Satco

The company's promotional materials contain a number of misleading statements. Specifically, the company claims it will purchase any property for whatever is owed on the loan. They then charge the seller a fee ranging from $600 to several thousand dollars. According to the company, the transaction will preclude the mortgage company from reporting any negative information on the sellers credit report. It also claims their services enable the consumer to legitimatly dispute negative information on a credit report by using their services. For an additional fee the company will provide you with a credit guarantee through Advanced Processing Services. Credit repair companies must be registered with the California Attorney General and post a $100,000 bond, this company was not registered as of May 21, 1997. In January 1995, the IRS issued a press release stating that transfers of property to companies like this will be regarded as a sham and will not be recognized as a bona fide sale for tax purposes. In other words, if income tax comes due as a result of foreclosure or other transfer of property, conveyance of the title to companies like this will not avoid that liability. Most mortgages require that you obtain the permission of the mortgage company before assigning the note to a third party. Failure to comply with that requirement constitutes a default of the note which will result in forclosure. Any non payment of the mortgage or forclosure will be reported to the IRS and will appear on the credit report of the original maker of the note. Transfer of title will have no effect on those obligations.