Guardian Group FundMortgage principal reduction scam

This review was posted by
a verified customer
Verified customer

I am a victim of this company. I have been in battle with this company since June 2009 they have done nothing to help and they lie and give you the run around. I am in the process of filing a complaint to the attorney generals office and getting my money back. this has been a nightmare. everyone on this scam is totally on the same page as me. I need everyone to file a complaint on line to the attorney general so they can prosecute the company. Please help to expose them. Get them out of business and go to jail.

They are collecting $1595 all over the United States claiming they can purchase you mortgage note if you are upside down in your home. And reduce your mortgage principal balance to 90% of your current market value. Only one problem, they do not have the resources to pull it off and is pocketing millions of dollars from innocent consumers. They must be stopped, serveral hispanic families have lost their homes to foreclosure as a resulf of this mortgage SCAM. The owners of the company are Bryan Prehoda, Luis Belevan, Ken Carreon, Rudy Butler, Joshua Apodaca. Together lets shut this crime ring down!!!

More Guardian Group Fund Complaints & Reviews


  • Yh
    yhorta Feb 15, 2010

    YES!!! i want to be a part of this. i've been trying to contact the company and all they say, if i get to speak to someone, is that they're working on it. please email me and let me know what we can do about this!!!

    my email address is [email protected]

    0 Votes
  • Lr
    lrrnthomas8 Feb 15, 2010

    I absolutely disagree. They always answer the phone when I call. The Guardian Group have their people working at all kinds of hours. I know because I've been to their office after hours with my two kids. They work really hard. It took them several months to close my home, and they really took care of me when I really needed them without paying extra. Now my payments are way lower and I can afford to stay in my home. My second mortgage is completely gone. I am very happy with what they were able to do for me. They have gone above and beyond for me, and everyone else that I have referred. If anything people should just give them respect. I don't know how they do it, but they're fantastic. Try giving them a phone call. The number that I always call is 480-443-9950.

    1 Votes
  • Jl
    jlongley65 Feb 16, 2010

    It's unfair to lump Joshua Apodaca and Rudy Butler in with the men with the big idea. Joshua and Rudy have been the only honest and transparent contacts there. They stay working diligently, As a matter of fact Joshua and Rudy were marketing affiliates that I honestly feel have been mislead, I feel they are kept in the dark. Unfortunately my file is still there and has been there for over 90 days. But Joshua and Rudy stop everything they are doing to help me. I would agree that the Guardian Group Fund Services are less than satisfactory, but these two gentlemen deserve a bit more respect. My hat is off to them because they will probably receive all the grief that should be directed towards the true owners, Bryan Prehoda, Luis Belevan, Jose Carreon, Ken Carreon and Kathem Martin. The Phone # that I have for them is 602-507-9303 or 602-490-0709

    2 Votes
  • Dd
    ddt Feb 16, 2010

    I would have to disagree with you. I know you cant help 100% of the people 100% of the time, that is a perfect world. This Company is totally legit and has helped many families save there homes including mine. There is variables in each homeowner case!!!
    Look at bank of America, Regions, Well Fargo or Citibank, there are more complaints on them then to Guardian Group fund and they are the banks that are foreclosing and not helping the upside down values of these homeowners. Look at Google and do a search and see how many scams are on huge companies and banks, does that make them Fraudulent and thieves. Hell No. It means you just cant make 100% of American homeowners happy 100% of the time, that would be a perfect world.
    I'm sure you just could not get approved or you didn't have sufficient income to get the loan closed, this is not FREE, you don't have to qualify for this program.
    This program is legit through private funding, its called a TOXIC ASSET go to the articles and you tubes, and read and educate yourself on 13.7 trillion dollars worth of it on, YES your main banks books.
    So far all i know is this is one of the only companies out that that are assisting homeowners with this Fund and closing them .

    0 Votes
  • Ri
    Rick Ko Feb 20, 2010

    Regarding to the complaints of scam, will you specify more details? why you're not accepted and the reason why you don't get your refund? It'll be very helpful to others if it's true. There're some other companies deposit the fee into an escrow account instead of paying directly to the Funds.

    0 Votes
  • Re
    REALITY4U Feb 20, 2010

    I am an employee of the Guardian Group and can assure everyone that it is NOT a scam. People who may have lost their home while in the program did NOT lose their home due to Guardians performance or activity... they lost their home because THEY STOPPED PAYING THEIR EXISITING MORTGAGE PAYMENTS... PERIOD. No one at Guardian EVER advisies cleints to stop making payments to their current lender once they have entered the program. Some clients incorrectly assume that Guardian will delay foreclosure proceedings and "take care of everything", absolving homeowners of any personal responsibilityty! That simply is not the case. I a client is facing foreclosure and has an auction date set then they can utilize their own attorney or for a fee utilize an attorney that works with the Guardian Group as a referral to delay the auction. Often times clients do not inform us that they have received a "trustee sale" notice and if the client does not take action or inform us of the new development, it is IMPOSSIBLE to advise the client to seek legal assistance.


    Here's the simple truth. We offer a service, not a miracle. Call ANY lender and tell them "I want to change my lender, reduce my principal balance and lower my payments. While you are processing my request and application, I want to not make any payments, so please ask my current lender to not seek any relief from my default". Most if not all lenders will apologize and laugh so hard it may give them a heart attack.
    There are ways to deal with a lender when you are already behind on payments. Ignoring them while you wait for someone else to save your hide is not one of them. Our results are stunning but the process is not without personal responsibility.

    -1 Votes
  • Ru
    runlb Feb 02, 2017

    @REALITY4U It is a SCAM. If not, the $1595 would never be taken and if not used to do what is promised, would be given back. Definition of SCAM.

    0 Votes
  • Le
    legalloaneagle Feb 21, 2010

    Very Simple solution here

    Please post proof of the "stunning results"

    If the program is legitimate then there is hard evidence of success, HUD-1's, recorded trust deeds that secure the new note and can be verified by an impartial 3rd party. So far the only real evidence is one 213, 000 home in Maryvale with a GMAC loan. That property was only one property with a single closing and therefore not purchased in a "bulk" purchase from GMAC.

    Evidence hard evidence is what will quash this conversation. Not blaming the homeowner.

    0 Votes
  • Va
    VALID Feb 23, 2010

    Thanks for making my point! The GMAC example IS proof!
    A "Legal Loan Expert" such as yourself SHOULD realize that this transaction is more than just a bulk acquisition. Since it contains a second component, (the new Note), it has to be a single close.
    It's amazing how many "experts" crawl out of the woodwork when someone else comes up with a new and creative way to do business.
    As far as "blaming" the homeowner... When you refi a client and charge discount and origination points, (which we don't), do you bring your delinquent clients current and make their payments to their existing lender until you close on your new loan? I didn't think so! The last time I checked, the only party responsible for the repayment of a Note is the one who signed the document! Placing that responsibility squarely on the homeowner is not blame, it is fact. Feelings and emotions have no bearing. It is not to say I don't have sympathy for those who are delinquent and facing foreclosure... I do. That does not mean I will accept the responsibility for their payments. If this is something YOU wish to take care of then please provide your full name, SSN, checking account routing and account numbers so others can set up autopay. Then your claim of "Blaming" homeowners would carry a bit more weight.

    "Trying to teach a pig to dance is fruitless... It never works and it only angers the pig".

