10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

þQUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2012

¨ TRANSITION REPORT PURSUANT SECTION 13 OR 15(d) OF THE EXCHANGE ACT

For the transition period from________ to ___________

Commission File No. 333-173215

FORECLOSURE SOLUTIONS, INC.

(Exact Name of Registrant as Specified in Its Charter)

(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification No.)
2502 Live Oak Street, Suite 205, Dallas, Texas  75204	(214) 620-8711
(Address of Principal Executive Offices)	(Issuer’s Telephone Number)

N/A

(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.   Yes  þ   No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).   Yes  ¨  No  þ

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer  ¨          Accelerated filer  ¨            Non-accelerated filer ¨         Smaller reporting company þ

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

The number of shares outstanding of the Issuer’s Common Stock as of August 9, 2012 was 7,000,000.  

FORECLOSURE SOLUTIONS, INC.
INDEX
			Page
PART I - FINANCIAL INFORMATION
	Item. 1	Financial Statements
		Balance Sheets as of June 30, 2012 and December 31, 2011	3
		Statements of Operations for the three and six months ended June 30, 2012 and 2011 and for the period from December 9, 2010 (Inception) through June 30, 2012	4
		Statement of Stockholders' Equity (Deficit) for the period from December 9, 2010 (Inception) through June 30, 2012	5
		Statements of Cash Flows for the six months ended June 30, 2012 and 2011 and for the period from December 9, 2010 (Inception) through June 30, 2012	6
		Notes to the Financial Statements	7
	Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	9
	Item 3.	Quantitative and Qualitative Disclosures about Market Risks	11
	Item 4.	Controls and Procedures	11
Part II - OTHER INFORMATION
	Item 1.	Legal Proceedings	12
	Item 1A.	Risk Factors	12
	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	12
	Item 3.	Defaults Upon Senior Securities	12
	Item 4.	Mine Safety Disclosures	12
	Item 5.	Other Information	12
	Item 6.	Exhibits	13

2

FORECLOSURE SOLUTIONS, INC.
(A DEVELOPMENT STAGE COMPANY)
BALANCE SHEETS
	June 30,			December 31,
	2012			2011
	(unaudited)			(audited)
ASSETS
Current Assets:
Cash	$	113		$	1,168
Prepaid expense		-			1,750
Total current assets	$	113		$	2,918
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current Liabilities:
Accounts payable	$	29,366		$	20,223
Amount due to related party		38,100			20,800
Total current liabilities		67,466			41,023
Stockholders' Equity (Deficit):
Preferred stock, par value $0.0001; 10,000,000 shares
authorized, no shares issued and outstanding		-			-
Common stock - par value $0.0001; 190,000,000 shares authorized;
7,000,000 shares issued and outstanding		700			700
Additional paid in capital		59,800			59,800
Deficit accumulated during development stage		(127,853	)		(98,605	)
Total stockholders' equity (deficit)		(67,353	)		(38,105	)
Total liabilities and stockholders' equity (deficit)	$	113		$	2,918

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

3

FORECLOSURE SOLUTIONS, INC.
(A DEVELOPMENT STAGE COMPANY)
STATEMENTS OF OPERATIONS
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2012 AND 2011
AND FOR THE PERIOD FROM DECEMBER 9, 2010 (INCEPTION) THROUGH JUNE 30, 2012
(UNAUDITED)
													December 9, 2010
	Three Months Ended						Six Months Ended						(Inception)
	June 30,						June 30,						through
	2012			2011			2012			2011			June 30, 2012
Revenues	$	-		$	-		$	-		$	-		$	-
Operating expenses:
Selling, general and administration		11,352			21,174			27,396			60,675			123,913
Total operating expenses		11,352			21,174			27,396			60,675			123,913
Loss from operations		(11,352	)		(21,174	)		(27,396	)		(60,675	)		(123,913	)
Other expenses:
Interest expense		(974	)		(227	)		(1,852	)		(227	)		(3,940	)
Loss before taxes		(12,326	)		(21,401	)		(29,248	)		(60,902	)		(127,853	)
Provision for income taxes		-			-			-			-			-
Net loss	$	(12,326	)	$	(21,401	)	$	(29,248	)	$	(60,902	)	$	(127,853	)
Net loss per common share - basic and diluted	$	(0.00	)	$	(0.00	)	$	(0.00	)	$	(0.01	)
Weighted average shares outstanding		7,000,000			7,000,000			7,000,000			6,941,338

