U. S.
Securities and Exchange Commission
 Washington,
D.C. 20549
 
 FORM
10-Q
  (Mark
One)
  [X]
              QUARTERLY
      REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
      1934
  For the quarterly period ended September 30,
2009
  [
      ]
              TRANSITION
      REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
      1934
  For the transition period from
_______________________ to _______________________
 
 Commission File No.
0-21255
 
 WE SAVE
HOMES, INC.
 (Exact
name of registrant in its Charter)
 Nevada
              
              26-4238285(State
      or Other Jurisdiction ofincorporation
      or organization)
              
              (I.R.S.
      Employer Identification
      No)
 
 27651 La
Paz Road, Suite A
 Laguna
Niguel, CA 92677
 (Address
of Principal Executive Offices)
 
 (949)
599-1870
 Registrant’s
telephone number
 
 F/K/A Global
West Resources, Inc.
 (Former
Name, former address and former fiscal year, if changed since last
report)
 
 Indicate
by check mark whether the registrant  (1) filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
 
 (1)
              Yes
              
              X
              
              No
              
              
              (2)
              Yes
              
              X
              
              No
 
 Indicate
by check mark whether the registrant is a large accelerated filer, an
accelerated filed, a non-accelerated filer, or a smaller reporting
company.
 
 Large
      accelerated filer [ ]
              Accelerated
      filer [ ]
              Non-accelerated
      filer [  ]
              Smaller
      reporting company [
      X  ]
 
 Indicate
by check mark whether the registrant is a shell company (as defined in Rule
12b-2 of the Exchange Act).
 Yes
[  ]       No [ X ]
  ISSUERS
INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PRECEDING FIVE YEARS
  Not
applicable
 
 APPLICABLE
ONLY TO CORPORATE ISSUERS
 
 Indicate
the number of shares outstanding of each of the issuer's classes of common
stock, as of the latest practicable date:
 September
30, 2009
 Common –
13,102,500 shares
  -1-
  PART
I - FINANCIAL INFORMATION
 
 ITEM  1.
FINANCIAL STATEMENTS
 
 The
unaudited interim consolidated financial statements of We Save Homes, Inc.,
formerly known as Global West Resources, Inc. (“WSHI”), and its wholly-owned
subsidiary, Mortgage Modification Legal Network, Inc., (“MMLN,” together with
WSHI “we,” “us,” “our,” “the Company”) for the three-month and nine-month ended
September 30, 2009 are attached hereto.   The Company has changed
its financial year to the calendar year.  Our interim consolidated
financial statements are stated in United States Dollars and are prepared in
accordance with United States Generally Accepted Accounting
Principles.
 
 It is the
opinion of management that the interim consolidated financial statements for the
nine-month ended September 30, 2009 include all adjustments necessary in order
to ensure that the interim consolidated financial statements are not misleading.
These statements reflect all adjustments, which are, in the opinion of
management, necessary to present fairly the financial position, results of
operations and cash flows for the interim periods presented in accordance with
accounting principles generally accepted in the United States of America. Except
where noted, these interim consolidated financial statements follow the same
accounting policies and methods of their application as the Company’s December
31, 2008 audited financial statements. All adjustments are of a normal recurring
nature. It is suggested that these interim consolidated financial statements be
read in conjunction with the Company’s December 31, 2008 audited financial
statements.
 
 Operating
results for the nine-month ended September 30, 2009 are not necessarily
indicative of the results that can be expected for the year ending December 31,
2009.
 
  -2-
  
 We
      Save Homes, Inc. & Subsidiary(Formerly
      Known As Global West Resources, Inc. & Subsidiary)Consolidated
      Balance Sheets(Unaudited)September
      30, 2009
              
              December
      31, 2008AssetsCurrent
      AssetsCash
      and Cash Equivalents
              
              $
              250,020
              
              
              $
              -Accounts
      Receivable, Net of Allowance for Doubtful Accounts of
    $4,998
              
              
              -
              
              
              
              56,514Due
      from Related Parties
              
              
              -
              
              
              
              11,530Prepaid
      Expenses & Employee Advances
              
              
              6,871
              
              
              
              -Total
      Current Assets
              
              
              256,891
              
              
              
              68,044Long
      Term AssetsProperty
      and Equipment, Net
              
              
              58,545
              
              
              
              33,982Deposit
              
              
              50,650
              
              
              
              8,149Total
      Long Term Assets
              
              
              109,195
              
              
              
              42,131Total
      Assets
              
              $
              366,086
              
              
              $
              110,175Liabilities
      & Stockholders' DeficitLiabilitiesCurrent
      LiabilitiesAccounts
      Payable and Accrued Expenses
              
              $
              89,001
              
              
              $
              60,826Accrual
      for Potential Penalties and Fines
              
              
              200,000
              
              
              
              -Unearned
      Income
              
              
              8,579
              
              
              
              -Note
      Payable - Related Party
              
              
              92,000
              
              
              
              100,000Convertible
      Note Payable - Related Party, Net of Beneficial Conversion
      Feature
              
              
              9,804
              
              
              
              -Other
      Liabilities
              
              
              150,000
              
              
              
              -Redeemable
      Shares
              
              
              150,000
              
              
              
              -Total
      Liabilities
              
              
              699,384
              
              
              
              160,826Commitment  &
      ContingenciesStockholders'
      DeficitPreferred
      stock ($0.001 par value; 10,000,000 authorized: no shares issued and
      outstanding)
              
              
              -
              
              
              
              -Common
      stock ($0.001 par value; 50,000,000 shares authorized; 13,102,500 shares
      issued and outstanding at September 30, 2009 and 10,000,000 shares issued
      and outstanding at December 31, 2008)
              
              
              13,103
              
              
              
              10,000Additional
      Paid In Capital
              
              
              4,601,941
              
              
              
              379,839Subscription
      Receivable
              
              
              -
              
              
              
              (201,439
              )Accumulated
      Deficit
              
              
              (4,948,342
              )
              
              
              (239,051
              )Total
      Stockholders' Deficit
              
              
              (333,298
              )
              
              
              (50,651
              )Total
      Liabilities & Stockholders' Deficit
              
              $
              366,086
              
              
              $
              110,175The
      accompanying notes are an integral part of these unaudited financial
      statements.
 
 
  -3-
  
 We
      Save Homes, Inc. & Subsidiary(Formerly
      Known As Global West Resources, Inc. & Subsidiary)Consolidated
      Statements of OperationFor
      The Nine-Month & Three-Month Periods Ended September 30, 2009 &
      2008(Unaudited)For
      The Three-Month Period Ended September 30,
              
              
              For
      The Nine-Month Period Ended September 30,2009
              
              
              2008
              
              
              2009
              
              
              2008Net
      revenues
              
              $
              21,261
              
              
              $
              -
              
              
              $
              938,397
              
              
              $
              -Cost
      of revenues
              
              
              3,023
              
              
              
              -
              
              
              
              474,743
              
              
              
              -Gross
      profit
              
              
              18,238
              
              
              
              -
              
              
              
              463,654
              
              
              
              -Operating
      costs and expensesGeneral
      and administrative expenses
              
              
              3,309,084
              
              
              
              14,867
              
              
              
              5,150,726
              
              
              
              14,867Loss
      from operations
              
              
              (3,290,846
              )
              
              
              (14,867
              )
              
              
              (4,687,072
              )
              
              
              (14,867
              )Other
      expenseFinance
      expense
              
              
              4,908
              
              
              
              -
              
              
              
              9,014
              
              
              
              -Loss
      on settlement of debt
              
              
              -
              
              
              
              -
              
              
              
              1,875
              
              
              
              -Put
      option expense
              
              
              727
              
              
              
              -
              
              
              
              727
              
              
              
              -Beneficial
      conversion expense
              
              
              9,804
              
              
              
              -
              
              
              
              9,804
              
              
              
              -Other
      expense
              
              
              15,439
              
              
              
              -
              
              
              
              21,420
              
              
              
              -Net
      loss before income taxes
              
              
              (3,306,285
              )
              
              
              (14,867
              )
              
              
              (4,708,492
              )
              
              
              (14,867
              )Provision
      of income taxes
              
              
              800
              
              
              
              -
              
              
              
              800
              
              
              
              -Net
      loss
              
              $
              (3,307,085
              )
              
              $
              (14,867
              )
              
              $
              (4,709,292
              )
              
              $
              (14,867
              )Basic
      & diluted weighted average number of common stock
      outstanding
              
              
              12,546,739
              
              
              
              162,722
              
              
              
              12,270,540
              
              
              
              162,722Basic
      & diluted net loss per share
              
              $
              (0.26
              )
              
              $
              (0.09
              )
              
              $
              (0.38
              )
              
              $
              (0.09
              )Weighted
      average number of shares used to compute basis and diluted loss per share
      is the same since the effect of dilutive securities is
      anti-dilutive.The
      accompanying notes are an integral part of these unaudited financial
      statements.
 
