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The Home Borrowers Relief Fund is a private company that has been established to help homeowners dramatically reduce their monthly payments and avoid foreclosure. The Home Borrowers Relief Fund buys 1-4 family mortgage loans at a discount and uses the discount to lower the monthly payments as much as possible. Our belief and strategy is that it is better to have a loan that performs over its entire life at a lower return than to try to get the last penny out of a borrower and risk a future default.

There are many people to blame for the current state of affairs—naïve or overly optimistic homeowners, the profit motivated mortgage industry, Wall Street investment banks and investors, and a generally flawed system where there was no accountability. Unfortunately, the person that suffers the most is the homeowner. We think that lowering the payment is the best solution for borrowers that are caught between falling home values and a lack of available financing. While foreclosure is an option of last resort and will be used when necessary, our goal is to modify the loan if possible.

Since we buy the loan at a discount, the sophisticated investor is taking a loss and we pass on this savings to the homeowner. We are in essence adjusting the loan down to reflect that both the loan and the property are worth less than the lender and the homeowner originally believed. Unlike the former owner of the loan, we do not try to value these loans at par for accounting purposes, nor do we have to answer to investors who bought securities collateralized by these loans. Our goal is not to extract the highest monthly payment a borrower can make for a short time, but instead to determine the proper monthly payment so that the borrower can afford this loan every month for the remainder of the loan. We feel that this is the optimal way to create the most long term value for everyone.

We convert ARMs and other variable rate loans into a fixed rate mortgage. The modified loan has the same remaining term as the original loan. We do not extend the term of the loan to lower the payments. Instead, we lower the interest rate as necessary in order to reduce the monthly payment to a level that the borrower can afford and will still amortize the unpaid balance over the life of the loan. We eliminate any pre-payment penalties. In certain cases we may be able to discharge some of the debt with minimal or no tax liability.

There are times when the borrower will not be able to afford a modified loan. In these cases the Home Borrowers Relief Fund will work with the borrower to eliminate the borrower’s debt and any deficiency in the most tax efficient manner through the sale of the property. If the borrower is unwilling to accept either a modified loan or a negotiated sale, then the Home Borrowers Relief Fund will exercise its rights in foreclosure.

The Home Borrowers Relief Fund wants credit counselors to fully understand the benefit we provide borrowers so that you can counsel these borrowers.

If you have any further questions please feel free to contact us at 1 (866) 855-8625 or email us at Counselors@BorrowersRelief.com.