Saturday, June 06, 2020
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How CAREIF plans to stabilize the housing sector


561.829. 3559 or 561.839.9766
How CAREIF plans to stabilize the housing sector while producing thousands of permanent jobs in the primary and secondary markets.
Below find sample of letter sent to the Federal Government:-
This is a formal introduction to CAREIF’s mortgage foreclosure prevention program. By partnering on a national expansion of the program the Federal Government will bring to a close the current housing crisis, without incurring any long term financial losses or commitment. The Federal Government will instead generate significant long term profits for the citizens of the USA ., through its affiliate organizations; the RIC club;, has for the last decade been involved with offering members a foreclosure prevention and protection program. The current crisis has brought home the essential need for consumers to possess this back-up plan in the event of unforeseen financial problems. This same program works well for financial institutions simply because in protecting the Homeowners from foreclosure, CAREIF is also protecting the Bank, the lender or the Note holder from catastrophic losses as is exemplified in the current financial crisis. This program is great for all parties involved.
CAREIF with the aid and support of the Federal Government can now expand its programs to include members of the general public, financial institutions and Developers. We would like for all current, future and prospective homeowners to both have a look at the program as well as take advantage of its merits and benefits, so that the US Economy will never again face or bear the brunt of a collapsing housing market.
Financial institutions will benefit in the following ways;
•           They will never again see a non-performing mortgage loan on their books if their borrowers are participants in CAREIF’s programs.
•           Guaranteed a cap loss of 10% on any mortgage loans given to participant of the program.
•           Will have a ready market for non-performing notes
•           Will have increased and increasing long term deposits in their institutions from CAREIF and its clients having loans through the particular institution.
•           It will allow mortgage lenders to increase their loan portfolio without the risk.
•           Will allow the financial institution to offer competitive loans which are guaranteed by CAREIF.
•           It will allow the Federal Government to play a role in fostering affordable housing as well as housing in general without the catastrophic risk of becoming physically involved or financially obligated to constantly bail out the private housing markets and industries.
CAREIF understand the need for financial institutions to become active in the credit markets. This unique program answers the questions and provides the answers to resolve the current crisis which now exists in the general economy and more specifically in the Housing Sector. By becoming a part of this program, the Federal Government as well as the participating private and public companies, will become a part of an historic evolution in the financial and credit markets globally as it relates to housing and homeownership by American consumers. This program will not only save the US Economy, it will also shore up both developed as well as developing economies which are heavily dependent of a successful US economy for their survival.
Most importantly CAREIF’s program will accommodate persons now facing foreclosure, those who have already lost their homes and wish to re-enter a home and those who wish to find an affordable program to protect them from ever facing this dilemma. The implementation of the program will create over a quarter of a million permanent jobs and over 5,000 active small businesses spread across the entire United States with the planned capability of being expanded to other economies globally to the greater earnings potential and benefit of the USA.
We are more than willing to meet with you and your team to further discussions on how to effectively as well as efficiently implement these programs in the shortest possible time. This program solves your concerns and it will solve the crisis in the housing sector for the entire national economy.
Looking forward to an early response.
Anthony Tharpe CEO.
***To fully understand some of the measure detailed in this rescue plan fro the hosing sector inclusive of protecting homeowners please see; foreclosure protection at look under Services; product foreclosure protection. ***
Aim to solve the following:-
1.         Solve the problems adversely affecting the real estate market; many of the problems affecting the real estate market are not at all real estate related. There has always been and will continue to be a high demand for real estate long into the future. This is a well known fact. Demand spells profit.
Solving the primary problem is twofold; one is financing the acquisition and secondly is the sustaining of the income of the property owner so as to ensure their mortgage servicing obligations are met. The traditional lending agencies are heavily involved in the stock markets; directly or indirectly, in one way or the other. It means whatever happens on Wall Street will ultimately affect their ability to function effectively or ineffectively in the services they provide. This is evident in the current financial crisis. Thus, ACCESS TO FINANCING IS THE PROBLEM FACING THE HOUSING MARKET and not the demand. Wall Street’s creative funding models which give them tremendous returns are not at all stable for the real estate market. A strategically independent financing program different from the current dependence on Wall Street’s financial houses, is key and must be developed. CAREIF has developed this alternative financial system. One which will ensure that the housing sector will not face collapse each time there is a problem on or with the stock markets.