 
  -4-
  
 We
      Save Homes, Inc. & Subsidiary(Formerly
      Known As Global West Resources, Inc. & Subsidiary)Consolidated
      Statements of Cash FlowFor
      The Nine-Month Period Ended September 30, 2009 & 2008(Unaudited)2009
              
              
              2008CASH
      FLOWS FROM OPERATING ACTIVITIESNet
      loss
              
              $
              (4,709,292
              )
              
              $
              (14,867
              )Adjustments
      to reconcile net loss to net cash provided by(used
      in) operating activitiesCommon
      stocks issued for compensation
              
              
              3,586,907
              
              
              
              -Depreciation
              
              
              16,804
              
              
              
              -Loss
      on settlement of debt
              
              
              1,875
              
              
              
              -Option
      expense
              
              
              727Amortization
      of beneficial conversion feature
              
              
              9,804Changes
      in working capital:Decrease
      in accounts receivable
              
              
              56,516
              
              
              
              -Decrease
      in receivables from related parties
              
              
              11,530
              
              
              
              -(Increase)
      in prepaid expenses & employee advances
              
              
              (6,871
              )
              
              
              -(Increase)
      in deposit
              
              
              (42,501
              )
              
              
              -Increase
      in unearned revenue
              
              
              8,579
              
              
              
              -Increase
      in legal contingency accruals
              
              
              200,000
              
              
              
              -Increase
      in accounts payable and accrued expenses
              
              
              28,175
              
              
              
              42,021Net
      cash provided by (used in) operating activities
              
              
              (837,747
              )
              
              
              27,154CASH
      FLOWS FROM INVESTING ACTIVITIESPurchase
      of property and equipment
              
              
              (41,367
              )
              
              
              -Net
      cash used in investing activities
              
              
              (41,367
              )
              
              
              -CASH
      FLOWS FROM FINANCING ACTIVITIESRelated
      party notes issued
              
              
              42,625
              
              
              
              -Related
      party convertible notes issued
              
              
              100,000
              
              
              
              -Related
      party prepayment for stock issuance
              
              
              150,000
              
              
              
              -Issuance
      of shares for cash (part of subscription receivable)
              
              
              186,509
              
              
              
              -Issuance
      of redeemable shares for cash
              
              
              150,000
              
              
              
              -Issuance
      of shares for cash
              
              
              500,000
              
              
              
              36,813Net
      cash provided by financing activities
              
              
              1,129,134
              
              
              
              36,813NET
      INCREASE IN CASH & CASH EQUIVALENTS
              
              
              250,020
              
              
              
              27,154CASH
      & CASH EQUIVALENTS, BEGINNING BALANCE
              
              
              -
              
              
              
              -CASH
      & CASH EQUIVALENTS, ENDING BALANCE
              
              $
              250,020
              
              
              $
              27,154SUPPLEMENTARY
      DISCLOSURES OF CASH FLOW INFORMATIONInterest
      paid during the year
              
              $
              4,880
              
              
              $
              -Taxes
      paid during the year
              
              $
              800
              
              
              $
              -NON-CASH
      INVESTING & FINANCING ACTIVITY:Common
      shares issued for acquisition of subsidiary
              
              $
              10,000
              
              
              $
              -The
      accompanying notes are an integral part of these unaudited financial
      statements.
  -5-
  We
Save Homes, Inc. and Subsidiary
 Notes
to Unaudited Consolidated Financial Statements
 For
the Nine Month Periods Ended September 30, 2009 and 2008
 
 
 NOTE
1.    Nature of business
 
 We Save
Homes, Inc , formerly known as Global West Resources, Inc., (“the Company”,
“We”, “Our”, “GWRC”,”WSHI”), is a Nevada corporation formed on May 19,
2006.  The Company was previously operated as an exploration stage
company organized to explore mineral properties in Nevada.  On March
23, 2009, the Company, exchanged, pursuant to a Share Exchange Agreement with
Mortgage Modification Legal Network, Inc. (“MMLN”) (the “Share Exchange
Agreement”), an aggregate of 10,000,000 shares of its common stock for all of
the issued and outstanding shares of common stock of MMLN (“MMLN Shares”) from
the MMLN shareholders.
 
 On March
30, 2009, our board of Directors and shareholders approved a change in our name
to We Save Homes, Inc.   The Company on May 20, 2009 amended its
Articles of Incorporation with the State of Nevada and amended its Bylaws to
change its end of fiscal year to December 31, effective June 8, 2009. The
Amendment also allowed the Company to consummate its name change to We Save
Homes, Inc.  On June 8, 2009, the Company received notice from the
State of Nevada confirming the Amendment.
 
 The
Company, through its subsidiary, MMLN, had offered potential foreclosure
mitigation solutions for distressed homeowners using two (2) business
models.  First, the Company has a retail program that employs both
"grass roots" and "technology based" efforts to reach out directly to the
troubled homeowner by helping to inform and provide information as to their
various foreclosure mitigation options.  Second, the Company had an
affiliate program that marketed specifically to real estate and mortgage
professionals.  However, the Company discontinued the affiliate program in
the second quarter of 2009 due to increased regulation, potential liabilities
that outweighed the benefits thereof, and a high degree of significant risks
associated with this program.  On June 2, 2009, the Company received a
letter from the California Department of Real Estate dated May 28, 2009
requesting information regarding business activities in the state of California
involving loan modification services. In this correspondence, the DRE also
questioned the business activities of a back-end service provider and its
licensing status to operate in the state of California (note
13).   The Company has ceased outsourcing to this back-end
processing of all new loan modifications effective June 3, 2009 and brought
these activities in-house.  The Company is properly licensed to
perform loan modification services in California under an Advance Fee Agreement
as approved by the CA DRE on May 21, 2009.   As of the end of
August, the Company ceased to offer or accept any new loan modification
cases.
 
 The
Company now is offering retail subscriptions to an online application which will
allow homeowners to store and access information for real estate and mortgage
lending activities, such as loss mitigation.   In addition, the
Company plans to offer this service to lenders, banks, real estate brokers and
professionals to perform various real estate related transactions such as short
sales, loan restructure, refinancing and other features to be developed at a
later time.
 
 NOTE
2.  Basis of Presentation
 
 The
accompanying unaudited consolidated financial statements include the accounts of
the Company and its subsidiary. All material intercompany balances and
transactions have been eliminated. The unaudited interim consolidated financial
statements and related notes are presented in accordance with the rules and
regulations of the Securities and Exchange Commission with regard to interim
financial information. Accordingly, the unaudited consolidated financial
statements may not include all of the information and notes to financial
statements required by accounting principles generally accepted in the United
States of America for complete financial statements. In the opinion of
management, all adjustments, consisting of normal recurring adjustments,
considered necessary for a fair presentation of the Company’s financial
position, results of operations and cash flows for the interim periods presented
have been included. Results of operations for the September 30, 2009 interim
periods are not necessarily indicative of the results to be expected for the
entire fiscal year ending December 31, 2009 or for any other future interim
period.
  -6-
  NOTE
3.  Significant Accounting Policies
 Accounts
Receivable— as of September 30, 2009 and December 31, 2008, accounts
receivable amounted to zero and $56,514 (Net of Allowance for Doubtful Accounts
of $4,998), respectively.  The Company anticipates the main source of
future revenue will derive from sales of online subscriptions which will have
fees collected immediately.  Therefore the total amount of accounts
receivable in the future will not be substantial.
 
