. Should you require a free comprehensive analysis of your particular situation send an email to joethemmaguy@gmail.com or visit www.u1stfinancial.net/joewalker . You will find complete information on the MMA software (the brain of the Accelerated Mortgage) and the concept of the Accelerated Mortgage. You will also be able to read the real testimonials from real people who have used this exquisite service with positive results. You will also find a link Request Free MMA Analysis. Click on that link and it will take your basic information on your debt. All information that you input is secure and entered through a secure d server. You will not be asked for any personal information such as your social security number-only the pertinent information such as debt (i.e. credit card bills, mortgages, etc). You will then receive an email -usually in about 24 business hours. You will not be asked for any personal information for security reasons; other than information on your debt. Your information will never be shared with any other business, entity, or organization.
You may also register for a teleconference to see the MMA software in full action by sending and email to josephwalks.myfullpresentation@info.trafficwave.net . You may also choose to email me at joethemmaguy@gmail.com. An automatic email will be sent to you within 48 hours detailing the next net meeting with instructions on how to register and view the presentation.
Here's to your success!
Joe Walker
About the Author
Joe lives in Atlanta, Georgia where he has had an eight year career as an Investigator. He is a second generation Law Enforcement officer.
Wednesday, March 4, 2009
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