It is common knowledge that home values have lost as much as 50 percent or more in some areas and many homeowners owe more on their mortgage than the home is worth.[IMAGE]
""First American CoreLogic recently reported"":http://dsnews.comarticles/underwater-mortgages-increase-to-113m-first-american-2010-02-23 that more than 11 million homeowners Ã¢â‚¬" 24 percent of the nation's mortgages Ã¢â‚¬" are underwater. ""Moody's Investors Service"":http://www.moodys.com projects the national rate of homeowners with negative equity to near 50 percent by early 2011.[COLUMN_BREAK]
Enter the picture Ã¢â‚¬" ""All Statewide Property Corporation"":http://statewidepropertycorp.com. Stuart Vener, All Statewide's president, says, ""Something has to be done to help these people. The government is doing nothing and the problem is worsening.""
The Land O' Lakes, Florida-based company says it has found a solution to the dilemma. By forming satellite limited partnerships, All Statewide is raising sufficient amounts of money to by bulk mortgages from lenders. The company then offers the homeowner a chance to reduce the mortgage to the current market value.
All Statewide explained the residual effect to this approach is that the person investing in these partnerships can earn a net rate of between 17 percent and 24 percent on his investment, while helping families retain their homes.
According to Vener, in trying to just help homeowners, he has incidentally created what he says is probably the most secure high yielding interest rate investment available today.
Vener feels so strong about this approach that his company is investing cash money in every partnership and retaining a capital interest. Vener commented, ""Where [else] can I place my money in such an altruistic cause, and still be handsomely rewarded.""