 Intangible Assets
–
 
 Intangible
assets consist of product licenses, renewals, enhancements, copyrights,
trademarks, trade names, customer lists and goodwill.  The Company
evaluates intangible assets, goodwill and other long-lived assets for
impairment, at least on an annual basis and whenever events or changes in
circumstances indicate that the carrying value may not be recoverable from its
estimated future cash flows.
 
 As part
of intangible assets, the Company capitalizes certain computer software
development costs in accordance with ASC 985 (previously SFAS No. 86,
“Accounting for the Costs of Computer Software to be Sold, Leased, or Otherwise
Marketed.”)  Costs incurred internally to create a computer software
product or to develop an enhancement to an existing product are charged to
expense when incurred as research and development expense until technological
feasibility for the respective product is established.  Thereafter,
all software development costs are capitalized and reported at the lower of
unamortized cost or net realizable value.  Capitalization ceases when
the product or enhancement is available for general release to
customers.
 
 The
Company makes on-going evaluations of the recoverability of its capitalized
software projects by comparing the amount capitalized for each product to the
estimated net realizable value of the product.  If such evaluations
indicate that the unamortized software development costs exceed the net
realizable value, the Company writes off the amount which the unamortized
software development costs exceed net realizable value.  Capitalized
and purchased computer software development costs are being amortized ratably
based on the projected revenue associated with the related software or on a
straight-line basis over three years, whichever method results in a higher level
of amortization.
 
 The
Company entered into a Joint Development Agreement (“JDA”) with a web-based
application development company, Loan Resolve Technology Inc (“LRT”) on or about
July 30, 2009.  As part of the agreement, the Company agreed to fund
LRT $360,000 for product development.  As of September 30, 2009, the
Company has funded LRT $120,000 of the $360,000.  As such, the Company
expensed the $120,000 during the three month period ended September 30, 2009. In
addition, the Company agreed to pay the principal of LRT a consulting fee of
$12,500 per month for a period of three years.
 
 Concentration of
Credit Risk — Financial instruments that potentially subject the
Company to a concentration of credit risk consist of cash.  The Company
maintains its cash with high credit quality financial institutions; at times,
such balances with any one financial institution may exceed FDIC insured
limits.  Also, the main source of revenue anticipated for the Company is
the sales of online subscriptions.   Should the anticipated sales
volume of these subscriptions not materialized, then the Company will experience
significant financial hardship.
 
 Financial
Instruments — Our financial instruments consist of cash, accounts
receivable, accounts payable, and notes payable (related party).  The
carrying values of cash, accounts receivable, accounts payable, and notes
payable are representative of their fair values due to their short-term
maturities.
 
 Revenue
Recognition— The Company generated modest revenue from providing
loan modification services to home owners through an advance fee
agreement.  That is, the Company collected service fees in advance and
deposited them into a trust account and records the fees as unearned
revenue.  Only when the agreed activities or services were completed
in their respective phases were the fees withdrawn from the trust account and
recognized as revenue.  Fees collected from sales of online
subscription are recorded as unearned revenue because the subscriptions are
valid for a 12-month period.  As such, the Company records the
proportionate amount as revenue for the current month that the fees were
collected and each subsequent month until the 12-month subscription period
lapses.
 -7-
  Recently Issued
Accounting Pronouncements—
 
 In June
2009, the FASB issued ASC 105 (previously SFAS No. 168, The FASB Accounting Standards
Codification and the Hierarchy of Generally Accepted Accounting Principles
("GAAP") - a replacement of FASB Statement No. 162), which will become
the source of authoritative accounting principles generally accepted in the
United States recognized by the FASB to be applied to nongovernmental entities.
The Codification is effective in the third quarter of 2009, and accordingly,
the Quarterly Report on Form 10-Q for the quarter ending September 30, 2009
and all subsequent public filings will reference the Codification as the sole
source of authoritative literature. The Company does not believe that this will
have a material effect on its consolidated financial statements.
 
 In
June 2009, the FASB issued amended standards for determining whether to
consolidate a variable interest entity. These amended standards eliminate a
mandatory quantitative approach to determine whether a variable interest gives
the entity a controlling financial interest in a variable interest entity in
favor of a qualitatively focused analysis, and require an ongoing reassessment
of whether an entity is the primary beneficiary. These amended standards are
effective for us beginning in the first quarter of fiscal year 2010 and we are
currently evaluating the impact that adoption will have on our consolidated
financial statements.
 
 In June
2009, the FASB issued ASC 855 (previously SFAS No. 165, Subsequent Events), which
establishes general standards of accounting for and disclosures of events that
occur after the balance sheet date but before the financial statements are
issued or available to be issued. It is effective for interim and annual periods
ending after June 15, 2009. There was no material impact upon the adoption of
this standard on the Company’s consolidated financial statements.
 
 In August
2009, the FASB issued Accounting Standards Update (“ASU”) 2009-05, which amends
ASC Topic 820, Measuring
Liabilities at Fair Value, which provides additional guidance on the
measurement of liabilities at fair value. These amended standards clarify that
in circumstances in which a quoted price in an active market for the identical
liability is not available, we are required to use the quoted price of the
identical liability when traded as an asset, quoted prices for similar
liabilities, or quoted prices for similar liabilities when traded as assets. If
these quoted prices are not available, we are required to use another valuation
technique, such as an income approach or a market approach. These amended
standards are effective for us beginning in the fourth quarter of fiscal year
2009 and are not expected to have a significant impact on our consolidated
financial statements.
 
 NOTE
4 – Fixed Assets
 
 Fixed and
intangible assets as of September 30, 2009 and December 31, 2008 comprised of
the following:
 
 September
      30, 2009
              
              
              December
      31, 2008Furniture
      & Fixture
              
              $
              33,882
              
              
              $
              35,149Office
      Equipment
              
              
              42,634
              
              
              
              -Accumulated
      Depreciation
              
              
              (17,971
              )
              
              
              (1,167
              )Net
              
              $
              58,545
              
              
              $
              33,982
 
 
 During
the nine months ended September 30, 2009 and 2008, the Company recorded $16,804
and zero as depreciation expenses, respectively.
 NOTE
5 – Deposit and Contingency
 
 The
deposit consisted of both a security deposit for leasing offices and funds held
by law firms and back end service providers that provided loan modification
services.  In December 2008, the Company paid $8,149 as security
deposit to rent offices from a non-profit organization, and recorded this amount
as long term deposit at December 31, 2008 and September 30, 2009, respectively
(See Note 7). In addition, the Company has deposits at law firms and back end
service providers that performed mortgage modification services. Pursuant to
some state law, if a law firm or a back-end service provider is unsuccessful in
modifying an approved applicant’s mortgage, the law firm or the back-end service
provider shall refund to the approved applicant its fees paid. In the event of
such refunds, the Company agreed that the deposit would be used for the payment
of the refunds, pursuant to the service agreements with the law firms and back
end service providers.
  -8-
  The
Company has a long-term deposit total of $50,650 at September 30,
2009.   $30,000 of the security deposit is with a backend
processor.   During this period, disputes have arisen between the
Company and the backend processor regarding this amount which leaves it in
question as far as the collectability of that amount. The Company continued to
evaluate the collectability of this deposit. If it becomes unrecovered, the
Company will write off this deposit.
 
 NOTE
6 - Short-Term Liabilities to Related Party
 
 The
Chairman of the Board, loaned the Company $100,000 in 2008.  This loan
was evidenced by promissory notes.  $50,000 was repaid with interest
in early 2009.  In January 2009, The Chairman loaned the Company another
$50,000 which was evidenced by a promissory note.  The Chairman,
loaned the Company another $42,000 on April 7th, 2009 as evidenced by a
promissory note.  In May 2009, the Chairman forgave a $50,000 note
originally issued by MMLN in exchange for 10,000 shares of the Company
stock.  As of September 30, 2009, the Company has $92,000 in debt
obligation to the Chairman.  The interest on these notes ranges from
5% to 5.5%. The notes are unsecured and fully due and payable on the later of
(i) fifteen (15) days of receipt of written demand by the Company from the
shareholder or any subsequent assignee of the notes, and (ii) one (1) year from
the date of the issuance.
 
