How does "No Mortgage Payment for One Year" sound? Mortgage Payment Deferral, Inc., in Roseville, California has just released a patent pending mortgage program that allows homeowners to defer anywhere from 3 to 36 months of their mortgage payments. The new program is called 12 Month Deferral or 12MoDef. What's more, this new product can be applied to ANY type of refinancing loan.If someone can't afford to make their home payment is borrowing against their home a likely solution? I think not and confidently predict a huge percentage of those desperate enough to use this program will quickly go bankrupt at the end of it.
"I was inspired to create 12MoDef with the idea that a year without mortgage payments could give someone financial freedom and stability for a better future," says Jeremiah Miller, President of Mortgage Payment Deferral, Inc. "Everyone has their own reason for using 12MoDef. Many of our clients are making job changes, starting families or struggling with a new business venture; while some are being crushed by meeting the monthly financial burden of their mortgage payment AND credit card debt. A year without the stress of a mortgage payment allows people to reassess their financial situation and regain control of their life again." Miller notes that for clients close to retirement age, the freedom of 12MoDef, allows them to take advantage of "maxing out" their 401K contributions as well.
"It's been three long years," says Miller, while describing the process of bringing 12MoDef to market. "During our initial research and development of the product, we were informed by many banks, lawyers and title companies that the idea was impossible and we were basically wasting our time. We refused to believe it and fortunately we refused to give up. Now, all of our hard work and dedication have paid off with the inception of this truly wonderful product. Without a doubt this has been the most rewarding endeavor in my entire career."
12MoDef works by setting aside some equity of a home into a trust account for the benefit of the homeowner. Each month, the appointed trustee ensures that the mortgage payment is made to the correct lender. The homeowner receives a monthly statement which combines their current mortgage statement and trust account statement. During the payment deferral period, the homeowner keeps more of their income each month, is guaranteed on-time mortgage payments, and earns an aggressive rate of interest on the money in the trust account. At the end of the deferral period, the trust account is closed; the borrower is given all of the earned interest and they resume making their mortgage payment.
Mortgage Payment Deferral, Inc. will be offering 12MoDef to selected mortgage brokers and banks on a nationwide basis in 2007. Until then, the only lender licensed to offer 12MoDef is Harbinger Mortgage Solutions, a licensed mortgage broker located in Northern California.
It will also be interesting to watch what happens to Harbinger Mortgage Solutions (so far the only authorized dealer) who advertises "Using this revolutionary new product, home owners are able to defer from 3 to 36 months of mortgage payments".
Let me translate this statement "Mortgage Payment Deferral, Inc. will be offering 12MoDef to selected mortgage brokers and banks on a nationwide basis in 2007." I believe they mean "to anyone and everyone willing to offer the product".
Truth in advertising should force a disclosure such as this one: "It is extremely likely that all you will accomplish through this program is to defer bankruptcy by a year. Of course we encourage you to do so because we collect a whopping fee if you do."
Mike Shedlock / Mish
http://globaleconomicanalysis.blogspot.com/
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