Mortgage elimination services that claim they can eliminate your mortgage without you paying your mortgage debt are a scam. They typically involve the payment of an upfront fee. They are premised on the argument that the entire banking system is flawed and their claims simply are not accurate nor is their understanding of mortgages and contract law. They are in business to get some of your money.
The only way you can eliminate a mortgage and keep your home is by paying it in full or refinancing it. When you sign the promissory note and the mortgage, you are signing a CONTRACT between you and the lender. You are also assigning your rights in your property to the lender until the loan is paid. If you fail to honor the terms of that contract (i.e. making your payments on time until the loan is paid off), the lender may exercise any number of legal remedies to get their money back, including foreclosure and sale of the property.
This is from Treas.gov:
Subject: Illegal Financial Activity; Description: Fictitious Debt Elimination Schemes
Date: October 1, 2003
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).
Regardless of how such instruments or documents are titled or whether they appear authentic, they are worthless, have no legal validity, and are not payable through the United States Treasury, the Secretary of the Treasury, the Comptroller of the Currency, or any other federal or state agency. The OCC is aware of the following organizations and Web sites promoting these fraudulent schemes:
- America's Advantage
- Financial Dynamics
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.
If a fraudulent document such as those described above is presented to your financial institution, do not return it. Instead, retain the document and file a Suspicious Activity Report. Deliver the instrument and a copy of the SAR to the local office of the Federal Bureau of Investigation.