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

4

FORECLOSURE SOLUTIONS, INC.
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF STOCKHOLDERS' EQUITY (DEFICIT)
FOR THE PERIOD FROM DECEMBER 9, 2010 (INCEPTION) THROUGH JUNE 30, 2012
(UNAUDITED)
							Deficit
							Accumulated
					Additional		During
	Common Stock				Paid In		Development
	Shares		Amount		Capital		Stage			Total
Balance, December 9, 2010 (Inception)		-	$	-	$	-	$	-		$	-
Shares issued for services		5,000,000		500		-		-			500
Shares issued for cash		1,020,000		102		30,498		-			30,600
Net loss		-		-		-		(8,425	)		(8,425	)
Balance, December 31, 2010		6,020,000		602		30,498		(8,425	)		22,675
Shares issued for cash		980,000		98		29,302		-			29,400
Net loss		-		-		-		(90,180	)		(90,180	)
Balance, December 31, 2011		7,000,000		700		59,800		(98,605	)		(38,105	)
Net loss		-		-		-		(29,248	)		(29,248	)
Balance, June 30, 2012		7,000,000	$	700	$	59,800	$	(127,853	)	$	(67,353	)

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

5

FORECLOSURE SOLUTIONS, INC.
(A DEVELOPMENT STAGE COMPANY)
STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2012 AND 2011
AND FOR THE PERIOD FROM DECEMBER 9, 2010 (INCEPTION) THROUGH JUNE 30, 2012
(UNAUDITED)
							December 9, 2010
	Six Months Ended						(Inception)
	June 30,						through
	2012			2011			June 30, 2012
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$	(29,248	)	$	(60,902	)	$	(127,853	)
Adjustments to reconcile net loss to net cash flows used
in operating activities:
Issuance of common stock for services		-			-			500
Change in operating assets and liabilities:
Prepaid expense		1,750			-			-
Accounts payable		9,143			15,130			29,366
Accrued liabilities		-			(7,925	)		-
Net cash flows used in operating activities		(18,355	)		(53,697	)		(97,987	)
CASH FLOWS FROM INVESTING ACTIVITIES		-			-			-
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from loan from related party		17,300			-			38,200
Proceeds from sale of common stock		-			29,400			60,000
Payment of amount due to related party		-			(100	)		(100	)
Net cash flows provided by financing activities		17,300			29,300			98,100
Net increase (decrease) in cash		(1,055	)		(24,397	)		113
Cash, beginning of period		1,168			30,700			-
Cash, end of period	$	113		$	6,303		$	113
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Interest paid	$	1,385		$	-		$	1,821

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

6

FORECLOSURE SOLUTIONS, INC.

(A DEVELOPMENT STAGE COMPANY)

NOTES TO THE FINANCIAL STATEMENTS

JUNE 30, 2012

NOTE A – BASIS OF PRESENTATION AND RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

Interim Financial Reporting

While the information presented in the accompanying interim financial statements is unaudited, it includes all adjustments, which are, in the opinion of management, necessary to present fairly the financial position, results of operations and cash flows for the interim periods presented in accordance with generally accepted accounting principles in the United States of America ("GAAP").  These interim financial statements follow the same accounting policies and methods of application as used in the December 31, 2011 audited financial statements of Foreclosure Solutions, Inc. (the “Company”).  All adjustments are of a normal, recurring nature. Interim financial statements and the notes thereto do not contain all of the disclosures normally found in year-end audited financial statements and these Notes to Financial Statements are abbreviated and contain only certain disclosures related to the six month periods ended June 30, 2012 and 2011.  It is suggested that these interim financial statements be read in conjunction with the Company’s audited financial statements and related notes for the year ended December 31, 2011 included in our Form 10K, filed with the Securities Exchange Commission on April 10, 2012. Operating results for the three and six months ended June 30, 2012 are not necessarily indicative of the results that can be expected for the year ending December 31, 2012.

Development Stage Activities

The Company is presently in the development stage with no significant revenues from operations.  Accordingly, all of the Company’s operating results and cash flows reported in the accompanying financial statements are considered to be those related to development stage activities and represent the cumulative from inception amounts from its development stage activities reported pursuant to Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 915-10-05, Development Stage Entities.