 On or
about June 25, 2009, the Company received loans from two individuals amounting
to $200,000 as evidenced by promissory notes.  These notes have an
interest rate of 10% compounded annually and a payback due date of August 25,
2009.  The individuals who provided the loans each received 50,000
shares of Company’s stock and has been appointed members of the Company’s
Advisory Board.  The Company repaid the principal and all related
interest for these two notes in full on or about August 25, 2009.
  On or
about September 21, 2009, the Company received a $100,000 loan from another
shareholder as evidenced by a promissory note.  This note has an
interest rate of 10% compounded annually and a payback due date of January 1,
2010 and is collateralized by a pledge of substantially all of the Company’s
assets.  Moreover, the Chairman, individually, shall guaranty to the
lender the full, faithful and prompt performance by the Company of each and
every one of the terms, conditions and covenants of the Note, including without
limitation, all obligations of the Company to pay the Loan, pursuant to the
terms of a separate written Guaranty to be executed by Andrew Kardish in favor
of the lender. In addition, this note has a conversion provision which gives the
lender up to the date the loan is repaid in full the option to convert the
balance due into the Company’s common stock at $2.00 per share or at the
prevailing offering rate. The fair value of the beneficial conversion feature at
the inception of this convertible note was $100,000. The first $90,196 of the
discount has been shown as a discount to the convertible note which will be
amortized over the term of the note and the excess of $9,804 has been shown as
financing costs in the statement of operations as of September 30,
2009.
 
 NOTE
7 – Lease Commitment
 
 In
December, 2008, the Company entered into agreements with a non-profit
organization to rent office facilities used for the day to day operation. The
lease expiration date is November 30, 2010.  The Company paid a
security deposit of $8,149 at the inception of the lease. The rent expense for
nine-month period ended September 30, 2009 was $73,600.  During this
quarter, the Company engaged in negotiation with the leasing party in an effort
to reduce the monthly lease rate and transfer the lease to We Save Homes,
Inc.   As of September 30, 2009 the lease terms and obligation
remain the same.
 
 The
subsidiary had subleased its office to related parties through common
shareholders (See Note 8).  One of the related parties ended its sublease
on May 31, 2009 and the other on July 31, 2009.
 
 Future
minimum lease payments for the 2009 and 2010 are as follows:
  December
      31,
                
                Minimum
      Lease Payment
                
                
                Sublease
      Income
                
                
                Total2009
                
                $
                97,800
                
                
                $
                -12,800
                
                
                $
                85,0002010
                
                
                89,650
                
                
                
                -
                
                
                
                89,650Total
                
                $
                187,450
                
                
                $
                -12,800
                
                
                $
                174,650
  -9-
  NOTE
8 – Related-Party Transactions
 
 The
Company subleased its office space to NetDebt LLC and Premier Lending Group,
Inc., and received $12,800 and $0 from the sublease income for nine-month period
ended September 30, 2009 and 2008, respectively. The Company had zero receivable
in sublease income as of September 30, 2009 and September 30, 2008,
respectively.
 
 NOTE
9 – Accounts Payable and Accrued Expenses
 
 Accounts
payable and accruals consist of the following for September 30, 2009 and
September 30, 2008, respectively:
 
 September
      30, 2009
              
              December
      31, 2008Accounts
      payable
              
              $
              -
              
              $
              60,826Accrued
      payroll liabilities
              
              
              23,593
              
              
              -Other
      accrued expenses
              
              
              65,408
              
              
              -$
              89,001
              
              $
              60,826
 
 The other
accrued expenses of $65,406 are payments due to affiliates for activities that
occurred in second quarter of 2009.  These affiliate payments were
held back in reserves as contingency for refunds.  Given the potential
penalties and fines that may result from the DRE matter (see Note 13), the
Company may reclassify this amount to Accrual for Potential Penalties and Fines
in the fourth quarter 2009.
 
 NOTE
10 - Other Contingency
 
 Subsequent
to the period ended September 30, 2009, one of the Company’s shareholders
asserted a claim and threatened litigation against the Company and certain
officers, directors and/or shareholders. The Company and the individuals
involved dispute and deny such allegations, and are attempting to make a global
settlement with this shareholder which would include the repurchase by the
Company or by other individuals of all of the shareholder’s shares in the
Company.
 
 NOTE
11 – Stockholder’s Equity
 
 Company Preferred Stock—  Our authorized preferred stock consists of 10,000,000 shares
of preferred stock, par value $0.001 per share.  As of September 30,
2009, no preferred stocks were issued and outstanding.
 
 Company Common Stock— Our
authorized common stock consists of 50,000,000 shares of common stock, par value
$0.001 per share.  As of September 30, 2009, 13,102,500 common shares
issued and outstanding.
 
 Prior to
the acquisition of MMLN, as part of their compensation packages, the CEO and
National Sales Manager received 3,000 shares of restricted stock, respectively,
in March 2009.  The 6,000 shares were recorded at fair value. The per
share price was $1.94 (pre-split), and the total value of the 6,000 shares was
$11,640. Also, as part of his compensation package, the CFO received 25,000
shares of restricted stock at April 17, 2009. These shares were recorded at the
market price with a per share price at $5.35 upon closing of the transaction
day. These shares were valued at $133,750. On April 9, 2009, the Company issued
100,000 common shares to two promoters for compensation for
services.  These shares were recorded at the market price with a per
share price at $5.35 upon closing of the transaction day. These shares were
valued at $535,000.
 
 Pursuant
to an agreement dated May 13, 2009, on June 11, 2009, the Company issued 100,000
shares of restricted common stock to a shareholder’s Roth IRA for cash
consideration of $1.50 per share, for a total investment of $150,000. The shares
have a put option attached to them. The shares may be returned to the Company
after 120 days from the date of agreement for $150,000. The Company recorded
this transaction as a liability. The put option value of $727 was calculated
using the black scholes option pricing model assuming volatility of 100%, term
of 120 days and discount rate of 1%. The put option value was amortized over the
life of the option.
  -10-
  
 Also on
June 11, 2009, the Company issued 10,000 shares of common stock to Chairman’s
designee in exchange for the repayment of debt pursuant to the fourth loan
agreement with Andrew Kardish. The note principle at $50,000 and its interest
incurred at $625 were settled with full satisfaction. The Company recorded the
issuance of the shares at fair market value and recorded the loss on settlement
of debt at $1,875.
 
 In August
2009, the Company conducted private placements of shares of common stock and
entered into purchase agreements with two individuals and a shareholder’s Roth
IRA, respectively. Pursuant to the agreements, at September 15, 2009, 250,000
shares of common stock at a cash consideration of $500,000 were issued at a
purchase price of $2.00 per share. One individual paid an addition of $150,000
at the end of September for common stocks, which were not issued at September
30, 2009. The Company recorded this proceed as other liabilities.
 
 In
September 2009, the Company issued 80,000 restricted shares of its common stock
to five employees for compensation.  These shares were recorded at the
market price upon closing of the transaction day and valued at
$408,000.  Also in September 2009, the Company issued 450,000
restricted shares of its common stock to six individuals and one trust in
exchange for advisory and/or consulting services.  These shares were
recorded at the market price upon closing of the transaction day and valued at
$2,392,500.  The Company also issued 20,000 restricted shares of its
common stock to an individual in exchange for marketing
services.  These shares were recorded at the market price upon closing
of the transaction day and valued at $106,000.
 
 Also in
September 2009, two shareholders, who each owned over 1.8 million shares of WSHI
common stocks, signed an agreement with the Company agreeing to sell, transfer
and assign majority of their shares.   One of these shareholders
agreed to sell approximately 1.2 million of his shares and retain 600,000 and
the other agreed to sell approximately 1.5 million of his shares and retained
300,000 shares.
 
 NOTE
12 – Acquisition of MMLN
 
 In March
2009, the Company consummated the transactions contemplated by the Exchange
Agreement. Accordingly the Company acquired all of the issued and outstanding
shares of stock of MMLN in exchange for the issuance in the aggregate of
10,000,000 shares of common stock of Global West. As a result of the Exchange
Agreement, MMLN became a wholly-owned subsidiary of We Save Homes, Inc (fka
Global West Resources, Inc).
 
 In
addition, the reorganization was treated as an acquisition by the accounting
acquiree that is being accounted for as a recapitalization and as a reverse
merger by the legal acquirer for accounting purposes. Pursuant to the
recapitalization, all capital stock shares and amounts and per share data have
been retroactively restated.  Accordingly, the financial statements
include the following:
 
 (1) The balance sheet consists of the net assets of the accounting acquirer at
historical cost and the net assets of the legal acquirer at historical
cost.
 
