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"THE REST REPORT"

ENDORSED BY:

MANDELMAN MATTERS

A Letter to Homeowners Written by Popular Columnist and Outspoken Homeowner Advocate, Martin Andelman of Mandelman Matters…

The simple fact is that I wouldn’t even consider applying for a loan modification until I knew whether or not I qualified for the government’s program.

The REST Report is the ONLY way you can know with certainty whether you qualify… or why you don’t. And because it’s generated by a version of the same software platform used by major banks and servicers, you know it’s accurate, and that is uses the most up-to-date decision analytics at all times.

I’ve looked at the others that claim to be able to qualify homeowners for HAMP, but the REST software platform is the only one that uses a version of the same software banks and servicers use, so it can tell you whether you passed the NPV test, as required by the U.S. Treasury, and if you didn’t pass it… why you didn’t.

I’ve never sold advertising on my site, or endorsed a product before, but after spending TEN MONTHS learning about and working with the REST platform, I’m could not be more serious when I tell you that I recommend that all homeowners order their own REST Report… it’s is a “game changer,” as they say… the real deal.

I wouldn’t even consider starting the process of getting my loan modified until I had my own REST Report, and I can’t imagine anyone wanting to pursue a loan modification without it. CALL Mark today and he will run your report today. 623-444-4498

Martin Andelman

Mandelman Matters

The fact is… up until now, no one could tell you with certainty whether you qualified for a loan modification under the government’s Home Affordable Modification Program, or HAMP.

The only way to find out has been to apply for your modification, make trial payments for months, and then hope against hope that you get approved. If after all those months you were told you didn’t qualify, you likely to found yourself losing your home, and often times with 30 days to move.

HAMP loan modifications require homeowners to enter into a “trial modification” phase prior to a permanent modification being granted. During the trial phase, homeowners make “trial payments,” but because trial payments don’t stop the foreclosure clock, if you’re declined for a permanent modification, the bank is free to sell the house at a trustee sale, which can occur within a matter of days.

The problem with the HAMP program is that, even though you qualify according to the published guidelines, you still have to pass the NPV test, and how you do that, is not available to the public.

Thousands of homeowners, believing that they are on their way to a loan modification that will allow them to avoid foreclosure, end up being told that they failed the NPV, and that the only difference between them and someone renting a house is that the person renting has more rights and is allowed more time to move.

Now the government says that homeowners won’t be allowed to enter trial modifications until their lenders or servicers have verified all supporting documentation. So, now a homeowner will be expected to spend all that time getting all of their documents together, submitting them to their bank… and then waiting for the bank to say yes or no? There has to be a better way.

"The REST Report… A Better Way to Pursue a Loan Modification"

THE REST OF THE STORY CONTINUES BELOW THIS AD....

SEE BELOW FOR THE REST OF THE STORY!!!

Home Loan Modifications, Short Sales and Automated Valuation Model

The REST Report allows homeowners to know with certainty whether they qualify for a HAMP loan modification, and what the terms of that modification would be, BEFORE they apply, so no one has to go trough the costly, stressful and/or time consuming process for nothing.

That’s why we say that the REST Report is the best thing to happen to loan modifications since, well… it’s just simply the best thing to ever happen to loan modifications.

Homeowners can use the REST Report by sending it to their lenders or servicers, along with their supporting documentation when they apply for a loan modification. It’s an 11-page report that uses your specific information and the most up-to-date NPV decision analytics… the same analytics that are used by the major banks and servicers to determine HAMP eligibility.

Others may claim that they can qualify you for HAMP, but no other system can duplicate what the REST Report shows, because no other system available to homeowners runs the most up-to-date NPV analytics, as required by the U.S. Treasury for the HAMP loan modification program.

With the REST Report you’ll have the knowledge and information you need to make more informed decisions.

A. First our trained specialists enter information about you and your mortgage into the REST loan disposition software platform. We make it easy by emailing you a checklist of what you need to have handy when you call, and your report will be emailed to you within a few hours.

B. The REST Report shows whether you qualify for HAMP, and what the terms of that loan modification under HAMP will look like. But that’s not all. Should you not qualify for HAMP, the REST Report will show you why you don’t qualify.

C. The report also qualifies homeowners for HAFA Short Sales, and shows the NPV, or Net Present Value, of numerous other foreclosure alternatives, such as a Flex Mod, an interest only alternative, along with other options.

D. With the REST Report, if you do qualify for HAMP, now you’ll know for sure. But just because you don’t qualify for a modification under the government’s HAMP program, does not necessarily mean that you can’t get your loan modified. Many lenders and servicers have in-house modification programs for which you may qualify.

E. Once you receive your report, one of our trained specialists will review what the report shows, so you’ll know what it says and how to use it. Once armed with the report and the knowledge of your options that comes along with it, you can start making smarter decisions right away. Why would anyone want to go through the modification process without it?

