UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549
                                   Form 10-QSB

          [X]  Quarterly  Report  Under  Section  13 or 15(d) of The  Securities
               Exchange Act of 1934


               For the quarterly period ending September 30, 2007


          [_]  Transition  Report  Under  Section 13 or 15(d) of The  Securities
               Exchange Act of 1934


         For the transition period from ______________ to _____________


                             Commission file number


                     Mortgage Assistance Center Corporation


        (Exact name of small business issuer as specified in its charter)




          Florida                                       06-1413994
   ------------------------                       ------------------------
   (State of incorporation)                       (IRS Employer ID Number)

           1341 W. Mockingbird Lane, Suite 1200 West, Dallas, TX 75247
                         -------------------------------
                    (Address of principal executive offices)

                                 (214) 670-0005
                                 --------------
                           (Issuer's telephone number)

Check  whether  the issuer  has (1) filed all  reports  required  to be files by
Section 13 or 15(d) of the  Exchange  Act during the past 12 months (or for such
shorter period the Company was required to file such reports),  and (2) has been
subject to such filing requirements for the past 90 days. Yes |X| No |_|


Indicate by check mark whether the  registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act). Yes |_| No |X|


                      APPLICABLE ONLY TO CORPORATE ISSUERS

State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date:  14,070,924 shares of Common Stock as
of September 30, 2007

Transitional Small Business Disclosure Format: Yes |_| No |X|



<PAGE>







                     MORTGAGE ASSISTANCE CENTER CORPORATION


                        CONSOLIDATED FINANCIAL STATEMENTS

                                       AND

                        REPORT OF INDEPENDENT REGISTERED
                             PUBLIC ACCOUNTING FIRM

                               SEPTEMBER 30, 2007













<PAGE>



                     Mortgage Assistance Center Corporation
                                Table of Contents

                                                                            Page

Report of Independent Registered Public Accounting Firm......................F-2

Financial Statements
     Consolidated Balance Sheets
          as of September 30, 2007 and December 31, 2006.....................F-3

     Consolidated Statements of Operations and Comprehensive Loss
          for the three months and nine months ended
          September 30, 2007 and 2006........................................F-5

     Consolidated Statements of Cash Flows
          for the nine months ended September 30, 2007 and 2006..............F-7

     Notes to Consolidated Financial Statements..............................F-9






















                                      F-1
<PAGE>




             REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Board of Directors and Stockholders
Mortgage Assistance Center Corporation
Dallas, Texas

We have  reviewed  the  accompanying  consolidated  balance  sheet  of  Mortgage
Assistance  Center  Corporation  (formerly  Safe  Alternatives   Corporation  of
America, Inc., a Florida corporation) as of September 30, 2007, the consolidated
statements  of  operations  and  comprehensive  loss  for  the  three-month  and
nine-month periods ended September 30, 2007, and the consolidated  statements of
cash flows for the nine months ended September 30, 2007 and 2006.  These interim
financial statements are the responsibility of the Company's management.

We conducted our review in accordance  with the standards of the Public  Company
Accounting  Oversight  Board  (United  States).  A review of  interim  financial
information  consists  principally of applying analytical  procedures and making
inquiries of persons  responsible  for financial and accounting  matters.  It is
substantially  less in scope  than an audit  conducted  in  accordance  with the
standards of the Public Company  Accounting  Oversight  Board,  the objective of
which is the expression of an opinion  regarding the financial  statements taken
as a whole. Accordingly, we do not express such an opinion.

Based on our review, we are not aware of any material  modifications that should
be made to the  accompanying  interim  financial  statements  for  them to be in
conformity with U.S. generally accepted accounting principles.

The accompanying  consolidated  financial statements have been prepared assuming
that the Company will  continue as a going  concern.  The Company has  sustained
recurring losses from operations and had an accumulated stockholders' deficit at
September  30, 2007.  These  circumstances  create  substantial  doubt about the
Company's  ability to continue as a going  concern and are  discussed in Note 9.
The financial  statements do not contain any adjustments  that might result from
the outcome of these uncertainties.

The  December  31,  2006  financial  statements  of Mortgage  Assistance  Center
Corporation  were audited by us and we expressed an  unqualified  opinion in our
report dated March 30, 2007,  but we have not performed any auditing  procedures
since that date.

Sutton Robinson Freeman & Co., P.C.
Certified Public Accountants

Tulsa, Oklahoma
November 14, 2007



                                      F-2
<PAGE>
<TABLE>
<CAPTION>


                     Mortgage Assistance Center Corporation
                           Consolidated Balance Sheets
         September 30, 2007 (Unaudited) and December 31, 2006 (Audited)


                                     ASSETS                        September 30,      December 31,
                                                                       2007              2006
                                                                    (Unaudited)        (Audited)
                                                                    ----------        ----------
<S>                                                                 <C>               <C>    <C>    <C>    <C>    <C>

Current Assets:
      Cash and cash equivalents                                     $  911,561        $1,205,120
      Portfolio assets, at cost (net impairment reserve of
             $215,543 and $253,508 at September 30, 2007 and
             December 31, 2006 respectively)                         6,688,206         6,798,509
      Prepaid expenses and other                                       265,627           194,405
                                                                    ----------        ----------

Total Current Assets                                                 7,865,394         8,198,034
                                                                    ----------        ----------

      Land                                                             699,600           699,600
      Building and improvements                                        639,801           606,799
      Office furniture and equipment                                   422,471           118,670
                                                                    ----------        ----------
                                                                     1,761,872         1,425,069

Less accumulated depreciation                                          122,596            73,468
                                                                    ----------        ----------
                                                                     1,639,276         1,351,601
                                                                    ----------        ----------

Investments and Other Assets:
      Deposits                                                          25,404             3,450
                                                                    ----------        ----------
Total Assets                                                        $9,530,074        $9,553,085
                                                                    ==========        ==========


</TABLE>




              The accompanying notes are an integral part of these
                        consolidated financial statements



                                      F-3
<PAGE>
<TABLE>
<CAPTION>


                     Mortgage Assistance Center Corporation
                           Consolidated Balance Sheets
         September 30, 2007 (Unaudited) and December 31, 2006 (Audited)


LIABILITIES AND STOCKHOLDERS' EQUITY                                              September 30,    December 31,
                                                                                      2007           2006
                                                                                   (Unaudited)     (Audited)
                                                                                  ------------    ------------
<S>                                                                               <C>             <C>

Current Liabilities:
      Current portion of notes payable to individuals                             $  1,520,136    $  1,522,315
      Current portion of mortgages payable                                              24,500          24,400
      Advances from stockholders                                                       500,000            --
      Accounts payable                                                                  34,504         241,301
      Settlement costs                                                                 440,000            --
      Accrued fees and wages                                                            81,001         182,532
      Accrued stock-based compensation                                                  96,856          95,947
      Other accrued liabilities                                                        302,023         169,068
                                                                                  ------------    ------------
Total Current Liabilities                                                            2,999,020       2,235,563
                                                                                  ------------    ------------
Long-term Debt:
      Notes payable-individuals and others                                           3,679,875       1,492,768
      Mortgage payable, less current portion                                         1,020,811       1,036,360
                                                                                  ------------    ------------

