The only kind of mortgage elimination with which I'm familiar are those involving house payments made for an agreed upon term.



This is not the kind of mortgage elimination to which my friend referred. And this was the third call in a year asking about programs that get rid of debt without declaring bankruptcy or paying bills (with a clean credit rating, no less).

To get information about this ?get your Deed of Trust without fulfilling the contract you signed -- don't pay any more mortgage payments? program, I called a couple of mortgage bankers. They, too, knew little or nothing about mortgage elimination programs. Actually, after looking into the numbers of people paying fees to get them and reading the Office of the Comptroller of the Currency's (OCC) Bulletin on the subject, mortgage banker training should be done on this topic.

Mortgage elimination representatives try, on their Web sites, to explain why people who have mortgages with banks do not need to pay them back. These ?experts? say if you borrowed for a mortgage, you have been deceived into thinking you owe the bank money for that loan. Their reasons given as to why you should believe this concept center on long explanations about how banks use signatures on loan documents as an asset ? as a means of creating money. There are other reasons, too.

Your signature, they say, is an asset and the bank uses it to create money? money the bank loans to other people and earns money. Since the bank did not tell you it was going to use your loan to gain access to Federal Reserve funds, the bank violated contract law, they say. Because of your signature ? because of your loan ? the bank now has access to ten times the amount of your loan in Federal Reserve funds so it can make more loans and earn more money.

Their explanations are difficult to understand. Almost all of what they say is factual or close to factual. They do leave out some interesting things (like the third party who gets paid by your mortgage loan? a contractor or an individual sells you your house, not the bank).

I believe it is neither moral nor legal to agree to pay a mortgagor a certain number of monthly payments, then decide to not pay.

Common sense tells me mortgage eliminations are likely to be schemes, not reputable business opportunities. And, after reading the explanations of how and why these ?experts? can ? for an upfront fee ? make your mortgage payment go away and get your Deed of Trust released to you, I'm highly skeptical. On the other hand, there are numerous people who claim to have had their Deeds of Trust released to them using these programs.

Also on the other hand, I read the Comptroller of the Currency's Bulletin. When the OCC takes a legal position, they usually use words like ?will,? ?is? and ?can.?

The subject of this Bulletin is ?Illegal Financial Activity.?

The OCC's Bulletin is directed to everyone from chief executive officers of all national banks to the Board of Governors of the Federal Reserve System? nine Very Important Groups, in all. The subject: ?Debt Elimination Schemes using Fictitious or Worthless Bonds, Due Bills and Bills of Exchange.

?Please be advised that worthless instruments entitled ?Bond for Discharge of Debt,? ?Bill of Exchange,? ?Due Bill,? ?Redemption Certificate,? or other similarly titled documents continue to be presented to financial institutions, mortgage companies, credit card issuers, and retail establishments throughout the United States in an effort to eliminate legitimate debts. Many of these schemes are premised on baseless or fraudulent claims against the United States Treasury, the Secretary of the Treasury, the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Internal Revenue Service, or other federal or state agencies.? (See also OCC Alert 2003-7 and OCC Alert 99-10).

The OCC Bulletin then says ?The creation and presentment of these fictitious instruments MAY be a violation of Title 18, Section 514, Fictitious Obligations, or other federal criminal statutes and any person(s) using such fictitious instruments with the intent to discharge valid debts MAY be subject to criminal prosecution. (Upper case added.)

Why is the word MAY, not IS or ARE, used?

Several mortgage elimination companies promise to pay your mortgage loan with Cashiers Checks. Is that why the OCC used the word ?MAY??

Do I think it is possible to eliminate mortgages on properly closed mortgage loans before they are paid in full? No. But I've been wrong before.

I do know national banks are advised by the OCC to contact the FBI if such payment attempts are made I do know that honesty is usually the best policy. I do know how define "moral" and "immoral."

Does the bank gain access to Federal Reserve funds so it can make loans to other people because of any loan you have with them -- house, car, home improvement, etc.? Yes. Does the bank thus profit on the funds made available to it via your loan? Yes.

If you think you have been deceived, hire a lawyer and go to court. File suit against the bank or mortgage company and try to change the way things are done. It is a lot less worrisome than partaking in some scheme to eliminate a debt you have agreed to pay.

This is a case of saying "it all depends on what you definition of 'is' is." Is that the classless ballpark in which you want to play the game of life?

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