I am posting this warning inform readers that there are more and more "mortgage professionals" and "real estate professionals" grabbing on to these programs as they are the latest "fad".
Struggling mortgage and real estate personnel are looking for all kinds of ways to survive and that is never good for the consumer as they will get sold on a product that may not truly be in their bests interests. The question is whether or not we will be hearing about these agents being "unscrupulous" years from now, much like those selling the Option ARM are today.
Anytime a "professional" sells a product simply for financial gain without knowing and understanding ALL other options and which is truly best for the client, the client gets screwed. I can see this happening, particularly with the way United First Financial's Money Merge Account is being sold and it makes me sick.
Now, not all of the agents are doing this, but I have yet to see any one of their agents show a side by side comparison of other equity management strategies, let alone demonstrate the full expertise needed to do so. Everyone that approaches me, stating these products are much better than other strategies has demonstrated their lack of knowledge of how money works, especially as it relates to time value of money and liquidity.
Again, don't take my word for it, do your own research. But keep in mind these presentations are designed to sell the product with "oohs and aahs". In particular, the Money Merge Account is simply software and can do absolutely nothing if you don't use it or you do not have the other tools necessary, which will likely mean you have to obtain a new HELOC, even if you already have one.
Use caution when trying to decide if these products are the solution for you. Mortgage acceleration programs can be beneficial, but he software is not what generates the savings, rather it is the use of discretionary income. I continue to see a lot of deception as it relates to selling these products. Even if the program you select seems like the best solution for you, remember that it may not be as there are a lot of other solutions out there.
As I stated at the beginning of this post, THIS IS A WARNING POST. I am not trying to prevent you from getting this type of program, simply warn you to do plenty of research and be careful. Without a side by side comparison as it relates specifically to your situation, you cannot be guaranteed you are getting the best solution!
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