    -2 Votes
  • St
    Stopthegreed2010 Feb 23, 2010

    Please call the Arizona Department of Financial Institutions 602-771-2800 and request the licensing department and ask them what the license # is for this company. They won't have one and are operating illegally . Also go to and check out the mortgage fraud link. This company is giving people hope and keeping them in the dark...something I call "the mushroom treatment".

    1 Votes
  • Se
    SETAG Feb 24, 2010

    In Regards to VALID & REALITY4U (one in the same I suspect)...

    Answer the fargin question...ONE example does NOT count as PROOF! Provide PROOF..quit dancing around the issue...or are the PIGS dancing because there is no PROOF! (what a usedcarsalesman slogan)

    Everything would come into context if there was more than ONE actual PROOF positive? would be beautiful! I wouldn't have to listen to these politicians proclaim their the messiah while bashing anyone with a question/opinion...I could just look at the PROOF, cross-check the information and BAM!

    Salvation...IT REALLY DOES EXIST and bankers really DO NEED the guardian group to alleviate the TOXIC assets off their books?

    Let's think about this for a second..the PPIP was launched in 3/09 and the approved Investment Firms had 3 months to acquire 500 Million for the program, which 9 did and already one has backed out of the PPIP by 1/10...I wonder why? 500 Billion & up to 1 Trillion was given the green light utilizing TARP funds(tax payers money) to initiate the PPIP program. That would tell me...if in deed the PPIP is commencing...there should be more than one example out there people. Just look at how much has been spent on the HAMP programs thus far and that evidence is anywhere to be verified.

    The reality is the PPIP has been initiated, BUT as to whether or not the Guardian Group had anything to do with those loans is up in the air? Is the Guardian Group just riding on the coat tails of a real US Treasury program? I hope this company is for real (and others alike)...I hope that some of the US citizens can actually benefit from some of their TAX DOLLARS (more realistic their childrens/children's dollars)...that'd be better than the banks and insurance co. getting the funds like NORMAL.

    The company has provided no PROOF (credibility)...enough people have given up their money to provide more than one example (especially with a supposed closing rate of 98%)...not even a written or a video testimonial with 100's of applications...not one shred of evidence that demonstrates thier success utilizing the PPIP program...and one example doesn't count, sorry gentlemen!


    1 Votes
  • An
    Answering Complaint Feb 26, 2010

    The complaints about Guardian Group are not legitimate.
    I can't believe Guardian Group will charge so little!
    Have you ever ordered an appraisal? They are running between $400-$500 in most areas with indoor plumbing.
    The $1, 595 covers THREE (3) appraisals and a little left for a lot of processing work.
    There is more paperwork than the paperwork to process the last loan you got.
    Look at your last closing statement. I bet you paid over $400-$500 just for processing.
    Then you paid/financed THOUSANDS of DOLLARS in closing costs!
    With the final Guardian Group product you pay $0.00 closing costs on the new loan.

    -1 Votes
  • Fl
    FloridaNative Feb 28, 2010

    2 or 3 verifiable closings should be no challenge whatsoever for a company that has "5 billion" to play with, unless, of course, the 5 billion is coming from the millions of suckers paying $1595 a pop up front for nothing...
    PLEASE PLEASE PLEASE provide more than 1 HUD1.
    IF they are even a tiny bit legit, it should be so very easy.

    These are the only records in Florida to date:


    No closings at all in FLORIDA.

    There are 0 closings in Apache County, AZ as of today.
    There are 0 closings in Cochise County, AZ as of today.
    There are 0 closings in Grahm County, AZ as of today.
    There are 0 closings in Greenlee County, AZ as of today.
    There are 0 closings in La Paz County, AZ as of today.
    There are 0 closings in Navajo County, AZ as of today.
    There are 0 closings in Santa Cruz County, AZ as of today.

    No Closings I can find in ARIZONA.

    So where are they?

    Someone please ask the "owners" these questions:
    1. Where are all your supposed closings?
    2. What happens to all the fees collected so far?
    3. How many closings have occurred to date?
    4. Where are the supposed closings located?
    5. Where are the HUD1 to back it up?
    6. Where did the supposed 5 bil come from?
    7. Why would ANYONE give those collection of unsuccessful businessmen control of 5 billion dollars?
    8. If this IS legit, where is the 1120S for the corporation showing the actual success of "Guardian Group Fund"??

    1 Votes
  • Fl
    FloridaNative Feb 28, 2010

    From the State of Arizona registrar of Businesses:
    Interesting that it is advertised in FL as "Guardian Group Fund" but in AZ it is different?

    File Number: L-1542784-7
    Domestic Address 7150 E CAMELBACK STE 444
    SCOTTSDALE, AZ 85251

    Statutory Agent Information Agent Name: BRYAN PREHODA

    Agent Mailing/Physical Address:
    3240 E UNION HILLS DR #121
    PHOENIX, AZ 85050

    Agent Status: APPOINTED 07/31/2009
    Agent Last Updated: 09/28/2009

    Additional Corporate Information Corporation Type: DOMESTIC L.L.C. Business Type:
    Incorporation Date: 07/31/2009 Corporate Life Period: PERPETUAL
    Domicile: ARIZONA County: MARICOPA
    Approval Date: 08/05/2009 Original Publish Date:

    Manager/Member Information

    15020 N 48TH PL
    SCOTTSDALE, AZ 85254
    Date of Taking Office: 07/31/2009
    Last Updated: 08/05/2009

    9313 E HOBART ST
    MESA, AZ 85207
    Date of Taking Office: 07/31/2009
    Last Updated: 08/05/2009

    Then there is THIS also in the same county:

    Domestic Address 2850 W CAMELBACK RD #160
    PHOENIX, AZ 85017

    Statutory Agent Information Agent Name: GILDA ROBLES

    Agent Mailing/Physical Address:
    2850 W CAMELBACK RD #160
    PHOENIX, AZ 85017

    Agent Status: APPOINTED 11/18/2009
    Agent Last Updated: 12/16/2009

    Additional Corporate Information Corporation Type: DOMESTIC L.L.C. Business Type:
    Incorporation Date: 11/18/2009 Corporate Life Period: PERPETUAL
    Domicile: ARIZONA County: MARICOPA
    Approval Date: 12/16/2009 Original Publish Date:

    Manager/Member Information

    2850 W CAMELBACK RD #160
    PHOENIX, AZ 85017
    Date of Taking Office: 12/07/2009
    Last Updated: 12/16/2009

    WHY NEED 2 Different companies?? Same Address. Different names? NEITHER ONE is GUARDIAN GROUP FUND.
    SO what is the TRUTH??




    2 Votes
  • Fl
    FloridaNative Feb 28, 2010

    Now, checking California, also, NO CLOSINGS to be found for Guardian Group, Guardian Group LLC, or Guardian Group Fund. Interesting.

    0 Votes
  • Fl
    FloridaNative Feb 28, 2010

    Bryan Prehoda- is a child> Born in 1975? Here is his listed number, lets all call him:
    (480) 551-0478
    (530) 453-8967

    He has lived in all these places in his 35 years:
    Bryan Thomas Prehoda
    Anthem, AZ
    Peoria, AZ
    Wickenburg, AZ
    Boise, ID
    Meridian, ID
    Reno, NV
    Avondale, AZ
    Tempe, AZ
    Phoenix, AZ
    Glendale, AZ

    And has these people living with him at some point in time:

    * Barbara Prehoda
    * Christy Prehoda
    * Craven William Prehoda
    * Leslie Ann Prehoda (Age 92)
    * Thomas E Prehoda
    * Thomas Edward Prehoda (Age 63)
    * Thomas Leslie Prehoda (Age 92)
    * Christy Raeann Young (Age 34)


    0 Votes
  • Le
    legalloaneagle Mar 01, 2010

    Holy Cow I just asked for proof and I was called a dancing pig!

