BGS3

saying, "The situation calls for a vigorous response." In addition to the much-publicized effect this has on American families, banks are facing a daunting amount of potential liability, even if only a fraction of these loans default. Citibank alone is potentially on the hook for nearly $90 billion. BGS3, LLC (also referred to as "the Company"), is a wholly owned subsidiary of BiggerGains, LLC, and provides a comprehensive short sale system and a fully-tested business model that proactively answers the call for a "vigorous response". BGS3 makes the complex short sale process easy and efficient for agents, banks, homebuyers, and homeowners, while it simultaneously draws all parties together into a proprietary-paperless environment. BGS3 provides all the expert training needed for professionals, including an entire online library of instruction modules. These experts are then equipped to find individuals affected by foreclosure, coordinate all the people and entities involved, and efficiently implement the short sale solution. Realtors who sign up for BGS3's services also receive hundreds of exclusive, non-public, and highly targeted short sale leads to facilitate this process and generate substantially increased closings. Homeowners across the country give their information to BGS3 through a variety of websites that offer them help. Through leveraging these leads, in conjunction with the Company's finely tuned marketing letter, a realtor can expect a 5%-10% response rate from homeowners, whereas the typical response rate for direct mail is generally 1%.

BGS3

Comments From GlobeNewsWire About BGS3

BGS3 Helps Homeowners Avoid Foreclosure
Certified Real Estate Professionals Nationwide Offer Help

LOUISVILLE, Ky., Jan. 29, 2008 (GLOBE NEWSWIRE) (PRIME NEWSWIRE) -- BGS3, the National Processing Center for Short Sales, announces Program 3648. John W. Davis, Chief Administrator of Program 3648, announced the release of a nationwide campaign to certify qualified real estate professionals to assist homeowners facing a potential foreclosure. "President Bush has provided a much needed solution to the national foreclosure problem in signing H.R. 3648 -- The Mortgage Forgiveness Debt Relief Act of 2007, but the sub-prime mortgage problem continues to affect most markets nationwide. The critical next step is locating and certifying a ground army of concerned professionals who can reach out to the multitude of homeowners who desperately need relief," said Davis.

There has been a substantial increase in numbers of families affected by adjusting interest rates on sub-prime mortgages. Subsequently, foreclosure rates continue to rise. Program 3648 Representatives have been working to educate homeowners and their families on their rights and options. Kenn Lewis, Co-founder of BGS3 and Program 3648 states, "While much has been said in the media to further educate the public about their options when facing foreclosure, the vast majority of individuals in this situation simply don't know where to start. Program 3648 was enacted to handle the processing for qualified homeowners to either keep their home or go through a short sale. There is no cost for the program, and the homeowner never needs to worry about future billing. With caring, well-educated, experienced professionals administering the program on a national scale, our mission is to help thousands of homeowners avoid foreclosure."

Certification procedures are required for Program 3648 representation. "Experience and expertise in working with individuals in this situation are essential to achieving certification," said Certification Director, Jeremy Bowman. In addition to a thorough review of track record and past achievements, ongoing training and education are required to maintain certification status.

GlobeNewsWire

Comments From MarketWatch About BGS3

 LOUISVILLE, Ky., Aug 22, 2008 (BUSINESS WIRE) -- BGS3 is once again expanding its operations in response to recent developments in the world of short sales. Fannie Mae - FNM (NYSE), the Federal National Mortgage Association, has recently announced changes to their policies on bankruptcy and foreclosure, as well as a new policy addressing pre-foreclosure sales. Both changes affect all loan applications dated on or after August 1, 2008. These changes explain in detail the impact that the three options have on a homeowner's borrowing status.
BGS3, through their short sale system, is helping homeowners avoid additional years of credit woes. Charles Cease, Chief Operations Officer at BGS3, states, "Depending on the course of action that a homeowner takes, the differences and ramifications to the homeowners future borrowing status are substantial." Under the new foreclosure policy, the time period a borrower must take to rebuild his or her credit has been extended to 5 years, and several new requirements now apply after 5 years and up to 7 years after the completion date. This makes foreclosure more damaging to a homeowner's credit worthiness than bankruptcy, which requires a 4-year time period applied from either the discharge date or the dismissal date. Even in the event that the homeowner offers a deed-in-lieu of foreclosure, it still requires a 4-year time period before they are eligible to get a conforming loan again. A deed-in-lieu of foreclosure also includes additional requirements applied after 4 years and up to 7 years following the completion date.
In the event of a pre-foreclosure short sale, where the homeowner is willing to let their house sell for less than the amount owed, Fannie Mae only requires a 2-year time period for reestablishing credit, with no additional requirements. Kenneth S. Lewis, Co-founder of BGS3, states, "We've known for quite some time that this news was coming. These changes made to Fannie Mae's policies clearly express why foreclosure is worse for the homeowner's credit than bankruptcy, or a deed-in-lieu of foreclosure, and why a short sale is a far better alternative to either. The cutting edge system that our team here at BGS3 has put together continues to lengthen the reach to homeowners who have gotten behind on mortgage payments that may need the benefit of a short sale. Our unwavering commitment continues to be that the homeowner never needs to pay for the help."

MarketWatch