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MARKET OVERVIEW

Approximately 25% of all homeowners have an underwater mortgage and that figure is expected to almost double in the next few years.  An underwater mortgage simply means that you owe more on the mortgage than the market value of the property.

According to a new report from CoreLogic, 11.1 million or 22.8 percent of all residential properties in the U.S. with a mortgage were in negative equity at the end of the fourth quarter of 2011, compared to 22.1 percent at the end of September 2011. Add another 2.5 million borrowers who had less than 5 percent equity in their homes and 27.8 percent of homes are either underwater or in danger of becoming so in the event of further price declines. "The high level of negativity and the inability to pay is the 'double trigger' of default and the reason we have such a significant foreclosure pipeline," said CoreLogic Chief Economist Mark Fleming.  The economic recovery will increase the ability of homeowners to pay their mortgages, but negative equity will take longer to improve, so "if there is a hiccup in the economic recovery, it could mean a rise in foreclosures."




HELP PROGRAM

Our Homeowner Equity Loan Program (HELP) will allow the homeowner to refinance his current mortgage with one of our lenders at current market value. Due to the historic low interest rates, the homeowner will save in interest payments and may qualify for a Fannie, Freddie or FHA loan.

HELP was designed to assist the homeowners to refinance into more affordable, more stable FHA-insured mortgage if the home is currently worth significantly less than the homeowner owes on it.  Once the homeowner has been approved by our pool of lenders, the homeowner will owe no more than 100% of their home’s current value and thus, has eliminated the negative (underwater) equity in his home.

Most of the underwater homeowners have a loan to value (LTV) of 120% or greater and the target should be 100% LTV or below. With HELP, the homeowner will have a significant principal reduction through the program bringing it below or equal to 100% LTV.



OUR SOLUTION

GLOZAL Capital is committed to HELP underwater homeowners who have negative equity in their homes – owing more than their property is worth and who cannot qualify under the Government programs HARP or HAMP. GLOZAL Capital targets homeowners who are underwater and unable to refinance because of a lack of equity in the property. In order to qualify for our HELP Program, the homeowner must be current on their mortgage and have fair to excellent credit.

Here is how our HELP Program works:

  • We buy the underlying note from the borrower/homeowner’s bank at a discount
  • We reduce the principal balance to current market value (Loan Modification)
  • The homeowner applies for a new loan at current market value (Freddie, Fannie, FHA, etc.)
  • We make the spread between the purchase of the note from the current lender and the sale to the new lender with an average gross profit margin of 10

So no matter what you owe in comparison to what your home is worth, you can still take advantage of historically low rates!




LOAN APPLICATION

The homeowner can select from a pool of participating lenders. With today’s historic low mortgage rates, HELP will safe the homeowner thousands of dollars in interest payments alone.  After being approved for a new loan, GLOZAL Capital will enter into an agreement with the homeowner to start negotiating and obtaining approval from the current lender to acquire the underlying note.

 

Once GLOZAL Capital has acquired the note from the current lender, the principal balance is reduced through a loan modification process and the homeowner will be able to refinance his/her current mortgage with our new lender, resulting in reducing his/her principal balance by up to 60% and saving the homeowner hundreds or thousands of dollars in monthly payments.  In addition, the homeowner can keep his/her home or sell it at breakeven or for a profit in the future. 



EXAMPLE

Principal Loan Reduction through HELP:

BEFORE

Current Loan Balance                                   $1,000,000
Current montly payment @ 6.5% p.a.                                   $      5,416
Current Market Value                                   $   600,000
Negative Equity                                         ($   400,000)  

 
Principal Reduction by GLOZAL Capital:                                    $  400,000


AFTER
New Mortgage:                                                                 $  600,000
New monthly payment @ 4% p.a.                                         $     2,000  

Savings per month (+60%)                                                         $     3,416




REQUIREMENT TO QUALIFY FOR HELP

If you are not behind on your mortgage payments but owe more than your home is worth, you may qualify under HELP.  You may be eligible for a new loan by Fannie, Freddie or FHA if you meet the following requirements:
  • Owe more than than your home is currently worth
  • Occupy the home as a primary residence or second home
  • Be current on the mortgage, with no late payments in the last 12 months
  • Minimum credit score of 640
  • No bankruptcy in the last 24 months
  • No short sale or foreclosure within the last 36 months
  • Be approved for a new loan from our selected group of lenders
  • Have a reasonable ability to pay the new mortgage payments
  • Have the ability to contribute between 2.25-20% as cash-in payments depending on the loan program

 


GLOZAL CAPITAL
1101 Brickell Ave
P.O. Box 310115
Miami, FL 33231
(888) 9-HELP-US
FAX (305) 468-6318


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