1. What is the REST Report? The REST Report is an 11-page report that’s generated using specific information about you, your property and your mortgage, and the most up-to-date NPV decision analytics… the same analytics that are used by major banks and mortgage servicers… to determine eligibility for HAMP loan modification. The REST Report allows you to know with certainty whether you qualify for a HAMP loan modification, and what the terms of that modification will be, BEFORE YOU APPLY, so you don’t have to go through the costly, time consuming and stressful process for nothing. Others may claim that they tell you if you qualify for HAMP, but no other system can duplicate what the REST Report shows you, because no other system available to homeowners runs the most up-to-date NPV analytics, as required by the U.S. Treasury for the HAMP loan modification program. 2. How do I know the REST Report is accurate?

The REST Report is generated using a version of the same software platform that major banks and servicers use to determine HAMP eligibility, so as changes occur in HAMP’s decision analytics and program guidelines the system is updated concurrently.

Your REST Report is good for 90 days from the date it is generated, but that should be enough time to receive an answer from your lender when submitting the REST Report.

3. How can I use my REST Report?

Homeowners send a copy of their REST Report to their lenders or servicers, along with the required supporting documentation, when they apply for a loan modification.

If the REST Report shows that you qualify for a HAMP loan modification, you can be assured that you will qualify, assuming your lender follows the rules set forth in the HAMP guidelines for servicers.

4. What do I do if my lender denies my HAMP modification, though my report shows I’m qualified?

The first thing you should do if your lender refuses to grant your loan modification when your report shows that you are qualified for HAMP is contact your lender and make sure the numbers they’re using in their analysis match up with the numbers you submitted and are shown in your report.

Mistakes happen often, and if there’s a discrepancy that can be corrected, your lender will re-run the numbers and you should qualify.

If the numbers the lender is using do match up with the numbers shown in your REST Report, ask the lender to explain to you where their analysis differs from the one shown in your report. If the person you’re speaking to won’t tell you why you’ve failed to qualify, speak with their supervisor. Ask that person to explain why the bank is saying you’re not qualified, and tell him or her that you plan to escalate the matter as far up the chain as necessary, including reporting the lender or servicer to Freddie Mac if necessary.

It’s sad and shocking to some, but there have been cases where banks have simply refused to adhere to the rules set forth by the HAMP guidelines for servicers, which were published by the U.S. Treasury.

(JPMorgan Chase, for example, was recently sanctioned by the bankruptcy court for “producing false and misleading documents,” and Bank of America, on at least one occasion last year, foreclosed on a home on which they didn’t even hold a mortgage.)

If your bank is refusing to grant your loan modification even though your REST Report shows you as qualified, and they’re refusing to consider you for any in-house modification program, you may want to retain a licensed and qualified attorney to assist you in the negotiations with your bank.

Make sure the attorney checks with your bank to see if a sale date has been set, and if so, make sure he or she notifies the bank that there is a dispute and that you are therefore still in the process of applying for a HAMP loan modification. Banks are not permitted to foreclose while a homeowner is being considered for HAMP.

Although unlikely, it is possible that in the most extreme cases, it may be necessary to turn to the courts to settle such a dispute, and the REST Report can be invaluable evidence in such a proceeding. And just imagine what such a fight would be like without the REST Report, where you’d have nothing to show you’re HAMP qualified.

5. What if my REST Report shows I don’t qualify for HAMP?

To begin with, if you are not qualified for a HAMP loan modification, the REST Report tells you why you’re not qualified, and proposes some alternative terms helpful when applying for an in-house modification program. In-house loan modification programs are offered by many, but not all HAMP participating lenders and servicers.

Your REST Report can be invaluable when applying for a lender’s in-house program because your report will also show the Net Present Value (“NPV”) to your lender, of several alternative loan workout options. You may choose to hire a lawyer or other third party to help you obtain such an in-house loan modification, assuming that such a program is offered by your lender or servicer.

But remember… If your report shows that you are not qualified for HAMP, you avoid entering in to a long and costly trial period, and can apply directly for an in-house modification, assuming your lender or servicer offers such a program… or depending on what the report shows, perhaps make a different decision.

6. Does the REST Report guarantee that I will be approved for a HAMP loan modification by my lender or servicer?

No. No one can guarantee that a bank will agree to modify a loan, or do anything else for that matter.

But… submitting a REST Report showing you that you qualify for HAMP, along with your supporting documents, when applying for a loan modification improves your chances of being approved under HAMP, because the REST platform is a version of the same software platform used my major banks and servicers to determine HAMP eligibility.

And, when you have a REST Report, you have what you need to push back should your bank still refuse to modify your loan. Without it, it’s worth pointing out, you are essentially unarmed.

