Save One Homeowner at a Time!

We will buy a defaulting note. This effectively makes us the bank for the homeowner. We will then have the power to give the homeowner a great deal that actually works for them. We will lower the payments AND the principal amount.

The goal is to lower the new mortgage amount to approximately $3000 below the house's current market value. The homeowners will have instant equity and a payment they can afford. We will help them start to rebuild their financial health.

Banks call these homes toxic assets. We call them homeowners.


Banks do not really offer this kind of service. Here is how a bank loan modification usually goes down:

The homeowner goes to the bank and pleads for a loan mod. The bank says, "What, but you still have other assets. You don't qualify."
This would be like a hospital turning away a patient, saying to him, "You're not sick enough yet. Come back when you are terminal!"

So when the homeowners have maxed out their high-interest credit cards, run through all of their retirement, college funds, and borrowed every dollar they can from family and friends, they return to the bank and the bank says, "Ok, now you are ready. Send in new paper work," which the bank promptly loses. Then, when the homeowners start over for the third time and finally get the packet in front of the proper guy (8 months after they started), they are granted a temporary lower payment period. But now their credit has already been ruined, they have no backup reserve and they find out the bank will not lower the principal. So, they are still paying on a house that is way under water, paying tens of thousands more than the house is worth!

And then the bank complains that even after they were magnanimous enough to reverse some fees and lower the interest rate, these dead beats failed in the 3-month trial period. The reality is the bank set up the failure. In many cases, the bank long ago sold the note off and is just functioning as the servicer and, as such, it makes money either way. In fact, a foreclosure can be a profitable transaction.

The weird thing is, once the bank forecloses, the REO is sold for less than the current market value, an amount lower than what they refused to lower the mortgage to for the homeowner. The bank actually ends up with much less money. Plus, the cost of taking the house back and carrying the house until disposal takes makes the loss even larger.
I have purchased houses from the bank, where, at closing, they actually had to come to the table with cash. The amount I was paying did not even cover the expenses of closing the sale, and the property taxes and utilities that accumulated during their holding period. They would have been ahead to have let the homeowner remain in the house for free.

And since they sell for far below the current value, they are establishing a new, lower current value, pushing the neighborhood prices into a downward death spiral with more rounds of foreclosures to follow.

We might be able to make a small impact. Once we re-write the note with equity and a loan amount affordable to the family, we can sell this note at a small discount.

With the proceeds we can buy a larger note and rescue another homeowner. The hope is to keep accumulating the return until we can buy two notes; resell those and purchase 3 notes. And so on. At some point when we have demonstrated our ability to profitably save homes from foreclosure, we can raise a large sum of money and implement this plan on a larger scale. Otherwise, I would do transaction with out a profit.

This growth may or may not be possible, we may run into problems and we may need to hold onto the note or notes - which is fine. Even if we are only able to help one family at a minimum and have a possibility of saving many more, this is a worthwhile endeavor.

I hope you will be a part of it.

I must respect the wishes and privacy of the homeowners, but hopefully after the dust settles, they will be willing to give us a video interview to express their gratitude.

$5000 would be tight to work with, but I have bought houses for less, so I can make it work. I am rasing money from other sources as well and my actual goal is $25,000.

The Perks
The Family in Front of The Saved House		Certificate of Appreciation
The Master Award Display
Of course all the images are mock ups... We don't have the family yet. *If fact we must give the family a choice as to whether they want to remain private or have their story told.