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 June 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:  12,725,124 shares of Common Stock as
of June 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


                                  JUNE 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 June 30, 2007 and December 31,
2006.........................................................................F-3

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

     Consolidated Statements of Cash Flows
          for the six months ended June 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 June 30, 2007,  the  consolidated
statements  of  operations  and  comprehensive  loss  for  the  three-month  and
six-month  periods ended June 30, 2007, and the consolidated  statements of cash
flows for the six months ended June 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
June 30, 2007. These circumstances  create substantial doubt about the Company's
ability  to  continue  as a going  concern  and  are  discussed  in Note 7.  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
August 13, 2007



                                       F-2

<PAGE>
<TABLE>
<CAPTION>


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




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

Current Assets:
      Cash and cash equivalents                              $ 1,329,000   $ 1,205,120
      Portfolio assets, at cost (net impairment reserve of
          $385,260 and $253,508 at June 30, 2007 and
          December 31, 2006 respectively)                      7,139,592     6,798,509
      Prepaid expenses and other                                 232,280       194,405
                                                             -----------   -----------

Total Current Assets                                           8,700,872     8,198,034
                                                             -----------   -----------

Property and Equipment, at cost:
      Land                                                       699,600       699,600
      Building and improvements                                  621,967       606,799
      Office furniture and equipment                             413,779       118,670
                                                             -----------   -----------
                                                               1,735,346     1,425,069

Less accumulated depreciation                                     97,232        73,468
                                                             -----------   -----------
                                                               1,638,114     1,351,601
                                                             -----------   -----------

Investments and Other Assets:
      Deposits                                                    25,404         3,450
                                                             -----------   -----------

Total Assets                                                 $10,364,390   $ 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
            June 30, 2007 (Unaudited) and December 31, 2006 (Audited)

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

Current Liabilities:
      Notes payable-individuals and others                       $  1,262,314    $  1,522,315
      Current portion of mortgages payable                             24,500          24,400
      Accounts payable-trade                                           30,329          58,794
      Accounts payable-other                                           72,090         182,507
      Accrued fees and wages                                          173,078         182,532
      Accrued stock-based compensation                                 96,856          95,947
      Other accrued liabilities                                       174,285         169,068
                                                                 ------------    ------------

Total Current Liabilities                                           1,833,452       2,235,563
                                                                 ------------    ------------

Long-term Debt:
      Notes payable-individuals and others                          2,328,875       1,492,768
      Mortgage payable, less current portion                        1,026,144       1,036,360
                                                                 ------------    ------------

Total Long-term Debt                                                3,355,019       2,529,128
                                                                 ------------    ------------
Minority Interests                                                  6,068,609       5,466,543
                                                                 ------------    ------------

Total Liabilities                                                  11,257,080      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, respectively
         at June 30, 2007 and December 31, 2006)                        2,000           1,500
      Common stock ($0.001 par value; 50,000,000 shares
         authorized; 12,725,124 shares issued and outstanding)         12,726          12,726
      Additional paid-in capital                                    3,228,335       2,481,413
      Retained deficit after December 31, 2004                     (4,480,211)     (3,518,248)
                                                                 ------------    ------------
                                                                   (1,237,150)     (1,022,609)
      Subscriptions issuable                                          344,460         344,460
                                                                 ------------    ------------

Total Stockholders' Deficit                                          (892,690)       (678,149)
                                                                 ------------    ------------

Total Liabilities and Stockholders' Equity                       $ 10,364,390    $  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 Six Months Ended June 30, 2007 and 2006
                                   (Unaudited)



                                                Three Months Ended              Six Months Ended
                                               June 30,     June 30,         June 30,      June 30,
                                                2007          2006             2007         2006
                                                            (Restated)                    (Restated)
                                            -----------    -----------    -----------    -----------
<S>                                         <C>            <C>            <C>            <C>

Operating Revenues:
      Sales of portfolio assets             $ 1,519,753    $   539,347    $ 2,639,202    $   775,635
      Servicing fees and commissions             65,904        139,320        180,300        144,590
      Rental Income                              58,000         26,250        111,004         29,550
      Other                                     421,522          4,739        313,319          7,619
                                            -----------    -----------    -----------    -----------
         Gross operating revenue              2,065,179        709,656      3,243,825        957,394
                                            -----------    -----------    -----------    -----------
      Cost of portfolio assets sold           1,221,925        391,842      1,901,919        548,025
                                            -----------    -----------    -----------    -----------
         Net operating revenue                  843,254        317,814      1,341,906        409,369
                                            -----------    -----------    -----------    -----------