7. I’ve already applied for a HAMP loan modification and am still waiting to hear whether I’ve been approved for a permanent modification. Should I still consider ordering the REST Report? How will it help me?

Homeowners already in a trial modification, but still waiting to hear if they have in fact been approved for a permanent modification under HAMP, benefit from running their REST Report because with their report, they’ll know where they stand before hearing that they have been declined for some undisclosed reason.

Once a bank denies you for a loan modification they can move to sell your house quickly, and sometimes that means a matter of days. By knowing that you don’t qualify earlier in the process allows you to either talk with your bank about alternatives to the HAMP program for which you may be eligible.

Should no modification program be available to you for whatever reason, the REST platform also quialifies you for a HAFA short sale, the government’s latest short sale incentive program for lenders and servicers.

8. Who developed the REST software platform?

The REST platform is a version of the same software platform used by major banks and servicers. It was developed specifically for lenders and servicers participating in HAMP, it uses the NPV decision analytics, as required by the U.S. Treasury.

REST stands for Real Estate Services & Technology, a venture started by the same people that originally built, and still supply and update similar systems to banks and large financial institutions.

9. What is the “NPV Test,” as related to HAMP loan modifications? Does the REST platform use the same NPV required by the U.S. Treasury Department?

As stated in the HAMP Guidelines:

A standard NPV Test will be required on each loan that is in Imminent Default or is at least 60 days delinquent under the MBA delinquency calculation. This NPV Test will compare the net present value (“NPV”) of cash flows expected from a modification to the net present value of cash flows expected in the absence of modification. If the NPV of the modification scenario is greater, the NPV result is deemed positive.

If the NPV Test generates a positive result when applying the Standard Waterfall , the servicer is required to offer a Home Affordable Modification to the borrower.

If the NPV Test generates a negative result, modification is optional, unless prohibited under contract.

The U.S. Treasury Department’s most recent HAMP NPV Model (V 3.1) is currently only available to participating HAMP servicers. For this reason the model used by the REST Report, has certain variations. Although the REST Report is a proprietary model, based on the input provided by the borrower, the loan modification terms proposed in the REST Report, will fall within the allowable tolerances of the HAMP eligibility guidelines.

10. How do I know my bank will pay attention to the REST Report, as far as my being qualified for HAMP is concerned?

Actually, it doesn’t matter. You could submit a personal letter from Treasury Secretary Tim Geithner, and your bank would still follow the same process it always does with application for a loan modification.

When you apply for a loan modification without the REST Report, assuming you meet the basic eligibility requirements and pass the Standard Waterfall test, lenders and servicers enter the information you’ve provided into a spreadsheet or a software platform in order to run the NPV test, which is what verifies that what is being proposed is, in fact, HAMP compliant.

If the NPV test is positive, the lender is required to offer the homeowner a loan modification.

When you submit your REST Report, your lender will do the same thing they always do, and when the NPV test is run, the result your banks receives will match the result shown in your report… almost to the penny, which means you’ll be approved for the modification, assuming your bank is following the rules.

11. How do I use the REST Report in a mediation proceeding with my lender?

Some states now offer state assisted mediation programs to homeowners who are in default or at risk of foreclosure. The job of the state appointed mediators is to make sure that if foreclosure can be avoided, it is avoided.

The problem is that without the homeowner bringing to the negotiating table what is contained in the REST Report, mediators have little to, well… mediate. In simple terms, if all the homeowner has on his to help make his or her case are paycheck stubs and a tax return, the mediator is really dependant on the lender’s representative to propose alternative strategies to foreclosure.

With the REST Report, because it shows the Net Present Value to your lender of various alternatives, gives the mediator a lot more to discuss or the basis to challenge what the lender is or isn’t offering.

12. Are the modified payment terms of the HAMP modification shown in my report accurate?

Yes they are. The modified payment terms that are shown in your REST Report when you qualify for HAMP, are very close to the terms that will be offered by your permanent HAMP modification, sometimes they are literally pennies away.

13. What are the eligibility requirements for the HAMP program?

For a comprehensive presentation and discussion oif the HAMP eligibility requirements, please click on the link at the top of this ad and send me a message there or email me directly at realestateconsulting9@gmail.com .

14. Does everyone applying for a HAMP loan modification have to enter a “trial modification phase,” before being approved for a permanent modification?

Yes. There’s simply no way around it, if you apply for a HAMP loan modification, you’ll enter the trial modification phase for at least three months before finding out for sure whether you qualify for HAMP’s permanent loan modification.

Some homeowners report being in such trail periods for close to a year before they were turned down for failing to pass the NPV test.

Of course, there’s nothing wrong with being placed into a trial modification if you know for sure that you qualify… homeowner reports that it’s the uncertainty that drives them to distraction. With the REST Report, you’ll know what’s ahead so you can make more informed decisions in the best interests of you and your family.

