Living Lies Opens Clearinghouse For Investors and Homeowners to Get Together

GTC|HONORS

A division of General Transfer Corporation

“Workouts With Honor”

Call 520 405-1688 or write to neil@livingliesblog.com. GTC|Honors provides analytical reports, negotiation with the title insurer to eliminate exclusions for off-record transactions, and potential homeowners looking for deals in which they can either enter into a short-sale, or sale lease back with option to buy. Except in rare instances. GTC|Honors works with local licensed attorney and local licensed real estate brokers only. We do not accept applications from brokers but have no objection and even advise the investor and the homeowner to engage the services of a real estate broker and licensed attorney. GTC|Honors does not guarantee title or a successful result but does provide screening of both investors and homeowners.

Investors must have some knowledge of U.S real estate transactions, their own counsel, and proof of funds. Bank and customer references are required.

Homeowners: Must have an actual provable income from which they could pay rent or a modified mortgage. Personal , bank and financial references are required. DO NOT provide a history of your case unless you believe there is a single salient point that distinguishes your case from others.

Standard business model includes purchase at auction, purchase out of bankruptcy state, short-sale, lease back, option to repurchase at discount and an equity “kicker” for the investor in the event of sale or refinancing.

BUSINESS PLAN AND FIRST OFFERING:

GTC|Honors Business Plan for Residential Housing Investments

GTC operates www. livinglies.wordpress.com the largest website on the internet providing resources, articles, forms and active analytical assistance to those seeking to challenge those banks and servicing relying upon false, fabricated, forged documentation. Counties around the country have verified what Katherine Ann Porter discovered in 2007 in her ground breaking study — that the promissory notes executed by homeowners were a hoax, and that no less than 40% of them had been destroyed or “lost.” More recent studies show that the number is even higher, probably at 60%. The reason for the destruction and loss was that in between the delivery of a loan to an investor-lender purchasing a “mortgage bond” and the time of funding tot he borrower, the banks inserted themselves as the owner of the loan in order to justify the purchase of insurance, credit default swaps and other hedge products. They used investor money to make these purchases.

The author of the blog, Neil F Garfield is 65, started his career on Wall Street as a security analyst, then manager of securities and bond research, and then director of mergers and acquisitions at boutique brokerage houses in the early 1960’s and 1970’s. He then went on to become a successful attorney in the trial room and in the boardroom where deals were made. In South Florida he traded in residential and commercial properties.

After 6 years of interviews, analysis and surveys, as well as direct involvement with thousands of foreclosure cases, he has arrived at the conclusion that  the original obligation at the time of funding was composed of two parties — the investor-lender and the homeowner. Wire transfer instructions corroborated his conclusion and since then he has tested his conclusion by demanding the evidence of the money trail in loans that were subject to the claims of securitization. GTC now provides paid services to investors and homeowners alike as well as some community banks who have been approached with applications for refinancing but are worried about clear title. www.livinglies-store.com

96% of homeowners leave without a fight, some of those declaring bankruptcy. The others fight actively in state and federal courts including bankruptcy. The typical business model being followed by investors in the area is to buy the property for fair market value. The forecloser usually resists at first, because the banks have credit default swaps and insurance payable if the property is sold in foreclosure. The investors make an offer in short-sale or to buy the property out of the bankruptcy estate. They rent the property with an option to buy the property back over a term of 5-10 years. The rent depends upon market conditions and the LTV ratio. Investors typically seek a total ROI of 25%-50%.

Example, pending case now: XX was the owner of two unencumbered properties. She was induced to finance them to invest in a Ponzi scheme, for which US Bank was the conduit for funds transfer. The application recited her income including the projected income that would begin in 12 months. The income of course never arrived and the properties were set for foreclosure.

One property located in Payson Arizona was thought to include 4 parcels, including parcel #4 which contains a 2500 square foot log cabin with two floors plus a partially finished basement, appliances etc. The cabin has electricity but not access to water. Lot #5, also owned by XX has the water, pump and plumbing, and septic fields.