Recent Accounting Pronouncements

The Company does not expect the adoption of recently issued accounting pronouncements to have a significant impact on its results of operations, financial position or cash flow.

NOTE B -- GOING CONCERN

The financial statements of the Company have been prepared in conformity with GAAP, and assume that the Company will continue as a going concern.  The Company expects to incur losses as it expands.  To date, the Company's cash flow requirements have been met through the sale of its common stock, cash advances from related parties, and established trade credit.  There is no assurance that additional funds will be available for the Company to finance its operations should the Company be unable to realize profitable operations. These conditions, among others, give rise to substantial doubt about the Company’s ability to continue as a going concern.  The financial statements do not include adjustments relating to the recoverability and realization of assets and classification of liabilities that might be necessary should the Company be unable to continue in operation.

7

FORECLOSURE SOLUTIONS, INC.

(A DEVELOPMENT STAGE COMPANY)

NOTES TO THE FINANCIAL STATEMENTS

JUNE 30, 2012

NOTE C -- RELATED PARTY TRANSACTIONS

During the three and six months ended June 30, 2012, H.J. Cole, sole officer and director, advanced the Company $11,800 and $17,300, respectively.  These advances are non-interest bearing and due upon demand as funds become available.  During the three and six months ended June 30, 2011, the Company paid Mr. Cole $0 and $10,000, respectively,  to reimburse him for services rendered, for the cost of licensing fees that he previously incurred for the Company, and to pay for additional training relative to the foreclosure real estate market.  These costs were recorded as general and administrative expense in the accompanying financial statements.  During 2011, Mr. Cole advanced the Company $20,800 and refunded the Company $5,000 for payments made during the first quarter of 2011.  The $20,800 advance is non-interest bearing and due upon demand as funds become available.

NOTE D-- INCOME TAXES

Deferred income tax assets and liabilities are determined based upon differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company does not expect to pay any significant federal or state income tax for 2012 as a result of the losses incurred during the six months ended June 30, 2012 as well as additional losses expected for the remainder of 2012 as well as from net operating loss carry forwards from prior years.  Accounting standards require the consideration of a valuation allowance for deferred tax assets if it is "more likely than not" that some component or all of the benefits of deferred tax assets will not be realized.  As of June 30, 2012, the Company maintains a full valuation allowance for all deferred tax assets. Based on these requirements, no provision or benefit for income taxes has been recorded.  There were no recorded unrecognized tax benefits at the end of the reporting period.

8

Item 2.  Management's Discussion and Analysis of Financial Condition and Results of Operations

General

The following discussion and analysis provides information which management of the Company believes to be relevant to an assessment and understanding of the Company’s results of operations and financial condition.  This discussion should be read together with the Company’s financial statements and the notes to the financial statements, which are included in this report.  This information should also be read in conjunction with the information contained in the Company’s audited financial statements and related notes for the year ended December 31, 2011 included in our Form 10K, filed with the Securities Exchange Commission on April 10, 2012, which reports are incorporated herein by reference. The reported results will not necessarily reflect future results of operations or financial condition.

Throughout this Quarterly Report on Form 10-Q (the "Report"), the terms "we," "us," "our," "Foreclosure Solutions," or "our Company" refers to Foreclosure Solutions, Inc., a Texas corporation.

The Company maintains a website at www.foreclosurecat.com.

Overview

Foreclosure Solutions, Inc., a Texas corporation ("Foreclosure Solutions" or the "Company"), was incorporated on December 9, 2010. We are a start-up, development stage company with no subsidiaries. We have only recently begun operations, have no sales or revenues, and therefore rely upon the sale of our securities to fund our operations. We have a going concern uncertainty as of the date of our most recent financial statements.

We are not a blank check company.  Rule 419 of Regulation C under the Securities Act of 1933 defines a "blank check company" as a (i) development stage company that has no specific business plan or purpose or has indicated that its business plan is to engage in a merger or acquisition with an unidentified company or companies, or other entity or person, and (ii) is issuing a penny stock.  Accordingly, we do not believe that our company may be classified as a "blank check company" because we intend to engage in a specific business plan and do not intend to engage in any merger or acquisition with an unidentified company or other entity.