Total Long-term Debt                                                                 4,700,686       2,529,128
                                                                                  ------------    ------------
Minority Interests                                                                   4,204,986       5,466,543
                                                                                  ------------    ------------

Total Liabilities                                                                   11,904,692      10,231,234
                                                                                  ------------    ------------

Stockholders' Equity (Deficit):
      Series A convertible preferred stock ($0.001 par value,
         3,000,000 shares authorized; 2,000,000 and 1,500,000 shares issued and
         outstanding; aggregate liquidation preference of $2,000,000 and
         $1,500,000; cumulative undeclared dividends of $154,110 and $12,500
         respectively at September 30, 2007 and December 31, 2006)                       2,000           1,500
      Common stock ($0.001 par value; 50,000,000 shares
         authorized; 14,070,924 and 12,725,124 shares issued and
         outstanding respectively, at September 30, 2007 and December 31,
         2006)                                                                          14,071          12,726
      Additional paid-in capital                                                     3,240,449       2,481,413
      Retained deficit after December 31, 2004                                      (5,975,598)     (3,518,248)
                                                                                  ------------    ------------
                                                                                    (2,719,078)     (1,022,609)
      Subscriptions issuable                                                           344,460         344,460
                                                                                  ------------    ------------

Total Stockholders' Deficit                                                         (2,374,618)       (678,149)
                                                                                  ------------    ------------

Total Liabilities and Stockholders' Equity                                        $  9,530,074    $  9,553,085
                                                                                  ============    ============

</TABLE>


              The accompanying notes are an integral part of these
                       consolidated financial statements




                                      F-4
<PAGE>
<TABLE>
<CAPTION>

                     Mortgage Assistance Center Corporation
          Consolidated Statements of Operations and Comprehensive Loss
             Three and Nine Months Ended September 30, 2007 and 2006
                                   (Unaudited)



                                               Three Months Ended                     Nine Months Ended
                                           September 30,  September 30,  September 30,  September 30,
                                               2007           2006           2007           2006
                                                           (Restated)                    (Restated)
                                           -----------    -----------    -----------    -----------
<S>                                        <C>            <C>            <C>            <C>


Operating Revenues:
      Sales of portfolio assets            $   901,028    $ 1,073,470    $ 2,158,541    $ 1,849,105

      Servicing fees                             3,908        146,965        184,208        291,555
      Rental Income                             53,000         52,500        164,004         82,050
      Other                                      6,070          5,385        179,451         13,004
                                           -----------    -----------    -----------    -----------
         Gross operating revenue               964,006      1,278,320      2,686,204      2,235,714
                                           -----------    -----------    -----------    -----------
      Cost of portfolio assets sold            665,712        833,545      1,542,451      1,381,570
                                           -----------    -----------    -----------    -----------
         Net operating revenue                 298,294        444,775      1,143,753        854,144
                                           -----------    -----------    -----------    -----------

Operating Expenses:
      Salaries, wages and contract labor       560,326        218,543      1,625,490        617,107
      Selling, general and                     833,684        189,858      1,523,732        607,156
         administrative expenses
      Depreciation and amortization             25,364          5,831         49,128         17,116
      Bad debts                                  5,000         97,509        190,674         97,509
                                           -----------    -----------    -----------    -----------
         Total operating expenses            1,424,374        511,741      3,389,024      1,338,888
                                           -----------    -----------    -----------    -----------

Operating loss                              (1,126,080)       (66,966)    (2,245,271)      (484,744)
                                           -----------    -----------    -----------    -----------

Other income (expense):
      Interest and other income                  2,408          4,334          8,689        109,942
      Interest expense                        (128,379)       (78,756)      (284,314)      (226,507)
      Priority payments                        (38,121)          --         (114,655)          --
      Loss on retirement of property              --             --          (12,432)          --
                                           -----------    -----------    -----------    -----------
         Total other income (expense)         (164,092)       (74,422)      (402,712)      (116,565)
                                           -----------    -----------    -----------    -----------

Loss from continuing operations before
   minority interests and  income taxes     (1,290,172)      (141,388)    (2,647,983)      (601,309)


</TABLE>





              The accompanying notes are an integral part of these
                        consolidated financial statements


                                      F-5
<PAGE>
<TABLE>
<CAPTION>

                     Mortgage Assistance Center Corporation
          Consolidated Statements of Operations and Comprehensive Loss
             Three and Nine Months Ended September 30, 2007 and 2006
                                   (Unaudited)

                                               Three Months Ended              Nine Months Ended
                                          September 30,   September30,    September 30,   September 30,
                                              2007            2006            2007            2006
                                                           (Restated)                      (Restated)
                                          ------------    ------------    ------------    ------------
<S>                                       <C>             <C>             <C>             <C>

Loss from continuing operations before
   minority interests and  income taxes   $ (1,290,172)   $   (141,388)   $ (2,647,983)   $   (601,309)

Minority interests                             (65,186)        (71,815)       (108,934)         (7,828)
                                          ------------    ------------    ------------    ------------
Loss from continuing operations before
   income taxes                             (1,355,358)       (213,203)     (2,756,917)       (609,137)

Income tax benefit (expense)                      --              --              --              --
                                          ------------    ------------    ------------    ------------
Loss from continuing operations             (1,355,358)       (213,203)     (2,756,917)       (609,137)

Discontinued operations:
  Income from Operations of Dutch Fork
     Capital, LLC (Including gain on
     disposal of $160,128)                        --              --           300,066            --
                                          ------------    ------------    ------------    ------------
Net Loss                                    (1,355,358)       (213,203)     (2,456,851)       (609,137)

Other comprehensive income                        --              --              --              --
                                          ------------    ------------    ------------    ------------
Comprehensive Loss                        $ (1,355,358)   $   (213,203)   $ (2,456,851)   $   (609,137)
                                          ============    ============    ============    ============

Basic earnings (loss) per weighted
  -average common shares outstanding:
       Continuing operations              $      (0.10)   $      (0.02)   $      (0.21)   $      (0.06)
       Discontinued operations                    --              --              0.02            --
                                          ------------    ------------    ------------    ------------
       Net Loss                           $      (0.10)   $      (0.02)   $      (0.19)   $      (0.06)
                                          ============    ============    ============    ============
Fully diluted earnings (loss) per
   weighted average common shares
   outstanding calculated on net
   loss and cumulative undeclared
   dividends on preferred stock
        Continuing operations                             $      (0.02)                   $      (0.06)
        Discontinued operations                                   --                              --
                                          ------------    ------------    ------------    ------------
        Net Loss                                                          $      (0.02)   $      (0.06)
                                          ============    ============    ============    ============
Weighted-average number of shares
   of common stock outstanding:
        Basic                               13,427,983      12,725,124      12,956,836      12,725,124
                                          ------------    ------------    ------------    ------------
        Diluted                                             12,725,124                      12,725,124
                                                          ------------                    ------------

</TABLE>


              The accompanying notes are an integral part of these
                       consolidated financial statements




                                      F-6
<PAGE>
<TABLE>
<CAPTION>


                     Mortgage Assistance Center Corporation
                      Consolidated Statements of Cash Flows
                  Nine Months Ended September 30, 2007 and 2006
                                   (Unaudited)