    Someone wise once said, " In considering debate watch for the emotional argument as it is the weakest."

    One of the problems with SCAMS is the owners also dupe the employees. They take on apparent infrastucture,

    design software systems. etc..and make the employees disciples of the business. All in an effort to appear legitimate. Legitimate enough to create hope in the mark. Remember Scarlet Ohara? its all curtains.

    So let's approach this case logically without the hope and desperation.

    1. Guardian Group Fund states to its customers that it's time frame for funding is 2-3 months. The facts are that in 9 or so months since they started business they have funded 1 loan and use that as an example.

    2. They have 2 business entities neither called Gaurdian Group Fund. This is significant in that the similarity of the names allows checks to the company can be deposited in the accounts of both businesses. have seen a similar device used in a laon mod legal firm that went bust. Upon dissallution of the business the money paid by home owners dissappeareduite fast and the "owners" claimedhe other owner took the funds. Making it hard to source the funds for refundsor reparations to the owners (perhaps a good CPA could comment on this tactic)Look at the back or your canceled checks see and report which company deposited your check and whose electronic signature is on the check?

    3. The previous work history of Guardian Group ownership also provides no evidence of experience in the hedge fund or bulk buying business. We have a Plumber and 2 real estate agents. ( One claims to be a CPA and I have not found a license in any state for him)

    4. The previous business run by Prehoda was a corporate credit business.. which involves creating false corporate itdenities by buidling business credit on exsisting aged dormant corporations. Mostly I have seen clients of those companies bilked out of 5-12k for each corp. Then when the borrower complains they can't get credit they were promised and paid for, they are told it is their fault for their credit score dropping etc.

    5. Bulk note buyers and asset managers are a close knit group. It can take a long time to make the contacts necessary to even be allowed at the table. You have to have a proven track record and credibility. I have an associate who is a former sub prime mortgage lender she also has been making bulk purchases for 20 years and is reasonably well connected in the bulk mortgage business. I asked her about Guardian Group. She has never heard of them. She also said she did not think their model would work as in her words, "The lenders are not selling bulk defaulted property at a discount like they used to because they can make more money on one-offs which they sell for 65% to 90% of the face value. She says there is no money in that right now so she is buying commercial paper. Most lenders will also not alow you to "cherry pick" your purchases. meaning pick the properties that you can purchase from them. And lastly, The "lenders" are the servicers and not the investor that owns your note. If Guardian group had say 100 loans packages for Bof A, There may be 50 or more investors to approach to allow the bulk sale.

    6. The excuses for not funding are that it is the "title companies fault" They require a 30 day holding period.This type of requirement is only for property flips not note purchases.

    7. My understanding is that Guardian group now has thousands of files in it's pipeline. For argument let's say 5000. x $1595 that is $7, 975, 000. So they have made enough money to pay employees for now, pay for premium space in Scottdale and make a good show.Based on the compalints I hear from this forum and elsewhere Guardian Group is having problems servicing the customers it currently has. However, just in the last few days an associate of mine just recieved from Guardian Group a mass email out to Realtors across the US inviting them to submit files. They are now apparantly bypassing their reps and going direct.

    8. Lastly and most concerning to me is the fact that the contract that Guardian Group Fund uses is an exact and I mean verbatum contract used by "Property Relief". Property Relief was a ponzi scheme in California where unsophisticated investors were approached to invest funds with the company in order to buy notes in bulk from the lenders. Then homeowners paid a retainer fee and monthly fee to "Property Relief" to "pay attorneys" to keep the homeowner out of foreclosure long enough to have the note purchased and recast at 90% of current market value..sound familiar? Now a good question to the owners would be, How did you come by this contract? What could their answers be? 1. One of the company owners went to a seminar and thought it was a great idea and the "borrowed" the contract and then was not careful enough with his compliance or attention to detail to have Guardian Groups attorneys look at the contract and change any of the verbage. 2. Or is it that are they affiliated with Cydney Sanchez, the foremer owner of " Property Relief"in some way? Who BTW is in Federal court for SEC violations. Or was Bryan Prejoda a rep of "Property Relief" in AZ. He did have a business coincidentally named "Relief Arizona" and the website for that business is completely down.

    I predict that if Guardian Group is a scam that this month we will have 3 more one off fundings in Las Vegas or Arizona probably low dollar amounts. Those fundings will be used as proof and promises of more fundings to come in the next months and then there will be a push to get your package in before some artificail deadline add to additional mass emailings. Then the employee checks will start to bounce and the the offices will empty except for one or two scapegoats caught sitting on the floor shredding files when the FEDS come knocking.

    If it looks like a duck and quacks like a duck it is probably a duck.

    So my advise as a dancing pig to the angry employee who inpugns anyone who questions Guardian Group. Dont be a sitting Duck.

    ps I work for a legitimate lender litigation firm in Northern Cal.. and we have dealt with cases like this many times. If you truly want a principal reduction your best and only bet is to find an expereinced lender litigation attorney, find out if you have a good case to assert your rights and to litigate or arrive at a settlement with your lender.

    I am not giving legal advise but merely general legal information.

    2 Votes
  • De
    deeezldoc Mar 01, 2010

    I have a close friend who I trust-he was hired by the Guardian Group but resigned after he could not obtain proof of settled/resolved loans. He had at least a dozen people ready to throw down $1595.00 for a chance at getting a note reduction. He tried hard to make sense of the disorganization associated with starting up a new business-this is what they blamed it on. As another person posted (above), there is only one recorded deed of trust which, conveniently, is the same loan that is sent out as an example to potential clients.

    This may be a legitimate company, I don't know for sure, but if so, why is it so hard-even for an employee-to get proof of settled/resolved loans. There can be only one reason-there are no results to advertise.

    0 Votes
  • Fl
    FloridaNative Mar 02, 2010


    I am sure you truly believe what you have been told and sold. If you didn't, then that would make you a scammer too, and of course, potentially liable for the money you helped to defraud out of innocent consumers.

    I am willing to give YOU the benefit of the doubt, so, please direct us to ANY closings besides that one "deed of trust" (not the same as they are saying they are selling in Florida). The company has supposedly been doing business in AZ for over 6 months and in CA for over 6 months, so there should be many closings. Even a verifiable list without the documents would be a good show of faith. If you cannot get your employer to produce this, you might consider your culpability in the scam before you make any further incriminating statements.

    I do not think asking for some proof of production is unreasonable after 6+ months, do you?

    Everyone, lets start calling the SEC and the FBI just to check on the legitimacy of this business, if there are no complaints, then perhaps it is legit?

    0 Votes
  • Fl
    FloridaNative Mar 05, 2010

    So I called the corporate offices of "Guardian Group LLC" in Arizona. I spoke with a hispanic accented assistant. I asked if the company was an ARIZONA company. She said yes. I then asked the actual NAME of the Company, and she replied "Guardian Group Fund". I asked her if she was sure about that and she said YES like I was stupid. I then asked her if the corporation, Guardian Group Fund, was incorporated in and registered in Arizona. She said yes again, like what was I asking for. So then I asked her why it was that there was NO Guardian Croup Fund Incorporated or Registered in Arizona. There was this pause, then she said she would have to have someone call me back. I left my name and number and as of now, 28 hours later, nobody has called me back. SURPRISE...