15. Do I have to hire a lawyer or other third party to help me get my loan modified?

No, you most definitely do not have to hire anyone to help you get your loan modified, and in fact we often recommend that homeowners who purchase their REST Report, use the educational tools and Knowledge that we will supply for you to apply for your loan modification on your own and only consider bringing in an attorney third party in the event of a problem arising.

Of course, that being said… it’s really up to you. Not everyone is equally equipped to negotiate with a major financial institution over their mortgage when they are at risk of losing a home. For those individuals that wish to hire an attorney, or a third party we will refer you to PCAG.

PCAG has successfully negotiated many loan modifications, and other foreclosure alternatives. PCAG has been working with the loss mitgation departments of ALL the various financial institutions for over 15 years. They were doing loan modifications for homeowners and commercial property owners before the term "Loan Modification" was a household term at the dinner table.

16. Is it true that the government is now requiring banks to grant principal reductions as part of the HAMP loan modification program?

The government recently announced that lenders and servicers that participate in HAMP will now be “encouraged” to consider principal reductions, but it is too early to know how effective that encouragement will be. Principal reductions, while not unheard of, remain rare, with the government reporting that they make up approximately 10% of all HAMP modifications. That is something I take wit more than one grain of salt.

17. I recently heard that HAMP will now be offering some new assistance for unemployed borrowers. Is that true?

Yes, the government has recently announced that unemployed applicants to the HAMP loan modification program will be offered some additional help in the way of forbearances of payments for 90 day periods, in the hopes that they will find work in the time provided, but again, it is too early to know how this change to HAMP guidelines will manifest itself.

Check our “News” section at this link:

http://www.facebook.com/?ref=home#!/pages/Real-Estate-Consulting-Services/114844031867421?ref=sgm

18. What is included in my monthly gross income?

A borrower’s Monthly Gross Income (MGI) is the amount before any payroll deductions and includes wages and salaries, overtime pay, commissions, fees, tips, bonuses, housing allowances, other compensation for personal services, Social Security payments, including Social Security received by adults on behalf of minors or by minors intended for their own support, annuities, insurance policies, retirement funds, pensions, disability or death benefits, unemployment benefits, rental income and any other income.

19. Will I need to verify my income before being granted a trial or permanent loan modification?

Yes. If you qualify for HAMP, the lender/servicer will verify your income in a number of ways.

The borrower’s income will be verified by requiring a signed Form 4506-T (Request for Transcript of Tax Return) and obtaining the most recent tax return on file for each borrower on the note. For wage earners, the two most recent pay stubs for each wage earner on the note will also be required. For self-employed borrowers or for non-wage income borrowers, the borrower’s income will be verified by obtaining other third-party documents that provide reasonably reliable evidence of income. Borrowers must also represent and warrant that they do not have sufficient liquid assets to make their monthly mortgage payments.

20. What if I don’t want to accept the modified payment terms offered to me by the HAMP loan modification?

There is no question that, with real estate values still declining, depending on the terms of the existing mortgage, and the homeowner’s income, some borrowers have declined to accept the terms of a loan modification, preferring instead to move towards a short sale or even a deed-in-lieu of foreclosure.

And that’s one of the key advantages to running the REST Report… you not only know whether you qualify, but you also know the modified payment terms of that modification. You may not always like the answer, but we think you’ll agree that knowing is always better than the alternative.

21. My credit score has gone down significantly in the last couple of years. Does that mean I won’t get approved for a loan modification under HAMP?

No. Although the NPV formula does require your credit score, a low score by itself does not make you ineligible for HAMP.

22. What if I’ve filed bankruptcy or am in the process of filing bankruptcy? How does bankruptcy affect my obtaining for a HAMP loan modification?

Bankruptcy does not make you ineligible for a loan modification, however, different lenders have different policies as to when you should apply relative to a bankruptcy filing.

23. My home is seriously “underwater”. Can I still qualify for a HAMP loan modification?

Yes. Owing more than your home’s current appraised value, referred to as being “underwater,” does not disqualify you for a HAMP loan modification.

LOAN MODIFICATION

The term “loan modification” means a modification of the note such that the monthly payment is modified. A lower monthly payment can result from lowering or deferring the principal, lowering the interest rate, extending the term of the loan, or forgiving late fees or penalties. In most cases the interest rate and corresponding payment will go down for a period of five to 40 years.

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PHOENIX - HOME LOAN MODIFICATIONS AND COMMERCIAL LOAN MODIFICATIONS - PHOENIX

REC is an attorney Based Home Loan and Business / Commercial Loan Modification Company.
We Help our clients: lower their payments, Extend the term of the note, Reduce the amount of the note they owe on.

