Foreclosure Prevention Financing Patent Awarded to Attorney with Tucson Law Firm...

Foreclosure Prevention Financing Patent Awarded to Attorney with Tucson Law Firm Weeks & Laird PLLC

TUCSON, Ariz.--(Business Wire)--
On March 18, 2008, the U.S. Patent Office approved a new financing
method which can provide relief to homeowners on the brink of
foreclosure - without requiring government bailout assistance.

Stephen M. Weeks, a Tucson attorney, developed the system while
representing homeowners harmed by predatory subprime loans. Mr. Weeks'
goals were simple: create a system to 1) make house payments
affordable without needing a down payment, 2) provide the owner with
the ability to gain equity and tax breaks, 3) avoid predatory terms
such as negative amortization and adjustable rates, and 4) make it
profitable for financial institutions to implement. Term Ownership
succeeds in all of these goals.

Though originally designed with the idea of making first-time home
ownership affordable, the system can also be used as a refinancing
tool to save thousands, if not millions, of homeowners facing
foreclosure - again, without any sort of government bailout
assistance.

How does it work? A Foreclosure Example:

Assume someone bought a $220,000 house and put down 10% (financing
$198,000). They financed with an ARM that has jumped up to 9% from an
original 7%. The original P&I payment was $1,317.30 (+$110.00 mortgage
insurance for a total of $1,427.30). After two years of payments, the
balance on the note is $193,831.97. The new payment is $1,593.15 +
$110.00 ($1,703.15).

Since purchasing, the owner's property has dropped in value to
$200,000. The newly adjusted payment is too much for the owner: They
don't have the equity to sell the property, nor can they refinance
traditionally for a lower payment. They are a foreclosure waiting to
happen. Or they can refinance into Term Ownership, remain an owner and
be secure.

When refinancing, the Owner pays 30% of the $200,000 Fair Market
Value - $60,000 - fully amortized over 5 years, with an
investor/financial institution paying 70% plus closing costs.
Subtracting out the existing equity in the property - $6,170.00,
provides the amount this Owner would finance for 5 years. Here, the
amount financed is $53,830.00. At 7.25%, the new P&I payment is
$1,072.26 - a $630.89 monthly savings over their ARM's new payment. It
is a life saver, a home saver. The Owner continues to have the tax
advantages of ownership, and, given the home's price rebounds, can
again obtain equity.

For the financial institution, instead of facing an average
$60,000 foreclose loss, it turns an unprofitable situation into a
profitable one AND gains CRA credit AND public goodwill.

For additional information on his new financing system, contact
Stephen M. Weeks of Weeks & Laird PLLC at (520) 318-1209, or email his
office at weeks.laird@gmail.com.

ABOUT Weeks & Laird PLLC - Stephen M. Weeks is a Founding Partner
of Weeks & Laird PLLC, a Tucson, AZ law firm. The law firm deals
primarily with Real Estate, Predatory Lending, Financial Fraud and
Contract Litigation.

Weeks & Laird PLLC, Tucson
Stephen M. Weeks, 520-318-1209
Fax: 520-327-3118
stephenweeksesq@msn.com

Copyright Business Wire 2008