If you check out SavingHomesandLoans.com you will see how my US Patented (US Patent #8,666,883) plan works to prevent most losses for lenders or current loan owners due to defaulted home loans. In fact, the plan would allow for a profit on most of those loans for both the lender and the borrower.
In most cases under the patented plan, while the lender avoids most loan losses and the costs of managing short sales and foreclosures, the borrower avoids loss of credit, loss of home, and also will make money when the loan owner makes money down the road on that home.
I’m looking for lender licensees, preferably an Exclusive Licensee. The license costs not one cent, and the lender will make money on each and every use of the patented plan, because a reasonable fee paid by the borrower to use the plan is to be split 50/50 between the licensee and me, as owner of the patent. An Exclusive Licensee would have the right to sub-license other lenders to use the plan, and would collect a fee for each such use!
Future downturns in the home real estate market will be so much more manageable! And when the exclusive licensee sub-licenses other lenders and loan servicers to use the plan, the profits would likely be huge. Why? There are about 100 million homes that have mortgage loans in the USA, and this plan can be used on every new mortgage for use in case of loan default issues down the road. Those fee numbers could be huge. And, the plan can be used when a loan modification is needed on any and all home loans, whether or not the Plan, called HELPPR™, was mentioned in the original troubled loans.
The lender of portfolio loans, or the loan owner of sold loans, benefits from this new loan modification plan which is so far superior to all others. The borrower transfers ownership of a percentage of their home, at then current value, to the lender/loan owner, and that dollar value is used to pay off all default, if any, first, and the remainder is used to pay down the principal balance owed on the loan to make the monthly payments affordable. That percentage could be 20% in some cases, or even as high as 50% or more, as needed to accomplish the affordability goal. This new loan-modification plan is far superior to all previous and existing loan modification plans.
There is no loan loss at the time the loan modification is made. Then, as agreed in the loan-modification between the parties, the borrower will buy back the percentage of the home that was transferred as above, by either selling the home or refinancing it, within an agreed upon time, such as 2 to 5 years. That sale of the home, or refinance, will also pay off the balance of the modified loan. And, if the home will have gone up in value, which generally happens over time, both the borrower and the loan owner will make money on their percentages of home ownership!
The borrower remains 100% responsible for home maintenance, property taxes and insurance, under the loan modification agreement. The lender or loan owner is not a Landlord, but is simply an investor in the home.
The real estate market will be kept relatively stable, even during recessions, which hit housing values at least once per decade. And the plan can and should be used during both good times and bad.
Will there still be some borrowers who cannot make any payment, no matter how low, so that foreclosures or short sales are inevitable? Of course. But, wouldn’t it be wonderful to have the number of foreclosures and short sales reduced by 75% or more compared to when the HELPPR™ Plan was not yet available?
HELPPR™ (“helper”) stands for Home Equity for Loan Principal and Payment Reductions. It has been successful when used on a trial basis, and it has been praised by every CPA, real estate attorney, and loan broker who has learned about it.
If you are an owner or top executive at a home loan company and/or loan servicing comapny, it’s time to talk turkey with me, and not just because Thanksgiving is around the corner.
Thank you for your attention to this Blog. Your friendlhy problem solver,
Dr. Ed Marshall