 (2) The statements of operations include the operations of the accounting
acquirer for the period presented and the operations of the legal acquirer from
the date of the merger.
 
 NOTE
13 – Going Concern
 
 The
Company’s unaudited consolidated financial statements are prepared consistent
with accounting principles generally accepted in the United States applicable to
a going concern, which contemplates the realization of assets and liquidation of
liabilities in the normal course of business.   However, we have
an accumulated deficit of $4,948,342 as of September 30, 2009. Our total
current liabilities exceeded total current assets by $442,493 as of September
30, 2009.   Moreover, based on the ever changing legal landscape
for loan modifications across the U.S., the Company may face exposure
for potential regulatory violations even though it has ceased to offer or
accept any new loan modification cases at the end of August 2009.  The
Company may incur fines or penalties, some of which could be
significant.  Loss reserve accounts will need to be
established in event potential legal risks become actual risks. 
In view of the matters described above, recoverability of a major portion of the
recorded asset amounts shown in the accompanying balance sheet is dependent upon
the subsidiary’s continued operations, which in turn is dependent upon the
Company’s ability to develop and execute new business models and
strategies.
  -11-
  
 On June
2, 2009, the Company received a letter from the California Department of Real
Estate (“DRE”) dated May 28, 2009 requesting information regarding business
activities in the state of California involving loan modification services. In
this correspondence, the DRE also questioned the business activities of a
back-end service provider and its licensing status to operate in the state of
California.  Upon receipt of the DRE letter, the Company immediately
consulted with its legal counsel and subsequently suspended any business
activities going forward with the back end service provider.  The
Company has ceased outsourcing back-end processing of all new loan modifications
effective June 3, 2009 and brought these activities in-house.  MMLN is
properly licensed to perform loan modification services in California under an
Advance Fee Agreement as approved by the CA DRE on May 21, 2009.  For
the quarter ended September 30, 2009, unearned revenue from advance fees
collected was $15,075.
 
 Upon
further research in the ensuing weeks, it came to the attention of the Company
that the back end service provider ended its affiliation with a federal
chartered bank on or about May 15, 2009 and failed to inform the Company of this
action.   Due to this fact and other misrepresentation, the
Company’s  legal counsel has submitted a letter of demands to this
back end service provider and its related parties to assert the Company’s claim
to indemnify for any potential fines or penalties arising from any
misrepresentation or fraud committed by the service
provider.  Subsequent to September 30, 2009, the Company received a
response from the legal representative of the back end service provider denying
all allegations and stating that they will vigorously defend their
position.  The Company will have its legal counsel respond and take
actions accordingly.
 
 The
Company has responded to the CA DRE’s inquiry for information and continues to
work with legal counsel on this matter. The DRE inquiry ultimately may result in
fines and or penalties levied against MMLN. It is the Company’s opinion
that the total fines and penalties may amount to $200,000 which has been
recorded accordingly as a liability of MMLN.   As of September
30, 2009, the Company has no update to report as it relates to the DRE
matter.
 
 The
operating subsidiary commenced operations on October 1, 2008.  As with any
start-up company, the initial fixed costs required to commence operations were
fairly significant.  The Company commenced its loan modifications in late
2008 and, based on that business model, the Company was and will not be
profitable.  However, the Company is continually making strides in adapting
its overall business strategies to the most recent regulatory landscape and has
taken steps to acquire the rights to a new software technology through the sale
of its common stock along with monetary compensation, and funding for product
development.   This new application allows the Company to sell
via the internet a "do it yourself" application that could make the
qualification and approval process of a loan modification more efficient and
less expensive to a distressed homeowner.  The Company also has
preliminary strategic plans to market this application to lenders, banks, real
estate brokers and professionals to perform various real estate related
transactions such as short sales, loan restructure, refinancing and other
features to be developed at a later time. The future success and profitability
of the Company is directly related to the Company executing its business plan
with respect to this platform.
 
 The
Company will require additional funding if it is to continue as a going
concern.   The Company anticipates that any external financing
that we are able to obtain will be through the private placement sale of our
common stock or short-term secured loans from parties who are non-financial
institutions.  The Company does have verbal arrangements in place for
the sale of our common stock.  However, there is no assurance that the
Company will be able to raise the additional capital that is required to
continue operations or at all.   These factors raise substantial
doubt about the Company’s ability to continue as a going concern. The unaudited
consolidated financial statements do not include any adjustments relating to the
recoverability and classification of recorded asset amounts or amounts and
classification of liabilities that might be necessary should we be unable to
continue as a going concern.
 
 
 NOTE
14 - Liquidity
 
 During
this period, the Company has funded its operations and business development
primarily through private placement sales of its common stock and short term
loans by private individuals and trusts. In this regard, during the nine months
ended September 30, 2009, the Company received approximately $986,509 through
sales of and prepayment for its common stock, and $392,000 from short-term loans
($200,000 were paid back) (See Note 6.).
 -12-
  The
Company continues to be engaged in additional fund-raising activities to fund
future operations, capital expenditures, potential acquisitions of businesses,
and provide additional working capital, and in this regard has entered into a
funding arrangement providing for borrowings of up to $200,000 pursuant to a
convertible promissory note collateralized by a pledge of substantially all of
the Company’s assets.   However, there is no assurance that this
or other additional financing will be available on favorable terms or at
all.  If the Company raises additional capital through the sale of
equity or convertible debt securities, the issuance of such securities may
result in dilution to existing stockholders.  If the Company does not
raise additional capital, then the Company will experience significant financial
hardship and will have considerable difficulty to fund operations, business
development and growth.  At September 30, 2009, the Company does not
have sufficient cash to meet its needs for the next twelve months.
 
 The
Company has incurred significant losses since inception, including $4,709,292
and $14,867 during the fiscal year-to-date nine months ended September 30, 2009
and 2008, respectively, and has an accumulated deficit at September 30, 2009 of
$4,948,342, and has relied on proceeds from sales of its common stock, along
with convertible note borrowings, to fund operations and business development
and growth.   It must be noted that the majority of the
accumulated deficit or losses is the result of non-cash expenses from issuance
of common stock shares to various parties for advisory, marketing services and
compensations.   In any case, it is expected that the Company
will continue to experience net losses throughout this current fiscal
year.  The unaudited consolidated financial statements do not include
any adjustments relating to the recoverability and classification of recorded
asset amounts and classification of liabilities that might be necessary should
the Company have to curtail operations or be unable to continue in
existence.
 
 ITEM
2.   MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
OR RESULTS OF OPERATIONS.
 
 FORWARD-LOOKING
STATEMENTS
 
 Certain
statements contained in this Quarterly Report on Form 10-Q constitute
"forward-looking statements." These statements, identified by words such as
“plan,” "anticipate," "believe," "estimate," "should," "expect" and similar
expressions include our expectations and objectives regarding our future
financial position, operating results and business strategy. These statements
reflect the current views of management with respect to future events and are
subject to risks, uncertainties and other factors that may cause our actual
results, performance or achievements, or industry results, to be materially
different from those described in the forward-looking statements. Such risks and
uncertainties include those set forth in our 10-K dated November 14, 2008 and in
our subsequent filings. We do not intend to update the forward-looking
information to reflect actual results or changes in the factors affecting such
forward-looking information. We advise you to carefully review the reports and
documents we file from time to time with the Securities and Exchange Commission
(the “SEC”), particularly our Annual Reports on Form 10-KSB or Form 10-K, our
Quarterly Reports on Form 10-QSB or Form 10-Q and our Current Reports on Form
8-K.
 
 Further,
in connection with, and because we desire to take advantage of, the "safe
harbor" provisions of the Private Securities Litigation Reform Act of 1995, we
caution readers regarding certain forward looking statements in the following
discussion and elsewhere in this report and in any other statement made by, or
on our behalf, whether or not in future filings with the Securities and Exchange
Commission. Forward looking statements are statements not based on historical
information and which relate to future operations, strategies, financial results
or other developments. Forward looking statements are necessarily based upon
estimates and assumptions that are inherently subject to significant business,
economic and competitive uncertainties and contingencies, many of which are
beyond our control and many of which, with respect to future business decisions,
are subject to change. These uncertainties and contingencies can affect actual
results and could cause actual results to differ materially from those expressed
in any forward looking statements made by, or on our behalf.
 