                                                                               Nine Months Ended
                                                                          September 30,   September,
                                                                              2007            2006
                                                                                           (Restated)
                                                                           -----------    -----------
<S>                                                                        <C>            <C>

Cash Flows from Operating Activities:
        Net loss                                                           $(2,456,851)   $  (609,137)
                                                                           -----------    -----------
        Results from discontinued operations                                  (300,066)          --
                                                                           -----------    -----------
        Loss from continuing operations                                     (2,756,917)      (609,137)
                                                                           -----------    -----------
        Adjustments to reconcile net loss to net cash provided (used) by
        operating activities:
             Depreciation                                                       49,128         17,116
             Non-cash stock based compensation                                 248,332           --
             Minority interests in subsidiaries' net earnings                  108,935          7,828
             Change in assets and liabilities:
                Increase in portfolio assets                                (2,395,768)      (961,804)
                Increase in prepaid expenses and other assets                  (93,308)       (75,183)
                Decrease in accounts payable                                  (206,797)       (46,193)
                Increase in settlement costs                                   440,000           --
                Increase in accrued liabilities                                 31,424        194,607
                                                                           -----------    -----------

        Total adjustments                                                   (1,818,054)      (863,629)
                                                                                          -----------

                   Net Cash Used by Operating Activities                    (4,574,971)    (1,472,766)
                                                                           -----------    -----------

Cash Flows From Investing Activities

        Purchases of property and equipment                                   (336,803)       (42,731)
                                                                           -----------    -----------
                   Net Cash Used by Investing Activities                      (336,803)       (42,731)
                                                                           -----------    -----------


</TABLE>












              The accompanying notes are an integral part of these
                       consolidated financial statements



                                      F-7
<PAGE>
<TABLE>
<CAPTION>


                     Mortgage Assistance Center Corporation
                      Consolidated Statements of Cash Flows
                  Nine Months Ended September 30, 2007 and 2006
                                   (Unaudited)


                                                                         Nine Months Ended
                                                                   September 30,    September 30,
                                                                       2007             2006
                                                                                     (Restated)
                                                                   -----------       -----------
<S>                                                                <C>               <C>

Cash Flows From Financing Activities
        Proceeds from issuance of debt                              2,586,000         1,571,500
        Repayment of debt                                            (400,982)         (496,615)
        Proceeds from issuance of Preferred Stock                     500,000              --
        Proceeds from issuance of Common Stock                         13,459              --
        Capital contributions from minority interests               2,015,875           402,000
        Refund of capital contributions to minority interests        (783,527)             --
        Distributions to minority interests                           (72,240)         (220,169)
        Net advance from stockholders                                 500,000            13,028
        Repayments of mortgage loan                                   (15,549)           (5,580)
                                                                  -----------       -----------

                   Net Cash Provided by Financing Activities        4,343,036         1,264,164
                                                                  -----------       -----------

                   Net Cash Provided by Discontinued Operations       275,178              --
                                                                  -----------       -----------

                   Net Decrease in Cash                              (293,560)         (251,333)

                   Cash at Beginning of Period                      1,205,120           598,979
                                                                  -----------       -----------

                   Cash at End of Period                          $   911,560       $   347,646
                                                                  ===========       ===========

Supplemental Disclosures of Cash Flow Information

Cash Paid During the Period for:
        Interest                                                  $   398,969    $   166,208
        Income taxes                                                     --             --




</TABLE>




              The accompanying notes are an integral part of these
                       consolidated financial statements




                                      F-8
<PAGE>

                     Mortgage Assistance Center Corporation
                   Notes to Consolidated Financial Statements
                               September 30, 2007
                                   (Unaudited)

Note 1 - Organization
         ------------

Mortgage Assistance Center Corporation,  a Florida  Corporation,  (formerly Safe
Alternatives  Corporation  of  America,  Inc.) (the  "Company"  or  "MACC")  was
organized in 1976,  under the name Knight  Airlines,  Inc. In October 1978,  the
Company  completed  an initial  public  offering of its common stock in Florida,
pursuant to an exemption from registration  under Regulation A promulgated under
the Securities Act of 1933, as amended.

In January  2005,  the Company  changed its name to Mortgage  Assistance  Center
Corporation,  and through a series of  corporate  reorganizations  completed  in
August 2005, the Company acquired Mortgage  Assistance  Corporation  ("MAC"),  a
Texas corporation.  MAC is now a wholly owned subsidiary of MACC as described in
Note 4.

Note 2 - Basis of Presentation
         ---------------------

The accompanying unaudited financial statements have been prepared in accordance
with accounting  principles  generally  accepted in the United States of America
for interim  financial  information and with the instructions to Form 10-QSB and
Regulation S-B. They do not include all  information  and footnotes  required by
accounting  principles  generally  accepted in the United  States of America for
complete financial  statements.  However,  except as disclosed herein, there has
been no  material  change  in the  information  disclosed  in the  notes  to the
financial  statements  for the year ended  December  31,  2006  included  in the
Company's  Annual  Report  on Form  10-KSB,  as filed  with the  Securities  and
Exchange  Commission.  The interim unaudited financial statements should be read
in conjunction with those financial  statements  included in the Form 10-KSB. In
the opinion of  management,  all  adjustments  considered  necessary  for a fair
presentation,  consisting solely of normal recurring adjustments, have been made
and certain prior period  amounts have been  reclassified  to conform to current
period  presentation.  Operating  results  for the three  months and nine months
ended September 30, 2007 are not necessarily  indicative of the results that may
be expected for the year ending December 31, 2007.

Note 3 - Description of Business
         -----------------------

Through MAC, the Company operates as a financial services company, acquiring and
managing  pools of  distressed  real  estate-based  mortgages  and  real  estate
acquired by foreclosures of mortgage notes. The types of mortgage pools acquired
include  non-performing,  charged-off,  sub-prime  mortgages,  typically between
ninety days and two years past due and secured by residential real estate.

The Company resells a substantial  portion of its loans in various-sized  pools,
or it forecloses when loans held in its portfolio continue to be in default.  As
a result,  the  Company  may be engaged in owning  single-family  dwellings  and
possibly other real estate.  Such foreclosed real estate is held,  rehabilitated
where necessary, and sold.



                                      F-9
<PAGE>

                     Mortgage Assistance Center Corporation
                   Notes to Consolidated Financial Statements
                               September 30, 2007
                                   (Unaudited)

Note 4 - Principles of Consolidation and Basis of Presentation
         -----------------------------------------------------

The accompanying financial statements are consolidated and include the financial
statements  of  MACC  and  its  wholly  owned   subsidiary;   and  a  number  of
unincorporated  entities. All significant intercompany accounts and transactions
are eliminated in consolidation.