    Seems more and more like a scam...

    0 Votes
  • Ca
    CA RE Broker Mar 05, 2010

    I love how people try to act like a victim of a company when they paid $1595 for the purpose of effectively taking hundreds of thousands of dollars from their bank. Wow, sorry if it doesn't work out. That is the chance you take. I think the opportunity to pay $1595 to save myself all that negative equity is a risk I'm willing to take. If you are the bank, how do you feel? Hey no problem MR. HOMEOWNER, you can get your note for half price. Why not? You did, after all, legitimately pay $1595. So you do deserve to get your principle reduced. WOW. Seriously, it's a great deal if it works, and if it doesn't, well, hey! At least I tried. The real issue is that when people don't make their mortgage payments, get foreclosed on, and then blame someone else. I love America, but we Americans need to get a grip and take some responsibility for ourselves and our own actions. I am a real estate broker, and by the way, you don't need a real estate license in any state to buy and sell notes. They are not conducting real estate transactions. And to the Florida Native who thinks its a scam if the "hispanic accent" receptionist doesn't have accurate information regarding the history of the corporate filings on her company, give me a break. When is the last time you gave that information to a $10 per hour employee? Sorry, you wouldn't. I agree that they need to give people some more proof of closed deals, but the Guardian Group is not the actual hedge fund. Do you people realize what a hedge fund is? It is private money that is for rich people to invest in and it locks in their money and makes risky investments. The people who invest don't even know what their money is invested in. They just know they get amazing returns. So I would say give them some time and let them work out the kinks. If you think 6 months is a long time to wait for something to happen when working with major banks, think again. I'd rather wait 6 months to reduce my principle than 10 years for my equity to return.

    0 Votes
  • Fu
    Fustrated in AZ! Mar 06, 2010

    Guardian is a scam. I had been talking to them for awhile now. Asking for more proof than the 1 in AZ has resulted in double talk, promises, excuses, and other delay BS. As of today my repeated phone calls and emails have gone unanswered. As pointed out by a mortgage broker to me, if all this was legit it would be on the national news and these companies would be swamped with requests. Not to mention the run on banks and investors who would agree to sell at a loss. Bottom line is these investors have so much money it's no big deal to them if they lose money on a foreclosere. They just write it off on there taxes... as if a million here and there would really affect the millions they make each year. But if they agreed to accept a reduction of their money then it no longer can be a loss for them.
    It appears to me that the only folks writing 'good things' about Guardian and others who are offering these 'to good to be true' plans, are in fact the only ones who actual are making money for themselves. The rest of us are just trying to recover or preserve what we have worked a lfetime for.
    To the CA RE Broker... just your tone in your comment appears that you too are trying to convince the rest of us that this is something we sould just jump into with all the other hard working folks who are losing almost everything. I seriously doubt you have any negitive equity to deal with. After all aren't bankers, investors, the government, brokers, and the like the reason we are in this mess? I am almost ready to retire and have seen the bulk of my retirement assets disappear over the past couple of years. Not because I tried to jump out and buy houses for investment, but because I was just trying to be a responsible citizen working and saving and paying my taxes. I bought my house 10 years ago. I put $100K down. And now due to everyone who had a hand in the housing/mortgage mess, it is worth $120K less than what I paid.
    Is that my fault? But my mortgage company says I can afford it. The government says I don't deserve any help because I work, pay my taxes, so I must be able to afford it. So tell me why the government and the bankers will not help me? They won't because they need me to work, pay my taxes, and suffer so those who should of never gotten a mortgage (like a school bus driver who purchased a home worth more than double the sixe.. and price.. of my home) can get a principal reduction and lowered interest rate. That way their mortgage payment is low enough so their welfare payment and food stamps can go to their Escalade payment. (oh yeah.. I drive a 8 year old VW). Just to clarify... all I am saying here is 100% true. None of this is made up.
    I know, I'm off the subject a little. But it still shoes that this system is screwed up and NOBODY has any plan in place or even thought up to help the average homeowner. Just stupid crap designed to help those who do NOT deserve it.
    Guardian is not the only ripoff place either. They are cheap when it comes to 'helping'. Check out This clown wants almost $6000. Ask him for proof that he can do anything and he won't even offer 1 proof of anything. Several happy client statements!! But try and verify just 1. Good luck! Only after you pay him he says he will let you in on his 'secerts'. But if you check out his name in the court records, more than 1 page of lawsuit, judgements, etc., appears. Of course he's a legit LLC in AZ. Check it out... 1 page (both sides) in his hand writing that is simply an application for a LLC. Also check out Another storefront for Guardian. Same BS. And checkout Same BS but for almost $4000. No proof here either.
    I might be a little long winded here. And I do not claim to be an expert of mortgages, buying or selling of notes, or of really anything here. But in the little research I've done about these principal reduction programs, I've concluded that no one has a program or any thing else that will do as they claim.

    But I will say: I hope I'm wrong!! I truly hope that any or all of the above mentioned are sucessful! Not only for everyone who is hard working and trying to save their homes and savings... but for myself too!

    Of course if I am wrong about anything I've said here, please feel free to correct me! Like I said, I am not an expert and do not claim to be. And if anybody finds anyone or any company that can really do some good, please let me know!

    1 Votes
  • Co
    Concerned US Citizen Mar 06, 2010

    The next 30 days are crucial for GGF and others out there. The US Treasury desperately needs private equity to get back into purchasing MBS's. These funds will only become available if the assets are valued at todays' appraisal, not 2005s' appraisal. If GGF is a failure, there will be prosecutions and I cannot see that for the charge of $1, 595 the men involved would expose themselves to jail time. My understanding is that there are just less than 2000 files submitted.

    Keep an open and questioning eye on this. It will surely go one way or the other. Success or utter failure.

    0 Votes
  • Dr
    drodri7777 Mar 07, 2010

    All you people are funny!!! hears a company that is trying so hard thats was set up to be the call child for the hedge fund to help homeowners .
    The Federal Government announced in March 2009 that mortgage lenders will be compensated by The Federal Deposit Insurance Corporation for losses they take on the sale of toxic assets to private equity firms to be resold and re-serviced under federal FHA guidelines. This enables the banks to sell upside down mortgages at a reduced price. We pass on the savings directly to the homeowner. Our process helps the economy by transferring toxic loans from lenders struggling in today’s market to fully government insured loans. This gives banks the ability to lend money again. This also helps the economy as the Federal Government understands that when property values rise again so will the value of the notes they are backing. It virtually is a win/win for all parties involved. The homeowner receives a new loan providing instant equity in their property, the mortgage payment is lowered substantially, the lender no longer has to service a toxic loan.
    did you read this!!!
    They are doing this for the private hedge fund and helping homeowners for a chance that no other bank can do!!!
    For 1595, it states that it will take up to 120 days, they don't stop foreclosures and if you are in it its up tp you to stop it!!! not Guardian group.
    Sometimes people lose there jobs and the credit report comes back a lot different then what the homeowner says and it knocks off DTI issues. well that's the chance you take.
    If the homeowner is not approved and the appraisal is completed that's all they lose, because the title insurance and the survey will not be done unless the bank / investor who owns the loan will accept the principal reduction and take the appraised value offer in today's market.
    Its funny how people just have no darn patience, this is a great program and believe me when the loans are closing all of you are gonna be the GGF best friend!!!
    And if this has been so bad, and they are so illegal why the F---k has anyone organizatio9n, state, or federal govt has not done nothing!!! Because they aren't doing anything wrong you idiots!!!
    They are attorneys and big wigs working there, and believe me, fore 1595 i don't think they would be that stupid enough to scam anyone, you guys just don't get it!!!
    I believe in them and they are going through growing pains, and i am Hispanic myself and fore all of you to think that they are taken advantage of Hispanics are so freak en stupid, you need to get a life!!!
    Be patient, have faith in god and believe me these loans will go through the banks don't have a choice !!!