 As used
in this Quarterly Report, the terms "we," "us," "our,” and “Company” mean WSHI
unless otherwise indicated. All dollar amounts in this Quarterly Report are in
U.S. dollars unless otherwise stated.
 -13-
  CORPORATE
BACKGROUND AND OVERVIEW
 
 Organization 
-The
Company was organized under the laws of the State of Nevada on May 19,
2006.  On March 23, 2009, the Company, exchanged, pursuant to a Share
Exchange Agreement with its now-subsidiary, Mortgage Modification Legal Network
(“MMLN”), (the “Share Exchange Agreement”), an aggregate of 10,000,000 shares of
its common stock for all of the issued and outstanding shares of common stock of
MMLN from the MMLN security holders.   On March 30, 2009, our
board of Directors and shareholders approved a change in our name to We Save
Homes, Inc.   The Company on May 20, 2009 amended its Articles of
Incorporation with the State of Nevada and amended its Bylaws to change its end
of fiscal year to December 31, effective June 8, 2009. The Amendment also
allowed the Company to consummate its name change to We Save Homes,
Inc.  On June 8, 2009, the Company received notice from the State of
Nevada confirming the Amendment.   Our principal offices are located
at 27651 La Paz Road, Suite A, Laguna Niguel, CA 92677.  Our telephone
number is (877) 593-4464.  Our website is www.wesavehomes.com.
 
 Business - The
Company, through its subsidiary, MMLN, had offered potential foreclosure
mitigation solutions for distressed homeowners using two (2) business
models.  First, MMLN had a retail program that employed both "grass
roots" and "technology based" efforts to reach out directly to the troubled
homeowner by helping to inform and provide information as to their various
foreclosure mitigation options.  Second, MMLN had an affiliate program
that marketed specifically to real estate and mortgage professionals. 
However, the subsidiary discontinued the affiliate program in the second quarter
of 2009 due to increased regulation, potential liabilities that outweighed the
benefits thereof, and a high degree of significant risks associated with this
program.  On June 2, 2009, the Company received a letter from the
California Department of Real Estate dated May 28, 2009 requesting information
regarding business activities in the state of California involving loan
modification services. In this correspondence, the DRE also questioned the
business activities of a back-end service provider and its licensing status to
operate in the state of California (Note 13).   The Company has
ceased outsourcing to this back-end processing all new loan modifications
effective June 3, 2009 and brought these activities in-house.  MMLN is
properly licensed to perform loan modification services in California under an
Advance Fee Agreement as approved by the CA DRE on May 21,
2009.   As of the end of August, MMLN ceased to offer or accept
any new loan modification cases and is in the process of winding down its
business.
 
 Instead
of offering full-service loan modifications, the Company is now offering retail
subscriptions to an online do-it-yourself loan modifications and short sale
software application which will allow homeowners to store and access information
for real estate and mortgage lending activities, such as foreclosure
mitigation.   Incomplete foreclosure mitigation packages are the
main reason for delays in the loan modification process.   This
application helps the homeowner put together a complete package by factoring in
all possible situations when compiling a loan modification package including:
self employment, W2 employee, unemployed, retired or on permanent
disability.  With step-by-step help videos and a user
guide,   this application answers many questions that the
homeowner may have.   This application is designed to assist the
homeowner gather documentations, enter them into the system and prepare a
complete package ready to submit to the homeowner’s
lender.   This application allows the user to access his/her
account online securely from home, office or while
traveling.   It is password protected and designed with a tier 1
data security and documentation encryption service.    The
application provides a distressed homeowner with the tools needed to have a
better chance at attaining the desired foreclosure mitigation results all for
significantly less money than a full service loan modification or short
sale.   In addition, the Company plans to offer this service to
lenders, banks, real estate brokers and professionals to perform various real
estate related transactions such as short sales, loan restructure, refinancing
and other features to be developed at a later time.
 
 Basis of presentation– The accompanying unaudited condensed consolidated financial statements
include the accounts of the Company and its subsidiary. All material
intercompany balances and transactions have been eliminated. The unaudited
interim condensed consolidated financial statements and related notes are
presented in accordance with the rules and regulations of the Securities and
Exchange Commission with regard to interim financial information. Accordingly,
the condensed consolidated financial statements may not include all of the
information and notes to financial statements required by accounting principles
generally accepted in the United States of America for complete financial
statements. In the opinion of management, all adjustments, consisting of normal
recurring adjustments, considered necessary for a fair presentation of the
Company’s financial position, results of operations and cash flows for the
interim periods presented have been included. Results of operations for the
December 31, 2009 interim periods are not necessarily indicative of the results
to be expected for the entire fiscal year ending December 31, 2009 or for any
other future interim period.
  -14-
  The
interim unaudited condensed consolidated financial statements for the quarter
ended September30, 2009 have been prepared assuming that the Company will
continue as a going-concern. As discussed in Note 13 to the interim unaudited
condensed consolidated financial statements, the Company has minimal revenues
and limited capital, which together raise some doubt about its ability to
continue as a going-concern.   Management’s plans in regard to
these matters are also described in Note 13.   The interim
unaudited condensed consolidated financial statements do not include any
adjustments that might result from the outcome of this uncertainty.
 
 PLAN
OF OPERATION
 
 The
following contains forward-looking statements relating to revenues, expenditures
and sufficiency of capital resources.  Actual results may differ from
those projected in the forward-looking statements for a number of reasons,
including those described in this quarterly report.
 
 Significant
Accounting Policies
 
 Concentration of Credit
Risk  — Financial instruments that potentially subject the Company
to a concentration of credit risk consist of cash.  The Company maintains
its cash with high credit quality financial institutions; at times, such
balances with any one financial institution may exceed FDIC insured
limits.  Also, the main source of revenue anticipated for the Company is
the sales of online subscriptions.   Should the anticipated sales
volume of these subscriptions not materialized, then the Company will experience
significant financial hardship.
 
 Financial
Instruments —
Our financial instruments consist of cash, accounts receivable, accounts
payable, and notes payable (related party).  The carrying values of cash,
accounts receivable, accounts payable, and notes payable are representative of
their fair values due to their short-term maturities.
 
 Revenue
Recognition— The
Company generated modest revenue from providing loan modification services to
home owners through an advance fee agreement.  That is, the Company
collects service fees in advance and deposit them into a trust account and
records the fees as unearned revenue.  Only when the agreed activities
or services are completed in their respective phases are the fees withdrawn from
the trust account and recognized as revenue.  Fees collected from
sales of online subscription are recorded as unearned revenue because the
subscriptions are valid for a 12-month period.  As such, the Company
records the proportionate amount as revenue for the current month that the fees
were collected and each subsequent month until the 12-month subscription period
lapses.
 
 Intangible
Assets-The
Company entered into a Joint Development Agreement (“JDA”) with a web-based
application development company, Loan Resolve Technology Inc (“LRT”) on or about
July 30, 2009.  As part of the agreement, the Company agreed to fund
LRT $360,000 for product development.  As of September 30, 2009, the
Company has funded LRT $120,000 of the $360,000.  As such, the Company
recorded the software development cost as an intangible asset with an estimated
useful life of three years starting September 1, 2009.  This
intangible asset is amortized on a straight-line basis over its estimated useful
life.  At September 30, 2009, the intangible asset is recorded at
$120,000 net of accumulated amortization of $3,333.  Amortization
expense for this intangible assets will be approximately $13,333 in the fiscal
year ending December 31, 2009.
 
 We have
identified certain accounting policies describe above that are most important to
the portrayal of our current financial condition and results of operations. Our
significant accounting policies are disclosed in Note 3 of the unaudited interim
consolidated financial statements for the quarter ended September 30, 2009,
attached hereto this Form 10-Q.
 