The Company through its subsidiary, MAC, has a 50% ownership interest in each of
the  unincorporated  joint ventures and acts as the manager of each venture and,
as such,  exercises control over each venture.  The other members of each of the
ventures do not have either (a) the substantive  ability to dissolve the venture
or otherwise remove the manager without cause, or (b) substantive  participating
rights.  Based on these  factors,  MAC's  interest in each of the joint ventures
meets the criteria for consolidation under the provisions of Emerging Issues Tax
Force Issue No.  04-5,  Determining  Whether A General  Partner,  or the General
Partners as a Group,  Controls a Limited  Partnership or Similar Entity When the
Limited Partners Have Certain Rights ("EITF Issue No. 04-5") and AICPA Statement
of Position 78-9, Accounting for Investments in Real Estate ("SOP 78-9").

The consolidated financial statements include 100% of the assets and liabilities
of the  unincorporated  entities,  with  the  ownership  interests  of  minority
investors recorded as a noncurrent  liability,  "Minority Interests." On May 17,
2007, MAC sold its 50% interest in the future profits of Dutch Fork Capital, LLC
("Dutch  Fork") to the other 50% partner in that venture for $300,000  cash. Two
of MACC's directors have indirect ownership  interests in Dutch Fork. All of the
assets,  liabilities and applicable minority interests have been eliminated, and
the results of operations have been classified as  Discontinued  Operations,  in
the accompanying financial statements.

Note 5 - Accounting Change
         -----------------

Effective  January 1, 2006, the Company adopted the provisions of EITF Issue No.
04-5 and SOP 78-9 and began  consolidating the accounts MAP/MAC,  L.L.C. and its
other 50%-owned joint ventures.  Historically, the Company had accounted for its
investments  in such ventures  under the equity  method.  The change was made to
more clearly reflect the Company's  operations as a financial  services company,
utilizing funding from third party investors to finance the purchase of mortgage
note  receivable  pools and real estate  portfolios,  either directly or through
unincorporated ventures. As a result of the accounting change, all prior periods
presented  have been  restated to reflect  the  consolidation  of the  Company's
50%-owned joint ventures.  The accounting  change did not have a material impact
on the results of operations of the Company.



                                      F-10
<PAGE>

                     Mortgage Assistance Center Corporation
                   Notes to Consolidated Financial Statements
                               September 30, 2007
                                   (Unaudited)

Note 6 - Settlement Costs
         ----------------

In Note 6 of the Notes to Financial Statements of the Company's Quarterly Report
on Form 10-QSB for the quarter ended June 30, 2007,  the Company  disclosed that
it  was   undergoing   an  internal   investigation   with  respect  to  certain
inappropriate  practices that it had discovered  during a review of its controls
and procedures.

MAC acts as the sole  manager  for  several  limited  liability  companies  (the
"LLCs"),  each of which  holds  loan  portfolios,  former  REO  properties  or a
combination of both (the "Properties").  As manager,  MAC selects the properties
to be purchased by the LLC and has obtained  either loans or equity  investments
from the LLC members in order to acquire the  Properties.  In addition,  MAC has
entered into  servicing  agreements  with the LLCs,  pursuant to which MAC is to
perform services related to the Properties (the "Servicing Agreements").  Due to
MAC's operating control over these entities and its 50% interest in the profits,
each of these LLCs is consolidated in the Company's financial statements.

MAC, in the  regular  course of its  business,  also sells  Properties  from its
inventories to various  unconsolidated  individuals and entities  ("Purchasers")
and enters  into  Servicing  Agreements  with  these  individuals  and  entities
pursuant to which MAC is entitled to a 50% share in the profits  generated  from
its servicing activities.

Through  the  course of the  initial  part of the  internal  investigation,  the
Company discovered that (a) MAC charged various LLCs and Purchasers for services
under the Servicing Agreements,  yet failed to adequately provide the applicable
services ("Service Overcharges"),  and (b) MAC either, on behalf of itself or as
manager of an LLC,  sold  Properties  (1) from its inventory to an LLC, (2) from
one LLC to another  LLC, (3) from its  inventory to a Purchaser,  or (4) from an
LLC to a  Purchaser,  for  prices  higher  than  the  acquisition  cost  of such
Properties,  notwithstanding  the  fact  that  the  agreements  governing  MAC's
management of the LLCs  specifically  required that any such sales of Properties
be at MAC's acquisition cost. Although there is no similar requirement under any
of  the  agreements  with  Purchasers,  the  investigation  has  uncovered  some
indication  that the  Purchasers  may have also believed that their  purchase of
Properties was at MAC's acquisition cost.

Based on its findings during the internal investigation, the Company has accrued
settlement costs of $440,000 in the  accompanying  financial  statements,  which
represent  its best estimate of the amount that will be sufficient to settle the
Service  Overcharges and excess profits generated by the aforementioned  sale of
Properties.  Because  the  Company  reports  the  operations  of the  LLCs  on a
consolidated  basis  whereby   intercompany   transactions  were  eliminated  in
consolidation,  it does not believe that the impact of these Service Overcharges
and  profits   necessitates  any  adjustments  with  respect  to  the  Company's
previously issued financial statements.  These profits did, however,  impact the
profits  and  losses  reported  by  the  individual  LLCs  to  their  respective
non-Company members.

The Company  believes that it has  corrected the  weaknesses in its controls and
procedures by creating  additional levels of review and approval of acquisitions
and sales of portfolio assets.



                                      F-11
<PAGE>

                     Mortgage Assistance Center Corporation
                   Notes to Consolidated Financial Statements
                               September 30, 2007
                                   (Unaudited)

Note 7 - Series A Preferred Stock Financing Agreement
         --------------------------------------------

On November 30, 2006,  the Company  entered into a Series A Preferred  Stock and
Common Stock Warrant Purchase Agreement  ("Purchase  Agreement") with W.C. Payne
Investments,  L.L.C. and FAX/MACC,  L.P. (the "Investors") pursuant to which the
Company sold to Investors  1,500,000  shares of the Company's Series A Preferred
Stock at a price of $1.00 per share,  as well as warrants to purchase  9,111,387
shares of the Company's  common stock at an exercise  price of $0.01 per warrant
share.  Under the  terms of the  Purchase  Agreement,  the  Investors  purchased
1,500,000  of the  preferred  shares on November 30,  2006,  with an  additional
1,500,000 preferred shares to be purchased in increments of 500,000, conditioned
on the  satisfaction  on March 31,  June 30 and  September  30,  2007 of certain
financial benchmarks set forth in the Purchase Agreement.

The Company did not achieve its  benchmarks for the period ended March 31, 2007;
however,  the Investors waived the benchmarks for this period,  and during April
the Company received the first of the three  subsequent  tranches of $500,000 in
cash as contemplated by the November 30, 2006 financing transaction. The Company
did not  achieve  its  benchmarks  for the period  ended  June 30,  2007 and the
Investors  advised the Company that they did not intend to fund further tranches
under the Purchase Agreement.

In August 2007,  after  discussions  with the Investors,  the Company received a
proposal from the Investors  with respect to an equity  investment of $1,000,000
in exchange for the issuance of  267,347,556  new shares of common stock,  which
will result in the  Investors  holding 95% of the  outstanding  shares of common
stock (the  "Transaction").  At the time the Company  received the proposal from
the Investors,  Mr. Payne, through his relationship with W.C. Payne Investments,
agreed to exercise  warrants to purchase 448,600 shares of common stock; and Mr.
Jones, through his relationship with FAX/MAC,  agreed to purchase 897,200 shares
of common stock. Upon completion of this transaction,  all additional previously
issued but unexercised warrants held by the Investors would be cancelled.

