I’ve recovered my composure, but I’m still dazed.  A friend called me to ask if my wife and I had a conventional mortgage and if we did, did we realize that we were being badly misled?  That’s a serious charge and I didn’t understand, so he explained that our lender used the promissory note we signed at closing to pay off the former property owner, never loaned us money out of his own pocket, did not tell us, and still requires monthly payments! 

But, I protested, how can he do that?  We’ve paid more than $140,000 so far, keeping our agreement at the risk of default and foreclosure.  And wasn’t he taking a big risk with us for 30 years by lending us the purchase price of our home?  No, he wasn’t, isn’t, and never will be. 

Little did I know that the lender deposited our note in an account just like cash, and listed it as a new asset.  He then obtained credit from the Federal Reserve with this asset, expanded that money anywhere from 30 OR MORE  times, used some of the money to pay off the previous property owner, and kept the rest.  He never loaned us a dime!  In fact, we loaned him money and he literally carries our promissory note on his books as a liability, just as if we had deposited cash in his account that he would then be obliged to give back to us if we demanded it.  We literally paid for our house on the spot with that promissory note, but we’re paying again, over 30 years, for the same house!  This is crazy, I said!  I thought we were getting a loan. 

But, I protested, how can he do that?  We’ve paid more than $140,000 so far, keeping our agreement at the risk of default and foreclosure.  And wasn’t he taking a big risk with us for 30 years by lending us the purchase price of our home?  No, he wasn’t, isn’t, and never will be. 

In an honest loan agreement, the lender’s supply of money would shrink by the amount that he loaned us.  He’d be earning his profit (interest) by risking money that was really his.  In our case, the lender’s pool of money exploded when he took advantage of his status as a Federal Reserve lender and created money out of thin air with our note.  If a private lender tried this, it’d be counterfeiting and he’d end up in the slammer. 

The lender created the money to purchase our home from the previous owner out of thin air with our promissory note, expanded it up to nine times, invested this free money to get free interest, never paid taxes on this extra money he created, then held hostage the title to our home that he didn’t pay for while he began collecting 2 ½ times the original purchase price from us one month at a time for 30 years! 

We gave that lender enormous value, value far exceeding the purchase price of the home we live in.  But, like millions of other homeowners, we couldn’t see behind the curtain that was drawn when we handed over the promissory note.  We didn’t know how banking works.  We didn’t understand what constitutes value in our system these days, and the lender never told us.  Why would he?  If he had, we’d have demanded a darn good reason why we were going to have to pay him more than $500,000 over 30 years, for a house that we had already paid for, not to mention the liberties he took with our note by expanding its value without our permission.

We’re doing something about it, and you can too.   We’ve submitted our documents to a very professional company that for a fee can satisfy the outstanding balance on our mortgage legally, safely, and permanently. No more mortgage payments ever again in as little as 6 WEEKS TO 7 WEEKS

Your friend, (Name deleted)

A Quick Summary Of How a Loan Works.

1) You want a loan for your home.
2) The bank advertises that they loan money.
3) You "apply" for a "loan."
4) They put you through the ringer getting you approved for the loan.
5) The bank cannot loan you their own assets, other depositors funds or their own credit.
6) They have you sign a promissory note.

The next 4 steps the Bank does not want you to know...
7) Your "signed" promissory note can be sold for money, it's an asset. This is explained further in our "Library" section.
8) The bank deposits the asset into an account for approximately the amount of the note.
9) The bank cuts you a check from the deposit you never knew about (or transfers the money to those who should be receiving it).
10) You think you owe money back on a loan, when in fact, all that was made was an exchange

Interesting Banking Facts....

1) Money is created today by "lending," so all money today is born as "debt money."
2) The person who wants a loan must provide the bank something that he or she doesn't know is valuable, called a "signed" promissory note.
3) The "signed" promissory note is a bank asset that is "expanded" to create as much as nine times its value. 4) This "expanded" bank asset is what provides the bank with the value to be able to pay off the former owner, "lend" you the purchase price, and finally, earn interest by making loans to others, tax free.
5) All the while, making you, and millions of others, believe that a debt exits.

Let's Review The Brillance Of This Scheme

If you think about it, the bankers' scheme is really quite brilliant.

What other business in the whole world allows you to create money based on the value that someone else gives you, then charge that person again over and over again... plus interest?

So the real question becomes...
"If the promissory note is an asset, what funded the bank's ownership of the note?"

Answer: They still don't really own it.... they made an exchange.

Your promissory note (asset to the bank) was exchanged for approximately the amount of the loan. You gave the bank an asset worth $100,000 and the bank returned $100,000 to you.

Where was the loan?   There wasn't one.    But you really do have to admit, it's brilliant.

Listen, we're not the first people to "discover" this was going on. But we have figured out some things that no one else has!

As an honest, ethical person who believes that all loans should be repaid, do you agree that the bank should repay your loan to them? After all, they deposited your promissory note. Your promissory note is an asset that they exchanged for a check.

Where's the loan?

Factually, there isn't one. And, since all lenders should be repaid, shouldn't the bank repay your loan to them? If so, you wouldn't have the "debt" and would live better.

Quickly, when you deposit money in your checking account, does the bank now owe you that money when you want it?

Yes.

The bank has a new asset, the $100 you deposited into your checking account. The bank also has a new matching liability that says the bank owes you $100.

Assets = Liabilities.

The bookkeeping entries are nearly identical for a deposit into your checking account and for a new loan. By lending, the banks now have more assets and liabilities.

If you were to lend me $500, your "pool of money" would be smaller. When a bank "loans" money, their "pool of money" increases.