What ever happens with the Bank bailout plan…prepare yourself, its time to act.

Talk about dejavu, we have been here before, we have done this before and it was not pretty for many. Many people lost everything they worked their life for and unfortunately many paid the price for other peoples mistakes…just like today, and it appears they may recycle the old plan and do it again in one form or another. In the end, call it what they may, it will be the same. The defenseless borrowers will shoulder the brunt of the loss.

As my frequent readers will note, over the last six months, I have been warning everyone that the handwriting is on the wall, that the recent bank closings, take overs and mergers, the bank watch list and growing failure list is completely reminiscent of the late 80′s when we had the last financial service industry melt down. The indicators and reasons are the same, bad debt, overindulged banks and bank failures because of their glut of bad decisions.

In the 80′s the government  made the  decision to close over 750 banks and throw the “orphaned ” loans into the Resolution Trust In Texas and around the country or RECOLL in New England. Then there was the liquidation of the loans with the unfortunate result being a huge loss of property, the collateral for these “bad” loans being liquidated with  a massive transfer of wealth from the then current owners to new investors at huge discounts. Grossly unfair, outrageous in a word.

I was so upset with what I considered wholesale robbery, taking property from those who worked hard and frequently for no fault of their own were liquidated without hope of survival for the borrowers. Thus I mounted a serious line of defense putting on over fifty seminars all over New England entitled “How to deal with RECOLL or the Resolution Trust if they are calling your notes”.

With these seminars I launched an educational program and explained a series of strategies which if utilized would result in a borrower, trapped in this quagmire, ultimately keeping their property and surviving this battle. Fortunately I represented hundreds of borrowers and saved hundreds of properties and secured the economic survival of many businesses and families.

More unfortunate were the thousands and thousands of borrowers who did not survive as property was taken and resold to wealthy investors for pennies on the dollar…but not worked out with the original borrowers. Even borrowers who were current but were in technical default because their property had devalued and was worth less then the notes and thus subject to foreclosure which happened on a regular basis.

It is likely to happen again, today or tomorrow as when ever the government plans on revealing its plan and the rules, it appears that a new generation of borrowers will be forced to deal with these same issues one way or another, as the handwriting is on the wall…again.

No matter how logical and fair the plan may seem, in the end the implementation of the plan will result in the borrowers losing, unless they launch an effective workout strategy.

It is my plan to launch the same fight against the “liquidators” and protect as many businesses and families as I can…

It is the right fight. It is the wrong thing that is happening, but I can fix some of it, not all of it, but some will escape total loss and will survive, perhaps in better shape.

The bill has been defeated in the House however some form of it s likely to be passed soon.  I await for the results of our political leaders efforts to resolve these issues as they decide how and who they will support, but whatever they do in the end the borrowers will be left to defend themselves and I will be your gladiator.

Even without a bail out bill, the net result for the borrower will be the same…for many with upside down or defaulted mortgages, you must workout the debt or be liquidated. This will require effective strategy and implementation, expertise and skill. It is not too early to begin to plan and prepare.

Get ready, hold your breath and as soon as it happens, on Monday likely, call me…413-549-2966…I will be ready. I have done this before with the resolution trust, I do it every day with banks all over the country, and while I never thought the Resolution Trust would happen again…it is.

There will be opportunities to resolve your potential foreclosure and reclaim your homes and protect your businesses from your notes being called. We can resolve these issues on favorable terms, terms you can afford irrespective of what then government plans and how this plan will evolve, there will be opportunities.