Posted by CJ on 11/28/07 3:10pm
Msg #223394

MMA: scam or legit?

I do not want to advertise, so I am using the initials.

A friend of mine wants me to join this "great" opportunity. I am very suspicous. He thinks because I am a traveling notary, I could make "tons" of money cross-selling. I would NEVER cross-sell anyway so that's out.

This opportunity is a way to pay off your mortgage by taking out a Heloc. (That sounds stupid right there.) It is an MLM where you sell a $3000 software program to help everyone keep track of their money while they do it.

He wants me to watch the 45 minute video so that I will be converted, but I was wondering if someone here could just give me the lowdown on it.

I am NOT thinking of joining. I just don't want to spend days trying to disect their evil plan, and maybe someone out there already knows what the truth about this is.

Reply by BrendaTx on 11/28/07 3:14pm
Msg #223395

CJ - while you are waiting for input...try Msg #216445

I think that thread is about the same thing.

Reply by CJ on 11/28/07 3:24pm
Msg #223396

Thanks! I thought this was new. :) n/m

Reply by MikeC/NY on 11/28/07 4:33pm
Msg #223404

I've seen the video, and the math doesn't make any sense to me. Better to just pay down more principal with each mortgage payment if you can, and that will definitely shorten the life of the loan and save you money in the long run.

Reply by CJ on 11/28/07 6:32pm
Msg #223446

My friend is so excited about becomeing rich selling this software, and since I am "in the field", he wants my opinion. I am pretty sure it's bad, I just need to know how. Well, I will watch the presentation video tonight that he emailed me. I just thought if anyone knew something specific, I would know what to zero in on. Thanks for your help.

Reply by MikeC/NY on 11/28/07 8:01pm
Msg #223476

As I said, the math didn't make sense to me. There's a requirement to open a HECL, and then you move money in and out of the HECL as determined by their software, and somehow this reduces what you have to pay on your mortgage. If you watch the video, do so with a critical eye and don't get caught up in the hype - figure out whether or not it makes sense to you.

Reply by JK/TX on 11/29/07 12:49am
Msg #223510

I have heard this is a rip off..... you cannot get out of debt by creating debt....... otherwise, I would have been debt-free a long time ago !! :O)

Dave Ramsey has talked about this program on his show numerous times.... he talks about how upset the company is that he bad mouths them (truth hurts I guess).

Dave Ramsey link below on a Dallas radio station and the show may be on a local station in your area.. call him and ask.... I'm sure he will tell it like it is.

http://www.klif.com/host-ramsey.html

Reply by SharonMN on 11/29/07 1:37pm
Msg #223591

I've looked at this. It seems you are saving money by putting every cent of your money into the mortgage as soon as you get it, and using a HELOC as a bank to draw money as you need it to pay bills, buy groceries, etc. The idea is that you pay less interest because your average balance is lower. The money that would normally be sitting in your bank account is being used to pay off your mortgage until the money is needed by you. Theoretically, it makes sense (for those with healthy finances), HOWEVER:

For one, I can't believe this works without the mortgage company's OK and a big pile of paperwork (seems odd to me that you can just buy software!) Second, I can't believe such a program is completely unregulated - lack of disclosures when being sold a financial product should be a big red flag. Third, it seems there would be risk involved in such a move - what happens if your house burns down, for example? Will the lender let you keep drawing on your HELOC? If not, you are left without any cash on hand.