We will generate revenue by selling our realtor services to prospective homebuyers interested in foreclosed residential properties.  In some instances, these services will be provided by realtors employed or retained by our Company.  In other instances, we will refer these services to outside realtors.  We will collect a fixed portion of the realtor commissions.  In order to promote our realtor services, we will provide prospective homebuyers with comprehensive and easy-to-use information on foreclosed residential properties over the Internet on our website.  Potential homebuyers can search our web-based database free of charge, but are required to register in order to save favorite listings and searches and to receive free e-mail updates when new properties become available that match their previous search criteria. Each registered user of our website will receive follow-up e-mails offering the user the ability to schedule an appointment with one of our realtors to view properties the user has seen on our website and to alert the user to new properties that match the user's previous search criteria.  We own rights to our domain name, www.foreclosurecat.com.

Initially, our focus will be on homebuyers interested in purchasing foreclosed residential properties in Dallas, Tarrant, Denton and Collin Counties in the State of Texas.  Depending upon market conditions and market acceptance of our realtor services, we may expand into other counties in the State of Texas.

9

Our principal business activities will be: promoting, marketing, and selling realtor services to prospective homebuyers interested in foreclosed residential properties and developing, maintaining, and updating a comprehensive and easy to use web-based database of information on foreclosed residential properties that can be accessed by prospective homebuyers free of charge and can be used by us to promote our realtor services.

We have no revenues, minimal assets, and have incurred losses since inception. We have only recently begun operations. Since our inception, we have been involved primarily in organizational activities and launching our website.  We have built a management team, developed our business plan, reviewed potential markets, researched various products and services which we will offer, reviewed marketing strategies, raised capital, retained experts in law and accounting, purchased access to the data to be initially included in our web-based database, designed and built our website and network infrastructure (including our web-based database), and launched our website.

Our sole officer and director, H.J. Cole, is a licensed realtor and will provide realtor services for properties located within a reasonable distance of our offices. For properties not located within a reasonable distance of our offices, we will locate another realtor for the homebuyer.  We will have executed a blanket agreement with each realtor prior to introducing our client to the realtor.  We will charge all realtors (including our sole officer and director) a fixed percentage of the commission collected by the realtor on the transaction, estimated at this time to be 25%.  No fees are due or payable if a transaction is not consummated.

Results of Operations

The following discussion of our results of operations should be read in conjunction with our financial statements included herewith.  This discussion should not be construed to imply that the results discussed herein will necessarily continue into the future, or that any conclusion reached herein will necessarily be indicative of actual operating results in the future.  Such discussion represents only the best present assessment of our management.

Results for the three month periods ended June 30, 2012 and 2011

Revenues and Cost of Revenues

We had no revenue or cost of revenues during the above referenced periods.

General and Administration

Our general and administrative expenses consist of accounting and administrative costs, professional fees and other general corporate expenses.  General and administrative expenses for the three month period ended June 30, 2012 were $11,352 compared to $21,174 for the three month period ended June 30, 2011.  The $9,822 decrease was largely related to legal and accounting expense associated with the filing of our Form S-1 filed in 2011, partially offset by refunded costs associated with our website produced in 2011.

Results for the six month periods ended June 30, 2012 and 2011

Revenues and Cost of Revenues

We had no revenue or cost of revenues during the above referenced periods.

10

General and Administration

Our general and administrative expenses consist of accounting and administrative costs, professional fees and other general corporate expenses.  General and administrative expenses for the six month period ended June 30, 2012 were $27,396 compared to $60,675 for the six month period ended June 30, 2011.  The $33,279 decrease was largely related to consulting, legal, and accounting expense associated with the filing of our Form S-1 filed in 2011 and costs associated our website produced in 2011.

Liquidity and Capital Resources

As of June 30, 2012, our cash balance was $113, our outstanding debt totaled $67,466 (of which $38,100 represents advances made to the Company by Mr. Cole), and our working capital deficit was $67,353.

