Using the government's own words as found in HAMP guidelines, a consistent and similar financial incentive must be given to similarly situated parties, is based on the wording of our legal system to enforce equality. While the courts can not force principal reductions to current market values violating some existing homeowners rights or the rights of the investors of the mortgages who are the pensions, unions and life insurance entities of the general public's, they can force that a similar and consistent financial incentive be given to all similar situated parties such as:
Every negative equity homeowner is entitled to modify their current outstanding mortgage to an uniform interest rate of 3.5% fixed for a 30 year self amortizing mortgage term with the automatic added benefit of a matched equity principal paydown option based on the positive result TO the four requirements of the Negative Equity Streamlined Uniform Modification System without regard to the homeowners income or mortgage status:
1- owner occupied or proof the loan was originally purchased as a primary residence
2- one to four family home, condo and co-op
3- purchased/owned for 24 months from modification date with a minimum of 12 payments paid, no exceptions
4- have negative equity established by a combined loan to value of 97% or greater, ( The exception is the combined loan to value can be lowered to 80%, if reasonable evidence is submitted that the homeowner's portion of the equity paid or down payment paid has been lost soley due to the current market value)
The Negative Equity Streamlined Uniform Modification System was developed to stop the open violations and injustices occurring to over 11 million negative equity homeowners not being given the same similiar and consistent financial benefit to remain a capitalistic negative equity homeowner that has been given to over 4 million negative equity homeowners. The open lies, deception, misdirection, misrepresentation or whatever you call it that modifications are about affordability when their NOT gives false hope to millions of struggling homeowners and takes away hope from existing homeowners creating more uncertainity and defaults in the housing industry for years to come.
The time for change is now, before housing values decrease another 10-25% affecting 48% of all homeowners or there is another 4 or 5 million foreclosures raising the level of scrunity and impact on the public's importance; by creating a National Standard Modification System for all homeowners, the Negative Equity Streamlined Uniform Modification System, keeping the principle of capitalism in owning a home.
The governments and the financial industry's excuses that the restrictions of the secondary contracts, the pooling and servicing agreements (PSA's) have restrictions that don't allow massive modifications is not supported by the following capitalistic actions:
* the volume of modifications already issued exceeds that of any restrictions or thresholds of the PSA's
* the Servicer Safe Harbor Act protects the servicer from investor law suits for legally modifying all similarly situated parties WHEN they are in the investors best legal financial interest, instead of violating any existing laws such as the unfair and deceptive business practices, RESPA, the Fair Housing Act, the Patriot Act, 3rd Party Benficiary and too many more to list, intended on limiting or restricting the availability of a modification for the servicers best financial interest.
* Servicer's make more money on a foreclosure than a modification, regardless of the homeowners or investors financial interest breaking an fiduciary duty and the homeowners right to due process.
* according to existing law the rights of the primary or underlying contract, the homeowners takes legal first precedence before the rights of any secondary contract can be enforced. (investors do not have the legal right to "repurchases" or settlement agreements until the legalities and rights of the underlying contract, the homeowners are corrected but they are pushing for their's first)
*there has been an industry wide change made in the standard operating practice of foreclosures when negative equity is involved to modify instead of foreclosing. The Dept of Justice is directly responsible to enforce when a pattern or practice of discrimination, whether classified or not that impacts general public importance is evident, why are the pre-arranged penalities not being paid.
The capitalist intention of why modifications were done was to avoid the investors potential or possible financial loss from negative equity by retaining the negative equity homeowner instead of foreclosing losing the investors capital investment. The Negative Equity Streamlined Uniform Modification System accomplishes this capitalist goal legally and fairly without principal reductions or favoritism toward any particular group of negative equity homeowners with its rules and guidelines.
None of the programs existing or coming into play can match or even attest to this claim, Helping Homeowners, Responsible Homeowners, HAMP, etc...they all favor a particular subsection of the group violating the law, the Negative Equity Streamlined Uniform Modification System is the only system to address the entire existing and future negative equity group without principal reductions protecting the homeowner and the investor re-instilling the principles of capitalism.