The following article sums it up:-
Well thinking Americans including President Obama Must not simply take Wall Street’s version about the financial crisis. These Wall Street financial Jocks do know who had their hand in this mess. They also know it was not the hard working homeowners who borrowed to put a roof over their family’s heads.
Its an absolutely shameless act that the persons really responsible for the current financial and credit crisis are now working their proverbial butts off to place the blame on middle and working class Americans who are simply trying to only hold on to the basic American dream of homeownership. They have no hidden agenda like many of the manipulative people we know are working on Wall Street. But suddenly everywhere we go, it’s not at all uncommon to constantly hear Wall Street and financial analysts claiming the failures now facing this nation, from shore to shore, occurred because financial institutions gave home loans to people who could not afford to make their payments. This is definitely not at all true.
In the first place this is one global economy that would not allow any applicant for credit; regardless of how small a request is made, to gain access to funding unless they showed they could afford to make that particular payment. THE ABILITY TO PAY is the only way to capture and hold on to the American dream. There are no gifts or give-a-ways for the working and middle class. There are no free rides as Wall Street would have the nation think when it comes to this housing mess we now find ourselves in. The fact is homeowners are being taken advantage of and so will be the Federal Government and ultimately the tax payers if we don’t keep our wits about us. We cannot be simply nimble; Wall Street is not just quick, they are fast. Study the facts America ; don’t be fooled by fancy talk and the fast hands.
The three main Credit reporting agencies make it their absolute duty to make sure that consumers applying for, having or not having credit are scrutinized to the “T” BEFORE GIVING A CREDIT RATING. This rating determines whether financial institutions or investors even consider an applicant for a loan. Every person who applied for a home loan, and received that home loan did so only because they were qualified by the lender. Yes, some persons lied on their applications, but not because they could not make the payments, they lied because of an unforgiving credit rating system. The fact is no one bought their homes with the intention to lose it several months or years after. So let’s stop the shameless lies Wall Street. Further how many and what percentage of person really lied? The numbers could not be so significant that they could cause this crash to occur.
On the other hand how many investors lied so as to leverage financing the many properties they bought and have now dumped on the real estate market? We need to differentiate who are homeowners and who are opportunistic investors whose strategies have help to construct the biggest financial crash since the Great Depression.
The reality is, many Investors, and not homeowners, who made a conscious decision not to pay for homes they bought, are possibly the ones to carry a lot of the blame. It is these same investor who are now quietly sitting, to see how things unfold before reentering the investment arena. Our problem is not with those who have a desire to own their homes as their primary residence. It’s with the investors who can and have walked away from their purchases. These are not the same persons who need their homes saved. In fact one can almost with a high degree of certainty determine that the investors who walked away from closing on many of these investment properties, have not been placed in the dire position of losing their homes because of their inaction in honoring their purchase agreements. That is their right however. If Wall Street had not scared them; the investors, with their relentless outcry regarding the housing bubble, this crash many have been averted. So now many are now sitting on the side lines and who can blame them from not wanting to be active investors, especially in such a horrific market.
They did not become wealthy by being foolish in their decision making. That however does not give Wall Street the justification to deliberately misplace the blame. More so blaming honest hard working Americans whose interest is only in homeownership, not investment properties.
They, the investors, who ventured into the housing sector, certainly did however contribute heavily to this housing crash, which eventually lead to liquidity issues and therefore the availability of money to lend. When Investors walked away from their investment because they were worried about the housing bubble crashing, it left builders without money to service their loans.