The Company has yet to attain a level of operations which allows it to meet its current overhead.  We do not contemplate attaining profitable operations until such time as management executes its plans for future operations nor is there any assurance that such an operating level can ever be achieved once such plans are executed. We expect to be dependent upon obtaining additional financing in order to adequately fund working capital, infrastructure and expenses in order to execute plans for future operations so that we can achieve a level of revenue adequate to support our cost structure, none of which can be assured. These factors raise substantial doubt about our ability to continue as a going concern and the accompanying financial statements do not include any adjustments related to the recoverability or classification of asset carrying amounts or the amounts and classification of liabilities that may result should we be unable to continue as a going concern.

Off-Balance Sheet Arrangements

None.

New Accounting Pronouncements

There have been no material changes to the Company’s significant accounting policies as summarized in Note A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2011.  The Company does not expect that the adoption of any recent accounting pronouncements will have a material impact on its financial statements.

Item 3.  Quantitative and Qualitative Disclosures about Market Risk

Our Company is a smaller reporting company, as defined by Rule 12b-2 of the Exchange Act and, as such, is not required to provide the information required under this item.

Item 4.  Controls and Procedures

Disclosure Controls and Procedures

Disclosure controls and procedures are designed to ensure that information required to be disclosed in the reports filed or submitted under the Securities Exchange Act of 1934 (the "Exchange Act") is recorded, processed, summarized and reported, within the time period specified in the SEC's rules and forms and is accumulated and communicated to Mr. Cole, as appropriate, in order to allow timely decisions in connection with required disclosure.

11

Evaluation of Disclosure Controls and Procedures

Mr. Cole evaluated the effectiveness of the design and operation of our Company's disclosure controls and procedures (as such term is defined in Rules 13a-15 and 15d-15 under the Exchange Act) as of the end of the period covered by this quarterly report.  Based on such evaluation, he concluded that the Company's disclosure controls and procedures are not effective to ensure that information required to be disclosed by the Company in reports that it files or submits under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the Commission's rules and forms. During the most recently completed three-month period ended June 30, 2012, there has been no significant change in the Company's internal control over financial reporting that has affected, or is reasonably likely to affect, the Company's internal control over financial reporting.

Changes in Internal Controls

During the three months ended June 30, 2012, there were no significant changes in internal controls of the Company, or other factors that could significantly affect these controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.

PART II - OTHER INFORMATION

Item 1.  Legal Proceedings.

None.

Item 1A.  Risk Factors.

Foreclosure Solutions is a smaller reporting company and is not required to provide the information required by this item.

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

The Company did not sell any unregistered equity securities during the three and six months ended June 30, 2012.

Item 3.  Defaults Upon Senior Securities.

None.

Item 4.  Mine Safety Disclosures.

Not Applicable.

Item 5.  Other Information.

None.

12

Item 6.  Exhibits.

Exhibit No.	Date	Name of Document
3.1	12/08/10	Certificate of Formation of Foreclosure Solutions, Inc. (1)
3.2	n/a	Bylaws of Foreclosure Solutions, Inc. (1)
4.1	n/a	Stock Certificate for Common Stock, form of (1)
10.1	03/25/11	Agreement with iHouse Web Solutions (1)
10.2	03/08/11	Agreement with North Texas Real Estate Information Systems, Inc. (1)
10.3	n/a	Referral Agreement, form of (2)
31.1	08/08/12	Certification of CEO of Periodic Report pursuant to Rule 13a-14a and Rule 14d-14(a).*
31.2	08/08/12	Certification of CFO of Periodic Report pursuant to Rule 13a-14a and Rule 15d-14(a).*
32.1	08/08/12	Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350.*
32.2	08/08/12	Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350.*
101.INS	n/a	XBRL Instance Document*
101.SCH	n/a	XBRL Taxonomy Extension Schema Document*
101.CAL	n/a	XBRL Taxonomy Extension Calculation Linkbase Document*
101.DEF	n/a	XBRL Taxonomy Extension Definition Linkbase Document*
101.LAB	n/a	XBRL Taxonomy Extension Label Linkbase Document*
101.PRE	n/a	XBRL Taxonomy Extension Presentation Linkbase Document*

(1) Previously included as an exhibit to our Registration Statement on Form S-1 filed on March 31, 2011 and incorporated herein by reference.

(2) Previously included as an exhibit to our Registration Statement on Form S-1/A, Amendment No. 1, filed on June 20, 2011 and incorporated herein by reference.