Based on the recent settlement of the Attorney Generals and the recent OCC settlement and HUD settlement , I have to remind certain parties that the creation of the "NESUM" System is a capitalist proposal, I did not mail my proposal so the financial industry or the government can take my ideas and apply them without my permission or paying me, see the copyright statement on the bottom of the rules page. Using parts of the system will not correct the housing industry, the entire system must be used.
The Negative Equity Streamlined Uniform Modification System is an independent modification provider with one simple, transparent and concise modification program that levels the playing field
between the servicer, as their partner utilizing the program as a potential AMNESTY program to avoid the bulk of future litagations (the key word is amnesty not immunity) that shows a planned step by step correction to the previous errors of their ways without admitting to any wrongdoing or liability
and the homeowner , as their personal referee by re-enforcing the negative equity homeowners financial responsibility/obligation for their own actions and mortgage balances without regard for whether the mortgage is current, delinquent, conventional, FHA, fixed, adjustable, full doc, stated income, has proof of sufficient income, reduced income or new qualifying ratios to be entitled to the same financial incentive to remain a negative equity homeowner BECAUSE the investors' guaranteed financial negative equity loss does not change from any of the above differences nor does the homeowners.
The consistent and similar financial advantage, benefit, incentive, or compensation given to every negative equity homeowner is the right to be modified with a 3.5% fixed interest rate for a 30 year term. The ability to pay was established with a minimum of 12 mortgage payments that have been paid regardless of current delinquency status or payment history, it is the WILLINGNESS to pay on a negative equity property that is being INCENTIVIZED. An affidavit to the effect that there is sufficient income coming into the household to pay the reduced payment is acceptable to convert and/or lower the interest rate to the standard 3.5% fixed interest rate on a 30 year self amortizing payment schedule entitling every negative equity homeowner to the SAME financial benefit to remain a negative equity homeowner. The overall exception to the LTV requirement is any sub prime or adjustable mortgages are included in the program's financial benefit avoiding a "kick the can" down the road problem.
To further incentivized the negative equity homeowner to remain after the modification without the current high re-default rate, negative equity must be addressed. BUT IT CAN NOT BE ADDRESSED WITH PRINCIPAL REDUCTIONS, THAT IS NOT CAPITALISM, BUT SOCIALISM AT THE COST OF THE INVESTORS , WHO ARE OUR PENSION AND LIFE INSURANCE FUNDS. A sliding scale matched payment of equity principal paydown option is given for the first 10 years based on a pre-arranged loan to value percentage chart.
Tier 1- For loan to values of up to 115%, there is no match equity pay down option available, the under the market reduced interest rate is the only financial incentive offered
Tier 2- For loan to values of 115.01% to 129.99%, it is a dollar for dollar matched equity pay down
Tier 3- For loan to values of 130.00% to 144.99%, for every dollar the homeowner pays the investor will match $2.00
Tier 4- For loan to values above 145.00%, the investor matches $2.00 for every dollar the homeowner pays and the interest rate offered is one half of an interest rate lower to further compensate the homeowner. At no time will lose their principal in modifying the negative equity homeowner, it is a shared financial loss.
The homeowners’ and the combination of the investors matched equity pay down option cannot exceed 85% of the dollar amount of the negative equity involved. The investor has the option of not counting up to $1000 of the negative equity homeowner outstanding principal balance, if it will lower the “investor” matched equity pay scale down one tier. The homeowner has the option of paying the capped matched equity pay down principal amount monthly or annually toward minimizing their negative equity that the investor would match per the sliding scale amount on the anniversary of the modification toward the principal reduction, if the loan was paid on time for the last 12 months. The option is left open for 10 years and there is no requirement that the homeowner must participate every year in the matched equity pay down option to remain eligible. The "tier" is based on the property's value given at time of application, regardless of the future anticipated decrease in values. Once accepted, it does not change instilling the principles of capitalism, that there are profits and losses.
There is a more complete list of our standard rules that pertain to all modifications, please click on the Rules tab to see the transparency involved.