Operating Expenses:
      Salaries, wages and contract  labor       467,130        184,072      1,065,164        398,565
      Selling, general and                      366,952        254,527        692,812        410,615
         administrative expenses
      Bad debts                                  78,080           --          185,674           --
      Depreciation and amortization              24,083          5,642         36,196         11,285
                                            -----------    -----------    -----------    -----------
         Total operating expenses               936,245        444,241      1,979,846        820,465
                                            -----------    -----------    -----------    -----------

Operating loss                                  (92,991)      (126,427)      (637,940)      (411,096)
                                            -----------    -----------    -----------    -----------

Other income (expense):
      Interest and other income                  99,250         89,766        171,970         98,948
      Interest expense                         (179,798)       (68,250)      (155,932)      (147,773)
      Priority payments                         (58,607)          --         (155,964)          --
                                            -----------    -----------    -----------    -----------

         Total other income (expense)          (139,155)        21,516       (139,926)       (48,825)
                                            -----------    -----------    -----------    -----------

Loss before minority interests and
   income taxes                                (232,146)      (104,911)      (777,866)      (459,921)


</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 Six Months Ended June 30, 2007 and 2006
                                   (Unaudited)



                                            Three Months Ended                       Six Months Ended
                                         June 30,       June 30,        June 30,        June 30,
                                           2007           2006            2007            2006
                                                       (Restated)                      (Restated)
                                     --------------   ------------    ------------    ------------
<S>                                  <C>              <C>             <C>             <C>


Loss before minority interests and         (232,146)      (104,911)       (777,866)       (459,921)
income taxes

Minority interests                          (88,983)        17,466        (184,097)         63,987

                                     --------------   ------------    ------------    ------------
Loss before income taxes                   (321,129)       (87,445)       (961,963)       (395,934)

Income tax benefit (expense)                   --             --              --              --
                                     --------------   ------------    ------------    ------------

Net Loss                                   (321,129)       (87,445)       (961,963)       (395,934)

Other comprehensive income                     --             --              --              --
                                     --------------   ------------    ------------    ------------

Comprehensive Loss                   $     (321,129)  $    (87,445)   $   (961,963)   $   (395,934)
                                     ==============   ============    ============    ============

Net loss per weighted-average
share of common stock outstanding,
calculated on net loss:
       Basic                         $        (0.03)  $      (0.01)   $      (0.09)   $      (0.03)
                                     ==============   ============    ============    ============
       Fully diluted                                  $      (0.01)                   $      (0.03)
                                                      ============                    ============

Weighted-average number of
shares of common stock
outstanding:
        Basic                            12,725,124     12,725,124      12,725,124      12,725,124
                                     ==============   ============    ============    ============
        Fully 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
                     Six Months Ended June 30, 2007 and 2006
                                   (Unaudited)


                                                                                Six Months Ended
                                                                             June 30,      June 30,
                                                                               2007          2006
                                                                                          (Restated)
                                                                           -----------    -----------
<S>                                                                        <C>            <C>

Cash Flows from Operating Activities:
        Net loss                                                           $  (961,963)   $  (395,934)
                                                                           -----------    -----------
        Adjustments to reconcile net loss to net cash provided (used) by
        operating activities:
             Depreciation                                                       23,764         11,285
             Non-cash stock based compensation                                 248,332           --
             Minority interests in subsidiaries' net earnings                  184,097        (63,987)
             Change in assets and liabilities:
               (Increase) decrease in portfolio assets                        (341,083)      (684,144)
               (Increase) decrease in prepaid expenses and other               (59,829)        11,789
                                                                           -----------    -----------

                     assets
               Increase (decrease) in accounts payable-trade                   (28,465)        52,727
               Increase (decrease) in accounts payable-other                  (110,417)       (89,784)
               Increase (decrease) in accrued fees and wages                    (9,454)        28,115
               Increase (decrease) in other accrued liabilities                  5,217         97,277
                                                                           -----------    -----------