This also lead many lenders to experience a cash flow problem. Not being repaid resulted in lack of liquidity to service the credit market. So the vicious cycle began and was supported by inaction by investors and still continues until we find the ultimate solution. We do know the money is sitting somewhere, just waiting. And it is not being held by homeowners who are losing their jobs which they need to make their loan payments. So who are the true victims? Certainly not those on Wall Street! Yet they have already been bailed out by THE TAX dollars of the very same hard working American who now stand to lose and are in fact; by the millions, on a daily basis, losing their homes.
Those on Wall Street are often quoted saying that it was the subprime lending that caused this crisis. The absolute fact is that, this is one of the biggest lies now being spread as a distraction for the Federal Government as well as ordinary Americas who really still can’t figure out what hit this nation’s economy. To think it’s the poor, working and the middle class who are to be blamed is just illogical in all respects. This is as ludicrous an excuse as anyone could fabricate, and is comparable to the disgust this nation should feel when these finger pointers, who crashed the economy in the first place are now trying to play the game that they are the victims.
One contributing factor to this great dilemma is that Wall Street brokers, financial analysts and those who had the most to lose from the failing stock market, some two years before began to sow the seeds of destruction of the housing sector. For approximately two years the Jeremiahs of Doom, started to cry in a very loud voice from the gloom of Wall Street that the housing bubble would not and could not last. They cried so much and so determined was their cry that the many investors who had abandoned Wall Street and flew into the lucrative housing markets such as California and Florida, to buy large numbers of houses for a quick flip, began to panic themselves. They believed these analysts so much that they withdrew from the housing market, refusing to close on many of the homes and condos they had contracted. The chain reaction is what we now face.
But why would they create such a panic? Simple, the many investors flying; and literally they did fly, to these lucrative housing markets, were pulling billions out of Wall Street and going into the housing sector. The lobbies and departure lounges of JKF and LaGuardia airports in New York were filled with many of these investor boasting of the many units they were going down to Florida to buy. These risk takers were simply tired of waiting on the many projections that the stock market would soon rebound. To halt their migration from Wall Street irresponsible person brokers and forecasters, desperate to drive back capital to Wall Street began to sow the seeds of panic. What they did not know was that the money they were hoping to drive back into stocks never came. Investors simply decided to wait and see. Thus with their failed strategy and no one else to blame, they saw and used Americans, who only dared to dream about owning their home; the American dream, as the ones to blame. They became the perfect excuse. Why? Because they are too busy to have a voice in this great debate. One debate that was about to go beyond their reach with lobbyists craftily seeking to exclude them for any major bailout plan of their own. With a major shift in the Federal Governments attitude I hope the aforementioned does not become reality.
Many homes are being foreclosed on simply because many buyers who thought they would have the jobs to maintain their payments lost their income when the chain reaction of failed Wall Street strategy caused many businesses to fold. There was also the dramatic increases in property taxes forced upon homeowners who were themselves not seeing an increase in their income. These property taxes soared sometimes to more than 200% of original amount when they first made their real estate investments.
This is because counties in States such as Florida saw this opportunity to also greedily and without foresight, exploit the housing boom. None of these county bureaucrats saw that if they increased the property taxes beyond affordability, it would also make it impossible for homeowners; many on fixed income, to maintain their mortgage payments. Mortgage payments which often included property taxes. In any case if the property taxes were not paid, they, the homeowners would also lose their homes. Acts such as these on the part of Florida counties also lead to the many problems faced by homeowners desperate to hold on to their homes. This obviously adversely affected consumer spending. Then came the wait and see attitude by investors resulting in the crisis we are now experiencing worsening.
How dare Wall Street now then try to blame Main Street? The shame is theirs and theirs alone. It was these same Wall Street banks and financial institutions along with so called savvy investors who saw the opportunity to make a lot of money; and they did, providing leveraged loans to desperate home shoppers, many who saw the American dream of homeownership disappearing with the rapid escalations in prices of new and even existing homes. With home prices soaring 100% and more in less than a year in many locations, fueled by the hysteria of desperate home buyers; greedy investor willing to create a demand by buying as much of the available properties as possible and opportunistic home builders who plaid right along, inflating home prices, knowing well that there was an artificial demand being fuelled by investors who had jumped the wall street wagon, this housing sector collapse was definitely and bound to be a sure thing.