    -1 Votes
  • Fl
    FloridaNative Mar 07, 2010

    drodri7777 and all you other believers/suckers/dedicated employees: Are you willing to stick you neck out for this scam? Is it worth prosecution? How much is federal prison worth to you?

    Here are the facts:

    Many many employees are willing to stand up for Guardian Group, (Hey, is it Guardian Group LLC, Guardian Group AZ LLC, or Guardian Group Fund???? becuz Guardian Group Fund does not legally exist in the USA.)

    Rocket Science factoid #1: If a company does not exist, then it cannot do business...
    Rocket Science factoid #2: Legit companies do not hide behind false names.


    There have been NO CLOSINGS for Guardian Group Fund at all EVER in ANY state, that ONE deed in Trust in Arizona is something totally different than they are advertising.

    So far it has been 9 months since they began this scam, sorry, this DEAL, began. So since they say 9o days to close, they are now 3 times that and have ZERO closings. WHY?
    Please place your answer in the blank below so that we may all read it.

    My calls from last week and emails from last week have all gone unanswered. Not one human being in that alleged company will speak with me on the phone, will email me back, or will call me back.
    Ask hard questions and they just ignore you.

    So all you hard core believers, I know you are desperate for good news, but why can you not provide any proof whatsoever that this company is legit. Really, even their state registration is fake. Come on people.

    I challenge all of you to provide JUST ONE legit name and address for a closed loan, just ONE! (Not the ONE from Maricopa Cty that is not the same thing!)

    The clock is ticking and the FBI is closing in...

    Just one___________

    1 Votes
  • Gg
    GGF Believer Mar 08, 2010

    Florida Native -

    Maybe they won't call you because you are a pain in the ###!
    Be ready to eat crow, smart ###! Going through life as a pessimist
    must be really exhausting!

    0 Votes
  • Fl
    FloridaNative Mar 08, 2010

    All the questions/concerns/allegations could easily be resolved, all you GGF people, by providing even ONE article of proof. Why keep yelling about it if you cannot provide proof? Why will Guardian not call me back and answer the hard questions like :
    1. Why do business under a false name? (Guardian Group FUND v. Guardian Group LLC)
    2. Why have there been NO closings in 9 months of doing business?
    3. Why is there no paper trial for the supposed 5 billion dollar fund?
    4. Where are the contracts/documents showing any closings at all?
    5. Where is the $1595 times approximately 5, 000 that has already been collected.
    6. Where is the Incorporation for the "Guardian Group Fund?"
    7. Where are ANY closings in Broward County or Dade County FL?

    PLEASE answer theses questions for me and I will be quiet.

    0 Votes
  • Mk
    Mkelly Mar 08, 2010

    I worked at a hedge fund which was working on a similar proposal back in 2007. The concept is obviously a good one and ideally if the banks would consider this then life would be good for all. We were unfortunately in the game a few years too early and property values hadn't reached lowest levels and banks were not receiving Tarp funds yet. A lot has changed since then and when I was approached by this group recently I was excited. This needs to and will get done eventually. There are several funds and groups working in the bulk arena that have been doing this for 2-4 years. There is one group based in Santa Barbara that basically bought an entire portfolio from a bank and saved a large group of people in Mass. from going into foreclosure. There is a a group based in Orange, Ca that has been buying bulk notes for years and either re-writing them if the client would qualify or helping them (yes actually paying them for moving expenses etc...)if they don't qualify. This keeps the properties in order so it's easier to resell. In reality these groups buy in large bulk (50M-1b), which gives them the edge. They don't necessarily pick whose notes they buy and in most cases they are non-performing notes (clients who haven't paid in months and sometimes years and the banks want them off the books--toxic).
    What Guardian is attempting to do is buy in smaller pools of bulk and take on performing notes as well. For one thing, why the heck not. My brother has an 800 fico, hasn't missed a payment ever on his house and he owes 150% more than the house is worth. He doesn't qualify for Hamp program or any other govt aid for that matter. He would have a hard time even shortselling since his only hardship is negative equity. If he pays some company $1595 to do a few appraisals and try to pool a bunch of people like him together to get this done--WHAT do you have to lose (except $1595??)--what are your other alternatives. It has to start somewhere and if enough people pool together and let these guys go in and do this--the results will be there. It's already happening daily--the problem is it's only the people who arent paying their mortgages that are getting help. This is a solution that the banks will do--the money is there (Tarp) to force the banks to accept this. What's going to happen is that the majority of people who do this will get helped yet millions will avoid it due to fear--I don't blame them but it's a shame just the same.

    0 Votes
  • Mk
    Mkelly Mar 08, 2010

    Good article. Although there may be concern about how the new loans are handled (through FHA etc..) and that will be something that has to be addressed--they clients (homeowners) are getting new reduced notes in the end.

    0 Votes
  • Mk
    Mkelly Mar 08, 2010

    PS--I'm not saying $1595 is chump change and if I had my choice I would love to see it be 0 but if the appraiser charges $400 and you need 2 plus a drive by ($200)--that's $1000 right there.
    If they only charged you $595 processing fee and you pay for the appraiser at the door(because the appraisal companies require payment upfront) would that change your feelings toward this?? In essence that's what they are doing. The fees shouldn't deter people and these guys are out there enough right now--believe me they are--that they would be taking one hell of a chance on jail-time for $595 per deal---they aren't that dumb.

    0 Votes
  • Fl
    FloridaNative Mar 09, 2010

    I would like to believe that and I do know that there are programs out there doing exactly that. The problem with Guardian's tack is that there are no TARP funds for PERFORMING yet not completely collateralized loans, such as the ones where the homeowner pays every month but now is upside down in value. So there is nothing in it for the banks, nor any other lender, to refinance those loans, because they are still performing. That is the difference with the other groups out there. That's probably why the other groups out there are actually doing business.
    Additionally, you mention the costs of the program. Most appraisers will get paid at closing these days, so they need not pay up front. If they need not pay up front, then why get the money up front? It would appear to be much more legit if the homeowner was to actually prepay the "costs" directly to the service providers. When you purchase a home, you pay the costs at closing, and the ones that need to be paid first, you pay them directly.
    Ultimately, no matter how you spin it, there are zero closings in nine months for Guardian despite the 8 or 9 million in "fees" they have taken in from desperate homeowners. It is possible that the founders have good intentions to get rich while helping people out but unfortunately it takes more than a wish to get that done. Collectively they have no experience, little contacts, and an idea copied from other, larger outfits who manage to get the job done.
    The NY Times article on the above post is interestingly posted on many blogs in support of Guardian, however, Guardian is not ON Wall Street, and does not have the proper contacts to be considered with the others referred to in that article. If you review carefully, the closings that ARE happening, are already happening and have been for many months, so apparently some companies are able to actually get the job done.
    Its a great idea, (except for the government subsidy taking tax dollars out of my pocket to put it in the pocket of idiot homeowners who cashed out in 2004-2006 stupidly or greedily).
    Lets hope it works and I will be happy to eat crow, just as soon as MY application is approved. I'm still waiting.

