Mortgage loan product

• US 7,925,580 B2
• Filed: 06/04/2007
• Issued: 04/12/2011
• Est. Priority Date: 06/06/2006
• Status: Expired due to Fees

• Current Assignee: Warren Brasch
• Original Assignee: Warren Brasch
• Inventors: Brasch, Warren
• Primary Examiner(s): Colbert; Ella
• Assistant Examiner(s): Shaikh; Mohammad Z
• Application Number:
  US11/757,755
• Publication Number:
  US 20070282737A1
• Time in Patent Office: 1,408 Days
• Field of Search: 705 35- 42
• US Class Current: 705/38
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G06Q 40/08 Insurance

Abstract

In the present invention, a system and method is provided for making insurance policies and products, consumer goods, property taxes, household obligations and credit card debt more affordable by paying for such items, (collectively known as goods and services) through residential mortgages, home equity lines of credit and any other residential liens, by amending the interest rates or the balances due or a combination of both the interest rate and the balance due on such mortgages. The interest rates and/or balances charged on the aforementioned secured loans will be increased sufficiently to collect enough money each month to pay participating homeowners'"'"' monthly payments for their homeowner'"'"'s insurance or other debts and products they chose to include within their mortgages. Because interest paid on most mortgages is tax deductible, this invention has the potential to offer a significant financial benefit.

Claims

1. A data processing system implemented method for consolidating debt or other financial obligations under an amended real estate financing contract, comprising the steps of:

a) maintaining a real estate financing contract with a borrower, with the data processing system, which contract is a loan for a principal amount, established at a first predetermined interest rate, and secured by a mortgage on residential real estate held by the borrower;

b) receiving a request by the borrower or its designated representative to assume responsibility to make payments on a new or pre-existing financial obligation, but other than a financial obligation incurred by the borrower on the real estate financing contract;

c) engaging in a transaction that combines an outstanding balance on a credit obligation extended for the purchase of the new or pre-existing financial obligation by adding required payments for the new or pre-existing financial obligation to payment obligations required by the real estate finance contract without engaging in a refinancing of the real estate financing contract;

d) amending the contract during its term creating the amended real estate financing contract, to account for the merging of payments, and in direct response to the transaction of merging financial obligations and balances, to proportionally increase the first predetermined interest rate to one or more interest rates different from the first such that a combined payment equals the sum of the uncombined payments; and

e) receiving combined payments from the borrower pursuant to the amended real estate contract.

2. The method of claim 1, wherein the method is free of a step of re-qualifying the borrower, appraising the value of the real estate, or both during the term of the real estate financing contract and after the step of receiving the request.

3. The method of claim 1, wherein at least two of the steps a through e are consummated using a secure data processing network.

4. The method of claim 1, wherein the new or pre-existing financial obligation includes an obligation of the borrower to pay for one or more of the following:

property and casualty insurance, motor vehicle insurance, marine insurance, health insurance, disability insurance, flood insurance, whole and/or term fixed or variable life insurance, contracts for the purchase of goods or services, obligations specifically related to home ownership, contracts for utility services, cable and/or satellite communications, condominium dues and cooperative living arrangement fees, landscaping, snow removal, fixtures, furnishings, appliances, cleaning, home repairs, capital improvements, maintenance, for the purpose of paying for legal services or other professional services, child support, alimony, payment of law suits or settlement of law suits, obligations that relate to ordinary consumer purchases, financial obligation for the purpose of paying a non-reimbursed medical expense, the purchase of services for child care, assisted living care, transportation services, secured or unsecured loans, and tax payments.

5. The method of claim 1 further comprising a step of providing regular reports to the borrower to apprise the borrower of account information.

6. The method of claim 1 further comprising a step of accepting a referral of the borrower by a third person with whom the borrower has his or her financial obligation.

7. The method of claim 6, wherein the step of accepting the referral of the borrower by a third person with whom the borrower has his or her financial obligation includes paying a fee or accepting a fee.

8. The method of claim 1 further comprising collecting a fee from the borrower, any third person with whom the borrower has his or her financial obligation or each in order to use the method.

9. The method of claim 1 further comprising a step of cross-promoting the method with promotion of goods, services or both, offered by a third person, wherein the third person is an issuer or owner of credit obligations.

10. The method of claim 9, further comprising enrolling a borrower in a program to use the method via the third person.

11. The method of claim 9, wherein the third person is a retailer of appliances, home entertainment equipment, communications services subscriptions, telephones, computing devices, or any combination thereof.

12. The method of claim 1 further comprising a step of administering an incentives program that rewards the borrower with benefits on the basis of borrower conduct.