Effective  September  2007,  the  Company  entered  into an  agreement  with the
Investors pursuant to which the Transaction described above will be consummated.
The agreement was structured as an amendment to the Purchase Agreement described
above. The Investors advanced the $1,000,000  purchase price for the 267,347,556
shares of common  stock in two separate  tranches of $500,000,  one of which was
paid to the  Company in August,  2007,  prior to the entry by the parties of the
definitive  agreement,  and the  second  of  which  was paid to the  Company  in
October,  2007.  Upon filing of the  Amendment  with the Florida  Department  of
State, the Company will issue the 267,347,556 shares to the Investors.

Messrs.  William G. Payne and Rod C. Jones are members of the Company's Board of
Directors.  Mr. Payne is also the  Managing  Member of W.C.  Payne  Investments,
L.L.C.  and Mr. Jones is a limited  partner in FAX/MACC,  L.P., and the Managing
Member of FAX  GenPar,  LLC,  which is the  General  Partner  of  Family  Access
Exchange II, L.P, which is the General Partner of FAX/MACC, L.P.



                                      F-12
<PAGE>

                     Mortgage Assistance Center Corporation
                   Notes to Consolidated Financial Statements
                               September 30, 2007
                                   (Unaudited)

Note 8 - Lender Agreement
         ----------------

On August 10,  2007,  in  connection  with the  transaction  discussed in Note 7
above,  the Company received from an investor a $300,000 bridge loan in the form
of two  non-interest  bearing  promissory  notes, a demand note in the principal
amount  of  $100,000,  and a  sixty-day  term  note.  The  investor  is the sole
shareholder  of  a  company  that  has  provided   additional  funding  totaling
approximately  $5,000,000  to the Company for the purchase of  portfolio  assets
over the last two years. In connection with these notes,  the Company granted to
the  investor  the right to  receive  from the  Company a  warrant  to  purchase
37,522,464  shares of common  stock at an exercise  price per share equal to the
closing  price of a share of the common stock on the day  immediately  preceding
the date the warrant is issued.  The Company also agreed to issue an  additional
warrant  providing the opportunity to receive an additional  56,283696 shares of
common  stock.  This warrant will become  exercisable  with respect to 3,752,246
shares of common stock for every $2,000,000 in additional equity or debt funding
provided to the Company by the investor or his affiliates, if and when requested
by the Company; provided that he or his affiliates have such funds available for
such purpose.

These  warrants  will be issuable by the Company to the investor  upon filing of
the Amendment with the Florida Department of State and have a term of five years
from the date of issue. It is further anticipated that any debt funding provided
by the  investor  or his  affiliates  would bear  interest at a rate equal to at
least twelve percent (12%) per annum, and could remain outstanding for no longer
than twenty-four (24) months.

Note 9 - Going Concern Uncertainty
         -------------------------

The  accompanying  financial  statements  have been  prepared on a going concern
basis,  which  contemplates  the  realization  of assets and the  settlement  of
liabilities  and  commitments in the normal course of business.  As shown in the
financial statements,  the Company has incurred significant operating losses for
the nine months  ended  September  30,  2007 and prior  years,  resulting  in an
accumulated stockholders' deficit as of September 30, 2007. These factors, among
others,  may  indicate  that the  Company  will be unable to continue as a going
concern for a reasonable period of time. The financial statements do not include
any adjustments  relating to the  recoverability of assets and classification of
liabilities  that might be necessary should the Company be unable to continue as
a going concern. The Company's continuation as a going concern is dependent upon
its ability to generate sufficient cash flow to meet its obligations on a timely
basis,  to obtain  additional  financing or refinancing as may be required,  and
ultimately to sustain profitability.







                                      F-13
<PAGE>

                     Mortgage Assistance Center Corporation
                   Notes to Consolidated Financial Statements
                               September 30, 2007
                                   (Unaudited)

Note 9 - Going Concern Uncertainty (continued)
         -------------------------------------

The Company continues to actively pursue  alternative  financing options to fund
the Company's  requirements,  and those options include, but are not limited to,
additional equity sales or debt financing under appropriate  market  conditions,
allegiances or partnership  agreements,  or other  business  transactions  which
could generate adequate funding opportunities.  The Company continues to explore
opportunities to secure additional  sources of debt financing as a means of more
cost  effectively  acquiring  pools of mortgage notes and foreclosed  properties
(see Note 13).  However,  there is no  guarantee  that the Company  will receive
sufficient funding to sustain operations or implement any future business plans.

Note 10 - Priority Payments
          -----------------

Two of the  Company's  joint  venture  agreements  provide for the  investors to
receive a nine percent  cumulative return on invested  capital.  The Company has
expensed  $38,121  and  $114,655  for the three  months  and nine  months  ended
September  30,  2007,   respectively,   applicable  to  these  priority  payment
obligations.

Note 11 - Lease Obligations
          -----------------

In April,  the Company entered into a lease  agreement for new corporate  office
space. The lease is for eighty-four  months commencing May 1, 2007, with monthly
rents commencing at $15,001 per month for the first twelve months  escalating to
$21,954  per month for the final  twelve  months,  for a total of  approximately
$1,629,000  over the lease term. The total rental payments are being expensed on
a straight line basis over the term of the lease.

Note 12 - Share-Based Compensation
          ------------------------

The Company  recognizes  expense for its share-based  compensation  based on the
fair value of awards that are granted in accordance  with Statement of Financial
Accounting Standards No. 123R,  Share-Based Payments. At September 30, 2007, the
Company has granted  stock  options  for a total of  3,508,200  shares of common
stock under its 2006 Equity  Incentive  Plan and had also  granted  common stock
purchase warrants of 1,023,891 shares. All outstanding options and warrants were
granted on or after November 28, 2006. Any previous  agreements  with employees,
former employees or consultants were cancelled. The total compensation cost that
has been charged  against  income for all such options and warrants  granted was
$248,332 for the nine months ended  September 30, 2007 and $992,182 for the year
ended  December 31, 2006. The  share-based  compensation  expense  increased the
basic loss per share by $0.02 for the quarter ended March 31, 2007 and there was
no  additional  expense for the quarters  ended June 30, 2007 and  September 30,
2007.  The result  reflects no related tax  benefit  due to the  Company's  full
valuation allowance on its deferred tax assets. As of



                                      F-14
<PAGE>

                     Mortgage Assistance Center Corporation
                   Notes to Consolidated Financial Statements
                               September 30, 2007
                                   (Unaudited)

Note 12 - Share-Based Compensation (continued)
          ------------------------------------

September  30,  2007,  there was  $823,341 of  compensation  expense  related to
non-vested share awards that is expected to be recognized over a period of three
years.  All of the options  and  warrants  granted,  with the  exception  of the
options for 2,450,000 shares under employment  agreements with four officers and
another  key  employee,  were  fully  vested  at the  grant  date.  The  lattice
(trinomial)  option  -pricing  model was used to estimate the fair value options
and  warrants at grant date in 2006 and 2007.  The  weighted-average  grant date
fair value of options and warrants  granted in 2006 and 2007 and the significant
assumptions  used in  determining  the  underlying  fair value of each option or
warrant grant, on the date of the grant were as follows:

                  Weighted-average grant date
                  fair value of options and warrants granted           $0.80

                  Assumptions:
                           Risk-free rate of return                    5.0%
                           Expected life                               5 years
                                    Weighted-average volatility        91.7%
                                    Expected dividend yield            0.0%

          The risk-free rate of return is estimated  based on the yield curve of
          the  Constant  Maturity  Treasury  ("CMTs") as  published  by the U.S.
          Treasury Department.  These rates are projected over a range of future
          maturity  dates  based on the  closing  market bid yields on  actively
          traded Treasury securities in the over-the-counter market.