PHOENIX - HOME LOAN MODIFICATIONS AND COMMERCIAL LOAN MODIFICATIONS - PHOENIX

REC is an attorney Based Home Loan and Business / Commercial Loan Modification Company.
We Help our clients: lower their payments, Extend the term of the note, Reduce the amount of the note they owe on.

AS SEEN ON MANDELMAN MATTERS WITH MARTIN ANDELMAN

They finally got it! And geeze, it took them long enough.

I wrote an article TWO YEARS AGO, titled "What Happened on Wall Street and Why," and it explained the factors the contributed to the unfolding crisis... no, not all the factors, for example I didn't go back to the origins of securitization, or regulatory changes that were made during the Clinton years, or look to lay the blame on Fannie and Freddie and the CRA (Community Reinvestment Act). Why? Because to do so would have been stupid and I don't do stupid.

Why would it have been stupid to cite those things, I hear some of you cry? After all, each of those factors did in fact contribute to the crisis in some way. Perhaps some had supporting roles, others talking parts, a few had cameos, and some were merely extras... but they were all in the movie, right?

Of course they were. But so were many other things, and I don't find it terribly useful to debate and discuss factors that, while contributing, did not contribute in a proximate cause sort of way, or contributed only in hindsight.

For example, some like to blame Alan Greenspan for keeping interest rates too low for too long, but this argument is kind of nutty, in my view, because while it may or may be true that interest rates helped fuel the real estate bubble from a demand perspective, low rates certainly didn't cause the crisis. To think that they did, would be like buying in when hearing General Motors blame cheap steel prices for their downfall. Remember, the banks could have used the low rates and favorable lending conditions to create quality, consumer friendly, sustainable mortgages, but they did not.

So, the Senate Investigation Committee, which began its investigation into the financial crisis over a year ago, has finally started holding hearings so the public can see and hear the outcome of their work, has finally figured out what did directly cause the crisis and when the crisis began... or I should say they've come closer than what's been published to-date in the mainstream media anyway.

As I've said what feels like a million times in a million different ways... it wasn't the borrowers, it was the banks, and what caused the crisis was that the banks broke the bond market... and it remains broken to this day. This wasn't a market correction. What we've endured, and continue to endure, was the result of criminal acts committed by Wall Street's finest. Someone should go to jail... and after watching the Senate hearings last week, I'm sure someone ultimately will.

I'm not saying that borrowers played no role in the crisis, they certainly did... we all did, in the sense that essentially all Americans have a tendency to take on too much debt. We use our credit cards too much, we load up on student loans more than we probably should, and in general... we probably just plain buy too much stuff. But to blame the crisis on borrowers is a bit like blaming flooding for the damage in New Orleans after Katrina. Yes, there was flooding to be sure, but I'm pretty sure that it was the hurricane that was the actual problem.

When? Well, my guess will be later this year and into next, because as I've also written on numerous occasions, this is a mid-term election year, and our elected representatives never look weak or lazy before heading home to campaign in their respective districts. The banks finest hour is over. After watching Washington Mutual's CEO get grilled by Senator Levin and the other members of the committee, the writing is on the wall and from here forward, while they may still have too much political power for my tastes, it's going to be all downhill.

A river, not a lake...

We've had our "Ferdinand Pecora moment," and things are going to be different going forward... always remember that in this situation, we're in a river, not a lake. The water we're standing in today won't be the same water we're standing in tomorrow, which is another way saying to homeowners and those involved in helping homeowners not to give up or resign yourselves to what's happened in the past.

Ferdinand Pecora was a lawyer during the 1930s, who became famous nationwide as a result of his cross-examination of one Mr. John Pierpont Morgan (JP to his friends) at the time unquestionably one the richest men in the world, if not the richest. During Pecora's cross-examination, among other things, it came out that Mr. Morgan had paid no income tax since 1929, while the rest of the country had fallen on, shall we say, very hard times.

As a result of this and other testimony the country became outraged at what the bankers had done to cause, and in response to the deep recession in which the nation found itself. The following year, the Glass-Steagall Act was signed into law by FDR, and there would be more regulation to protect consumers from the excesses of the financial services sector that would soon follow. It would be roughly seventy years before we'd need another Ferdinand Pecora moment to set things right once again.

So, what caused the meltdown that led to the foreclosure crisis, the credit crisis, and every other kind of crisis you want to add on that's kicked our economy to the curb these last couple of years? It was the bankers who fraudulently packaged mortgage-backed securities, also called bonds, with loans that were not high quality, and then stood by and watched them get rated AAA. When investors realized that they were holding bonds that had been improperly rated, they dumped them instantly, and overnight the bond market, and therefore the secondary mortgage market, froze solid overnight.

It didn't help that this happened at a particularly crummy time, as well. By July of 2006, the Fed had been concerned about inflation resulting from rising housing prices that was making Americans feel wealthier, and from rising oil prices, and it had raised rates 17 times in a row. And this caused the adjustable rate loans that were set to adjust... to adjust higher. The worst of the sub-prime loans started to default.

