Pay Your Mortgage off in 7 years. Is it fact or a scam?
Have you seen the commercials for John Cummuta. He claims to have a system where your debts can make you rich. Well I have a lot of debt, thanks to my failed investement in Homestead Florida. I am looking into a way to get rid of my debt too. I have found that there are actually companies that do loan restructuring negociations with your Bank. But first you have to be behind on at least a few payments. So does that mean that I should ruin my credit? Hopefuly not.
I mentioned in another post about 2 weeks ago, that I feel like I should just walk away. But since that time, I have sent the $6200 check to pay for the taxes and $800 for another year of insurance. I am giving this deal 1 more year to get better. My plan is to keep my credit good, long enough to refinance my principal home. I am also waiting for 30 year interest rates to drop back down to 5.5 % and it is getting close. All we need is a few more bad stock market days and poor economic indications to be posted, mayeb one that says that we are officially in a recession and hopefully We’ll get the 5.5 percent rate to come back for one more time. I will be closing that very same day.
By the way I use this link to keep track of the rates:
http://origin.bankrate.com/wsj/graphs/graph_trend.asp?product=1&prodtype=M&ad=mtg
Once I get to refinance my main house then I will do whatever it takes to sell that other house. Either a Short Sale or a loan restructure. The way I see it, my option arm payment will eventually go up and I will have to miss some payments. When that happens I will be elligible for a loan restructure and the bank will have to right off some of lost equity or principal. Or I will Short Sale this house for a 100 K loss.
As for paying of all my other Debts in 7 years. That remains to be seen. The idea behind that program is simple. Get rid of or reduce payments one at I time. The less bills you have the more you can send to the principal and the faster you can get completly out of debt. I am not sure if I can do it in 7 years, but I will try.
What do your think is better for your credit? a Loan restructure or a Short Sale?
Please post your comments below.
April 17th, 2008 at 10:12 am
You can pay off your mortgage faster, but believe me Banks will try to stop you at all costs. An example: I have a Mortgage with WAMU. They forced me to use Auto Pay. My payment is deducted on the 25th of each month. If I have the money sooner and I make the payment sooner, the bank will also automatically take out another payment on the 25th again.
This will overdraw my account and cause much more problems. So I could save 10 days of interest, which in my case is $600 but the bank is delibertely preventing me from doing so. I tried calling customer care to change this and they laughed at me.
June 18th, 2008 at 7:42 pm
Refinancing can be worthwhile, but it does not make good financial sense for everyone.