          The Company's assumed dividend yield of zero is based on the fact that
          it has never paid cash dividends and has no present intent to pay cash
          dividends.


Since  adoption  of SFAS  123(R) on January 1, 2006,  the  expected  share-price
volatility  assumption  used by the Company has been based on a blend of implied
volatility  in  conjunction  with  calculations  of  the  Company's   historical
volatility  as  determined  by  various   mathematical  models  for  calculating
volatility.  These values are then adjusted over a five-year  period  coinciding
with the  anticipated  life of the  options.  Based  on  counsel  provided  by a
third-party consultant, the Company believes this methodology will result in the
best estimate of expected volatility.

The lattice  option-pricing  model also allows  assumptions  for the sub-optimal
exercise of vested shares prior to the full expiration term of the option.



                                      F-15
<PAGE>

                     Mortgage Assistance Center Corporation
                   Notes to Consolidated Financial Statements
                               September 30, 2007
                                   (Unaudited)

Note 13 - Subsequent Events
          -----------------

Effective  October 22, 2007,  the Company,  MAC, and HBK Fund MS LLC, a Delaware
limited  liability company ("HBK") entered into a Venture Funding Agreement (the
"Venture  Funding  Agreement")  pursuant  to which the Company may receive up to
$75,000,000 in joint venture funding to acquire various pools of distressed real
estate and mortgage notes (collectively,  the "Property Portfolios").  Under the
Venture  Funding  Agreement,  HBK would provide  equity  funding to enable newly
created joint venture entities  (collectively,  the "Joint  Ventures"),  each of
which  would be owned 75% by HBK and 25% by the  Company,  to  acquire  Property
Portfolios, and the Joint Ventures would acquire, manage and sell the distressed
real estate and mortgage  notes.  A new Joint  Venture would be created for each
Property  Portfolio  funded by HBK. Any funding required by the Joint Venture in
excess of the initial equity funding by HBK would be provided by HBK in the form
of  promissory  notes with  maturities  of no less than one year and  bearing an
interest  rate of eight  percent (8%) per annum,  and any required  debt service
associated  with the  promissory  notes  would take  precedence  over any profit
distributions described below.

Upon acquisition of a Property  Portfolio,  the Company would receive a sourcing
fee equal to three percent (3%) of the purchase price of the Property Portfolio.
MAC, under the terms of a servicing agreement between the parties, would service
the Property  Portfolio.  Profit  distributions  from the Joint Venture would be
made first to HBK until it received  repayment of its capital  investment in the
Joint Venture;  second to HBK for its 8% priority return as defined in the Joint
Venture agreement; third to MAC for an amount equal to the 8% return received by
HBK; and  remaining  profits of the venture  would be split in proportion to the
parties' equity ownership.

In  connection  with the  Venture  Funding  Agreement,  the Company has issued a
warrant to purchase shares of our common stock that would, when, if exercised in
full,  result in the warrant  holder  holding 33% of the  outstanding  shares of
common stock.



















                                      F-16
<PAGE>

Item 2. Management's Discussion and Analysis or Plan of Operation

Forward Looking Statements:

From  time to time,  certain  information  provided  by the  Company,  including
written  or  oral   statements   made  by  its   representatives,   may  contain
forward-looking information as defined in Section 21E of the Securities Exchange
Act of 1934.  Forward-looking  statements include  statements  concerning plans,
objectives,  goals,  strategies,  future events or  performance  and  underlying
assumptions and other statements,  which are other than statements of historical
facts.  Certain statements in this Form 10-QSB are  forward-looking  statements.
Words  such  as  "expects",   "believes",   "anticipates",   "may",   "intends",
"projects",  "estimates"  and  similar  expressions  are  intended  to  identify
forward-looking statements. The Company's expectations,  beliefs and projections
are expressed in good faith and are believed by the Company to have a reasonable
basis,  including  without  limitation,  management's  examination of historical
operating  trends,  and data  contained in the Company's  records and other data
available  from third parties;  but there can be no assurance that  management's
expectation,   beliefs  or  projections   will  be  achieved  or   accomplished.
Forward-looking  statements  are subject to risks and  uncertainties  that could
cause actual results to differ  materially from those projected.  Such risks and
uncertainties  include,  but are not  limited  to,  limited  operating  history,
historical  operating losses and the uncertainty of the Company's  profitability
in the future,  the need to raise additional  capital to sustain  operations and
implement  its future  business  plan,  and other factors that may be beyond the
Company's control.  These factors include changes in regulations or legislation,
adverse  determination  with respect to litigation  or other claims,  ability to
recruit and retain  employees,  availability  of  mortgage  note  portfolios  at
acceptable  prices,  and  increases in  operating  costs.  A more  comprehensive
discussion of risk factors is included in the Company's Form 10-KSB for the year
ended  December 31, 2006.  The Company has no obligation  to publicly  update or
revise these  forward-looking  statements  to reflect the  occurrence  of future
events or circumstances.

Business Overview:

The Company buys,  sells and manages  distressed  single-family  real estate and
non-performing mortgages secured by single-family residential real estate in the
secondary market in the United States through its subsidiary MAC.

MAC  purchases  non-performing,  charged-off,  sub-prime  first and second  lien
mortgages.  These  mortgage  notes are secured by real estate,  are typically 90
days to 2 years  past due at the time of  purchase,  and in many cases have been
foreclosed  upon. These mortgages are purchased in pools or portfolios of assets
from major lending  institutions  and usually at a  substantial  discount to the
outstanding  principal balance and to the current market value of the underlying
real estate.  This business model enables MAC to provide assistance to borrowers
and provide liquidity to lenders that need to remove  non-performing  loans from
their books in order to restore their  lending  power or comply with  government
rules regarding non-performing loans.

The Company  generates  revenue though four primary  activities  including:  (a)
immediate  resale of its mortgage notes to other investors;  (b)  rehabilitating
the note to  performing  status and  reselling it to a secondary  investor;  (c)
foreclosing  or obtaining a  deed-in-lieu  of  foreclosure  on  properties  that
continue  to be  non-performing;  or (d)  purchasing  real  estate that has gone
through the  foreclosure  process  and then  either  renting or selling the real
estate. The Company believes that current and future market conditions signal an
increasing  rate of  foreclosures on residential  properties.  Accordingly,  the
Company anticipates increased business opportunities from this segment.