Banks, now unable to sell their loans in the secondary mortgage market, immediately started hoarding cash, and whether you wanted to refinance or originate a new mortgage, it was a very different world the day after that happened, than it was the day before. Houses stopped selling, and soon the owners of those houses started lowering their asking prices. Real estate had begun its freefall, and largely because the first loans to default were sub-prime and poorly underwritten sub-prime at that, no one realized just how far down that freefall would take us.

MEMORANDUM

To: Members of the Permanent Subcommittee on Investigations

From: Senator Carl Levin, Subcommittee Chairman and Senator Tom Coburn. Ranking Member

Date: April 13, 2010

Re: Wall Street and the Financial Crisis

The Financial Crisis. In July 2007, two Bear Steams offshore hedge funds specializing in mortgage related securities collapsed; the credit rating agencies suddenly downgraded hundreds of sub-prime residential mortgage backed securities; and the formerly active market for buying and selling sub-prirne residential mortgage backed securities went cold. Banks, mortgage brokers, securities finns, hedge funds, and others were left holding suddenly unmarketable mortgage backed securities whose value began plummeting.

Banks and mortgage brokers began closing their doors. In January 2008, Countrywide Financial Corporation, a $100 billion thrift specializing in home loans, was sold to Bank of America. That same month, one of the credit rating agencies downgraded nearly 7,000 mortgage backed securities, an unprecedented mass downgrade. In March 2008, as the financial crisis worsened, the Federal Reserve facilitated the sale of Bear Steams to lPMorgan Chase. In September 2008, in rapid succession, Lehman Brothers declared bankruptcy; AlG required a $85 billion taxpayer bailout; and Goldman Sachs and Morgan Stanley converted to bank holding companies to gain access to Federal Reserve lending programs.

Finally. I've waited two years to see the crisis understood by those in our government.

Was there a real estate bubble fueled by low rates and uber-easy credit? You bet there was. And did some segment of homeowners buy homes they should not have bought during that bubble? Darn right. Would we have had a market correction regardless of bonds and their ratings. Yep. And would badly underwritten loans have defaulted regardless? Uh huh.

But our situation today is not just a market correction. It's the result of bankers behaving badly. It's the result of Wall Street believing that financial innovation had reduced risk to such a degree that it was now possible to be "perfectly hedged". And it's about boundless greed operating in an essentially unregulated climate. It's not the fault of someone that refinanced their home in order to pull out some equity to pay for a child's education, or to remodel, or even to buy pair of jet skis and a flat screen.

My wife and I refinanced our home of 19 years in May of 2007, and after the refinance our loan-to-value ratio was 50%. We also took out an Option ARM loan, although we had never had any sort of adjustable loan before, and we did so because we were planning on selling the home within the next year or two. Besides, if rates did start to unexpectedly rise, we could always refinance to a fixed rate, right?

In May of 2007, our decision to refinance using an Option ARM seemed to be as close to risk free as I could imagine. What could possibly happen? Less than 90 days later, I saw what could possibly happen... a whole bunch of giant investment banks could defraud investors all over the world using trillions in bonds known as mortgage backed securities. And that, was not something I had seen coming. The market correction... yes. The wholesale destruction of the bond market... no sir.

What if our Option ARM were to recast, doubling our mortgage payment, and what if a member of the family were laid off for a few months... and we found ourselves losing our home... and when we told our friends they looked at us like we were irresponsible deadbeats who couldn't make our mortgage payments because we refinanced. How would that scenario be considered our fault?

The Final Piece of the Puzzle

I also didn't fully understand credit default swaps back then, and with good reason: they weren't "swaps" at all. I did understand other types of swaps, but credit default swaps were really just insurance policies you could buy on bonds with semi-annual payments and a fixed term... and they'd pay off if a bond defaulted. It was really a way of "shorting" the mortgage backed securities market.

For example, you might pay $100,000 a year for a 10-year credit default swap on $50 million in AAA rated bonds. The most you could lose would be $1 million... $100,000 a year for 10 years. The most you could make was $50 MILLION, if the bond defaulted anytime in the 10-year period.

Credit default swaps paid off just like roulette wheels in Las Vegas. You could lose your chips, or pick up a fifty to one payday if the bonds went bad. As an investor, your downside was limited to the amount you paid for the credit default swap, and the upside was a huge multiple. You didn't get free drinks like you would at the Golden Nugget on the Las Vegas strip, but with paydays of 50:1, you could buy your own.

Credit default swaps were the perfect tool to bet against the sub-prime lending that had become a huge component of our financial sector, and the worse the underwriting standards on loans, the lower the borrower's qualifications, the more certain the default and therefore the safer the bet.