Home builders and appraisers who supported the increase in values from month to month and funding institutions who failed to challenge the rapidly increasing values all had a hand it this dilemma. It was complementary actions on the part of all the aforementioned that wedged the true home shopper into a difficult situation of buying homes that were inflated and rapidly moving out of range of future ownership. As long as they could make the payment, then it was OK. There is nothing wrong in making such an analogy, because that basically is how the economy has treated the middle and working class of this fine nation for as long as many of us can remember. That’s how the auto industry survived for years. So it’s not now justifiable to blame those Americans, who really wanted a home as opposed to investor, for these existing problems. No true homeowner would just walk away from their homes because the high returns from flipping homes dried up. No true home owner who has his or her family to care for would deliberately lose their homes to foreclosure if they could prevent it. No American homeowner would have bought homes if they knew that Wall Street and their financings strategies would fail, or if local and state governments increasing taxes would placed them into this noose they now face. Homeowner should not and cannot be blamed. There is however enough blame to go around.
Anthony THARPE;  
Real Estate Investment
Solving the problem comes in the following manner;
1. First and foremost the financing of real estate must be developed to ensure that 90-100% of funds needed to provide liquidity in the industry for financing mortgages are independent of Wall Street’s funding and its financial instruments. If Wall Street INVESTORS BEGIN TO INVEST IN Real Estate as an option, they must invest with rules established by the persons who have the most to lose if this situation should ever arise again. There can be no blank leveraging of real estate by investors. Any acquisition of property for investment must be declared and the requisite funding evidenced before accepting the transactions as being safely closed. All funds or the structured payments plan must be escrowed at financial institution or CAR-EX exchange from time of contract to delivery dates.
Guidelines must be developed for investors who are entering the real estate housing market as speculators as opposed to the person simply purchasing a home for primary residence.
This will ensure that developers or real estate sellers are not left holding a blank check from an investor who has no real commitment and therefore no risk involved with the real estate investment process. This protects the industry in multiple ways; including (1) Persons selling property to investors are not left holding the empty bag, with no compensation for opportunity lost. THE INVESTOR will lose their deposits which are paid to sellers in the event they refuse to close for no real reason other than that the market has shifted. If and when the property is sold to a new buyer the investor/depositor will receive 100% of deposit minus the cost of marketing and other processing or legal fees. Developers and other sellers within the real estate market will therefore be able to meet their obligations and not having to default on their own commitments as would happen if and when investors simply refuse to close. Yes there are legal actions that can be taken against a buyer or investor who fails to meet the closing; however this would eliminate costly delays for both the seller and the developers who often end up in financial crises when buyers simply walk away without consequence. (2). It creates a more responsible investor/buyer. They will examine and make decisions which will result in commitments not only in kind but in fact. When they are faced with the possibility of not just simply walking away from a transaction, they will think twice before investing, then sacrificing the developer and the industry in general. The investor will therefore have to wait until the market shifts if they did pay in full, or await the sale of the property for a refund as aforementioned of their partial deposits. If the Developer is not paid in full, and if the property is not sold within a specific time; the developer has the right to resell the property for less than original price to ensure he recovers his full selling and commitment price contracted between seller and buyer / investor in this case.
Developer has the right or discretion based on the constructed agreement to or not to wave the withholding process and the escrow accounts. Each escrow account will be backed by instructions documents to escrow agent.
Homeowners buying not for investment would be treated in the traditional way of the market. Their contracts will determine what happens in the event of being unable to close for one reason or the other.
While many financial institutions will fail if and when there is a run on that institution by depositors. In the real estate market, failure occurs when there is a run away from the market. THIS run is often lead by investors who refuse to provide funding while working to minimize their risks. The aforementioned will significantly eliminate future runs from the real estate market by investors who have made commitments to the market. This applies to financial institutions that have made commitments as well. Their commitment funds are to be set aside in special facility in an independent institution or with the an evolved financial escrow company; CAR-EX, specializing in these transactions, if at all necessary, to ensure they too don’t simply walk away from the commitments leaving their clients hanging and holding the proverbial bag.
