Mortgage elimination programs don't really work. These programs are actually scams, designed to take your money for fraudulent services and then cancel a bank’s right to foreclose on your home with legal-looking, but ultimately invalid, documents. For example, one high-profile mortgage elimination company owner was found guilty of, “participating in a conspiracy to commit bank fraud, wire fraud, and mail fraud,” in 2019.
Mortgage elimination often results in severe credit score damage for a couple of reasons. First, homeowners are often forced to take on more debt to pay the mortgage elimination company for their fraudulent services. Then, when the mortgage elimination company sends the homeowners fraudulent paperwork claiming that their mortgage is satisfied, the homeowners stop paying their mortgage. That is a mistake.
Eliminating a mortgage through legal means – by paying it off completely, perhaps after selling your home – shouldn’t have much of an impact on your credit score. A mortgage will remain on your credit report for 10 years from the date it was paid in full. At the end of those 10 years, it will fall off your credit report, and your credit score could take a hit due to a change in your credit mix. But as long as you’ve maintained other credit accounts in good standing during that time, it shouldn’t have a large impact.
If you are struggling to pay your mortgage, you can look into mortgage refinancing. Using a mortgage calculator can help you determine the monthly payments and time needed to pay off the debt. If your debts aren’t just limited to your mortgage, you may want to look into a debt management plan.
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