The Mortgage Manager
Frequently Asked Questions
Who is Information Brokerage Systems and what kind of people will be managing my mortgage?
The Mortgage Management Division of I.B.S. is headed by Executive Vice
President Michael Edgecomb who has received national honors for his work
with homeowners just like yourself. These honors include being featured
in "Who's Who Among Outstanding Americans", "International Leaders In Achievement"
and the 1996 edition of "500 Leaders Of Influence" which is on permanent
display at the U.S. Library of Congress in Washington, D.C.
The International Biographical Institute has awarded him "Man Of the
Year" for 1995 - 96 for his development and production of this software
- The Mortgage Manager(TM). This software program has helped thousands
of homeowners just like you save $50,000 to $150,000 and more, eliminate
years of mortgage payments, and avoid costly lender miscalculations. You'll
have certified trained mortgage reduction experts managing your mortgage
and they are just a phone call away to answer any of your questions.
How long am I committed to your service, what if I decide to try it but later change my mind?
Using the Mortgage Manager(TM), even on a trial basis, commits you in
no way. Our service is free, so trying it costs you nothing. If you are
unhappy, you can cancel at any time without any obligation whatsoever.
However, our past experience tells us that you will enjoy the free service
and the savings so much that you will be telling your friends and relatives
about it.
How is my mortgage payment protected with your service?
The bank that will be handling the electronic transfers of your bi-weekly
mortgage payments is Boatman's Bank IV with over $50 billion in assets.
They are an automated clearing house and a division of the Federal Reserve.
Your electronic transfer is federally insured up to $100,000 under Regulation
"E". It is then insured for an additional $100,000 through F.D.I.C. insurance,
so you can be assured that your money is safe and secure.
All electronic transfers are done through the Federal Reserve System
so your funds are protected by Federal Reserve Banking Regulations and
Laws to guarantee proper fund transfers. Federal Regulation "E" protects
you from unauthorized electronic withdrawals. Regulation "E" is an electronic
transfer consumer protection regulation which regulates and enforces Banks,
Savings & Loans, Private Companies, etc. in reversing any unauthorized
debits within 60 days of being reported to the consumers bank. Due to these
regulations and laws, you can be assured that your funds are handled properly.
Furthermore, we have very sophisticated ways of tracking your monthly
mortgage payment. If for any reason your payment is not received by your
lender within 5 days prior to the end of your grace period, we automatically
call your lender. If the first payment has not been received, this allows
sufficient time to get a second payment to your lender without incurring
a late fee. In the unlikely event a late fee is incurred, we will pay the
fee and write a letter of explanation to your lender.
Our free software also allows you to track and audit your mortgage payoff
and savings every step of the way.
I have heard of this service before, but it was never free, how can you provide so much at no cost?
There are several other companies and banks who offer these same services.
However, they ALL charge a fee ranging from $395.00 to over $1,000.00.
We could easily do the same, but homeowners who are just getting by (and
who need our services the most) have a hard time paying a few hundred dollars
even when it's going to save them thousands of dollars.
Volume is how we are able to offer this service for free. The Mortgage
Manager (TM) is the most popular and efficient mortgage reduction system
in use today. We help a much higher volume of homeowners than other companies.
Because of this volume, our revenues are generated in different ways and
we don't have to charge you any up-front fees. We are paid interest by
the bank in exchange for managing hundreds of millions of dollars which
flow through America's banking system. The main point is that our earnings
don't come out of your pocket like they do with other companies and banks
offering the same services.
Can I do the same thing myself without your services?
Almost. You can restructure your payments on a bi-weekly schedule but
it requires a considerable amount of time, discipline, and knowledge about
loan amortization, compounded interest, index and margin calculations,
etc. to do it correctly. Statistics show 97% of people who try to do it
themselves fail - those are not good odds to gamble with on what will most
likely be the biggest investment of your life. Since our service is free,
why go through the headaches of trying to do it yourself?
