Complaint Review: The Guardian Group Fund

Don't get me wrong.. I do think it's probable that GGF had good intentions by starting the program... and I too knew that it was a risk of sorts.  However, it was a risk I was willing to take because of how the program was presented... that is grouping together loans and presenting them as a package to the bank from an industry group that could make this work within a 60-90 day time frame.  I believed that they could perform as advertised but it turns out without a bank license that cannot perform and I understand its highly unlikely that they cannot get a bank license.  I think that the owners of GGF being from the industry should have known about that requirement.  Now, they may be in a situation to modify their program to work short sales and that may be legitimate but its not what I signed up for and I don't think it would work in my situation with a performing loan.  This would not be packaging loans so that a bank couldn't cherry pick but rather working one on one scenarios.  What bank would realistically take a discounted sale from a performing loan with someone who has a good payment history.  Besides the fact, that I would have to take a credit hit.  Not interested and and its not what I thought I was getting into. I think its only right that the GGF make full refunds to folks in my position and move on to whatever they've evolved to.  I wish them luck and I hope that they are able to help people.  I had mentioned in my previous report that I intended to go to the media and file with AZ Attn General but I since rethought that..I'll wait and see if they responsibly respond to my request for retraction and refund.

I too have a vested interest in this whole Guardian Group scenario having referred a few dozen homeowners to a former affiliate to the Guardian Group Fund. And I will add that not one of the referred clients has a completed principal reduction (some reaching the 120 day mark). The profile of the submitted clients are 50/50 on being in foreclosure and still be current. Obviously those homeowners who are grossly delinquent are considerably more concerned and a majority of those have requested refunds. A few have received the full refund while there have been delays with some others in there request for the return of their funds.

My alliance has always been those I referred, of course, but the difference than most I read here, is that all of my referrals were completely understanding and agreeing that this program offered no guarantee and the mentality here is more associated with playing poker. Not to say that anyone likes to toss $1600 out the window or on the table but they were willing to take that risk. I do feel  GGF was earnest in their initial MO of helping rather than hurting but like others have mentioned, I think it became extremely disorganized and overwhelmed very quickly.

 I might add at this time that there is no hedge fund around anymore. Repeat, the hedge fund pulled out a few weeks ago due to the limited ROI and timing concerns. This is fact. Actually this is of a limited concern to me as I do understand the dynamics of hedge funds, and their involvement with the GGF (or lack thereof), purchase of pooled notes and the association with FHA guidelines & guarantees . As I understand now, the program has reverted back to private investors who are willing to take less ROI and are comfortable with the prior process of completion. The margins are lower, but for some private investors, it appears to be enough.

Time, will again be the determining factor on whether the existing portfolio within GGF will ever get done and my prediction is that most will not. I feel changes will take place in identifying acceptance to this program and the majority of accepted files will be mandated to be in arrears and delinquent. Big deal! These are the homeowners that need help first. Based on true underwriting and qualifications, I believe the GGF will promote more pre-arraigned short sales as well. A direction that has already proven to work with most short sale investors, particularly knowing before hand, that an identified pre-qualified buyer (the existing homeowner) is present. This will accomplish the original and intended forecast and outcome. I am not going to join the band wagon of bashing the GGF for lack of communication and updates as we all know its true.

Moving on, I have been in contact with new customer support & individuals at the GGF and their follow up at least to me has been improved but not perfect, considering a direct need for a whole dept. of customer service issues to be resolved. I feel that if you have a file within the GGF, be patient if you have the luxury of time behind you and your home is not in any imminent danger of impending sale auction. I agree with some of what Ive heard regarding those clients that are significantly behind in payments as it only makes sense that the GGF never promised to save your home, (you did not make your payments). If blame is to be directed, its those uneducated and greedy ex or current loan officers that  only were concerned with making money at your expense, (broken record here), and the last laugh is on them, no completed files, no participation on YSP (commission on the back end).  I am still considering referring clients to the GGF with their fully educated understanding of how it can benefit them and the timeframes involved.

For those who do not want to or can not wait, there are new programs out there that Ive found that are completely compliant and at least deliver an immediate (48 hour)HAMP modification after initial pre qualification with no up front fees, (the way it should have been done for ALL modifications). And Im more than willing to share this information to those that are interested here.