Under and Non Performing Mortgages
What can EquiDebt Solutions do for Note Holders on a Whole Loan to Bulk or Pool basis? We can take a mortgage, reduce it to a saleable LTV of the home’s current market value with a Note Modification. The borrower now qualifies for a monthly payment, based on standard debt-to-income ratios, and then can exchange that reduction in principal balance with the patented new HEFI (Home Equity Fractional Interest) Agreement in the name of the Note Holder. Then, if desired by the Note Holder, through a program under development by HES (Home Equity Securities, LLC), those resulting HEFI instruments might then be pooled and securitized.
Further, EquiDebt Solutions, acting as a structuring agent, would structure the resulting re performed mortgages for sale to the market at market price. This results in Win / Win for everyone. The mortgage loan is brought to performing status and the companion HEFI Agreement will have value today.
As a result, the whole package will obviously be worth more than the illiquidity that the original mortgage represented and the Note Holder will be able to avoid both a financial loss and the moral hazard resulting from a default or foreclosure, thereby allowing the homeowner to retain the home and meet the requisite financial obligations. Ultimately, the restructured mortgage results in a significant improvement over current loss mitigation strategies by drastically reducing the percentage of mortgages that re-default.
Services Offered:
a) Complete analysis of mortgage portfolio
b) Structuring a pre-bid
c) Boarding loans for default servicing
d) Consulting work relating to the structuring of a loss mitigation program
e) Implementing and administering a principal reduction program
f) Exit strategy process and analysis
Loss Mitigation White Paper
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Power Point Presentation on Loss Mitigation
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