We offer the consumer three major services:

1. Loan Modification

2. Deed in lieu of Foreclosure

3. Short Sale Negotiations

1. Loan Modification

With the increase of interest rates on home loans, many homeowners with adjustable rate loans are faced with mortgage payments they can no longer afford.

Our job is to convince the current lender that it is better to lower the homeowner’s payment by lowering the interest rate or payment rate by creating a payment plan the borrower can afford, rather than to take the home with a foreclosure sale and lose money on the re-sale. Keep in mind, lenders lose money on bank owned properties as it will sell for less than market value, and they must pay a commission to a Realtor; and closing costs plus the cost of holding the property while they wait for a sale in a market that is depreciating.

We need to prove to the lender what the maximum payment is that borrower can afford by constructing a financial plan for the homeowner that the lender will approve.

Also, as the homeowner is often late with their payments and in foreclosure or soon to be in foreclosure, we need to ask the lender to take the delinquent payments and either forgive them entirely or place them on the back of the loan.

A rate reduction in most cases is the only possibility for a homeowner to retain their home –our fee is a risk that each homeowner must weight. Note: Our success rate on a workout program with a rate reduction is 98%.

Note: If we can prove you owe more that the value of the property and there is a second loan, we can convince that second lender to take a major reduction –of 50% to 80% — off the balance of the loan.

2. Deed in Lieu of Foreclosure

Under many conditions lenders will accept the property back from the borrower as full payment in order to save the time and expense of going through the foreclosure process.

Our job is to convince the lender it’s in their best interest to accept the property as payment in full.

This is not a simple plan as we must provide the lender with a complex detailed analysis of current value of the property –and future value. Then we must prove that the borrower cannot afford to make payment or sell the home any time soon or at all.

Note: a deed in lieu will also prevent the lender from filing a 1099 on their loss which is regular income to the borrower.

3. Short Sale Negotiations

We realize there is a large demand for this service and doesn’t seem to be very many companies that know what a Short Sale is, much less how to work with lenders to negotiate a Short Sale. Here is what we know:

· There is a right way to put together a Short Sale offer so a lender can justify settling for your offer. But most offers are badly done and leave a lot of cash on the lender’s table.

· While most Short Sales are on residential properties, they can be, and are, completed on commercial properties that are also in troubled areas.

Why would a lender allow the property to be sold and accept a loan payoff that is far less than the amount of the home loan and not come after the homeowner for the losses? Simple: to save time and money.

Here is what we do –we ask the investor to complete a very detailed list of information on the property and area, we review that information with the investor and create a plan to purchase.

We make a proposal to the lender using what we call the poison pill approach,

“Keep in mind it’s a lot less work and risk for the lender to take our offer.” The Department Manager of the lender will use our proposal to justify the sale price and protect his job.

For more information, visit www.AForeclosurePro.com

NEW YORK - A “credit recession” sparked by the U.S. housing market downturn and excesses in structured finance may last more than two years, and the financial sector will undergo “massive consolidation,” leading Wall Street strategists said on Wednesday.

The fallout from deteriorating subprime mortgages and the broader housing and credit crisis will eventually lead to a healthier market, but not until after a prolonged purging process, Jack Malvey, Lehman Brothers Holdings Inc’s chief global fixed-income strategist, said in New York.

“We’re going through a tough spell with regard to credit,” Malvey said at a Securities Industry and Financial Markets Association conference.

The “subprime debacle” due to years of excess and easy credit will be followed by years of tight credit, Malvey said.

Malvey spoke a day after his company’s stock plunged to close at nearly a five-year low on concern that Wall Street’s smallest surviving major brokerage may need to raise more capital. On Wednesday, the Wall Street Journal reported that Lehman is seeking capital overseas.

Malvey said global diversification will be a “good remedy” for investors seeking to offset losses from the downturn. “This is the biggest blowup that we’ve had,” the strategist said.

Financial shares have been among the worst performers this year.

Financial earnings have suffered due to exposure to so-called structured finance debt and collateralized debt obligations, repackaged bonds whose underlying securities may be based on assets such as risky subprime mortgages.

Investment manager Loomis Sayles, one of the biggest U.S. bond fund managers, has been buying Lehman debt over the past several days, its vice chairman said on Wednesday.

“The credit is good at Lehman,” said Dan Fuss, vice chairman of Boston-based Loomis Sayles, which oversees more than $100 billion in fixed-income securities. Lehman’s common shares, which fell 18 percent over three days, are “dirt cheap,” Fuss said.

‘Massive consolidation’
Richard Bernstein, chief investment strategist at Merrill Lynch & Co Inc, said that in the last market cycle downturn, about 25 percent of financial firms — including brokers, banks and asset managers — “went away,” he said, referring to bankruptcies or mergers and acquisitions.

Only 7.0 percent of financial firms have failed or been acquired so far in this crisis, Bernstein said.

Like Lehman, Merrill’s earnings have suffered due to structured finance.

Bernstein also faulted U.S. government proposals to broadly modify U.S. mortgages, which may create a “moral hazard” that encourages future risky behavior, he said.

“Washington is misguided in focusing on mortgages,” Bernstein said. The federal government should focus on “job creation and people keeping their jobs,” Bernstein said. “That is the key to rectifying this situation.”

Five-year credit default swaps on Lehman Brothers widened by about 17 basis points to 275 basis points, or $275,000 a year for five years to protect $10 million of debt, according to data from Phoenix Partners Group.

Lehman Brothers’ bond spreads widened about 10 basis points overall, according to traders.