        Total adjustments                                                      (87,838)      (636,722)
                                                                           -----------    -----------

                   Net Cash Provided (Used) by Operating Activities         (1,049,801)    (1,032,656)
                                                                           -----------    -----------

Cash Flows From Investing Activities

        Purchases of property and equipment                                   (310,278)       (27,354)
                                                                           -----------    -----------

                   Net Cash Used by Investing Activities                      (310,278)       (27,354)
                                                                           -----------    -----------

</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
                     Six Months Ended June 30, 2007 and 2006
                                   (Unaudited)


                                                                           Six Months Ended
                                                                        June 30,      June 30,
                                                                          2007          2006
                                                                                     (Restated)
                                                                      -----------    -----------
<S>                                                                   <C>            <C>

Cash Flows From Financing Activities
        Proceeds from issuance of debt to individuals and others          935,000        651,000
        Repayment of debt to individuals and others                      (358,705)      (230,625)
        Proceeds from issuance of Preferred Stock                         500,000           --
        Capital contributions from minority interests                   2,117,326        350,000
        Refund of capital contributions to minority interests          (1,651,286)          --
        Distributions to minority interests                               (48,160)      (137,149)
        Net advance from stockholder                                         --           17,011
        Repayments of mortgage loan                                       (10,216)          (799)
                                                                      -----------    -----------

                   Net Cash Provided (Used) by Financing Activities     1,483,959        649,438
                                                                      -----------    -----------

                   Net Increase (Decrease) in Cash                        123,880       (410,572)
                                                                      -----------    -----------

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

                   Cash at End of Period                              $ 1,329,000    $   188,407
                                                                      ===========    ===========

Supplemental Disclosures of Cash Flow Information
-------------------------------------------------

Cash Paid During the Period for:
        Interest                                                      $   140,541    $   105,896
        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
                                  June 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, and 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 six months ended
June 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
                                  June 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.  The sale has been recorded as other  income,  and all of the assets
and  applicable  minority  interests  have been  eliminated in the  accompanying
financial statements as of that date.

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
                                  June 30, 2007
                                   (Unaudited)


Note 6 - Contingent Liability
-----------------------------

During the reporting  period ended,  June 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.
During this evaluation, weaknesses in the Company's disclosure control processes
were discovered that prevented the Company's  senior  management,  including the
Company's Chief Executive Officer,  from obtaining information regarding certain
operational aspects related to the Company's joint ventures. While the Company's
management  believes that it has corrected  these  weaknesses in its  disclosure
controls, management is currently unable to estimate, with reasonable certainty,
the  possible  loss,  or range  of  loss,  if any,  for the  previously  unknown
operational  issues.  While the Company does not, at this time, believe that the
ultimate resolution of these operational issues will necessitate any adjustments
with respect to the Company's current or previously issued financial statements,
it is  reasonably  possible that there may be a material  adverse  effect on the
Company's  financial  position and results of  operations,  both in the near and
long term.

The internal  investigation is ongoing,  and the Company's executive  management
and  legal   counsel  are  working   expeditiously   to  complete  the  internal
investigation  as  soon as  practicable.  The  Company's  management  will  then
complete a  qualitative  assessment of all  identified  issues and determine the
resulting  effects,  including  possible monetary  effects,  of the issues under
investigation.

Note 7 - 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 six months ended June 30, 2007 and prior years,  resulting in an accumulated
stockholders'  deficit as of June 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-11

<PAGE>

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

Note 7 - Going Concern Uncertainty (continued)
----------------------------------------------

The Company  completed a $1,500,000  preferred  stock  financing  transaction on
November 30, 2006, which required the Company to restructure the majority of its
existing  short-term  debt. The financing  agreement  contains  provisions which
could provide  additional  preferred stock financing up to $1,500,000,  of which
$500,000 was received during the first quarter of 2007 (see Note 11).

The  Company  is  actively  pursuing  alternative  financing  plans  to fund the
Company's  requirements,  and  those  plans  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.

Note 8 - 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 $58,607 and $155,964 for the three months and six months ended June 30,
2007, respectively, applicable to these priority payment obligations.

Note 9 - 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.

