bdc63

Have you guys heard about this one yet -- the "12MoDef" loan? Un-freakin-believable. I wish they had called me first, 'cause I have a better name for it ...

... the "delay bankruptcy for a year while we collect ginormous honkin fees from you" loan


http://www.rismedia.com/wp/2007-01-0...for-12-months/



California Company Announces ‘No Mortgage Payment for 12 Months’

RISMEDIA, Jan. 8, 2007-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.

"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.

For more information, visit http://www.harbingermortgage.com.
RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

Bob

They escrow your mortgage payment. Orwellian mortgage!

SHELLY

It's official: The lunatics are clearly in control of the asylum.


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But hey...Top Ramen tastes a whole lot better when you eat it off of a Granite Countertop. (Mr & Mrs Too Much Homebuyer)

Florida State Flower

Jennifer Steele Saunders

It can't be taken too seriously when the name sounds like that of a gangster rapper.

Mango

BOOM CHICKA BOOM~

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bdc63

I think I'll hold out for the

NoDocIO12MoDefNegARM . . .

. . . you put no money down and make no payments, and the bank sends you a stack of crisp $100 bills each month. Of course, your debt doubles every 18 months, but who cares! --"debt is good." and "let your money work for you." and "real estate only goes up." Right?

You know its coming.

bdc63

I think the line is blurring between "gangsta's" and "mortgage banksta's"

Miss Kitty

^5! steeleing1....I most definitely thought the same thing about MoDef.

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The mind is like a parachute, it works best when it is open.

Babyblue

Great idea and product. Surly will help those in need. But that would not apply to anyone here, right Shelly?

Here4Good

I hope this post is in jest.

I was a mortgage banker in a previous life (1980's) and watched so many people who really just wanted a home of their own go down in flames because they would do anything to achieve the dream, instead of either waiting until they really could afford it or working with a reputable mortgage lender who understands that market and knows all of the REAL products which are out there to give folks a leg up into home ownership.

For all of the whining we have heard from our County Commissioners about affordable housing, have you seen them mention the Florida first time homebuyers program ONCE? Do you see them pushing to get more folks to try VA loans, since so many buyers here are eligible? No, they want to build 1100 SF pieces of crap on a spray field in Freeport.

Just a pet peeve of mine. There are good, solid, legitimate ways to get marginal buyers into homeownership, they just aren't very PROFITABLE for the lenders.

Babyblue

No joke. I was a lender at AmSouth in the 80's as well. A lender who offers this type of product would surely escrow the payments to ensure repayment. That is done all the time in the commercial world. This is just drifting into the residential side of life. 40-45 100 year mortgages are here already. Higher the price the longer the term. Who can afford a 2 million dollar home on every street down here? Last I counted a million was a lot of cash.

destinsm

Look at the income requirements for the Florida first time buyer program... Household with 3 or more people in it in Walton county can not make more than $63,020 salary... yet you can qualify for a purchase price of up to $370,533... Looks like the only thing the Florida first time home buyer program can do for someone in Walton county is enter them into a life of serfdom...

http://www.floridahousing.org/Home/default.htm

SHELLY

At this point, those "in need" are in the housing biz. <And don't call me Shirley>


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But hey...Top Ramen tastes a whole lot better when you eat it off of a Granite Countertop. (Mr & Mrs Too Much Homebuyer)

Florida State Flower

SHELLY

Let's face it...it's not like those boiler-room cheeseballs are going to go back to their professorships at Wharton once the re-fi game ends.


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But hey...Top Ramen tastes a whole lot better when you eat it off of a Granite Countertop. (Mr & Mrs Too Much Homebuyer)

Florida State Flower

Mango

It appears you were looking at the maximum income limits for the HAMI loan whose guidelines were they would lend $5K toward closing costs if your income did not exceed the 63,020 max. for Walton County.

The $370,533 was the maximum loan amount for the HOME loan which offered $14,999 for high cost counties. But then when you look at the maximum income limit for that program for 3 in the household the maximum income limit was $36,400. So basically it appears they are saying, we'll lend you $14,999 if you buy a house in Walton County up to whatever someone would qualify for with an income of $36,400.
Which means this program is not available to anyone purchasing in Walton County unless they haven't owned a primary residence for 3 years and have a few hundred thousand floating around for downpayment and decided to borrow 14,999.

Makes no sense to me at all.

We have similar programs in New York, but they are offered by the Banks to meet CRA requirements (Community Reinvestment Act) which means they got slapped on the wrist during an audit for not making enough minority loans or loans in minority neighborhoods.
But you can actually get someone in a house with a low downpayment with these loans in my State. They often will make the loan to anyone with any income if they are buying a home in a neighborhood with greater than 50% minority population.

The second mortgage loans for DP assistance that Florida Corp. are making do not work at all in Walton County.

I am not sure if any Banks have programs that offer lower rates for 1st mortgages to people with moderate incomes like we have here in NY.
I know some of the Banks offer the same loan we have here in New York in Miami/Dade County. (HSBC Bank) but other than that County, I do not know.

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