Additionally,  MAC  generates  revenue  via fees  charged to manage and  service
mortgage  notes for its joint  ventures  and other  investors.  When the Company
acquires a loan or pool of loans,  the  process of  resolution  begins  with the




<PAGE>

borrower,  changing the status of  non-performing  loans into either  performing
loans or foreclosing on the real estate. The Company may resell a portion of its
loans in  various-sized  loan  pools.  The  Company  may  foreclose  on  certain
properties  when loans held in its  portfolio  continue to be in  default.  As a
result,  the  Company  will be engaged  in owning  single-family  dwellings  and
possibly  other  real  estate.   Such   foreclosed  real  estate  may  be  held,
rehabilitated where necessary, and sold.

The Company has historically  financed the acquisition of its loan pools through
various  profit  participation  entities  directly with investors and by issuing
promissory  notes to  individuals  and  investment  entities.  In addition,  the
Company has historically  sustained  recurring losses from operations and had an
accumulated stockholders' deficit as of September 30, 2007. These circumstances,
along with others  discussed in this  section and  elsewhere in this Form 10-QSB
create  substantial risk regarding the Company's  ability to continue as a going
concern.

Liquidity and Capital Resources
-------------------------------

     Cash and cash  equivalents  totaled  $911,560  as of  September  30,  2007,
     compared with $1,205,120 as of December 31, 2006.

Net cash provided by operating activities
-----------------------------------------

     Net cash used in operating activities was $ (4,562,539) for the nine months
     ended  September 30, 2007,  compared with $ (1,472,766) for the nine months
     ended  September  30, 2006.  The net loss  discussed  below was the primary
     factor in the net cash used in operations.

Net cash used in investing activities
-------------------------------------

     Net cash used in investing  activities  was $ (349,235) for the nine months
     ended  September  30,  2007,  compared  with $ (42,731) for the nine months
     ended  September  30,  2006.  The  increase  in net cash used in  investing
     activities represents leasehold improvements associated with the relocation
     of the Company's  corporate  offices and additional  computer  hardware and
     software acquisitions.

     The  Company  projects  that  it  will  invest  approximately  $100,000  in
     additional capital expenditures during the remainder of the year, primarily
     to continue to upgrade its information  technology;  however,  such amounts
     will be  dependent  on the  Company's  ability to  generate  cash flow from
     operations  and/or  acquire   additional  funds  through  future  financing
     activities.

Net cash provided by financing activities
-----------------------------------------

     Net cash  provided by  financing  activities  was  $4,343,036  for the nine
     months ended  September  30, 2007,  compared with  $1,264,164  for the nine
     months  ended  September  30, 2006.  The  increase  over the prior year was
     primarily due to the issuance of $500,000 of additional  Series A Preferred
     Stock, the issuance of $2,586,000 of additional  promissory  notes, and the
     net capital contributions from minority interests.




<PAGE>


Cash requirements
----------------------

     As mentioned in prior reports,  the Company has historically been unable to
     generate  sufficient  cash from  operations  to meet its ongoing  financial
     obligations,  and has continued to rely on additional  borrowings and sales
     of stock to provide adequate liquidity.

     As a fundamental  part of the  Company's  financing  strategy,  the Company
     entered into an agreement to sell $1,500,000 of Series A Preferred Stock to
     W.  C.  Payne  Investments,  LLC and  FAX/MACC,  LP  (the  "Investors")  in
     November,  2006. The agreement also provided that the Investors purchase an
     additional  $1,500,000 of Series A Preferred  Stock in three  increments of
     $500,000 each,  conditioned on the satisfaction,  on March 31, June 30, and
     September 30, 2007,  of certain  financial  benchmarks  and other terms set
     forth in the agreement.  The Company did not achieve its benchmarks for the
     period  ended March 31, 2007 or June 30,  2007.  The  Investors  waived the
     benchmarks  for the period ended March 31, 2007,  and the Company  received
     the first of the three subsequent  tranches of $500,000 in cash in April as
     contemplated  by  the  agreement.  However,  as a  result  of  missing  the
     benchmarks  for the period ended June 30, 2007,  the Investors  advised the
     Company that they do not intend to fund further tranches under the Purchase
     Agreement.

     On August 10, 2007, the Company received from an investor a $300,000 bridge
     loan in the form of two  promissory  notes,  a demand note in the principal
     amount of $100,000,  and a sixty-day term note. The notes are  non-interest
     bearing;  outstanding  principal  was due and payable upon  maturity of the
     notes;  and the demand note was repaid on October 3, 2007 and the term note
     was repaid on October 10, 2007.

     In August 2007, after discussions with the Investors,  the Company received
     a proposal  from the  Investors  with  respect to an equity  investment  of
     $1,000,000 in exchange for the issuance of 267,347,556 new shares of common
     stock,  which will result in the Investors  holding 95% of the  outstanding
     shares  of  common  stock  (the  "Transaction").  In  connection  with this
     transaction,  all previously  issued but  unexercised  warrants held by the
     Investors would be cancelled.

     Effective  September  2007, the Company  entered into an agreement with the
     Investors  pursuant  to  which  the  Transaction  described  above  will be
     consummated.  The Investors  funded the  $1,000,000  purchase price for the
     267,347,556  shares of common stock in two  separate  tranches of $500,000,
     one of which was paid to the Company in August, 2007, prior to the entry by
     the parties of the definitive  agreement,  and the second of which was paid
     to the Company in October,  2007.  Upon  filing of the  Amendment  with the
     Florida  Department of State, the Company will issue the 267,347,556 shares
     to the Investors.

     Effective  October 22, 2007, the Company,  Mortgage  Assistance  Center,  a
     Texas corporation and our wholly-owned  subsidiary ("MAC"), and HBK Fund MS
     LLC, a Delaware  limited  liability  company ("HBK") entered into a Venture
     Funding Agreement (the "Venture Funding  Agreement")  pursuant to which the
     Company may receive up to $75,000,000  in joint venture  funding to acquire
     various pools of distressed  real estate and mortgage notes  (collectively,
     the "Property Portfolios").  Under the Venture Funding Agreement, HBK would
     provide  equity  funding to enable newly  created  joint  venture  entities
     (collectively,  the "Joint Ventures"),  each of which would be owned 75% by
     HBK and 25% by the Company, to acquire Property  Portfolios,  and the Joint
     Ventures  would  acquire,  manage and sell the  distressed  real estate and
     mortgage notes.

     Upon  acquisition  of a Property  Portfolio,  the Company  would  receive a
     sourcing  fee  equal to three  percent  (3%) of the  purchase  price of the
     Property  Portfolio.  MAC, under the terms of a servicing agreement between




<PAGE>

     the parties,  would service the Property  Portfolio.  Profit  distributions
     from the  Joint  Venture  would  be made  first  to HBK  until it  received
     repayment of its capital investment in the Joint Venture; second to HBK for
     its 8% priority return as defined in the Joint Venture agreement;  third to
     MAC for an amount  equal to the 8% return  received by HBK;  and  remaining
     profits of the venture would be split in proportion to the parties'  equity
     ownership.

