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Hey FHA! Our Equity Share is Better Than Your Equity Share!

Home Forums General EHTrust/EHT Topics and Creative Real Estate Financing Hey FHA! Our Equity Share is Better Than Your Equity Share!

This topic contains 16 replies, has 0 voices, and was last updated by Avatar of dave salcido dave salcido 11 years ago.

Viewing 15 posts - 1 through 15 (of 18 total)
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  • #5154
    Avatar of dave salcido
    dave salcido
    Member

    On October 1, 2008, FHA will officially be in the equity sharing business. They will introduce a “new and improved” refinance program to try to stem the tide of foreclosures as per the Housing and Economic Recovery Act of 2008 that recently passed (July 31, 2008). Through their HOPE Mortgage program, they encourage home owners to accept this sweet irresistible easy to qualify mortgage with a great interest rate….oh…. for a small minimum 50% share of all the homeowner’s equity (maximum 100% equity fleecing)! Pretty neat huh? Big Brother will extol the virtues of this benevolent government cure for the common foreclosure while becoming the largest PRIVATE land owner since the great land maker in the sky. The potential upside for NARsonians is that while HUD is out promoting this wonderful new equity share plan, we can go about showing the unwashed a real equity share that is truly safe, friendly and fair. Email me if you would like a PDF of this new legislation. Now, let’s PARTNER UP and go make some offers!

    #27174
    Avatar of getsmart
    getsmart
    Member

    @Dave Salcido wrote:

    On October 1, 2008, FHA will officially be in the equity sharing business. They will introduce a “new and improved” refinance program to try to stem the tide of foreclosures as per the Housing and Economic Recovery Act of 2008 that recently passed (July 31, 2008). Through their HOPE Mortgage program, they encourage home owners to accept this sweet irresistible new mortgage….oh…. for a small minimum 50% share of all the homeowner’s equity (maximum 100% equity fleecing)! Pretty neat huh? Big Brother will extol the virtues of this benevolent government cure for the common foreclosure while becoming the largest land owner since the great land maker in the sky. The potential upside for NARsonians is that while HUD is out promoting this wonderful new equity share plan, we can go about showing the unwashed a real equity share that is truly safe, friendly and fair. Email me if you would like a PDF of of this new legislation. Now, let’s PARTNER UP and go make some offers!

    you are right on with this thread. lenders will make taking properties subject to this new program so resistable. not something i was expecting. isn’t that what you would call usury? the interest rate will far exceed credit cards. we can’t do it but i guess fha can. this is the most blunt double standard.

    #27175
    Avatar of jerry carey
    jerry carey
    Member

    Dave and Dante:

    The FHA’s ” “new and improved” refinance program to try to stem the tide of foreclosures as per the Housing and Economic Recovery Act of 2008 that recently passed (July 31, 2008).” is for Foreclosures :!: Taking a 50% equity position on homes that are 40-50% over-encumbered to begin with is not unfair! 50% of nothing is nothing! They’ll be refinancing … not Short-Selling! Question … don’t we take a 90% of the Beneficial Interest with the other 10% surrendered at termination?

    Some things to think about.

    Jerry Carey

    #27176
    Avatar of dave salcido
    dave salcido
    Member

    @Jerry Carey wrote:

    Dave and Dante:

    The FHA’s ” “new and improved” refinance program to try to stem the tide of foreclosures as per the Housing and Economic Recovery Act of 2008 that recently passed (July 31, 2008).” is for Foreclosures :!: Taking a 50% equity position on homes that are 40-50% over-encumbered to begin with is not unfair! 50% of nothing is nothing! They’ll be refinancing … not Short-Selling! Question … don’t we take a 90% of the Beneficial Interest with the other 10% surrendered at termination?

    Some things to think about.

    Jerry Carey

    My understanding after reading the 2008 Recovery Act is that this program is for homeowners “at risk”. This does not necessarily only include those in foreclosure. Who is at risk? I guess that is for the Fed to determine as there are no specific qualifiers. Realistically, at risk could mean anyone that is one paycheck away from missing a payment. In any event, again, according to what is written, there is no indication that the property must be over encumbered, meaning that a homeowner “at risk” could conceivably hold tons of equity prior to refinancing. If this is true, my gut tells me that the Fed would much rather get in on a piece of any equity action than to let some slippery competing short sale investor grab it. Their desire is to take any equity windfall and apply it toward the national debt. (Another way to pay back the Federal Reserve for interest payments they cannot currently retrieve from less-income producing or non-producing non-employed stagnant Americans). As you know, there is quite a difference between a beneficiary interest and an equitable interest in a trust. We can still offer up to full price, preserving ALL of the homeowner’s current equity and still benefit tremendously without fleecing (yes, that’s right, I said fleece) the downtrodden. Once again, my understanding leads me to conclude based on the text within the Act that HUD also gets 50% of any existing equity right off the bat. Additionally, if a homeowner on HOPE were to sell 10 years down the road, and he gained $100,000 in new equity, at the sale Uncle Sam gets $50,000. Slam bam, thank you maam. All I’m saying is that I think I can do better at meeting the homeowners wants and needs than the Fed. Seriously, tell me one thing the Fed can do better (not including sorties) than the private sector?

