If a borrower decides to sell the home and pay off PMEF, the borrow will only be able to get another loan through PMEF if 80% or more of the equity is rolled over into the new home and if the new home does not excede the maximum loan amount the PMEF is willing to loan.

PMEF - Introduction

The Perpetual Mortgage Elimination Fund (PMEF) is a program designed to help people pay off their mortgages in a fraction of the time. The idea is that without having to pay interest, a mortage can be paid down rapidly. The goal is to pay off more and more homes exponentially. More payers into fund added than who drop off. An endowment of capital will be needed to start the process off.

How it works:

1. Using money (donations or otherwise), PMEF is primed to pay off the first, let's say 20 homes.
2. Each homeowner must continue to pay their current mortgage payment to the fund for the amount of time that it would have taken the homeowner to pay off his/her home on a no interest loan. In other words, the loan provided by PMEF has to be paid completely.
3. PMEF owns the home until the unpaid balance of the home is paid off.
4. A lien is placed against the home.
5. If the homeowner sales the home, PMEF, as any other lender, is in first position to get paid back.
6. As soon as the fund gets big enough, investors (if any) receive a principal payment until the original loan is paid off.
7. The homeowner has a penalty nonpayment of his/her loan. The interest rate of the original note begins to accrue. Forclosure proceedings begin like another not.
8. What if home prices fall? How does PMEF guard against this risk?
9. When an application is received from the homeowner, credit checks are done, the home is appraised and PMEF decided whether it will take on the risk. Homeowner must qualify in the same manner as any home buyer.
10. Each homeowner pays a fee to offset legal, accounting and appraisal costs.
11. PMEF will obtain non-profit status.