Nov 04

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level_3_announceIn my last post, The HAMPs are Coming… ARE YOU READY?, I informed you of a wave of foreclosures that is about to hit the market early next year as a result of the reset of thousands of  loan modifications that homeowners received in 2009. These loan modifications were the result of a program put in place by the Government in an effort to save the big banks by pacing (not stopping) the amount of foreclosures that would hit the market at that time.

This program is known as the HAMP program and it was designed to help the banks not American home owners. This HAMP program that the homeowners believed was designed to give them relief became the modifications program from hell for thousands of Americans. The reality is that this program and others like it were  intended to help the bank at the taxpayers’ expense and to their detriment.

The media played an important role in the implementation of the HAMP Modification Scam. The Government and the banks wanted the public to believe that 84 million American families woke up one day and decided to fraudulently mortgage their homes – that they planned to default and that the banks were the victims of irresponsible homeowners. The sad thing is that America believed the hype and never even noticed the fraud and deception that was being inflicted upon the American people.

The median debt-to-income ratio for HAMP borrowers in permanent modifications was staggering at 63.5%. By comparison, the Federal Housing Administration (FHA) generally imposes a 41% cap on borrowers’ debt-to-income ratio.  Clearly, too many who received a HAMP mortgage modification were still over their heads. Now, as if things weren’t  bad enough for these homeowners, the HAMP modification that millions of home owners received in 2009 is about to reset to a higher interest rate with a HELOC ( Home Equity Line of Credit) rate reset that could add another $100 to $300 to a borrower’s monthly mortgage obligations.


The reason that I feel it is important for Real Estate Investors and Wholesalers to know the true origin and purpose of the HAMP program is because we are the ones who are going to clean up the mess!

As a result of this heinous effort by the Government to protect the Big Banks at the cost of the American people there is going to be yet another flood of foreclosures hitting the market in 2016. Considering that the last wave of foreclosures, which were the result of the foreclosure crisis of 2009, are still sitting vacant in many communities this new influx of foreclosures is going to rock the real estate market once again. This time the banks will be even more motivated to clean up the mess since their books are already overflowing with toxic assets ( foreclosures). This motivation will prove profitable for Investors and Wholesalers who are educated and ready for the new 2016 wave of foreclosures. 

My mission is to educated as many of you as possible that this is coming so that you are ready. My goal is to help as many of these homeowners as possible avoid yet another foreclosure nightmare. I have already started reaching out to homeowners who are on the verge of a HAMP reset in an effort to provide a solution before they fall to far behind on payments.

By taking over their payments through a lease option or subject to their existing financing I will not only be helping the home owner avoid yet another foreclosure nightmare, but I will be profiting in the process. By utilizing creative strategies I am making it a win, win for all. The homeowner avoids foreclosure, the bank is being paid and I am making a profit.

Granted there will be some homeowners that are too far behind or too far under water to salvage. These will be the investment deals that will inevitably become great deals once they hit the market.


Unfortunately, too many people have struggled to stay in homes they cannot afford even with taxpayer-subsidized relief. They’ve thrown away resources on mortgage payments and fees that could have been applied toward other suitable housing within their means. Furthermore, their credit scores—which had already suffered serious hits—are now further threatened by re-defaults and will take more time to recover.

With millions of HAMP and HELOC resets about to take effect there will be thousands of families that will need a place to go. I HIGHLY doubt that the government will supply another alternative like they did with the HAMP program. HAMP was just a temporary program in an effort to FOAM THE RUNWAY and pace the number of foreclosures in 2009 so the banks would have a softer landing.

Therefore I believe that the demand for rental housing will increase as well in 2016. In this the most profitable investment strategy in 2016 will be buy and hold. Wholesalers need to be recruiting more speculative buyers in preparation for the new foreclosure influx of 2016. If I am right and the new wave of foreclosures will be deeply discounted, due to the bank already being inundated with foreclosures from the last influx, wholesalers are sure to reap HUGE profits with the right strategies in place.

You will find the wholesaling strategies referenced in this post and have instant access the real estate contracts needed to implement these strategies in my new  EVERYTHING WHOLESALING GUIDE.

About the author


Carol Stinson is a Real Estate Mentor, Author and Entrepreneur who continues to thrive in today's real estate market. Her concept of success is to never stop learning new techniques and then put what you learn into action expecting results. She is dedicated to helping others succeed by sharing what works in today's real estate market. Her strategies are effective, her techniques work and she is always updating them to conform to the ever changing real estate market.

Carol's biggest passion is people! Her love for others and dedication to help them succeed is genuine and ongoing. She created Real Wholesaling in an effort to help others find their way to financial freedom through real estate.

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