    #27177
    Avatar of jerry carey
    jerry carey
    Member

    Dave:

    I think you are putting your own spin on what the refinance program is all about. I think “at Risk” means owners who bought with little or no money down and thus now have little or no equity and are over-encumbered due to falling value caused by the Sub-prime fiasco. People with lots of equity and who are currrent on their loan payments are not necessarily looking to refinance. People who made their mortgage payments in a timely manner for two years or more and now cannot afford the newly adjusted higher payment are “at Risk” and need this program to refinance :!: Conventional lenders won’t even consider a re-fi of these properties due to lack of equity or over-encumberance! At a higher risk (a high L-T-V) and a low interest rate loan … let the fed’s make half the possible future appreciation if any! Why aren’t they (the FEDS) as entitled as the private sector?

    Jerry Carey

    Jerry Carey

    #27178
    Avatar of dave salcido
    dave salcido
    Member

    Due respect Jerry. Spin? Call it what you will. I see it as a personal observation based on the actual documentation within the legislation, (see page 11 of the Act). I suppose only time will tell as it has not yet gone into effect. Interpretation of the law always makes things interesting doesn’t it? As for your nonchalance toward federal entitlements, once again I suppose this could be construed as another interpretation of a constitutional sort. A remedial review of the Federalist Papers may shed some light on this subject although I question the efficacy of any government entity dabbling in extra-constitutional activities. Oops. Sorry. More spin! Somebody call the spin doctor! :wink:

    #27179
    Avatar of steveo
    steveo
    Member

    Jerry…

    The reasons for NOT letting the Fed, or any other “gubment” agency or
    entity have ANY interest in ownership in the real estate or the equity of
    real estate… or corporations… or any other private sector interests, are
    pretty clear – looking at Collectivism, Socialism, Fabianism, Fascism, etc.

    Frankly… the deeds have been done and those who have committed the
    attrocities are being paid TRILLIANS without any consequences for the
    atrocities they’ve committed… in fact, they are being rewarded.

    AND… they are being awarded not only a security interest in businesses
    or real estate, but now… the ability to actually be a Title holding partner,
    stock holder, and owner of America.. of the assets of each individual and
    states assets, of our personal assets and livelihoods.

    Imagine the rules the government will establish to protect THEIR OWN
    interests in entities like Fannie Mae and Freddit Mac… duh. Am I the
    only one who sees this?

    Personally… whether the consequences are paid now by letting the banking
    industry drown and fail… by stopping the bailouts, or…

    By prolonging the inevitable and paying their profits and interest payments
    with tax dollars, grossly excellerating inflation and other hugely damaging
    results…and THEN making the banks pay… by selling America to the
    highest bidder and tossing up the white flag of democratic rule.

    The consequences WILL be paid..

    The principals that built this country were founded on a Free Market Economy
    that… given half a chance, will adjust and correct itself in time… even from the
    violent raping greed that has run rampant while Americans slept passively
    on the sidelines watching saying “nah, it’s just a blip… our government
    would never let this really happen…”

    Sure… it will be painful.. but, cutting off the blood sucking leaches that
    have destroyed our great country, though a painful process, is worth the
    pain to accomplish in my opinion. I hope the scars are big, ugly, and bold,
    to remind future generations what we sat idly by and let it happen – so it
    doesn’t happen again.

    What we are looking at with bailouts and the erosion of personal protections,
    and the “Ownership OF AMerica by Gubment” instead of the gubment
    providing a healthy economic environment FOR businesses and making
    sure that everyone is playing by the same fair rules… is total and
    absolute destruction, implosion of, the Constitution and Free Market
    economy that created this great country.

    Communism couldn’t force Americans into socialism…
    Lenin and Marx couldn’t propaganda or threaten America into socialism…
    Terrorist couldn’t scare us into submission…
    But…

    Over the years, our entire lifestyle has been undermined, silently, and
    our country is being swallowed up whole… alive… because we were
    lulled by the Sirens Songs… and became dependant on the printing of
    money, fiat, and – dare I say it – the industrial/military complex went
    underground to new, and much better tactics to undermine America.