The escrowed funds and the activities as it relates to the original agreements are to be monitored by an independent manager supplied by CAR-EX. This will ensure that the agreements re correctly honored and that the developer is not irresponsible in spending the escrowed funds merely because its there. IF an examination reveals that the market is so strained that no way will the developer be able to meet his repayment schedules, then the escrow manager will have the authorization to cancel the agreement and return funds or balance of funds to Funding sources. If developer is however capable of meeting scheduled payments evidence by financials and regular financial reports as to the project and his or her companies health, then the escrow agreement must be honored. This management of the escrow will occur until the completion of the project or contract as structured.
CAR-EX will offer these services to small and or large investors providing financing. No actual funds will be held by CAR-EX unless specified by Developer/ investor agreement. Funds will be held in an independent, healthy financial institution or in a Self-Bank or U-BANK FACILITY to ensure that there is no compromise by a financial institution having a problem, which in effect also compromising funds.
2.         To provide solutions for the real estate developers and removing excess inventory from the general market place.
The aforementioned will solve many of the issues faced by the developer and the   financial institutions as well as the investors involved in the market place. The industry become self regulating as opposed to allowing government to set the rules in an industry many people thing involves only buying and selling of real estate. THE MARKET IS MUCH MORE COMPLEX THAN MOST PEOPLE imagine OFFERING MULTIPLE OPPORTUNITIES TO investors, property owners and ultimately the buyer. To achieve the objective in #2, the following must occur;
•           Develop new marketing strategies using a combination of direct sales to homeowners and to investors looking for a long term gain. To achieve this property to the end user; who may be an investor or home owner, the property must be displayed as an asset from day one. It must offer the buyer the potential of income even if the end user never chooses to put into income generation. Valuable data must be presented and available form CAR-EX on line at CAREIF.COM; the investor frontier. There are multiple ways to repackage the product. Real Estate agents must therefore become more investor savvy, having a detailed knowledge of the real estate market from an investment perspective, but also an intimate knowledge of what is happening in the equities and stock market. Providing real time data on the market to clients there must therefore be a change in the right direction.
•           Home buyer education course as is proposed by the RIC. These will prepare the homeowner for all that is expected and those things they never gave thought to. Some person would then put off buying a home and opt to rent in some cases. This would be good for the industry in two ways; (1). It helps in ensuring less financial strain on homeowners who will plan financially in a more effective way to meet the new challenges including; maintenance, taxes. Insurance and unplanned occurrences. They will also learn about sweat equity to ensure they grow the value of their homes in the most efficient way. Building equity as the market moves in a structured manner. We will develop a more sophisticated first time home buyer. It eliminates the often heard cry that we did not know what we were getting into by homeowners when they get into trouble. (2). It helps to eliminate the process of excess inventory reaching the market. If there are fewer foreclosures then there will be less available housing in the market. The developers will take advantage of this, while the development process will have real data to now determine real demand and needs from the market.
If there are more people interested in renting, then there will be investors who will build more rental units. If there are more persons interested in homeownership then the gauge can be set as to the number of units needed to meet these demands. Builders and investors will then be able to determine how to build, how much to build and when to build. Surveys and data will be centralized for easy access for investor, developer, and end-user. A basic online course can he prepared and offered to all home buyers. Real Estate dealers should insist and the attorneys preparing sales agreements should demand that their clients do the course before entering the transaction. This will reduce the liability for all involved since buyers cannot simply say they were tricked into the home by the real estate dealer, the lender and that their attorney did not point out these flaws. The result will be available for review by sellers of real estate. This will ensure that private sellers are not locked out of the system. (3). The course should include credit management dealing will remedies in fixing credit. This is important since if the market is flooded with home buyer with bad credit, they will not be able to fund acquisitions. This will contribute to negative growth within the housing and real estate development market. The more qualified buyer there is the more homes will be sold.
•           CAREIF will maintain a permanent register which encourages person to register directly with CAREIF or with the partnering financial institution as to their timelines in terms of buying a home. A three years minimum projection will be the gauge. This will give valuable date as to when to build and what to build.
