Our Mission is to help Property Owner Mortgagors (POMs) retain ownership of their mortgaged properties - residential as well as commercial - while contributing to preserve their value. With our plan the POMs do not have to worry that their monthly mortgage payments will increase as long as they make their payments on time. In order to achieve our mission we shall offer selected borrowers the benefits of our plan which includes modification of the terms and conditions of their mortgage loans to reflect both their current financial condition and the value of their properties. Our program shall becomes a viable long term solution for all parties involved and a positive factor in helping provide some measure of stability to both mortgage and real estate markets.
We consider that our proprietary modification program provides the POMs an investment source, which grows in value without having to invest additional funds while at the same time saving the POMs up to 40% on their monthly mortgage payment.
Saturday, March 27, 2010
Introduction
Most market data point to the fact that the vast majority of financial instruments and property values have lost approximately 40% from their peak values. Starting in 2006 three facts took place: Real estate values started their decline, the Federal Reserve Bank began to raise interest rates and the ARM provisions n mortgages were becoming effective. These three facts made it almost impossible for millions of property owners (POs) to refinance their mortgages. Thus, these property owner mortgagors (POMs) were faced with much higher -after ARM adjustments- monthly mortgage payments, which they could not afford. Lenders proceeded to foreclose on the properties and eventually millions of POs lost their properties, with many millions more expected to follow the same path.
Many of these mortgages had been originated under predatory credit lending practices never seen before and excessively leveraged and creative lending programs, from negative amortization programs to ARM, “Ninjas” and many others innovations. These fiat mortgages could be created because the ultimate risk of ownership of them was transferred from the individual lenders to investors around the world by virtue of newly created instruments such as mortgage backed securities (MBS), assets backed commercial paper (ABCP), assets backed securities (ABS), credit default swaps (CDS) and collateralized debt obligations (CDO) which were sold at different risk levels and rates of return. When the high risk level portion of these instruments began to tumble, because POMs could not pay their new higher monthly payments, its domino effect spread out throughout the mortgage industry and ultimately the entire economy worldwide. As the banks started to write off their bad loans a liquidity crisis developed and lack of confidence spread in the financial industry all around the globe.
This situation has reached almost every major business sector and affected all branches of the
economy from employment to disposable income, to consumer confidence to industrial and commercial sales.There are several striking differences between what could achieve in the financial markets and the economy in general with the likes of TARP and HOPE NOW programs and the Economic Stimulus Plan and what it could achieved by supporting THE PLAN.
In God We Trust and With Gods help We the People Saving the American Dream.
Most market data point to the fact that the vast majority of financial instruments and property values have lost approximately 40% from their peak values. Starting in 2006 three facts took place: Real estate values started their decline, the Federal Reserve Bank began to raise interest rates and the ARM provisions n mortgages were becoming effective. These three facts made it almost impossible for millions of property owners (POs) to refinance their mortgages. Thus, these property owner mortgagors (POMs) were faced with much higher -after ARM adjustments- monthly mortgage payments, which they could not afford. Lenders proceeded to foreclose on the properties and eventually millions of POs lost their properties, with many millions more expected to follow the same path.
Many of these mortgages had been originated under predatory credit lending practices never seen before and excessively leveraged and creative lending programs, from negative amortization programs to ARM, “Ninjas” and many others innovations. These fiat mortgages could be created because the ultimate risk of ownership of them was transferred from the individual lenders to investors around the world by virtue of newly created instruments such as mortgage backed securities (MBS), assets backed commercial paper (ABCP), assets backed securities (ABS), credit default swaps (CDS) and collateralized debt obligations (CDO) which were sold at different risk levels and rates of return. When the high risk level portion of these instruments began to tumble, because POMs could not pay their new higher monthly payments, its domino effect spread out throughout the mortgage industry and ultimately the entire economy worldwide. As the banks started to write off their bad loans a liquidity crisis developed and lack of confidence spread in the financial industry all around the globe.
This situation has reached almost every major business sector and affected all branches of the
economy from employment to disposable income, to consumer confidence to industrial and commercial sales.There are several striking differences between what could achieve in the financial markets and the economy in general with the likes of TARP and HOPE NOW programs and the Economic Stimulus Plan and what it could achieved by supporting THE PLAN.
In God We Trust and With Gods help We the People Saving the American Dream.