     The Company continues to actively pursue  alternative  financing options to
     fund the Company's  requirements,  and those options  include,  but are not
     limited to,  additional  equity sales or debt financing  under  appropriate
     market conditions, allegiances or partnership agreements, or other business
     transactions  which could  generate  adequate  funding  opportunities.  The
     Company continues to explore  opportunities to secure additional sources of
     debt  financing  as a means of more  cost  effectively  acquiring  pools of
     mortgage notes and foreclosed  properties.  However,  there is no guarantee
     that the Company will receive  sufficient  funding to sustain operations or
     implement any future business plans.

Results of Operations
---------------------

Gross Operating Revenue from Continuing Operations
--------------------------------------------------

     Gross  operating  revenue for the three months ended September 30, 2007 was
     $964,006  compared with $1,278,320 for the three months ended September 30,
     2006,  a decrease  of  $314,314,  or 24.6%.  Gross  operating  revenue  has
     decreased  from the first  two  quarters  due to the sale of the  Company's
     interest in Dutch Fork Capital, LLC.

     Gross  operating  revenue for the nine months ended  September 30, 2007 was
     $2,686,204 compared with $2,235,714 for the nine months ended September 30,
     2006, an increase of $450,490, or 20.1%.

Net Operating Revenue from Continuing Operations
------------------------------------------------

     Net operating  revenue,  as a percentage of sales,  was 31% and 35% for the
     three months ended September 30, 2007 and September 30, 2006, respectively.
     Margin  contribution  dollars  decreased 33% as a result of the decrease in
     gross  operating  revenue  during this  period.  For the nine months  ended
     September  30, 2007 and  September  30, 2006,  respectively,  net operating
     revenue,  as a percentage of sales,  was 43% and 38%.  Margin  contribution
     dollars increased to $1,143,753 from $854,144,  an increase of $429,547, or
     34%.

Operating expenses from Continuing Operations
---------------------------------------------

     Operating expenses,  as a percentage of gross operating revenue,  were 148%
     and 115% for the three months ended  September  30, 2007 and  September 30,
     2006, respectively.  The operating expenses, as a percentage of sales, were
     127% and 60% for the nine months ended September 30, 2007 and September 30,
     2006,  respectively.  The Company continues to invest in the infrastructure
     and other resources  required to support the anticipated  additional  asset
     pools.


<PAGE>


Income from Discontinued Operations
-----------------------------------

     Income  of  $300,066  for the nine  months  ended  September  30,  2007 was
     applicable to Dutch Fork Capital, LLC. The Company sold its equity interest
     in this joint venture in April 2007.

Net loss
--------

     Net loss was $  (1,355,358)  and $  (213,203)  for the three  months  ended
     September  30, 2007 and September  30, 2006,  respectively.  Net loss was $
     (2,456,851)  and $ (609,137)  for the nine months ended  September 30, 2007
     and September 30, 2006, respectively.





























<PAGE>

Item 3. Controls and Procedures

During  the  period  ended  September  30,  2007,  the  Company  carried  out an
evaluation,  under the  supervision  and with the  participation  of management,
including the Company's Chief Executive Officer and the Chief Financial Officer,
of the  effectiveness  and design and operation of the  disclosure  controls and
procedures  pursuant to Rule  13a-15(3) of the  Securities  Exchange Act of 1934
(the "Exchange Act"),  which disclosure  controls and procedures are designed to
insure that  information  required to be  disclosed  by a company in the reports
that it files under the  Exchange  Act is recorded,  processed,  summarized  and
reported within required time periods specified by the SEC's rules and forms.

Management,  including the Chief Executive Officer and Chief Financial  Officer,
does not expect that the disclosure controls or internal controls over financial
reporting will prevent all errors or all instances of fraud.  A control  system,
no matter how well  designed  and  operated,  can provide only  reasonable,  not
absolute,  assurance that the control system's  objectives will be met. Further,
the design of a control  system must  reflect  the fact that there are  resource
constraints,  and the benefits of controls must be considered  relative to their
costs. Because of the inherent limitations in all control systems, no evaluation
of controls can provide absolute assurance that all control issues and instances
of fraud,  if any,  within  the  Company  have  been  detected.  These  inherent
limitations  include the  realities  that  judgments in  decision-making  can be
faulty,  and that  breakdowns  can occur  because  of simple  error or  mistake.
Controls can also be  circumvented  by the individual  acts of some persons,  by
collusion of two or more people, or by management override of the controls.  The
design of any system of controls is based in part upon certain assumptions about
the likelihood of future events, and any design may not succeed in achieving its
stated goals under all  potential  future  conditions.  Over time,  controls may
become  inadequate  because of changes in  conditions  or  deterioration  in the
degree of  compliance  with  policies  or  procedures.  Because of the  inherent
limitation of a  cost-effective  control system,  misstatements  due to error or
fraud may occur and not be detected.

During the quarter, the Company addressed the weaknesses previously disclosed in
its Form  10-QSB  for the  period  ending  June 30,  2007 and its Form 8-K dated
August  10,  2007 by  creating  additional  levels of  review  and  approval  of
acquisitions and sales of portfolio assets.

Management,  including the Chief Executive Officer and Chief Financial  Officer,
believe that the Company's  disclosure  controls and  procedures are designed to
provide  reasonable  assurance of achieving their objectives and, based upon the
aforementioned  evaluation,  our Chief Executive Officer and the Chief Financial
Officer  concluded that the Company's  disclosure  controls and procedures  were
effective at that reasonable assurance level in timely alerting them to material
information  relating  to the Company  required to be included in the  Company's
period SEC filings.



<PAGE>

                                     PART II
                                OTHER INFORMATION

Item 1. Legal Proceedings.

The  Company  is not  aware of any  material  legal  proceeding  to  which,  any
director,  officer,  partnership interest of the Company, or any owner of record
or  beneficial  owner of more than 5% of the Company  common stock is a party to
and which would be adverse to the Company.

Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds.

N/A

Item 3.  Defaults upon Senior Securities.

N/A

Item 4.  Submission of Matters to a Vote of Security Holders.

None

Item 5.  Other Information.

None

Item 6.  Exhibits.

31.1           Chief Executive Officer - Section 302  Certification  pursuant to
               the Sarbanes-Oxley Act of 2002

31.2           Chief Financial Officer - Section 302  Certification  pursuant to
               the Sarbanes-Oxley Act of 2002

32.1           Chief Executive Officer - Section 906  Certification  pursuant to
               the Sarbanes-Oxley Act of 2002

32.2           Chief Financial Officer - Section 906  Certification  pursuant to
               the Sarbanes-Oxley Act of 2002


<PAGE>


SIGNATURES

               Pursuant  to the  requirements  of  Section  13 or  15(d)  of the
               Securities  Act of 1933,  the  registrant  has duly  caused  this
               report to be signed on its behalf by the  undersigned,  thereunto
               duly authorized.

                                    MORTGAGE ASSITANCE CENTER CORPORATION




Date:  November 14, 2007            By:    /s/ Ron Johnson
                                        ----------------------------------------
                                           Ron Johnson
                                           President and Chief Executive Officer



Date:  November 14, 2007            By:    /s/ Richard D. Coleman
                                        ----------------------------------------
                                           Richard D. Coleman
                                           Chief Financial Officer
                                           (principal financial officer)










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