    1 Votes
  • Fl
    FloridaNative Mar 09, 2010

    By the way, has ANYONE at all had their appraisal done by Guardian Group? Seems like in the 9 months since they started signing people up for the $1595 they would have at least completed an appraisal. There is no way whatsoever for them to approve or reject any applicant without an appraisal, yet of all the customers I have met in Florida, Arizona, California, and Nevada, not one has had an appraisal completed, but assuredly I have only met a few of the thousands of applicants on these boards and of course, the only people posting are the ones complaining, and the Guardian employees that are refuting the complaints. Happy people rarely post. In my 20 years of commercial lending experience, which is admittedly not related to this type of lending, I have yet to see more than an handful of feedback from happy clients, they only make noise when they complain. I suspect that all the questions here and on other boards (and with the FBI) would be resolved by someone showing where all that money is going, and why the Guardian Group has not produced even ONE loan in the last nine months.

    So this is an open call to help me eat crow, ANYONE out there with hard proof, not that fake closing from Maricopa County, but ANY other paper trail at all, please post.

    1 Votes
  • Fl
    FloridaNative Mar 09, 2010

    NEWS FLASH: Clark County, Nevada, home of Las Vegas and 90% of the properties in foreclosure in Nevada:

    Further research reveals:

    3 From GUARDIAN GROUP INTERNATIONAL INC SANTILLAN, CARLOS 200708270000212 DEED 8/27/2007 162-21-316-434 $760, 000.00
    4 From GUARDIAN GROUP INTERNATIONAL INC SANTILLAN, CARLOS 200708270000226 DEED 8/27/2007 162-21-316-436 $520, 000.00
    5 To GUARDIAN GROUP INTERNATIONAL INC TURNBERRY MGM GRAND TOWER B LLC 200612150001249 DEED 12/15/2006 162-21-316-434 $760, 000.00
    6 From GUARDIAN GROUP INTERNATIONAL INC BOTHMANN, HANS U 200612150001250 DEED OF TRUST 12/15/2006 162-21-316-434 $0.00
    7 To GUARDIAN GROUP INTERNATIONAL INC TURNBERRY MGM GRAND TOWER B LLC 200612150001276 DEED 12/15/2006 162-21-316-436 $520, 000.00
    8 From GUARDIAN GROUP INTERNATIONAL INC BOTHMANN, HANS U 200612150001277 DEED OF TRUST 12/15/2006 162-21-316-436 $0.00
    9 To GUARDIAN GROUP LLC DOTSON, ERLINDA T 200508160001862 DEED 8/16/2005 123-30-212-045 $186, 345.00
    10 From GUARDIAN GROUP LLC RIVERVIEW ENTERPRISES INC 200508160001863 DEED 8/16/2005 123-30-212-045 $247, 000.00
    11 From GUARDIAN GROUP ACCOUNT TRUST THE LASHLEE, E J 199211180001083 TRUST Certificate 11/18/1992 $0.00



    0 Votes
  • Fl
    FloridaNative Mar 09, 2010

    Clark County Recorder's Office at (702) 455-4336.

    0 Votes
  • Fl
    FloridaNative Mar 09, 2010

    More Information for those of you who don't understand the terms being bandied about by the GGF people: Here is a primer from Wikipedia, check it out for yourself and you can see that what Guardian Group is selling is NOT what is being funded by TARP:

    TARP allows the United States Department of the Treasury to purchase or insure up to $700 Billion of "troubled assets", defined as "(A) residential or commercial mortgages and any securities, obligations, or other instruments that are based on or related to such mortgages, that in each case was originated or issued on or before March 14, 2008, the purchase of which the Secretary determines promotes financial market stability; and (B) any other financial instrument that the Secretary, after consultation with the Chairman of the Board of Governors of the Federal Reserve System, determines the purchase of which is necessary to promote financial market stability, but only upon transmittal of such determination, in writing, to the appropriate committees of Congress."

    In short, this allows the Treasury to purchase illiquid, difficult-to-value assets from banks and other financial institutions. The targeted assets can be collateralized debt obligations, which were sold in a booming market until 2007 when they were hit by widespread foreclosures on the underlying loans. TARP is intended to improve the liquidity of these assets by purchasing them using secondary market mechanisms, thus allowing participating institutions to stabilize their balance sheets and avoid further losses.

    TARP does not allow banks to recoup losses already incurred on troubled assets, but officials expect that once trading of these assets resumes, their prices will stabilize and ultimately increase in value, resulting in gains to both participating banks and the Treasury itself. The concept of future gains from troubled assets comes from the hypothesis in the financial industry that these assets are oversold, as only a small percentage of all mortgages are in default, while the relative fall in prices represents losses from a much higher default rate.

    The Act requires financial institutions selling assets to TARP to issue equity warrants (a type of security that entitles its holder to purchase shares in the company issuing the security for a specific price), or equity or senior debt securities (for non-publicly listed companies) to the Treasury. In the case of warrants, the Treasury will only receive warrants for non-voting shares, or will agree not to vote the stock. This measure is designed to protect taxpayers by giving the Treasury the possibility of profiting through its new ownership stakes in these institutions. Ideally, if the financial institutions benefit from government assistance and recover their former strength, the government will also be able to profit from their recovery.[2]

    Another important goal of TARP is to encourage banks to resume lending again at levels seen before the crisis, both to each other and to consumers and businesses. If TARP can stabilize bank capital ratios, it should theoretically allow them to increase lending instead of hoarding cash to cushion against future unforeseen losses from troubled assets. Increased lending equates to "loosening" of credit, which the government hopes will restore order to the financial markets and improve investor confidence in financial institutions and the markets. As banks gain increased lending confidence, the interbank lending interest rates (the rates at which the banks lend to each other on a short term basis) should decrease, further facilitating lending.[2]

    The TARP will operate as a “revolving purchase facility.” The Treasury will have a set spending limit, $250 billion at the start of the program, with which it will purchase the assets and then either sell them or hold the assets and collect the 'coupons'. The money received from sales and coupons will go back into the pool, facilitating the purchase of more assets. The initial $250 billion can be increased to $350 billion upon the President’s certification to Congress that such an increase is necessary.[3] The remaining $350 billion may be released to the Treasury upon a written report to Congress from the Treasury with details of its plan for the money. Congress then has 15 days to vote to disapprove the increase before the money will be automatically released.[2]. The first $350 billion was released on October 3, 2008, and Congress voted to approve the release of the second $350 billion on January 15, 2009. One way that TARP money is being spent is to support the "Making Homes Affordable" plan, which was implemented on March 4, 2009, using TARP money by the Department of Treasury. Because "at risk" mortgages are defined as "troubled assets" under TARP, the Treasury has the power to implement the plan. Generally, it provides refinancing for mortgages held by Fannie Mae or Freddie Mac. Privately held mortgages will be eligible for other incentives, including a favorable loan modification for five years.[4]