    It has never been other countries, religeons, philosophies, ideals, cultures,
    or any other media propagated, spun, enemy that we should have been
    keeping our eyes on all of these years…

    It’s always been those who have been given… taken… and expanded upon
    who control the wealth of the world… the money makers… the machine…
    behind ALL of the other facades… who we should have been watching.

    Rothschild said something to the effect of … “I don’t care what party is in
    government or what government is in power… let me control the
    printing and distribution of the money, and I control them all…” (paraphrased)…

    How close to the truth he was… “follow the money” and the power… you’ll
    come to see the truth of it all.

    It’s worked.

    We better wake up… and damn soon. Let the cards fall where they may,
    let the banks go belly up… get rid of the Fed, go back to the principals that
    made us a great nation… quit socializing and inviting government into
    ANYTHING accept what they were Constitutionally established to do…

    We are a strong people… we will survive it.

    If we keep going down this road however… there will be nothing left to
    fight for…

    The North American Union… the combining of Mexico, the U.S. and Canada,
    will be a reality instead of a theory…

    The dollar will be replaced by a Bancor or other currency…

    There will be socialisim and two classes of people… those who rule and
    those who are ruled…. and the greatest freedoms of generations will
    come to pass.

    Keep the damn government out of our pockets and our businesses… and
    we will recover.

    What’s wrong with the FHA being an equity holder in our real estate you
    ask… EVERYTHING my friend…. everything.

    #27180
    Avatar of dave salcido
    dave salcido
    Member

    That’s all I was saying…….Thanks Steve. You are now my favorite American!
    Next to George W. (not to be confused with little george w.)

    #27181
    Avatar of jerry carey
    jerry carey
    Member

    Hey guys:

    When did this thread go from being about “Equity Sharing” to a political discussion?

    Steve, Dante, and Dave … your tirades would have been more appropriate if posted in the thread by Cork Horner about the bail-out of the Banks and Wall Street Investors or on a Political Forum:!:

    Everyone that I’ve seen on T.V. opposes this bail-out because it doesn’t do anything for the American Homeowner! I personally don’t disagree with that either!

    The discussion here was supposed to be about the FHA’s ” “new and improved” refinance program to try to stem the tide of foreclosures as per the Housing and Economic Recovery Act of 2008 that recently passed (July 31, 2008). ” I think this Act will help many American homeowners facing the loss of their property through Foreclosure to stay in their homes!

    That’s my opinion … you’re entitled to yours!

    Jerry Carey

    #27182
    Avatar of steveo
    steveo
    Member

    Jerry…

    Government is not interested in helping homeowners any more than
    the banks are… I truly believe that and it’s based on many years of
    following this, on fundamental facts, not just an opinion – well, okay,
    it is based on an opinion… founded on personal research and study.

    The whole point however, is that this topic IS wholy political.

    Understanding those politics may or may not help us as investors… it
    depends.

    I can assure you though, anything that involves the government getting
    into the owning and selling of real estate… or actually being the banks…
    directly affects us as investors.

    Anything that affects the value of a dollar and the value of our properties
    does affect us as investors.

    Trying to wrap ourselves around that and better understand those things,
    is our responsibility and our livelihood – how can you call relevant
    commentary “litergy?”

    For instance, if the government sets up huge trusts and “buys” the
    foreclosed properties from the banks to get them off of their books as
    non-performing assets (poor banks… private businesses that have to
    actually pay a consequence for their actions – being the cause of the
    whole mess in the first place)… then dumps them back onto the market
    at $.50 on the dollar… cash buyers for anything else will dry up.

    That directly affects anyone trying to sell retail. It also directly affects the
    value of our existing inventories and our net worth because it will drive
    the prices of our current assets down.

    Proof of that is only as far back in history as the Savings and Loan debacle,
    where this exact thing… though on a much, much, smaller scale
    happened.

    The bailouts will aggravate already eminent massive inflation…
    dollar values will drop to faster than a NY city whores panties…

    Meaning… for investors… your nest egg or net worth just shrivelled
    to pennies on the dollar.

    That is one reason that the bailout is so necessary now TO the banks…
    because they’ve caused the dollar to drop so far in value… that they are
    getting paid back in dollars that are only worth pennies… the further out
    this stretches, the lower the real value gets, the less they really make.

    Oh… and people need to quit trying to regulate others on these forums…
    if you do not want opinions or input… don’t bring up the topics.

    If forum rules are being broken… kick those individuals off and do not
    allow them to post.

    If folks are not happy with the current forum rules, change them.

    If topics are off topic… move them.

    I have learned much from being a NARS member over the years, but
    never spent much time posting here.

    Recently, I felt the need to add a few comments and also… I had/have
    some questions that I feel need to be answered.