13

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

DATE:   August 9, 2012

FORECLOSURE SOLUTIONS, INC.
By:	/s/ H.J. Cole
	H. J. Cole
	Principal Executive Officer and
	Principal Financial Officer

14

EX-31.1

EXHIBIT 31.1

CERTIFICATION PURSUANT TO

SECTION 302 OF

THE SARBANES-OXLEY ACT OF 2002

I, H.J. Cole, certify that:

(1) I have reviewed this quarterly report on Form 10-Q of Foreclosure Solutions, Inc.;

(2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

(3) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

(4) The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:

(a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

(5) The registrant's other certifying officer(s) and I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

(a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
(b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

August 9, 2012	/s/ H.J. Cole
	H.J. Cole
	Principal Executive Officer Principal Financial Officer

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the quarterly report of Foreclosure Solutions, Inc. (the "Company") on Form 10-Q for the period ended June 30, 2012 as filed with the Securities and Exchange Commission (the "Report"), I, H.J. Cole, Principal Executive Officer and Principal Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

/s/ H.J. Cole

H.J. Cole

Principal Executive Officer

Principal Financial Officer

August 9, 2012

A signed original of this certification has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

XML

RELATED PARTY TRANSACTION

6 Months Ended

Jun. 30, 2012

Related Party Transaction

RELATED PARTY TRANSACTION

NOTE C -- RELATED PARTY TRANSACTIONS

During the three and six months ended June 30, 2012, H.J. Cole, sole officer and director, advanced the Company $11,800 and $17,300, respectively.  These advances are non-interest bearing and due upon demand as funds become available.  During the three and six months ended June 30, 2011, the Company paid Mr. Cole $0 and $10,000, respectively,  to reimburse him for services rendered, for the cost of licensing fees that he previously incurred for the Company, and to pay for additional training relative to the foreclosure real estate market.  These costs were recorded as general and administrative expense in the accompanying financial statements.  During 2011, Mr. Cole advanced the Company $20,800 and refunded the Company $5,000 for payments made during the first quarter of 2011.  The $20,800 advance is non-interest bearing and due upon demand as funds become available.

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GOING CONCERN

6 Months Ended

Jun. 30, 2012

Going Concern

GOING CONCERN

NOTE B -- GOING CONCERN

The financial statements of the Company have been prepared in conformity with GAAP, and assume that the Company will continue as a going concern.  The Company expects to incur losses as it expands.  To date, the Company's cash flow requirements have been met through the sale of its common stock, cash advances from related parties, and established trade credit.  There is no assurance that additional funds will be available for the Company to finance its operations should the Company be unable to realize profitable operations. These conditions, among others, give rise to substantial doubt about the Company’s ability to continue as a going concern.  The financial statements do not include adjustments relating to the recoverability and realization of assets and classification of liabilities that might be necessary should the Company be unable to continue in operation.

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BALANCE SHEETS (Unaudited) (USD $)	Jun. 30, 2012	Dec. 31, 2011
Statement of Financial Position [Abstract]
Cash	$ 113	$ 1,168
Prepaid expense		1,750
Total current assets	113	2,918
Accounts payable	29,366	20,223
Amount due to related party	38,100	20,800
Total current liabilities	67,466	41,023
Preferred stock, par value $0.0001; 10,000,000 shares authorized, no shares issued and outstanding
Common stock - par value $0.0001; 190,000,000 shares authorized; 7,000,000 shares issued and outstanding	700	700
Additional paid in capital	59,800	59,800
Deficit accumulated during development stage	(127,853)	(98,605)
Total stockholders' equity (deficit)	(67,353)	(38,105)
Total liabilities and stockholders' equity (deficit)	$ 113	$ 2,918

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STATEMENTS OF CASH FLOWS (Unaudited) (USD $)	6 Months Ended		19 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (29,248)	$ (60,902)	$ (127,853)
Adjustments to reconcile net loss to net cash flows used in operating activities:
Issuance of common stock for services			500
Change in operating assets and liabilities:
Prepaid expense	1,750
Accounts payable	9,143	15,130	29,366
Accrued liabilities		(7,925)
Net cash flows used in operating activities	(18,355)	(53,697)	(97,987)
CASH FLOWS FROM INVESTING ACTIVITIES
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from loan from related party	17,300		38,200
Proceeds from sale of common stock		29,400	60,000
Payment of amount due to related party		(100)	(100)
Net cash flows provided by financing activities	17,300	29,300	98,100
Net increase (decrease) in cash	(1,055)	(24,397)	113
Cash, beginning of period	1,168	30,700
Cash, end of period	113	6,303	113
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Interest paid	$ 1,385		$ 1,821