 
 RESULTS
OF OPERATIONS
 
 The
following is a discussion of our financial condition, changes in financial
condition and results of operations for the quarter ended September 30,
2009.  The interim consolidated financial statements included herein
are unaudited, and, in each case, the related notes.
 -15-
  Three
months ended September 30, 2009 and 2008
 
 Revenues
– Revenues for the
three months ended September30, 2009increasedto$21,261ascompared to zero for the
comparative prior year period.  Revenues are comprised primarily of
sales of loan modification services provided to customers by the Company
utilizing an advance fee agreement as approved by the CA DRE on May 21,
2009.  The increase in revenues was due to the fact that the Company
began operations on or about August 8, 2008 and had no sales revenues during the
same period last year.
 
 Cost of revenue - Cost of
revenues primarily comprise of fees paid to real estate
professionals.  Cost of revenues for the three months ended September
30, 2009 increased to $3,023 as compared to zero for the comparative prior year
period.
 
 Gross
Profit - Gross profit increased to $18,238 for the three months ended September
30, 2009 as compared to zero for the comparative prior year period. The
increased in revenues was due to the fact that the operating subsidiary began
operations on or about August 8, 2008 and had no sales revenues during the same
period last year.
 
 General
and administrative expenses – General and administrative expenses increased to
approximately $3.31 million for the three months ended September 30, 2009 as
compared to $14,867 for the prior year period primarily due to non-cash expenses
from issuance of common stock shares to various parties for advisory, marketing
services and compensations during this period as compared to zero in the 2008
period.
 
 Sales and
marketing expenses – Sales and marketing expenses, which is included in general
and administrative expenses, for the three months ended September 30, 2009
increased to $67,517 as compared to $8,709 for the comparative prior year
period.  Sales and marketing expenses increased due to the fact that
the operating subsidiary began operations on or about August 8, 2008 and did not
have many sales employees and marketing expenses during the same period last
year.
 
 Depreciation
and amortization – Depreciation and amortization expense, which is included in
general and administrative expenses, for the three months ended September 30,
2009 increased to $15,720 as compared to zero for the comparative prior year
period, due to having more assets in service during this period than same time
last year.
 
 Loss from
operations – Loss from operations for the three months ended September 30, 2009
increased to approximately $3.31 million as compared to $14,867 for the
comparative prior year period.  The increase in loss from operations
is primarily due to increased general and administrative expenses.
 
 Nine
months ended September 30, 2009 and 2008
 
 Revenues– Revenues for the nine
months ended September 30,2009increased to $938,397
as compared to zero for the comparative prior year period.  Revenues
are comprised primarily of fees the Company received from various law offices
and a back end service provider in connection with the marketing and
administrative support of loan modification services provided to customers by
those law offices and the back end service provider.  The increased in
revenues was due to the fact that the operating subsidiary began operations on
or about August 8, 2008 and had no sales revenues during the same period last
year.
 
 Cost of revenue - Cost of
revenues primarily comprise of fees paid to real estate professionals and back
end service provider.  Cost of revenues for the nine months ended
September 30, 2009 increased to $474,743 as compared to zero for the comparative
prior year period.
 
 Gross
Profit - Gross profit increased to $463,654 for the nine months ended September
30, 2009 as compared to zero for the comparative prior year period. The
increased in revenues was due to the fact that the operating subsidiary began
operations on or about August 8, 2008 and had no sales revenues during the same
period last year.
 
 General
and administrative expenses – General and administrative expenses increased to
approximately $5.15 million for the nine months ended September 30, 2009 as
compared to $14,867 for the prior year period primarily due to non-cash expenses
from issuance of common stock shares to various parties for advisory, marketing
services and compensations, as well as increases in payroll, marketing, legal,
accounting, consulting and accrued expenses for estimated penalties and fines
for the CA DRE matter during this period as compared  to the 2008
period.
 -16-
  Sales and
marketing expenses – Sales and marketing expenses, which is included in general
and administrative expenses, for the nine months ended September 30, 2009
increased to $354,747 as compared to $8,709 for the comparative prior year
period.  Sales and marketing expenses increased due to the fact that
the operating subsidiary began operations on or about August 8, 2008 and did not
have many sales employees and marketing expenses during the same period last
year.
 
 Depreciation
and amortization – Depreciation and amortization expense, which is included in
general and administrative expenses, for the nine months ended September 30,
2009 increased to $16,804 as compared to zero for the comparative prior year
period, due to having more assets in service during this period than same time
last year.
 
 Loss from
operations – Loss from operations for the nine months ended September 30, 2009
increased to approximately $4.71 million as compared to $14,867 for the
comparative prior year period.  The increase in loss from operations
is primarily due to increased general and administrative expenses.
 
 Liquidity
and Capital Resources
 
 During
this period, the Company has funded its operations and business development
primarily through private placement sales of its common stock and short term
loans by private individuals and trusts. In this regard, during the nine months
ended September 30, 2009 the Company received approximately $986,509 through
sales of its common stock and subscription receivable and $392,000 from
short-term loans ($200,000 were paid back) (See Note 6.).
 
 The
Company continues to be engaged in additional fund-raising activities to support
future operations, capital expenditures, potential acquisitions of businesses,
and provide additional working capital, and in this regard has entered into a
funding arrangement providing for borrowings of up to $200,000 pursuant to a
convertible promissory note collateralized by a pledge of substantially all of
the Company’s assets.   However, there is no assurance that this
or other additional financing will be available on favorable terms or at
all.  If the Company raises additional capital through the sale of
equity or convertible debt securities, the issuance of such securities may
result in dilution to existing stockholders.  If the Company does not
raise additional capital, then the Company will experience significant financial
hardship and will have considerable difficulty to fund operations, business
development and growth.  At September 30, 2009, the Company does not
have sufficient cash to meet its needs for the next twelve months.
 
 The
Company has incurred significant losses since inception, including $4,709,292
and $14,867 during the fiscal year-to-date nine months ended September 30, 2009
and 2008, respectively, and has an accumulated deficit at September 30, 2009 of
$4,948,342, and has relied on proceeds from sales of its common stock, along
with convertible note borrowings, to fund operations and business development
and growth.  It must be noted that the majority of the accumulated
deficit or losses is the result of non-cash expenses from issuance of common
stock shares to various parties for advisory, marketing services and
compensations.  In any case, it is expected that the Company will
continue to experience net losses throughout this current fiscal
year.  The unaudited condensed consolidated financial statements do
not include any adjustments relating to the recoverability and classification of
recorded asset amounts and classification of liabilities that might be necessary
should the Company have to curtail operations or be unable to continue in
existence.
 
 As with
any start-up company, management devotes most of its activities to establishing
new business.  The Company’s initial planned principal activities have
not produced significant revenues and have caused it to experience recurring
operating losses.  The Company and its subsidiary have a working
capital deficiency of $442,493 as of September 30, 2009, which our auditors have
stated raises concern on our ability to meet planned business objectives and
ongoing operations. Our ability to emerge from the development stage as a
startup company is dependent upon our successful efforts to plan and execute
other business models and strategies.
 
 During
the nine months ended September 30, 2009, the Company financed its operations by
receiving loans from related parties, selling common stocks and approximately
$938,397 in net revenue from providing foreclosure mitigation services,
including loan modifications.  During the nine months ended September
30, 2009, the Company and its subsidiary received financial support and loans
from related parties in the amount of $392,000, of that amount $200,000 was
repaid as of August 25, 2009 leaving $192,000 of indebtedness compared to
zero for the same period in the previous year.  Two notes are
unsecured and interest bearing must be repaid within one year from the issuance
date; and the third is a secured convertible note with a payback due date of
January 1, 2010.
 -17-
  The two
unsecured promissory notes in the amounts of $50,000, and $42,000 were made by
and between the Company and the Company’s Chairman of the Board.  Pursuant
to the general terms of these notes, the subsidiary promises to pay the
principal, in addition to interest thereon, at a prevailing annual rate of 5.0%
or 5.5%, compounded annually, with interest and/or principal payments made on a
monthly basis.  The entire loan amounts, including accrued interest
and principal, become fully due and payable upon the later of 15 days of receipt
of written demand from note holder or one year from the date of the executed
note.   The third promissory note is secured and in the amount of
$100,000 made by and between the Company and an individual who is a shareholder
of the company.   This note has an interest rate of 10%
compounded annually and a payback due date of January 1, 2010 and is
collateralized by a pledge of substantially all of the Company’s
assets.   In addition, this note has a conversion provision which
gives the lender up to the date the loan is repaid in full the option to convert
the balance due into the Company’s common stock at $2.00 per share or at the
prevailing offering rate.
 