    What I’d like to see more of is helping each other make money and get
    transactions done, teamwork and unified interests… entrepreneurs and
    investors gathered to mastermind politics, economics, marketing, business,
    and first and foremost investing.

    It takes time to post valuable, well thought out questions and comments…
    certainly, time that could be well spent investing or on other endeavors.

    Upon coming back to this forum I’ve found much value… and have had the
    misfortune of also being harassed and denegraded for intelligent
    posts that I feel offer value, insight, and educated perspectives.

    It’s all worth it… the price we pay for expressing ourselves.

    Back to politics though: I’m just glad we still have the right to say what
    we feel here… provided it offers value and content. Viva America!

    Start hacking that right or making it uncomfortable to contribute here…
    ok.. not hard to move on. I think we all need to be more positive and
    focused on learning from each others unique perspectives… and learning
    how to best capitalize on the EHTrusts and the experience and knowledge
    of others – even if we agree (amicably) to disagree.

    Stop the flow of all communication because we don’t like the input or
    opinions of others… hell… why waste our time? In fact… add that to the
    cost of coming events.. loss of freedoms to tell others what we think for
    fear of being derailed? Come on folks… that would mean that Bill G. could
    never post here again! :) :roll:

    Ok.. gotta get back to work… offers to make, calls to make, money to
    make…

    #27183

    @Jerry Carey wrote:

    When did this thread go from being about “Equity Sharing” to a political discussion?

    The gubment turned this into a political discussion by getting into the “Equity Share” business. Just because this discussion turns political doesn’t mean it doesn’t belong here. This absolutely does. There is no twist or spin on this at all. It is what it is and we as Investors and NARS Members need to know about it.

    #27184
    Avatar of jerry carey
    jerry carey
    Member

    Guys … I wasn’t going to even respond to this subject any longer, but it keeps perpetuating itself!

    First … this thread was about the FHA “new and improved” refinance program to try to stem the tide of foreclosures as per the Housing and Economic Recovery Act of 2008 that recently passed (July 31, 2008). It already passed and is not part of the Bank and Wall Street Bail-out. Why do you guys not get that? Everybody’s posting about the Bail-out … not the issue here … which is the Economic Recovery Act of 2008 a done deal!

    The bail-out yet to be passed saves the Banks and Wall Street. I’m not in favor of that either! The subject here was the Housing and Economic Recovery Act of 2008 … not the bail-out!

    Also, Scott I dindn’t say these postings didn’t belong on this forum … just not this thread. Cork Horner posted one the other day about the Bail-out … responses here might be more appropriate there is all I said.

    Jerry Carey

    #27185

    The votes that were bought by making lenders make crap loans have to be bought, again.

    What’s the big deal ?

    Do the tax-payers and, therefore, the government not belong as a Co-Beneficiary in a NARS EHTrust Bailout, when those funds are advanced ?

    Since, they are going to do it, anyway, for the above mentioned reason, the tax payers would be much more happy and comfortable with an Asset position in a valid, viable, safe investment vehical, than in simply having to pay a Debt that was handed out, in a Horse-Trade, for Votes.

    Foreign Investors have the ability and confidence in Bill’s sytem and could invest, indirectly, in the U.S. Real Estate Market, to assist themselves and the Bailout, by working through Adastra Realty Fund http://www.investoffshoredirect.com/Default/Adastra_Realty_Fund

    Foreignors that live or want to live in the U.S. and enjoy the share in apprecition, etc., although, they don’t have Citizenship, could be RB’s, as well.

    A lot more landlord’s ( NARSONIANs ) and properties would be activated and more money moving around, whether loans are made, later, or not.

    The Credit system is Dead, today, anyway.

    Bill started out saving banks 10′s of millions, by doing this.

    If, the “at risk” homeowners are those that are beginning to get behind and will be served “paperwork” ( an NOD, etc.) soon, then, Bill does these in his sleep.

    I’ve e-mailed and contacted those that I thought might be interested in winning the upcoming elections, if they thought this would help.

    Bill’s better connected, though.

    Now’s the time.

    Seems like a good “fix”, to me.

    Thanks, Alan

    #27186

    Just had to say Excellent Post Alan, thank you.

    #27187
    Avatar of socalgal
    socalgal
    Participant

    Who is at risk? I guess that is for the Fed to determine as there are no specific qualifiers. Realistically, at risk could mean anyone that is one paycheck away from missing a payment. In any event, again, according to what is written, there is no indication that the property must be over encumbered, meaning that a homeowner “at risk” could conceivably hold tons of equity prior to refinancing.

    No homeowner with equity would willingly refinance into a Hope 4 Homeowners loan. No lender would refinance a borrower with equity, either, under the Hope 4 Homeowners program. Homeowners with equity are safe from Hope 4 Homeowners. :lol:

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