    The authority of the United States Department of the Treasury to establish and manage TARP under a newly created Office of Financial Stability became law October 3, 2008, the result of an initial proposal that ultimately was passed by Congress as H.R. 1424, enacting the Emergency Economic Stabilization Act of 2008 and several other acts.[5][6]
    [edit] Timeline of changes to the initial program

    On October 14, 2008, Secretary of the Treasury Paulson and President Bush separately announced revisions in the TARP program. The Treasury announced their intention to buy senior preferred stock and warrants in the nine largest American banks. The shares would qualify as Tier 1 capital and were non-voting shares. To qualify for this program, the Treasury required participating institutions to meet certain criteria, including: "(1) ensuring that incentive compensation for senior executives does not encourage unnecessary and excessive risks that threaten the value of the financial institution; (2) required clawback of any bonus or incentive compensation paid to a senior executive based on statements of earnings, gains or other criteria that are later proven to be materially inaccurate; (3) prohibition on the financial institution from making any golden parachute payment to a senior executive based on the Internal Revenue Code provision; and (4) agreement not to deduct for tax purposes executive compensation in excess of $500, 000 for each senior executive."[7] The Treasury also bought preferred stock and warrants from hundreds of smaller banks, using the first $250 billion dollars allotted to the program.[8]

    The first allocation of the TARP money was primarily used to buy preferred stock, which is similar to debt in that it gets paid before common equity shareholders. This has led some economists to argue that the plan may be ineffective in inducing banks to lend efficiently.[9][10]

    In the original plan presented by Secretary Paulson, the government would buy troubled (toxic) assets in insolvent banks and then sell them at auction to private investor and/or companies. This plan was scratched when Paulson met with England's Prime Minister Gordon Brown who came to the White House for an international summit on the global credit crisis.[citation needed] Prime Minister Brown, in an attempt to mitigate the credit squeeze in England, merely infused capital into banks via preferred stock in order to clean up their balance sheets and, in some economists' view, effectively nationalizing many banks. This plan seemed attractive to Secretary Paulson in that it was relatively easier and seemingly boosted lending more quickly. The first half of the asset purchases may not be effective in getting banks to lend again because they were reluctant to risk lending as before with low lending standards. To make matters worse, overnight lending to other banks came to a relative hault because banks did not trust each other to be prudent with their money.[citation needed]

    On November 12, 2008, Secretary of the Treasury Henry Paulson indicated that reviving the securitization market for consumer credit would be a new priority in the second allotment.[11][12]

    On December 19, 2008, President Bush used his executive authority to declare that TARP funds may be spent on any program he personally deems necessary to avert the financial crisis. This has allowed President Bush to extend the use of TARP funds to support the auto industry, a move supported by the United Auto Workers.

    On December 31, 2008, the Treasury issued a report reviewing Section 102, the Troubled Assets Insurance Financing Fund, also known as the "Asset Guarantee Program." The report indicated that the program would likely not be made "widely available."[13]

    On January 15, 2009, the Treasury issued interim final rules for reporting and record keeping requirements under the executive compensation standards of the CPP.[14]

    On January 21, 2009, the Treasury announced new regulations regarding disclosure and mitigation of conflicts of interest in its TARP contracting. [15]

    On February 5, 2009, the Senate approved changes to the TARP that prohibit firms receiving TARP funds from paying bonuses to their 25 highest-paid employees. The amendment was proposed by Christopher Dodd of Connecticut as an amendment to the $900 billion economic stimulus act yet to be passed. [16]

    On February 10, 2009, the newly confirmed Secretary of the Treasury Timothy Geithner outlined his plan to use the $300 billion or so dollars remaining in the TARP funds. He intended to use $50 billion for foreclosure mitigation and use the rest to help fund private investors to buy toxic assets from banks. Nevertheless, this highly anticipated speech coincided with a nearly 5 percent drop in the S&P 500 and was criticized for being short on details.[17]

    On March 23, 2009, U.S. Treasury Secretary Timothy Geithner announced a Public-Private Investment Program (P-PIP) to buy toxic assets from banks' balance sheets. The major stock market indexes in the United States rallied on the day of the announcement rising by over six percent with the shares of bank stocks leading the way. [18] P-PIP has two primary programs. The Legacy Loans Program will attempt to buy residential loans from bank's balance sheets. The FDIC will provide non-recourse loan guarantees for up to 85 percent of the purchase price of legacy loans. Private sector asset managers and the U.S. Treasury will provide the remaining assets. The second program is called the legacy securities program, which will buy mortgage backed securities (RMBS) that were originally rated AAA and commercial mortgage-backed securities (CMBS) and asset-backed securities (ABS) which are rated AAA. The funds will come in many instances in equal parts from the U.S. Treasury's Troubled Asset Relief Program monies, private investors, and from loans from the Federal Reserve's Term Asset Lending Facility (TALF). The initial size of the Public Private Investment Partnership is projected to be $500 billion.[19] Economist and Nobel Prize winner Paul Krugman has been very critical of this program arguing the non-recourse loans lead to a hidden subsidy that will be split by asset managers, banks' shareholders and creditors.[20] Banking analyst Meridith Whitney argues that banks will not sell bad assets at fair market values because they are reluctant to take asset write downs.[21] Removing toxic assets would also reduce the volatility of banks' stock prices. This lost volatility will hurt the stock price of distressed banks. Therefore, such banks will only sell toxic assets at above market prices.[22]

    On April 19, the Obama administration outlined the conversion of Banks Bailouts to Equity Share.[23]
    [edit] Administrative structure
    See also: Oversight of the Troubled Asset Relief Program

    The program is run by the Treasury's new Office of Financial Stability. According to a speech made by Neel Kashkari, [24] the fund will be split into the following administrative units:

    1. Mortgage-backed securities purchase program: This team is identifying which troubled assets to purchase, from whom to buy them and which purchase mechanism will best meet our policy objectives. Here, we are designing the detailed auction protocols and will work with vendors to implement the program.
    2. Whole loan purchase program: Regional banks are particularly clogged with whole residential mortgage loans. This team is working with bank regulators to identify which types of loans to purchase first, how to value them, and which purchase mechanism will best meet our policy objectives.
    3. Insurance program: We are establishing a program to insure troubled assets. We have several innovative ideas on how to structure this program, including how to insure mortgage-backed securities as well as whole loans. At the same time, we recognize that there are likely other good ideas out there that we could benefit from. Accordingly, on Friday we submitted to the Federal Register a public Request for Comment to solicit the best ideas on structuring options. We are requiring responses within fourteen days so we can consider them quickly, and begin designing the program.
    4. Equity purchase program: We are designing a standardized program to purchase equity in a broad array of financial institutions. As with the other programs, the equity purchase program will be voluntary and designed with attractive terms to encourage participation from healthy institutions. It will also encourage firms to raise new private capital to complement public capital.
    5. Homeownership preservation: When we purchase mortgages and mortgage-backed securities, we will look for every opportunity possible to help homeowners. This goal is consistent with other programs - such as HOPE NOW - aimed at working with borrowers, counselors and servicers to keep people in their homes. In this case, we are working with the Department of Housing and Urban Development to maximize these opportunities to help as many homeowners as possible, while also protecting taxpayers.
    6. Executive compensation: The law sets out important requirements regarding executive compensation for firms that participate in the TARP. This team is working hard to define the requirements for financial institutions to participate in three possible scenarios: One, an auction purchase of troubled assets; two, a broad equity or direct purchase program; and three, a case of an intervention to prevent the impending failure of a systemically significant institution.
    7. Compliance: The law establishes important oversight and compliance structures, including establishing an Oversight Board, on-site participation of the General Accounting Office and the creation of a Special Inspector General, with thorough reporting requirements. We welcome this oversight and have a team focused on making sure we get it right.