13. The method of claim 12, wherein the incentive is selected from reduced interest rates, cash rebates, subscriptions, merchandise, gift certificates, travel discounts, coupons, computer downloadable information, waiver or discount of fees to use the method, or any combination thereof.

14. The method of claim 12, wherein the borrower conduct is selected from timely payment history, maintenance of a pre-determined credit rating, reduction of principal balance, elimination of debt for which the method is used to pay, or any combination thereof.

15. The method of any of claims 1, wherein the step of receiving a request by the borrower occurs at least in part electronically over the internet, in person, by mail, by facsimile, telephonically, or any combination thereof.

16. The method of claim 15, wherein the amending step includes securing an amendment to the real estate financing contract signed by the borrower.

17. The method of claim 16, wherein the amending step includes securing an acknowledgement of the amendment by any third person with whom the borrower has his or her financial obligation.

18. The method of claim 17, wherein the step of amending the contract during its term to account for the providing of the credit obligation, and in direct response to the transaction of providing of the credit obligation, consists essentially of increasing the interest rate to one or more interest rates different from the first predetermined interest rate.

19. A data processing system implemented method for consolidating debt or other financial obligations under an amended real estate financing contract, comprising the steps of:

a) maintaining a real estate financing contract with a borrower, with the data processing system, which contract is a loan for a principal amount, established at a first predetermined interest rate, and secured by a mortgage on residential real estate held by the borrower;

b) providing informational and/or explanatory forms to the borrower about the methods and system described herein;

c) providing a network user interface, an internet website, or other borrower-accessible network for performing some or all of the steps;

d) receiving a request by the borrower or its designated representative to assume responsibility to make payments on a new or pre-existing financial obligation, but other than a financial obligation incurred by the borrower on the real estate financing contract;

e) providing documents that include account information of the borrower;

f) providing a competitive bidding system for offering goods, services, or credit to the borrower;

g) granting authorized access to a borrower'"'"'s account to third parties;

h) engaging in a transaction for combining an outstanding balance on a credit extended for the purchase of the new or pre-existing financial obligation by adding required payments for the new or pre-existing financial obligation to payment obligations required by the real estate finance contract;

i) amending the contract during its term, creating the amended real estate financing contract, with the data processing system, to account for the merging of payments, and in direct response to the transaction of merging financial obligations and balances, to proportionally increase the first predetermined interest rate to one or more interest rates different from the first such that a combined payment equals the sum of the uncombined payments;

j) receiving the combined payments from the borrower pursuant to the amended contract and servicing the amended real estate financing contract by distributing the payments for the merged financial obligations and balances on a proportional basis; and

k) complying with a taxing authority reporting requirements for the combined payments received.

20. A data processing system implemented method for consolidating debt or other financial obligations under an amended real estate financing contract, comprising the steps of:

a) maintaining a real estate financing contract with a borrower, with the data processing system, which contract is a loan for a principal amount, established at a first predetermined interest rate, and secured by a mortgage on residential real estate held by the borrower;

b) receiving a request by the borrower or its designated representative to assume responsibility to make payments on a new or pre-existing financial obligation, but other than a financial obligation incurred by the borrower on the real estate financing contract;

c) engaging in a transaction for combining an outstanding balance on a credit extended for the purchase of the new or pre-existing financial obligation by adding required payments for the new or pre-existing financial obligation to payment obligations required by the real estate finance contract;

d) amending the contract during its term, with the data processing system, creating the amended real estate financing contract, to account for the merging of payments, and in direct response to the transaction of merging financial obligations and balances, to proportionally increase the first predetermined interest rate to one or more interest rates different from the first such that a combined payment equals the sum of the uncombined payments;

e) receiving the combined payments from the borrower pursuant to the amended contract;

f) complying with a taxing authority reporting requirements for the combined payments received; and

g) completing a step selected from;

a. providing a home-owning borrower with an investment vehicle in the course of practicing the methods herein;

b. providing a network user interface, an internet website, or other borrower-accessible network for performing some or all of the steps;

c. providing documents that include account information of the borrower;

d. providing a competitive bidding system for offering goods, services, or credit to the borrower;

e. granting authorized access to a borrower'"'"'s account to third parties;

f. generating documents for the borrower to describe results obtained from the use of the methods;

g. providing informational and/or explanatory forms to the borrower about the methods and system described herein;

h. regularly providing current and potential mortgage product customers updated lists of participating providers and products as such lists changes;

i. regularly providing current mortgage product customers with information on new and updated services;

j. providing statements of interest paid and/or any possible mortgage product transactions that may have a tax effect to a borrower and/or a taxing authority,

k. amending the contract during its term to account for any changes in the status of the items being serviced by the mortgage product, or

l. any combination of the above.