Washington Discusses HEFI

HEFI received well by Washington. Nevada first to discuss using HEFI for new government program more.....

US housing market hit by ‘walkaways’

 By Aline van Duyn Published: February 22 2010 22:13 | Last updated: February 22 2010 22:13

“Negative equity is a big challenge. It contributes to higher delinquency and redefault rates,” Seth Wheeler, senior adviser at the US Treasury, told a conference this month. “We will continue to study the reduction of principal where appropriate,” he adds, though the form it would take has not yet been determined.

Many mortgage investors and housing experts believe it has to be dealt with. “The housing problems run very deep, but so far policies have just kicked the can down the road,” says Laurie Goodman, analyst at Amherst Securities, a broker that specialises in mortgage investments. “To get an economic recovery you need to fix the housing problem. And to fix the housing problem, you need to fix the negative equity problem.”  ....more

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

HEFI (Home Equity Fractional Interest) Loss Mit Option View more presentations from EquiDebt Solutions, LLC.