Thursday, March 25, 2010
EXECUTIVE SUMMARY
THE PLAN calls for the voluntary restructuring of all present mortgages - regardless of their current payment status -, in such a way that the property owner will save approximately 45% of the new restructured mortgage monthly payment. Compared to the actual pre restructured monthly payment situation, this saving represents an increase of several thousands of Dollars annually in discretionary spending income per household. According to our study and forecast described and explained in the Plan, this will represent an average increase in discretionary spending income of $247.5 billion overall.. The plan combines the participation of lenders, insurance companies and securities firms in the private sector and under one of its alternatives it also calls for a limited assistance from the government in the way of tax incentives. The lending institutions shall dispose of approximately $3 trillion in toxic assets and receive approximately $3 trillion for their lending operations. In the process, the securities industry could receive $300 billion in additional revenues This Plan is sustained by investments from the private sector and not from the taxpayers money and therefore it:
· Does not increase budget expenditures.
· Does not use taxpayers’ funds.
· Does not create more debt.
· Does not directly create inflation.
But it does create approximately 3 million jobs throughout the economy After the trillions of dollars of toxic assets to be saved under this plan and the more than half a trillion dollars generated by it as direct additional revenues and free discretionary spending income, the creation of so many jobs and the help it provides to reactivate the economy in general, should recreate directly $6 trillion in wealth and another $6 to $10 trillion in indirect economic impact wealth throughout the economy. Moreover, once the investment community realizes that the implementation of our Plan will achieve a proper disposition of the toxic assets, strengthen the lenders capital, and generate additional revenues that will trigger an increase in discretionary spending income, their confidence particularly in the real estate market shall improve accordingly Job creation thereof, will be consequential and ultimately it shall help recuperate and even surpass the $14 trillion previously vanished from the nation’s wealth. It will renew investors’ confidence and credibility in the financial system, and the present status of the financial situation which we entered with the Lehman failure will finally be put behind us. The Plans mission is to achieve a calmed and reactivated financial system, together with the implementation of proper monetary and fiscal policies. Under such improved situation, President Obama’s Economic Stimulus Package will have the right grounds to spread its benefits throughout the Economy.
· Does not increase budget expenditures.
· Does not use taxpayers’ funds.
· Does not create more debt.
· Does not directly create inflation.
But it does create approximately 3 million jobs throughout the economy After the trillions of dollars of toxic assets to be saved under this plan and the more than half a trillion dollars generated by it as direct additional revenues and free discretionary spending income, the creation of so many jobs and the help it provides to reactivate the economy in general, should recreate directly $6 trillion in wealth and another $6 to $10 trillion in indirect economic impact wealth throughout the economy. Moreover, once the investment community realizes that the implementation of our Plan will achieve a proper disposition of the toxic assets, strengthen the lenders capital, and generate additional revenues that will trigger an increase in discretionary spending income, their confidence particularly in the real estate market shall improve accordingly Job creation thereof, will be consequential and ultimately it shall help recuperate and even surpass the $14 trillion previously vanished from the nation’s wealth. It will renew investors’ confidence and credibility in the financial system, and the present status of the financial situation which we entered with the Lehman failure will finally be put behind us. The Plans mission is to achieve a calmed and reactivated financial system, together with the implementation of proper monetary and fiscal policies. Under such improved situation, President Obama’s Economic Stimulus Package will have the right grounds to spread its benefits throughout the Economy.
The Problem one of the many; is that under the “Short Sale” plan the government gives incentives to the Property Owners Mortgagors hereinafter referred to as "POM"(s) to give their houses away through a process referred to as “short sale” and also motivates the Banks to accept such process. The POMs loose their houses and have to move, while the values of the properties continue to fall depressing the market further.
Our Mission is to help Property Owner Mortgagors (POMs) retain ownership of their mortgaged properties - residential as well as commercial - while contributing to preserve their value. With our plan the POMs do not have to worry that their monthly mortgage payments will increase as long as they make their payments on time
Our proprietor mortgage modification program (THE PLAN) has been in development since October of 2008.
THE PLAN offers an efficient cost effective way to address the increasing volume of under performing loans and improves the overall values of currently held mortgage portfolios. THE PLAN truly bails out the property owners/mortgagors and the lending institutions and it does so, within the private sector, with private funds and specific government tax incentives. It helps:
STOP FORECLOSURES
By restructuring mortgage payments down to affordable levels.
STOP DISCRIMINATORY LENDING
By including all existing mortgages
STOP DETERIORATION OF REAL ESTATE PROPERTY VALUES
By keeping people in their homes
REDUCE FURTHER DEBT CREATION THUS INFLATION
By creating incentives for the private sector to participate actively.
STRENGTHEN BANKING & FINANCIAL INDUSTRY
By eliminating toxic debt improving their balance sheets
STABILIZE FINANCIAL MARKETS
By providing confidence and producing results
STIMULATE THE ECONOMY
By increasing available discretionary income.
CREATING JOBS
By creating demand and unleashing the entrepreneurial spirit.
To obtain these goals we have formulated certain rules and regulations within a financial chain process.
In God We Trust; With God's Help..."We The People Saving the American Dream."
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