Chevy Chase Bank applied for a lift stay order in bankruptcy reciting their ownership of the loan. Judge entered an order confirming the ownership of Chevy Chase and lifting the stay. U.S> Bank then foreclosed without relief from Stay, eventually saying that the actual source of funds was a “trust” for which they were the “trustee” “relating to” the certificates. The foreclosure was set for auction and the auctioneer accepted a credit bid from U.S. Bank. XX is still in litigation with US Bank over their ownership of the loan. It was discovered that the only property foreclosed was Lot #4, after which discovery XX filed a motion to add the other three lots to her bankruptcy estate in the interest of full disclosure.

The U.S. Trustee has suggested a settlement purchase price of $80,000, half of which would go to US Bank if they can prove they own the loan receivable. We already know they do not. So the eventual sale price might be as low as $40,000.

The property was originally appraised at nearly $500,000 without Lot #5. XX has the ability to challenge US Bank’s right to intervene in the sale proposed by the Bankruptcy trustee, if she can show that she has the actual deal ready by which the trustee could be paid. The property is worth, according to local realtors (lots 4 and 5 only) approximately $250,000-$300,000 in a distressed market, containing over 2 acres of prime land overlooking valleys and mountain views.

She has an income now of approximately $500 per week without working, because of money due to her, is enrolling in nursing school, is 56 years of age, in excellent health and comes with glowing recommendations. She has prior experience as a massage therapist and a personal trainer. Her expected income should be in excess of $1000 per week.

She is looking for an “angel” to buy the house, allow her to perform maintenance and repair ( a brand new water pump was somehow destroyed by the realtor), pay rent starting 60 days after closing at the rate of $700 per month, plus an option to buy the property at $115,000 plus an equity kicker on refinancing or sale of the home at 25% of net proceeds. She is open to any reasonable offer.

I am her friend as well as her adviser, which is why I moved her case to the front of the list. Your offer to buy should be submitted to the Trustee with the usual demand for clear title which cannot be given without further order of the court since the Judge already recited another bank owned the loan other than U.S. Bank. The court and the trustee just want to get rid of this case. The auction “Credit bid” submitted by US Bank without a loan receivable or the note was $91,000.

She currently lives on a second structure on Lot #5 consisting one room, electricity for limited access to water. Lot #5 contains all ingress and egress to Lot #4 as well.

I have dozens of such properties in which homeowners are looking to walk away with some dignity or who would like to stay and rent. Most would like to stay and rent.

I am am an attorney and the author of the above mentioned blog with approximately 7.3 million visitors. My fee includes $7,500 from the investor for judicial and non-judicial methods of clearing title, providing title and securitization analysis and negotiating with the title company to include a guarantee of title including any off-record transactions. This feature is absent from most title policies and many investors are already finding out they are stuck in properties with clouded titles. I have attorneys that will provide services locally in Arizona, California, Nevada, Florida, Alabama, Tennessee Oregon, and other states.

If you have any further questions please call as indicated above

Sincerely
Neil F Garfield

P.S.  Our experience, while limited, confirms what we have already discovered in court, that when the Judge commands the forecloser to open up its books and records to prove the loan receivable they either fail to appear at any further court hearings or make offers of 70%-90% discounts off the original loan. It is still necessary to obtain a court order declaring the identities of the stakeholders and the status of their holding in the property in a final order that can be certified and recorded in the county records.

The reason why the foreclosers are moving in the direction of allowing short-sales it is that it no longer a bank with no interest in the property signing the deed, it is the actual homeowner. But that still leaves the problem of prior loans that were subject to claims of securitization. By following the procedures that we provide, the investor can be reasonably assured of getting clear title and a very thankful tenant.

Tags: bankruptcy, equity kicker, homeowners, investor angels, Payson, sale-leasebacks, short sales
Posted in bubble, Corruption, Eviction |