It was even something you could time fairly accurately. You'd just figure out when the garbage loans were set to adjust, say two years out, and then make the assumption that when they did, a number of borrowers would default. The bond containing the loans would default and you'd go Ca-Ching as you collected on your credit default swap bet.

With derivative investment vehicles like credit default swaps available in an unregulated market, is it any wonder that the bonds were packed with mortgages that were all but certain to fail? It was bad enough that the banks were making loans that they wouldn't have to keep on their books and therefore didn't care about credit worthiness, but when you add the perverse incentive created by credit default swaps, you have at the very least, a gathering storm.

This past week, we finally learned that Washington Mutual was intentionally selecting the worst loans for bonds, and that Goldman Sachs and Merrill Lynch were playing the game as well. Soon there will be more and more bankers hauled before the Senate Committee and what we'll learn will shock and deeply offend our sensibilities. And hopefully the homeowners in distress will be free of the shame that they have lived with far too long and we can get back to the business of creating a more prosperous tomorrow.

Stay tuned... it's far from over yet. In fact, it's just getting started. Now is not the time to give in to the banking lobby's obvious clout, because there's only one group more powerful than they are... and that's us... the American people.

It's a mid-term election, and Congress is likely to act. Remember... our politicians do place a higher value on one thing than any amount of money the bankers could provide, and that's getting reelected.

Real Estate Consulting Services  

CLICK THE ABOVE LINK TO VISIT MY FACEBOOK PAGE....

 

WHOLESALE WHOLESALE

COMMERCIAL LOAN MODIFICATIONS

 

NOW OFFERING A WHOLESALE OPPORTUNITY TO

COMMERCIAL BROKERS.

REAL ESTATE CONSULTING SERVICES

   623-444-4498  623-444-4498    623-444-4498  623-444-4498      623-444-4498  623-444-4498    623-444-4498  623-444-4498

 

 

REAL ESTATE CONSULTING SERVICES IS AN AUTHORIZED AFFILIATE OF PCAG. PCAG IS A GROUP OF ATTORNEYS AND THEIR NEGOTIATORS THAT HAVE JOINED FORCES TO OFFER A WHOLESALE ANSWER FOR BROKERS IN ALL 50 STATES. TOGETHER REAL ESTATE CONSULTING SERVICES (REC) AND PCAG OFFERS THEIR AFFILIATE THE OPPORTUNITY TO HELP THEIR CLIENTS REDUCE THEIR MONTHLY OVERHEAD TO INCREASE THEIR ROI. REC OFFERS A STATE OF THE ART MODIFICATION BACK OFFICE FOR OUR AFFILIATES. WE ARE ABLE TO ASSIST OUR AFFILIATES WITH THE FOLLOWING BY NEGOTIATING WITH THE LENDERS DIRECTLY:

• Reduce Principal and Interest payments
• Extend the term of the note
• Interest only payments for a period of time
• Suspend payments for a period of time
• Delay Foreclosures, Auctions, and Sheriff Sales
• Facilitate Short Sales
• Stipulated Foreclosures
• Extend Balloons
• Combinations of remedies / solutions mentioned above

Real estate economists warn that commercial foreclosures will follow the residential trend, and as the residential mortgage crisis continues, thousands of homeowners have chosen to modify their loans in order to find debt relief and avoid foreclosure.

Fortunately, the same benefits offered through the loan modification of residential property are now available for commercial property owners as well.

“Commercial property loans originated in 2005 to 2007 that increasingly carried risky terms are likely to see a significant increase in defaults in 2010,2011, and 2012 due to lack of credit, falling property values and reduced cash flow.”

 

WE OFFER OUR AFFILIATES:

WHOLESALE AFFILIATE OPPORTUNITY......

We offer an OUTSTANDING WHOLESALE AFFILIATE PROGRAM to anyone looking to offer Commercial Loan Modifications to their clients.

• No Start Up Costs
• Wholesale Rates To Affiliates
• Offer Modifications between $100,000 to 20 Million
  
• Experienced Commercial Real Estate Attorneys and Negotiators will work every file
• NO RESTRICTIONS LIKE WITH RESIDENTIAL MODIFICATIONS
• Web Tracking System for client files... access for both you and your client
• Private Label Service
• Over 70 Years combined experience in the Commercial Real Estate Transactions
• Unsurpassed service and professionalism

• CALL OR EMAIL TODAY FOR AN AFFILIATE PACKAGE

 

Mark 623-444-4498

Email: reducemynote1@gmail.com

 

 

HOUSING CRISIS: I just saw a video. WOW. It shows testimony, news reports, etc on how and why some banks were FORCED to make bad loans. OBAMA was involved (and Obama explains his involvement).

ALSO: Obama has said is connection to Acorn was minimal at best... I think this video will show the true reality.

