Hoot

Latest Bank Headache: Home Equity Loans

Cromag, It is not a loan. It is software. You can spreadsheet your numbers to death, and you won't match the optimization of running all your income and expenses through the HELOC. When you do that, you create an interest cancellation event. It actually creates a payment savings which the software then takes a portion of, and adds it to a portion of the discretionary income, and prompts the user to write a check from the HELOC (to the exact penny) and send to the 1st lien holder.

You can call this any name you want, but if you will look at the web site I suggested, you will also see a BBB rating which shows zero complaints from the thousands of users. In fact, they are all running ahead of schedule. Once users get into it, they see how much they can do by budgeting better and increasing disposable income and thus accelerating the mortgage even faster.

And finally, if you will take the time to look, the 3 reporters covering the story buy the software for themselves. Their opinion of its effectiveness is unequivocal. Ask yourself, what would be the liability to this tv station, upon such reporting, if it were as you suspect? How much money would they be sued for?

I'm not here to pitch this thing, just bring added light to a solution for many faced with the difficulty of home prices declining faster than they can pay off the debt.