Note 10 - 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 June 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


                                      F-12

<PAGE>

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

Note 10 - Share-Based Compensation (continued)
----------------------------------------------

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 six months ended June 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 quarter ended June 30, 2007. The result  reflects no
related  tax  benefit  due to the  Company's  full  valuation  allowance  on its
deferred  tax assets.  As of June 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.


                                      F-13

<PAGE>

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

Note 10 - Share-Based Compensation (continued)
----------------------------------------------

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.


Note 11 - 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  have  advised  the  Company  that they do not intend to fund  further
tranches under the Purchase Agreement.

Note 12 - Subsequent Events
---------------------------

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. In August, the Company

                                      F-14

<PAGE>

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


Note 12 - Subsequent Events (continued)
---------------------------------------

received a proposal from the Investors  with respect to an equity  investment of
$1,000,000  in exchange for the  issuance of an  aggregate  number of new shares
sufficient to result in the Investors  holding 95% of the outstanding  shares of
common stock. In connection with this transaction,  all outstanding warrants and
shares of  preferred  stock would  either be cancelled or exercised or converted
into shares of common stock by the  Investors  and counted  toward the aggregate
numbers of shares held by the Investors. The proposed investment is also subject
to several  conditions  including,  but not limited to, (1) the  approval of the
transaction  by the  Company's  Board  of  Directors,  (2)  the  approval  of an
amendment to the Articles of  Incorporation to increase the number of authorized
shares of common stock, and (3) the Company  obtaining a bridge loan of $300,000
from one of our joint  venture  investors,  who agreed to  immediately  fund the
proposed  bridge  loan  subject to the Company  accepting  the  proposed  equity
financing. Upon receiving the proposal, a special meeting of the Company's Board
of  Directors  was  held  to  discuss  the  proposal.   As  no  other  financing
alternatives were made known during the meeting, the Board of Directors approved
the  proposed   financing,   subject  to  any  alternative   financing  becoming
immediately  available to the Company.  As no other  sources of funding could be
obtained by the Company  within the time frame  required to meet its payroll and
other  obligations,  the Company is in the process of  finalizing  its financing
agreement with the Investors.
















                                      F-15

<PAGE>

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

Forward Looking Statements:

From time to time, certain  information  provided by Mortgage  Assistance Center
Corporation ("MACC" or 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,  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.  However,  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:

On May 10, 2005, the Company entered into a Business Combination  Agreement with
Mortgage  Assistance  Corporation  ("MAC"),  a Texas  corporation.  MAC became a
wholly owned subsidiary of MACC upon  consummation of the transaction under this
agreement in August 2005. MACC 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


<PAGE>

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
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 June 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 $1,329,000 as of June 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 $ 1,049,801  for the six months
     ended June 30, 2007, compared with $1,032,656 for the six months ended June
     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 $310,278 for the six months ended
     June 30,  2007,  compared  with  $27,354 for the six months  ended June 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  $200,000  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


<PAGE>

     operations  and/or  acquire   additional  funds  through  future  financing
     activities.

Net cash provided by financing activities
-----------------------------------------
     Net cash provided by financing activities was $1,483,959 for the six months
     ended June 30, 2007,  compared  with $649,438 for the six months ended June
     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  $935,000  of  additional   promissory   notes,   and  the  net  capital
     contributions from minority interests.

Cash requirements
-----------------
     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.  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 have advised the Company that they do not intend to
     fund further tranches under the Purchase Agreement.

     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.  In August, the Company received a
     proposal  from the  Investors  with  respect  to an  equity  investment  of
     $1,000,000  in  exchange  for the  issuance of an  aggregate  number of new
     shares sufficient to result in the Investors holding 95% of the outstanding
     shares  of  common  stock.  In  connection  with  this   transaction,   all
     outstanding  warrants  and  shares  of  preferred  stock  would  either  be
     cancelled  or  exercised  or  converted  into shares of common stock by the
     Investors and counted  toward the  aggregate  numbers of shares held by the
     Investors.  The proposed  investment is also subject to several  conditions
     including,  but not limited to, (1) the approval of the  transaction by the
     Company's  Board of  Directors,  (2) the  approval of an  amendment  to the
     Articles of  Incorporation  to increase the number of authorized  shares of
     common stock, and (3) the Company  obtaining a bridge loan of $300,000 from
     one of our joint  venture  investors,  who agreed to  immediately  fund the
     proposed  bridge loan subject to the Company  accepting the proposed equity
     financing.  Upon receiving the proposal, a special meeting of the Company's
     Board of Directors was held to discuss the proposal.  As no other financing
     alternatives  were made known  during the  meeting,  the Board of Directors


<PAGE>

     approved  the  proposed  financing,  subject to any  alternative  financing
     becoming  immediately  available  to the  Company.  As no other  sources of
     funding could be obtained by the Company  within the time frame required to
     meet its  payroll and other  obligations,  the Company is in the process of
     finalizing its financing agreement with the Investors.