Most importantly, without our AUDITING PROGRAM which can be unlocked
with a special verification code we will send you, there is no way for
you to track your savings or catch lender mistakes. Our software will automatically
do this for you at no cost. This is really the most important part since
the F.D.I.C. estimates errors occur in nearly every other mortgage with
the average mistake costing the homeowner over $1,500.00. Below are some
articles that emphasizes the seriousness of this fact:
ATTORNEY GENERAL OF NEW YORK - After ordering the nation's largest
mortgage lender to refund $150 Million dollars in overcharges; "We dug
deeper and deeper and found that this system of overcharging is virtually
universal. It runs across the entire mortgage lending industry."
The Herald - "Lender holds principle payment; About four months
ago, my wife and I decided to start making extra payments on our mortgage.
We were shocked when we realized the lender held these checks more than
60 days before applying them to our loan." C.C., Miami.
THE WALL STREET JOURNAL - Bank allegedly overcharged on mortgages;
Homeowners should never trust their banks calculation of their adjustable
rate mortgage payments."
I contacted my mortgage lender and they said they do not accept electronic bi-weekly payments, so how can you do it?
Your mortgage does not actually change to a bi-weekly mortgage because
that would require refinancing (which involves new appraisals, surveys,
inspections, title verification, financial statements, etc.) and a cost
of several thousand dollars. We restructure your mortgage onto a bi-weekly
"schedule" through electronic transfers to give you the same savings and
benefits of paying your mortgage bi-weekly without the cost of refinancing
or changing your existing mortgage agreement with your lender. Your mortgage
lender still receives a monthly payment, but it includes any and all additional
credit accumulated in your account which is applied directly to the principle
amount of your loan. This reduces your loan amount much quicker than a
"monthly schedule" and builds your home equity amount 300% faster.
Payments are made in the form of a check which is verified each month.
This creates no problems with your lender and also provides a paper trail
which can be used in case of a lender miscalculation.
I am on a tight budget, always paying my bills at the last possible minute, can I still enjoy these savings?
Absolutely. In fact, you will find "bi-weekly" payments much easier
to budget than "monthly" payments. It might take a little getting used
to at first, but the amount in total savings you will enjoy, make it well
worth it.
The National Council of Savings Institutions says, "bi-weekly payments
are 'pro-customer' because they equal the paycheck flow." Since bi-weekly
payments correspond to America's paydays, it makes mortgage payments much
easier for homeowners who are on a tight budget or have a difficult time
saving money."
If your budget is so tight that you commonly mail checks before you
have the available funds in your account, knowing the check will not be
presented for a few days, you can still take advantage of the bi-weekly
mortgage savings. Asking your bank for "overdraft protection" will allow
your bi-weekly electronic transfer to occur even if you deposit the funds
a few days later.
Can I increase my monthly payment to save even more?
Yes, if your budget allows you to pay extra on your mortgage in addition
to your regular bi-weekly mortgage payments, it can be well worth it. Most
people do not know that increasing their bi-weekly payment as little as
13% can pay off a 30 year mortgage in 15 years. Now, you can increase your
bi-weekly payment as little or as much as you want, and at any time that
it is convenient for you.
What affect will your service have on my ability to deduct interest
on my taxes?
Many people are led to believe that it is bad to pay off their home
early because they will lose the tax write-off. This couldn't be further
from the truth. In reality, it gives you added income. For example, if
you are in a 25% tax bracket and you write off $10,000 in home interest
payments, you will save $2,500 on your taxes. That's a $10,000 expenditure
to save $2,500. On the other hand, if you owned your home, and didn't pay
$10,000 in interest payments, you would have to pay $2,500 in taxes on
this money, leaving you with $7,500 in spendable income.
It's a fact that most Americans sell their homes after about 7 years.
It's also a fact, that you can make monthly mortgage payments for 7 years,
and still not have enough equity in your home to pay a Realtor to sell
it.
By tripling the accumulation of home equity, you'll have additional
money at your disposal to pay for education?s, vacations, a new car or
boat, retirement, etc., through home equity loans. You'll be able to deduct
these interest payments where you couldn't if you took out a separate loan
for such items.
You also have the ability to dramatically upgrade the quality of the
home you live in by building equity 300% faster and transferring this extra
equity into a more expensive home if you desire.
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