•           End users must know their exist strategies in dealing with their mortgage payments if they need to get out. They must be given an option which makes them know what ever happens to the market, they will not lose value. This is achievable if they buy under the developer guaranteed plan backed by CAREIF. This where CAREIF will buy back the property at 100%, if the property is still in excellent condition from the now seller who wishes to get out even in a bad market. The seller will never see a loss in the value of the property. This will also bring back confidence to the market. Knowing they will not lose value will encourage more buyers to enter the market.
•           CAREIF/ RIC will maintain a database of persons who will qualify to buy a home 100% funding. These individuals will be presented to sellers who can then present them to funding sources. The pre real estate buyer’s course is one way we will generate such a waiting list. Remember this program offered by RIC will have person being put through a qualifying process for 3 years prior to buying homes with a mortgage protection plan, where they will have a backer against foreclosure action. Remember the goal is to keep as much of the real estate market free from foreclosure which often will lead to again clogging the market if it occurs in mass. THE AFOREMENTIONED PROGRAMS WILL ELIMINATE THIS. The fact that RIC will buy up excess inventory at a discount from developers and the foreclosure market in general; list pending, will protect the market. And protect the market with private capital rather that Government. By doing this we will help to reduce the possibility of increased taxation. The consumer will have more spending power and improved quality of life and therefore more confidence which will have the effect of a vibrant consumer market. This will be positive for the entire economy.
When sub listed items aforementioned above are combined then even investors will feel safer to enter a market. If the properties are not going to fall below a certain point in term of value then more than likely they will increase in value. Communities will not fall in disarray from a flood of foreclosures which will affect their appreciated values. The market will be more stable with the effect of appreciation as opposed to depreciation because of a bad market.
•           This fact is even more pronounced when excess inventory is removed from the market. This will be done when CAREIF/ RIC acquires with the FED HELP ALL TOXIC ASSETS at discounted values. The funding for this mass acquisition can come in the form of a guaranteed loan facility by the FED’S, at a practical interest rate. CAREIF/ RIC will then keep homeowners facing foreclosure in their home by offering them a reduce valuation based on formula to be decided between developers. Realtors and investors in the market. This formula will indicate without ambiguity the bottom value applied to all existing inventory in the market below which home sales will not fall. This will be supported by all industry players e.g. realtors, investors providing funding and developers, it will work as the OPIC pricing structure where all agree to fix the bottom. This will result in the inventory of foreclosed homes coming on the market to be eliminated significantly. But not enough to cause any real problems. Further CAREIF and possibly other investor will buy up as many of the foreclosures and list pending before they hit the market by offering financial institutions a facility / clearing house of bad mortgages. Here the notes will be sold singly or in bundle to individual’s investor or institutions. THE INVESTOR frontier and the CAR-EX will act as a brokerage service having the right to buy up inventory before coming to market. This will create a high demand for the product, again especially since a bottom value will applied to all sales. This will create stable pricing and increased confidence in the market. CAREIF will itself employ creative international marketing strategies in association with developers and realtors to remove high end inventory from the market. CAREIF will act as an acquisition and a clearance houses for toxic properties from all quarters.
This will:
•           Create income for the industry and bring into the national economy foreign earnings. This will again remove excess inventory from the market. Including in this marketing strategy to remove excess inventory; a 100% financing program will be introduced. All 100% financing plans will be offered only if buyer is willing to do salary deductions to meet their monthly payments. Other persons who will enjoy this facility are RIC members who have been members in good standing for at least three years and having the ability to pay. The same standards apply.
•           Giving back rebates from time to time to homeowners will give them extra spending power, which can be applied to the pay down on their mortgages. Remember that RIC members will enjoy discounts on many consumers items which itself will increase their disposable income and keeping them abreast of inflation. This will result in increased spending in the general economy. Rebates and coupons can be released in a manner that will best help the general economy.