    Eric Thorson is the Inspector General of the US Department of the Treasury and currently is responsible for the oversight of the TARP but has expressed concerns about the difficulty of properly overseeing the complex program in addition to his regular responsibilities. Thorson called oversight of TARP a "mess" and later clarified this to say "The word 'mess' was a description of the difficulty my office would have in providing the proper level of oversight of the TARP while handling its growing workload, including conducting audits of certain failed banks and thrifts at the same time that efforts are underway to nominate a special inspector general." [10] As of November 2008, Neil Barofsky has been nominated as the Special Treasury Department Inspector General with the express role of overseeing the TARP. Barofsky is undergoing senate confirmation hearings from the Senate Finance Committee. The Treasury has retained the law firms of Squire, Sanders & Dempsey and Hughes, Hubbard & Reed to assist in the administration of the program.[25] Accounting and internal controls support services have been contracted from PricewaterhouseCoopers and Ernst and Young under the Federal Supply Schedule.[26]
    [edit] Participation criteria

    The Act’s criteria for participation are very unclear. It states that “financial institutions” will be included in TARP if they are “established and regulated” under the laws of the United States and if they have “significant operations” in the United States. The Treasury will need to define what institutions will be included under the term “financial institution” and what will constitute “significant operations.”[2]Companies that sell their bad assets to the government must provide warrants so that taxpayers will benefit from future growth of the companies.[3] Certain institutions seem to be guaranteed participation. These include: U.S. banks, U.S. branches of a foreign bank, U.S. savings banks or credit unions, U.S. broker-dealers, U.S. insurance companies, U.S. mutual funds or other U.S. registered investment companies, tax-qualified U.S. employee retirement plans, and bank holding companies.[2]
    The President is to submit a law to cover taxpayer losses on the fund, using "a small, broad-based fee on all financial institutions."[3] To participate in the bailout program, "...companies will lose certain tax benefits and, in some cases, must limit executive pay. In addition, the bill limits 'golden parachutes' and requires that unearned bonuses be returned."[3] The fund has an Oversight Board so that the U.S. Treasury cannot act in an arbitrary manner. There is also an inspector general to protect against waste, fraud and abuse.[3]

    The New York Times states: "The criteria being used to choose who gets money appears to be setting the stage for consolidation in the industry by favoring those most likely to survive" because the criteria appears to favor the financially best off banks and banks too big to let fail. Some lawmakers are upset that the capitalization program will end up culling banks in their districts.[27] However, the Wall Street Journal suggested that some lawmakers are actively using TARP to funnel money to weak regional banks in their districts.[28]

    Known aspects of the capitalization program "suggest that the government may be loosely defining what constitutes healthy institutions. [... Banks] that have been profitable over the last year are the most likely to receive capital. Banks that have lost money over the last year, however, must pass additional tests. [...] They are also asking if a bank has enough capital and reserves to withstand severe losses to its construction loan portfolio, nonperforming loans and other troubled assets."[27] Some banks received capital with the understanding the banks would try to find a merger partner. To receive capital under the program banks are also "required to provide a specific business plan for the next two or three years and explain how they plan to deploy the capital."[27]

    Whether hedge funds, as virtually unregulated institutions, will be included depends on the discretion of the Treasury, but it seems unlikely. Hedge funds (partnerships in which experienced investors pool their money to make complex, and often risky, investments using advanced investment strategies) have recently become politically unpopular in the U.S. as a result of their perceived role in creating the crisis. This perception of hedge funds makes it difficult for the Treasury to allow them to participate in a taxpayer-funded bailout program.[2]


    1 Votes
  • Fl
    FloridaNative Mar 09, 2010

    Another interesting factoid:

    TARP FUNDS: As of February 9, 2009, $388 billion had been allotted, and $296 billion spent, according to the Committee for a Responsible Federal Budget.
    There are NO funds left!

    And one more:

    The Act requires financial institutions selling assets to TARP to issue equity warrants (a type of security that entitles its holder to purchase shares in the company issuing the security for a specific price), or equity or senior debt securities (for non-publicly listed companies) to the Treasury. In the case of warrants, the Treasury will only receive warrants for non-voting shares, or will agree not to vote the stock.

    Further verification that "hedge funds" such as this one are not eligible for TARP funds as use of these funds to buy "TOXIC ASSETS" requires giving the government an equity stake in the company.

    0 Votes
  • Qu
    questioner Mar 09, 2010

    I think the most interesting comment in this thread is the person who did the background check on the principals of GGF, LLC. The corp does exists in AZ, I looked them up and they are in good standing...(the night is young), as they were filed in July, 2009. The pricipals can be located via google mapping and you will see the agent of record seems to live in an apartment, while the other 2 have homes in seemingly typical residential areas. Don't know if they own them or rent. According to the background checker...who would give these guys 5 billion dollars with their "expertise"? It's good to be sketical. Everyone would love it to be real, as would I, however, $1595 is a lot of money in these times and if they are real, it should be apparent in short order. $1595 X 5000 is a boat load of money!! If the FBI has been contacted, so be it. That would clear things up, however, they are most likely overwhelmed with other potential fraudulent programs.
    Please keep posting as I will keep reading!

    0 Votes
  • Fl
    FloridaNative Mar 09, 2010

    You are correct, Guardian Group LLC is in good standing in Arizona, BUT- the company that is attempting to do business via this refinance program is "Guardian Group Fund". Clever to use a similar name as it makes cashing the checks easier, however, you cannot close a loan to Guardian Group Fund as THAT corporation does not exist. Further, you cannot contract with a corporation that does not exist, therefore, it is not possible to contract with "Guardian Group Fund" because it does not exist in Arizona where they purport to be in business.

    This is taken directly from their website:
    Copyrights © 2009, The Guardian Group Fund. All Rights Reserved Designed By :

    Please see jpeg images from their website

    ** Note even the website name is "Guardian Group Fund"


    0 Votes
  • Ca
    CA_Questions Mar 09, 2010

    Thanks for the Information about GG guys. It helps a lot. There is another unlicensed guy in Hawaii called Marlon
    Ruiz promoting these services. I asked him some questions and inturn he removed my posts. Why are they so scared to
    answer questions?
    Inturn he writes on his blog that he is waiting for answers from GG. Fine by me, but why is he promoting the services via conference calls, where he invites agents/homeowners? Beats me...

    0 Votes
  • Ca
    CA_Questions Mar 09, 2010

    MKelly lets's say agreed they are not that dumb to run away with $595 processing fee. Can you justify the fact
    of not opening an ESCROW with the $1595? These fees according to them are 3rd party costs!!
    Why do they have to collect that money via agents or unlicensed dudes from homeowners?

    0 Votes
  • Fl
    FloridaNative Mar 09, 2010

    CA_Questions, you make a good point. Normally in any situation such as this, the money must be placed into escrow with a provision for what happens in case of default of either party or if the funds are unused. In this case I think the contract I signed said something about the $1595 being non refundable and when I asked about that they said it was refundable if it was not used but my papers do not say that. I wonder what would happen if I asked for my money back?

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