Wednesday, March 12, 2008

Watch out for this one

Just when you thought lenders had come up with every possible gimmick to convince folks to use their homes as ATM's . . .

"The REX Agreement" is a loan program (though they don't call it that) offered by a firm called REX & Company, which promises to GIVE homeowners money that they don't have to pay back -- ever! That's right, no payments, no interest, no debt -- just cash.

Sound too good to be true? Well, it is. The catch is that when homeowners accept the cash, they basically sign away their rights to much of their home's future appreciation. In other words, it's as if your home no longer gains any/much value over time. So when you go to sell, you may not see any profit. That's a lot to trade away for a little vacation cash or a new big screen TV.

You can check out the details for yourself at http://www.rexagreement.com/. I provide the website address with full faith that you will not be fooled into thinking this is a good deal.

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