•           The buyback policy will be applicable in all sales so as to bring stability to the market. No cap will be placed on appreciation. This is being emphasized simply because when increase market information such as recent sales data is supplied as a part of the homeowner buying process, the homeowner will be in a much better position to negotiate the final price. Developers will be working with a bottom market on values which will still enable then to make a profit. So it is now a matter of a free market system of demand stimulation brought on by increase confidence in the market.
•           The buyback policy will be available to homeowners who are looking to exit the market and not willing to wait on a sale but would like to preserve their credit rating by avoiding foreclosure and or late payments. CAREIF/RIC will have an acquisition policy where with the permission of the homeowner to negotiate a settled price for the home, from lenders. This will reduce the number of foreclosures in the market as well as eliminate the creation of another housing crisis. Again this will control the demand factor by eliminating negative inventory on the market resulting from foreclosures. Financial institutions will have less negative loans on their books. CAREIF / RIC can unload the asset without them being tagged as being toxic, through its various housing programs and list waiting clients. Banks would be more inclined to lend because they have an organization in the market that will protect them for significant losses if any. The foreclosure protection plan when applied before as a part of the closing process will eliminate up to 80% of losses and up to 100% if these buyers seeking funding are members of the RIC PROGRAM. This will inspire lenders confidence to lend.
3.         To remove the toxic assets being held by financial institutions in such a way it will not cause developers and real estate sales person’s additional problems in moving the market forward.
4.         Provide a safe position for home buyers in a manner consistent with preserving equity and not having situations which currently exist where they are now paying for assets far in excess of their real market value. In short they have negative equity because home prices are falling.
This is achievable when it can be proved that the home was bought at a value fare in excess of the real market appraised value at the time. This means appraisers must be given the responsibility to provide real time data to a central reporting agency that lenders and buyers can access to verify real value. It is grossly unfair to have a home owner being tricked into a value they will never see any real equity. This is also bad for the real estate market since many persons would not want to buy homes. There would be no reason to since they would be spending money they in reality would never recover. Developers, who sell homes for a certain value and then reduce the value of these same units in the same development or development within certain proximity for less than what the original sale price on those units, must refund the difference to the buyer if reduction takes places in less than 12 months. This will be apart of any guaranteed buyback plan or foreclosure protection when buying from these developers. Such an agreement and understanding will be a part of the sales contract. The timeline suggested is 12 months. If there are questions and concerns by realtors and appraisers that the values will not be matched within a 12 month period then there has to be an adjustments in the sales value even though the homeowner has moved in. Developers cannot however be forced to accept this proposal. However developers who become a part of this mandated structuring of the market and signing as a member accepting the policy, must do so.
The excess money in question must be placed on an escrow account for that period. This will occur in cases where the developer sells for less but has not done so because the market price points cannot support his selling price. If the homeowner and or their attorney request a refund, then the market is checked with data and appraisals, showing the value is met and/or matched or that the developer has not depressed prices on the same unit within that designated proximity.
This is geared towards consumer confidence and therefore making them known, they are getting a real deal and that they are protected from unscrupulous developers, real estate dealers and appraisers. Data supplied to the central database will be used to check these values and activities within the market place. This will also ensure that developers do their utmost to ensure that their developments are of the highest quality and therefore appreciate in value as opposed to falling.
5.         To work out a formula that will set the bottom of the real estate market by establishing a threshold which will satisfy the developer with excess inventory as well as the home buyer who will see the asset as being worth the investment since the formula will ensure that #(4) never again happens.
6.         To work out a formula satisfactory to acquire assets at a discount from banks and other financial institutions,
7.         To develop a plan of action which allows government participation without them taking any equity position eliminating the threat to a free market economy*(capitalism).
8.         To develop a plan which ensures that there is a mortgage protection plan for the home owner through the RIC program as well as;
9.         Providing a protective mechanism for non RIC homeowners which will see the bank being protected up to 80% of appraised value.
10.       To also develop a program which will offer 100% to persons taking an equity home loans to the banks so long as the borrower is, (a) willing to do salary deductions which cannot be stopped until loan is paid in full to RIC. (b) If borrower becomes unemployed for any valid reason then RIC will cover the payments in full.