 Also, as
of September 30, 2009, there is an outstanding intercompany loan amount of
$477,520 between the Company and its subsidiary.  This intercompany
loan amount consists of:  WSHI loaning MMLN $150,000 on May 20, 2009;
$150,000 on June 27, 2009; $40,000 on July 10, 2009; $60,000 on August 17, 2009;
$10,000 on September 3, 2009; $20,000 on September 10, 2009, $10,000 on
September 30, 2009; $50,000 debt forgiveness by the Chairman and interest
expenses for the intercompany loans.   MMLN had paid some WSHI
bills totaling $21,069 which offset the amount due to WSHI which again was
$477,520 as of September 30, 2009.  During the quarter ended September
30, 2009, the Company and its subsidiary recorded $4,907 in non-intercompany
interest expenses.
  Our
consolidated cash position as at the end of September 30, 2009 was approximately
$250,000 versus approximately $27,000 at the same time last
year.    Our consolidated working capital deficit as of
September 30, 2009 was $442,493 compared to $92,782 at the end of December 31,
2008 .  We anticipate that we will need at least two to three million
dollars to finance our operations and business acquisition over the next 12
months and anticipate that we will obtain said financing through the sale of our
securities.   Currently, our working capital is not adequate to
meet operational, business development and expansion costs for the next twelve
months.  We will require additional financing if we are to continue as
a going concern.   The Company is currently trying to raise the
required capital through private placement sales of securities.  We do have
verbal commitments and arrangements in place for the sale of any of our
securities.    Again, there is no assurance that this or
other additional financing will be available on favorable terms or at
all.  If the Company raises additional capital through the sale of
equity or convertible debt securities, the issuance of such securities may
result in dilution to existing stockholders.
 
 Contractual Obligations and
Off-Balance Sheet Arrangements.
 
 On or
about July 30, 2009, the company entered into a joint development agreement
(“JDA”) with a software company (“LRT”).  Pursuant to the agreement,
the Company agreed to pay LRT $360,000 for costs relating to development and
enhancement of an online do-it-yourself software application.  As of
September 30, 2009, the Company has paid LRT $120,000.   In
addition, the Company agreed to pay the principal of LRT a consulting fee of
$12,500 per month for a period of three years.
 
 There
were no off-balance sheet arrangements that have or are reasonably likely to
have a current or future effect on our financial condition, changes in financial
condition, revenues or expenses, results of operations, liquidity, capital
expenditures or capital resources.
 
 Progress
Report For Nine Months Period ended September 30, 2009
 
 There
have been a continued and increasingly hostile regulatory environment and public
perception of loan modification companies.  There have been increased
enforcement and legal actions taken by both state and local governments to crack
down on illegal and fraudulent operations.   These actions adversely
affected the perception of loan modification as a viable foreclosure mitigation
option.  In response, the Company terminated its affiliate program in
the second quarter of 2009 in order to reduce exposure to significant potential
liability and compliance issues.   Sales of MMLN were negatively
impacted in the nine months ended September 30, 2009 by the termination of the
affiliate program, as well as a well-publicized press conference held by US
government officials in early April, 2009.  In this press conference,
these government officials openly suggested that consumers should not pay any
person or company for assistance in a loan modification, as these services are
available at no cost from various non-profit and government
agencies.   Lower interest rates also adversely affected loan
modification volumes as more real estate professionals attempted to refinance
troubled mortgages rather than seek modifications.
  -18-
  Because
of these factors, the Company experienced noticeable decrease in the general
pool of consumers for loan modifications.  Also lenders and loan
servicers became more capacity constrained and unable to handle the increase of
requests in the loss mitigation area.   This has generally led to
an increase of processing times to get a resolution on a case which had an
impact on customer service as many consumers become frustrated with what seems
to be a lack of progress or information regarding the process.
 
 The
Company ceased outsourcing back-end processing of all new loan modifications
effective June 3, 2009 and brought these activities in-house. The Company
provided loan modification services utilizing the Advance Fee Agreement as
approved by the CA DRE on May 21, 2009.  The Company is properly
licensed to perform loan modification services in California under this Advance
Fee Agreement.   For the quarter ended September 30, 2009, the
Company achieved a modest number of sales of its foreclosure mitigation
services, primarily loan modifications.   However, due to the number
of factors listed above, the Company has accepted that its core business model
is unprofitable and unviable, and thus ceased to offer or accept any new loan
modification cases at end of August 2009.
 
 Due to
the regulatory environment as well as the decline in potential revenue of its
subsidiary, management spent significant time researching alternative
foreclosure mitigation options.   This research resulted in
locating an automated method for loss mitigation options that provide
standardization, uniformity and transparency as requested by the Obama
Administration.  The new business model, which is centered around the
software application, allows home owners to create and submit loan modification
requests on their own or a “Do-It-Yourself” option.   The Company
plans to fully implement this model which is comprised of selling technology
services combined with educational material in the fourth quarter of
2009.    This new model is viewed as having significantly
less liability, licensing and compliance related pitfalls as compared to
providing full service loan modifications.     The
primary focus would involve selling an internet-based software application for a
flat fee.   This application also allows the Company to enter into
other vertical markets involving loss mitigation solutions and may include
business to business (e.g. lender servicers, real estate companies and other
organizations involved in loss mitigation services).   During
this period, the Company has entered into joint development agreement with the
software company that developed this DIY application.   Also, the
Company has signed a non-binding letter of intent to purchase the assets of this
software company.   The details of the asset purchase have yet to
be finalized as of September 30, 2009, but are in the works.
 
 On
September 3, 2009, Michael McCarthy resigned as Chief Executive Officer and
Director of the Company.   Mr. McCarthy’s resignation does not arise
from any disagreement on any matter relating to the Company’s operations,
policies or practices, or regarding the general direction of the
Company.  Subsequent to this period, on October 15, 2009, Andrea Downs
resigned as Director of the Company.   Subsequent to her tendered
resignation, Ms Downs asserted a claim and threatened litigation against the
Company and certain officers, directors and/or shareholders. The Company and the
individuals involved dispute and deny such allegations, and are attempting to
make a global settlement with this shareholder which would include the
repurchase by the Company or by other individuals of all of the shareholder’s
shares in the Company.
 -19-
  PART II   OTHER
INFORMATION
 
 ITEM
1.                      LEGAL
PROCEEDINGS
 
 None.
 
 ITEM
1A.   RISK FACTORS.
  The
Company is a smaller reporting company and is not required to provide the
disclosure under this item.
  ITEM
2.                      UNREGISTERED
SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
 
 Please see NOTE 11 – Stockholder’s
Equityfor
details.
 
 ITEM
3.                      DEFAULTS
UPON SENIOR SECURITIES
 
 None.
 
 ITEM
4.                      SUBMISSIONS
OF MATTERS TO A VOTE OF SECURITY HOLDERS
 
 None.
 
 ITEM
5.                      OTHER
INFORMATION
 
 None.
 
 ITEM
6.                      EXHIBITS
 
 Exhibits:
 
 31.1
              Certification
      of President pursuant to Section 302 of the Sarbanes-Oxley Act of
      2002
  31.2
              Certification
      of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley
      Act of 2002
  32.1
              Certification
      of Ryan Boyajian, President (Principal Executive Officer), pursuant to 18
      U.S.C. Section 1350, as adopted pursuant to Section 906 of the
      Sarbanes-Oxley Act of 2002
  32.2
              Certification
      of Lan Mai, Chief Financial Officer (Principal Financial Officer),
      pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of
      the Sarbanes-Oxley Act of 2002
 
  -20-
  
 
 
 SIGNATURES
 
 In
accordance with the requirements of the Exchange Act, the Registrant caused this
report to be signed on its behalf by the undersigned, thereunto duly
authorized.
 
 
 Dated:
November 20,
2009                                                              We
Save Homes, Inc.
 
 
 By:           /s/ Ryan
Boyajian
  Ryan Boyajian,
President
 (Principal Executive
Officer)
 
 By:           /s/ Lan
Mai
  Lan Mai,
Chief Financial Officer
 (Principal
Financial Officer)
 
 
 
  -21-