PLEASE PLAY THIS VIDEO AND IF YOU FEEL AS STRONGLY AS I DO ABOUT THE FACT EVERYONE SHOULD SEE THIS AND KNOW THE TRUTH I WOULD ASK THAT YOU POST AND REPOST THIS VIDEO ANYWHERE AND EVERYWHERE. LET'S GIVE THIS SUBJECT THE ATTENTION IT DESERVES.

 

 

http://www.youtube.com/watch?v=ivmL-lXNy64

REAL ESTATE CONSULTING SERVICES

623-444-4498

REC is an authorized affilliate of PCAG. As an authorized affilliate we are working as Business Development Specialists offering Brokers a state of the art WHOLESALE opportunity to modify their commercial client loans.

WHOLESALE Affilliate opportunity for commercial and residential brokers. When seeking a commercial loan modification or workout as the terms are used, you must use a team of negotiators with the know how and legal clout to achieve the optimal outcome for the client. Our negotiators have a combined experience exceeding 50 years. PCAG has been offering negotiation services to brokers since 1993.

VISIT US ON FACEBOOK: http://www.facebook.com/pages/Real-Estate-Consulting-Services/114844031867421?v=photos&ref=sgm#!/pages/Real-Estate-Consulting-Services/114844031867421?v=info&ref=sgm

WHOLESALE AFFILIATE OPPORTUNITY

Most experts in the field of real estate commonly argue that commercial foreclosures follow residential foreclosures when economies experience extraordinary strain. Welcome to the coming commercial foreclosure explosion ladies and gentlemen. Commercial mortgage backed securities maintain the same inherent risk as residential mortgage backed securities. These securities are an amalgam of bundled commercial loans that investors purchase hoping on future returns based on an expected trail of interest payments.

With the American economy in turmoil it seems that problems in commercial mortgage backed securities are beginning to unfold.

The current economic climate is making it difficult for individuals and businesses alike to stay afloat. While most people are aware of the potential benefits of seeking a loan modification for their residential properties, most people do not realize that the same relief may be available for their commercial properties.

Owners of commercial properties such as shopping centers, strip malls, apartment buildings, office buildings and warehouses are successfully requesting and obtaining modifications of the terms of their notes.

Similar to residential loan modifications, lenders are often willing to reduce your monthly payment using a number of different methods including reducing your interest rate, lengthening the term of the loan, allowing for interest only payments for a predetermined period, and delaying payment of past due amount to the end of the term of the commercial loan.

Our experience in the realm of commercial real estate and loan modifications allows us to provide owners of commercial real property with the services and expertise they need. Since the investor of commercial loans are usually easier to identify and approach, our attorneys are more effective in negotiating a beneficial modification.

Upon our review of the preliminary information and the documents supporting the information provided by the client, we will engage the lender to negotiate and obtain a loan modification. We strive to obtain modifications to our clients’ loan(s) that allow our clients to keep their business operations afloat.

WHOLESALE AFFILIATE OPPORTUNITY......

We offer an OUTSTANDING WHOLESALE AFFILIATE PROGRAM to anyone looking to offer Commercial Loan Modifications to their clients.

• No Start Up Costs
• Wholesale Rates To Affiliates
• Offer Modifications between $100,000 to 20 Million
• Experienced Commercial Real Estate Attorneys and Negotiators will work every file
• NO RESTRICTIONS LIKE WITH RESIDENTIAL MODIFICATIONS
• Web Tracking System for client files... access for both you and your client
• Private Label Service
• Over 70 Years combined experience in the Commercial Real Estate Transactions
• Unsurpassed service and professionalism

COMMERCIAL LOAN MODIFICATIONS

AS SEEN ON MARTIN ANDELMAN'S BLOG ON ML-IMPLODE.... WE ARE AN AUTHORIZED SUPPLIER FOR THIS REPORT.... LEARN THE SECRETS YOUR BANK DOESN'T WANT YOU TO KNOW!!!

LEARN THE TRUTH AND YOU WILL R.E.S.T. TONIGHT

WHETHER YOU ARE ALREADY INVOLVED IN THE MODIFICATION PROCESS OR

ARE WANTING TO KNOW IF YOU QUALIFY FOR HAMP PRIOR TO SPEAKING

WITH YOUR BANK YOU NEED TO ARM YOURSELF WITH THIS REPORT.

CLICK ON THIS LINK TO READ WHAT MARTIN HAS TO SAY ABOUT THE HIDDEN TRUTHS THE BANKS DON'T WANT YOU TO KNOW...

http://mandelman.ml-implode.com/2010/04/the-secret-npv-formula-used-to-qualify-for-hamp-loan-modifications-that-no-one-is-allowed-to-know-transparency-at-it’s-finest/

Home Loan Modifications, Short Sales and Automated Valuation Model