     The  Company  anticipates  that it will  continue  to  depend  on  external
     financing in the foreseeable future, and it cannot be assured that adequate
     financing  will be available at all or at terms  acceptable to  management.
     The  Company's  ability to continue to operate as a going  concern  will be
     largely influenced by 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 to ultimately sustain profitability.

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

Gross Operating Revenue
-----------------------
     Gross  operating  revenue  for the three  months  ended  June 30,  2007 was
     $2,065,179 compared with $709,656 for the three months ended June 30, 2006,
     an increase of $1,355,523, or 191%.

     Gross  operating  revenue  for the six  months  ended  June  30,  2007  was
     $3,243,825  compared  with $957,394 for the six months ended June 30, 2006,
     an increase of $2,286,431, or 239%.

Net Operating Revenue
---------------------
     Net operating revenue,  as a percentage of sales, was 40.83% and 44.78% for
     the three  months  ended  June 30,  2007 and June 30,  2006,  respectively.
     Margin  contribution  dollars  increased  to  $843,254  from  $317,814,  an
     increase of $525,440,  or 165%.  For the six months ended June 30, 2007 and
     June 30, 2006,  respectively,  net  operating  revenue,  as a percentage of
     sales,  was 41.37% and 42.76%.  Margin  contribution  dollars  increased to
     $1,341,906 from $409,369, an increase of $932,537, or 228%.

Operating expenses
------------------
     Operating  expenses,  as a  percentage  of sales,  were 45% and 63% for the
     three  months  ended June 30,  2007 and June 30,  2006,  respectively.  The
     operating expenses,  as a percentage of sales, were 61% and 86% for the six
     months ended June 30, 2007 and June 30, 2006,  respectively.  The decrease,
     as a percentage of sales, was primarily due to the leveraging impact of the
     significant increase in gross operating revenue.

Net loss
--------
     Net loss was  $321,129 and $87,445 for the three months ended June 30, 2007
     and June 30, 2006, respectively. Net loss was $961,963 and $395,934 for the
     six months ended June 30, 2007 and June 30, 2006, respectively.


<PAGE>


Item 3. Controls and Procedures

During the reporting  period ended,  June 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.
During this evaluation, weaknesses in the Company's disclosure control processes
were discovered that prevented the Company's  senior  management,  including the
Company's Chief Executive Officer,  from obtaining information regarding certain
operational aspects related to the Company's joint ventures. While the Company's
management  believes that it has corrected  these  weaknesses in its  disclosure
controls, management is currently unable to estimate, with reasonable certainty,
the  possible  loss,  or range  of  loss,  if any,  for the  previously  unknown
operational  issues.  While the Company does not, at this time, believe that the
ultimate resolution of these operational issues will necessitate any adjustments
with respect to the Company's current or previously issued financial statements,
it is  reasonably  possible that there may be a material  adverse  effect on the
Company's  financial  position and results of  operations,  both in the near and
long term.

The internal  investigation is ongoing,  and the Company's executive  management
and  legal   counsel  are  working   expeditiously   to  complete  the  internal
investigation  as  soon as  practicable.  The  Company's  management  will  then
complete a  qualitative  assessment of all  identified  issues and determine the
resulting  effects,  including  possible monetary  effects,  of the issues under
investigation.

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.


<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:  August 20, 2007                     By: /s/ Ron Johnson
                                              ----------------------------------
                                              Ron Johnson
                                              President and
                                              Chief Executive Officer



Date:  August 20, 2007                     By: /s/ Richard D. Coleman
                                              ----------------------------------
                                              Richard D. Coleman
                                              Chief Financial Officer
                                              (principal accounting officer)


<PAGE>