* A stimulus of over six billion dollars each and every month for the next 1-30 years that doesn't cost the taxpayer one cent that has the added benefit of being able to create over 1 million job from the first year of the increased spending power of the modified homeowners.
Some of the additional benefits of utilizing the Negative Equity Streamlined Uniform Modification System occur naturally by enforcing the law of the land that all similarly situated parties are entitled to a consistent similar financial incentive/benefit to remain in a similarly situated position.
**The spending power of all modified negative equity homeowners increases as their mortgage payments are reduced financially benefiting all other industries.
**Leading industry researchers predict that housing values will decrease another 10-25% approximately doubling the amount of negative equity homeowners from 23% to 48%, then the taxpayer free stimulus from the increased spending power of over 20 million modified homeowners will exceed 12 billion dollars each and every month fueling our economy.
**The Negative Equity Streamlined Uniform Modification System is the only system to address all 11 million of the existing negative equity homeowners and future negative equity homeowners without principal reductions protecting the homeowner and the investor re-instilling the principles of capitalism and shared responsibility.
** Investors earn less in profits but receive back their full principal balance on EXISTING homeowners with a national standard modification system reducing the length of time for the negative equity housing and foreclosure crisis to occur that stabilizes housing values quicker.
* * Predetermined penalties and fines for the injustices that have occurred financially benefiting the injured parties.
**Increases to our local and state sales tax revenues from the increased spending of the modified homeowners in a” trickle up “effect
**The return of long termed economic stability from the creation of more sustainable housing payments and values that does not exceed the median borrowers income ensuring that our children will be able to afford a home of their own.
** 8 Billion Dollars would be paid into the local court reporting revenues
**The creation of hundreds of thousands of full and part time industry related jobs (FIRE) for the next 3 years and those employees increase our revenues by paying into the federal, state and local tax revenues
The utilization of the Negative Equity Streamlined Uniform Modification System corrects the capitalistic INCONSISTENCIES such as why two homeowners with the same amount of negative equity DOESN'T receive the same financial advantage to remain a negative equity homeowner avoiding the investors negative equity loss when the social economic status of the homeowner (income) does not change the investors financial loss. Every homeowner purchased with the same implied reliance that as the mortgage debt is paid down the homeowners ability to build their own equity (future wealth) would increased, and negative equity affects every homeowner the same financial way regardless of their personal financial status.
Which is the reason for the most basic rule of the Negative Equity Streamlined Uniform Modification System of :
THAT No foreclosure may occur until it is determined in writing by the Negative Equity Streamlined Uniform Modification System :
1) If ELIGIBILITY exists, then the offer of a similar consistent financial incentive will be provided to the negative equity homeowner. There are only two possible outcomes; 1) the homeowner accepts the modification preventing an unnecessary foreclosure or 2) proof must be supplied to the courts that the homeowner refused to be similarly modified by the Negative Equity Streamlined Uniform Modification System as the 3rd party intermediary before a foreclosure may proceed. There is no more playing the "free rent"game, "let me get your last dollar"game, "I'm waiting for a principal reduction" game or a "free" house due to incompetent titles issues or differences in the modification offered, if the homeowner refuses the national standard modification offered, a foreclosure occurs within a reasonable amount of time.
2) If there is sufficient equity as proven and supplied by the Negative Equity Streamlined Uniform Modification System, as the 3rd party intermediary, the servicer has the legal right to proceed with the foreclosure without any further mediation leaving the equity homeowners’ legal rights, choices and options to sell or refinance in effect until a foreclosure does occur outside of any legalities resulting from MERS, if applicable. (homes with sufficient equity do not decrease housing values)
The intended benefit of proactively using the Negative Equity Streamlined Uniform Modification System is the elimination of the LEGAL capitalistic moral hazard attitude from existing since all similarly situated homeowners will be treated equally shortening the lenght of time for the housing crisis to occur. Between the shadow/ghost industry of over 6 million defaulted or delinquent homeowners and the continuation of capitalsitc strategic defaults from homeowners not receiving a modification, housing values will continue to decrease for decades, the use of the Negative Equity Streamlined Uniform Modification System puts a set time line on decreasing housing values before stabilizaton can occur.
The utilization of the Negative Equity Streamlined Uniform Modification System addresses the loss of the implied equity building for the negative equity homeowners with an exclusive matched equity principal pay down option versus the principal reductions being given to the select chosen few negative equity homeowners WHEN EVERY NEGATIVE EQUITY HOMEOWNER HAS SUSTAINED THE SAME FINANCIAL INJURY REGARDLESS OF THEIR ABILITY TO PAY. It also avoids the legal RIGHT of negative equity homeowners to file massive class action law suits or civil suits demanding principal reductions to the current appraised value because they weren't OFFERED a NATIONAL uniform fair modification when they HAVE negative equity, THAT A COURT OF LAW WOULD PROVIDE based on the law of the land.
Instead servicers would have their own computerized partner web site offering all interested negative equity homeowners a similar financial incentive without principal reductions or inducing the expense of hiring and training additional employees and could prove the total elimination of any conflict of interest. The Negative Equity Streamlined Uniform Modification System randomly assigns every homeowner their own personal referee to handle the modification from start to finish, as well as giving the homeowner the choice to "pick" from referee's in their immediate area. Both avenues of obtaining referee's has a built in hierarchy of team members to ensure compliance and handle discrepancies or complaints in a very specific manner as outlined in the Operations and Training Manual, there is no favoritism. Another benefit is the utilization of our exclusive web based tracking system, available 24/7 for homeowners and investors alike to check the status of their modification with a multi lingual Main Street referee staff located within the United States to answer any questions.
The rule of law is the underlying or primary contract is the foundation that any secondary contract is built on and violating the rights of the first contract makes the secondary contract unenforceable. 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 existing laws such as the unfair and deceptive business practices, RESPA, the Fair Housing Act, the Patriot Act, 3rd Party Beneficiary and too many more to list.
*Servicer's have a built in conflict of interest because they make more money on a foreclosure than a modification, regardless of the investors financial interest breaking an fiduciary duty and the homeowners right to due process.
*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, but they are not enforcing it or it's pre-arranged penalties.
The utilization of the Negative Equity Streamlined Uniform Modification System (NESUMS) enforces the systemic right of eligible homeowners to obtain a modification regardless of who holds the note, who the servicer is, or what group of investors are involved in a mortgage backed security or even what the servicers and investors pooling and servicing agreements state, by the equal enforcement of the principles of capitalism, fairness, equality with the rule that there is one law for all.
The utilization of the Negative Equity Streamlined Uniform Modification System forces all industry participants to operate within the law they are not just expected to self police themselves to abide by the rules and laws of the land, they are forced to or penalized. The ability to pick and choose what law, statue, ordinance to follow or who benefits is eliminated with the necessity removal of the fox from the hen house to an independent and neutral 3rd party modification provider, the Negative Equity Streamlined Uniform Modification System with ONE set of clear, concise, and transparent rules and guidelines for all homeowners, that will be published on each individual servicers web site, as
Main Street's free market capitalistic response to the negative equity housing and foreclosure crisis.