Dear (name deleted)

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, (called Fractional Reserve Banking) 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. 

In fact it was an exchange.  Value for value.  Our note for the house.   No loan that passes the “sniff test” was made to us at any time.

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. 

It’s called fractional reserve banking and all lenders who are part of the Federal Reserve System do the same thing.  Only they don’t tell you what they do with your note, and that’s dishonest.  Why? Because by law, if the actions of either party to an agreement significantly alter the cost or risk as originally represented, he is obligated to inform the other party.  Lenders NEVER tell “borrowers” that their promissory notes are instant cash cows, that they use your note to fund your own loan, or that they incur little risk.  But you still pay a second time, month after month, year after year for something you’ve already paid for with that note! 

The lender is NOT telling you that: 

• He’s funding the purchase of the property with your promissory note and that no money comes out of his pocket to do that. 

• He does not incur nearly the risk he says he does.

• Your note is a negotiable instrument, redeemable in cash for up to nine times the face value of your note, exponentially increasing his profit potential.  

• And if you understood what your lender did with your note and you had a law dictionary, you’d realize what your Deed of Trust or Mortgage really says, which is that……

• Your lender accepted your Promissory Note as payment in full for the property.

• You enter the Deed of Trust or Mortgage agreement after signing the Promissory Note as the sole owner of that “Fee Simple” property, paid for in full by your signature on the note, and then you sign it away as collateral for the privilege of paying again, paying this “trickster” principal and interest for the next 30 years.

 Whereas, silly us,

• We thought we were taking out a loan.

• We had to qualify for the loan, establish ourselves as a worthy risk.

• We had to jump through hoops to provide all the documentation – tax statements, banking references, income statements, cash balances, investments, other “loans”.

• We felt so grateful to the lender for making it possible for us to have a home.

• We sweated the possibility of foreclosure, loss of our home and our credit rating.

• We’ve made every payment on time, over $140,000 so far, with 22 years of payments to go.

 Have we kept our side of the bargain?  You bet we have.  I even feel like we should keep paying because I’m old fashioned and my granddaddy told me you don’t get something for nothing.  Well, did we get something for nothing?  No, but the lender did!  Were we tricked?  Yes we were.

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.

NOTICE:  All information herein is factually correct, however, we are only applying theses principals to Unsercured Debt (Credit Cards) now - as of June, 2006.  We are not recommending any mortgage program except Mortgage Reduction

Banks are required to adhere to Generally Accepted Accounting Principles (GAAP).  GAAP follows an accounting convention that lies at the heart of the double-entry bookkeeping system called the Matching Principle.  This principle works as follows:  When a bank accepts bullion, coin, currency, checks, drafts, promissory notes, or any other similar instruments (hereinafter “instruments”) from customers and deposits or records the instruments as assets, it must record offsetting liabilities that match the assets that it accepted from customers.  The liabilities represent the amounts that the bank owes the customers, funds accepted from customers.  In a fractional reserve banking system like the United States banking system, most of the funds advanced to borrowers (assets of  the banks) are created by the banks themselves using you as the creditor (guarantor) and are not merely transferred from one set of depositors to another set of borrowers.

NOTE:  There are existing statutes, policies and procedures that banks and other financial institutions are required to follow as being chartered under the Federal Reserve. Even a cursory examination of these laws reveals that modern lenders breach their contract with every customer! Banks, credit card companies, and other financial institutions advertise that they are in business of lending money, but this is so false that their own accounting system shows that the exact opposite is true.  The truth is your strength and we show you how to use it to your advantage in correcting this

The letter above states the significant concepts behind the fraudulent practices that exists in American banking today as a result of the privately owned corporation called the Federal Reserve System, that was created in 1913 by wealthy banks in Europe to perpetuate their wealth, and use us as collateral.  The so called contracts that we sign are not valid, and that there never was value given to the "borrower".  Legal procedures are available to have this invalid contract cancelled, and have the property reconveyed to you as it was paid for when you signed the Promissory Note. 

More Info - Federal Reserve System

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