11.       To establish a deflation mechanism this will see spending power of home buyers increase. This is easily done by offering lower interest rates both in the housing sector as well as unsecured credit such as credit cards. E.g. CAREIF will issue credit card to persons willing to enter a salary deduction authorization program. They will see interest rates as low as 6%. THE FACILITY WILL REQUIRE A onetime processing fee and an annual fee of $20 dollars which can be paid in multiple payments over several month in advance. Advance payment will eliminate financing charges.
•           CAREIF will issue credit card to RIC members through a legally recognized financial institution. This credit card will have all the benefits of the future card; plus, set a limit to the member based on membership grouping e.g. Silver group will have a card limit of $500.00 at and interest rate under 10%; Gold will have a limit of $1,000.00 with an interest rate of under 8%; Platinum membership group of $2,000.00 .
•           This limit will not increase and members will be encouraged to use this as an emergency card and to have the repayment taken directly from salary. (Not COMPULSORY).
•           This card will allow members or others with bad credit to rebuild their credit rating. This is one of the main purposes of the Credit card issuance and repair system for members’ credit.
•           The card will act as competitive guard against extreme interest rates and therefore will help to fight inflation brought on by reducing consumer spending especially when credit cards charge extremely height rates. It will also allow person locked out of the credit system due to bankruptcy and other issues to have a friendly card to allow them to re-enter and re-build credit.
•           CAREIF will later issue a business class card for real estate investors tied into their assets, at a rate of 10-12% or a minimum usage fee of $200.00. This will allow members to access cash without lengthy applications. Having this facility will allow them to pre-qualify a property with certain equity, on which the limit will be set. CAREIF would maintain a lead first position on that property for security and to ensure that members would not use the business class cards, and then encumber the property through other loans facilities. Therefore increasing CAREIF‘S EXPOSURE AND RISK. This card will help to promoted business development and continued growth in real estate. CAREIF will emerge as the primary funding source for investors who must become members. Membership can be financed over a period of months. No access to card will be allowed until thereafter. By doing so members are in fact building or re-building their credit so that they will have access to other financial institutions. Financial institutions will have greater confidence in providing loan to members since CAREIF will act as Guarantors for these loans. Loan guaranteed measure by the actual forced market value of the asset being held by CAREIF LTD.
12.       The program will see banks and financial institution wishing to participate in the program pay an initial documentation fee of US$1,000,000.00 and for each new mortgage taken will pay a fee of [ to be decided] for the mortgagor who must be willing to enter our RIC program. The program will see a deposit in an escrow account at commercial banks at lease 15 months of mortgage and insurance and tax payments. Payable directly to mortgage if payment is not made by borrower.
13.       Program will show revenue generation via; (1) income from credit card payments (2). From excess liquidity, loaned to emerging economies at interest rates which will see CAREIF making good profits. These loans unlike government loans will be collateralized by assigning and transferring Title to accepted real estate. Upon full payment the asset is reassigned; if default in payment for any reason, CAREIF WILL COLLECT THE PROPERTY.
14.       The program will not see any bailout money from the FED’S. Instead, we will see only a government guarantee to encourage persons to become members.
15.       To also use the three year housing plan to place individuals in homes within three years of them becoming members. The CAREIF Challenge.
16.       The program will show how international housing markets will support the product as well. Bringing into the USA economy inflows of capital from sales abroad.
17.       Will result in as well as show significant increase in employment as a result of the many persons who will be needed to work with homeowners to ensure that our income generation and portfolio strategy works for the home owner.
CAREIF has already developed an objective formula with which to establish realistic values for house pricing. A key Component in CAREIF’s strategy to revitalize the housing and construction industry in sustainable way is through its unique housing exchange.
The Exchange treats the Developer, the contractor the investor, the lender and end-user [homeowner] as separate components in the exchange. The exchange will have strong impact on the international housing and real estate markets in direct relation to the US housing market.
This strategy will not require any major capital infusion from the federal government which would result in new tax measures or increase.

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