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BASIS OF PRESENTATION AND RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

6 Months Ended

Jun. 30, 2012

Basis Of Presentation And Recently Issued Accounting Pronouncements

BASIS OF PRESENTATION AND RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

NOTE A – BASIS OF PRESENTATION AND RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

Interim Financial Reporting

While the information presented in the accompanying interim financial statements is unaudited, it includes all adjustments, which are, in the opinion of management, necessary to present fairly the financial position, results of operations and cash flows for the interim periods presented in accordance with generally accepted accounting principles in the United States of America ("GAAP").  These interim financial statements follow the same accounting policies and methods of application as used in the December 31, 2011 audited financial statements of Foreclosure Solutions, Inc. (the “Company”).  All adjustments are of a normal, recurring nature. Interim financial statements and the notes thereto do not contain all of the disclosures normally found in year-end audited financial statements and these Notes to Financial Statements are abbreviated and contain only certain disclosures related to the six month periods ended June 30, 2012 and 2011.  It is suggested that these interim financial statements be read in conjunction with the Company’s audited financial statements and related notes for the year ended December 31, 2011 included in our Form 10K, filed with the Securities Exchange Commission on April 10, 2012. Operating results for the three and six months ended June 30, 2012 are not necessarily indicative of the results that can be expected for the year ending December 31, 2012.

Development Stage Activities

The Company is presently in the development stage with no significant revenues from operations.  Accordingly, all of the Company’s operating results and cash flows reported in the accompanying financial statements are considered to be those related to development stage activities and represent the cumulative from inception amounts from its development stage activities reported pursuant to Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 915-10-05, Development Stage Entities.

Recent Accounting Pronouncements

The Company does not expect the adoption of recently issued accounting pronouncements to have a significant impact on its results of operations, financial position or cash flow.

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BALANCE SHEETS (Parenthetical) (USD $)	Jun. 30, 2012	Dec. 31, 2011
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock - par value	$ 0.0001	$ 0.0001
Common stock - shares authorized	190,000,000	190,000,000
Common stock - shares issued	7,000,000	7,000,000
Common stock - shares outstanding	7,000,000	7,000,000

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Document and Entity Information	6 Months Ended
	Jun. 30, 2012	Aug. 03, 2012
Document And Entity Information
Entity Registrant Name	Foreclosure Solutions, Inc.
Entity Central Index Key	0001510964
Document Type	10-Q
Document Period End Date	Jun. 30, 2012
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		7,000,000
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2012

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STATEMENTS OF OPERATIONS (Unaudited) (USD $)	3 Months Ended		6 Months Ended		19 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012
Income Statement [Abstract]
Revenues
Operating expenses:
Selling, general and administration	11,352	21,174	27,396	60,675	123,913
Total operating expenses	11,352	21,174	27,396	60,675	123,913
Loss from operations	(11,352)	(21,174)	(27,396)	(60,675)	(123,913)
Other expenses:
Interest expense	(974)	(227)	(1,852)	(227)	(3,940)
Loss before taxes	(12,326)	(21,401)	(29,248)	(60,902)	(127,853)
Provision for income taxes
Net loss	$ (12,326)	$ (21,401)	$ (29,248)	$ (60,902)	$ (127,853)
Net loss per common share - basic and diluted	$ 0.00	$ 0.00	$ 0.00	$ (0.01)
Weighted average shares outstanding	7,000,000	7,000,000	7,000,000	6,941,338

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RELATED PARTY TRANSACTION (Details Narrative) (USD $)	3 Months Ended	6 Months Ended		12 Months Ended	19 Months Ended
	Jun. 30, 2012	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011	Jun. 30, 2012
Related Party Transaction Details Narrative
Proceeds from loan from related party	$ 11,800	$ 17,300		$ 20,800	$ 38,200
Related Party Expenses Paid				10,000
Related Party refunded payments				$ 5,000

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BASIS OF PRESENTATION AND RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS (Policies)

6 Months Ended

Jun. 30, 2012

Basis Of Presentation And Recently Issued Accounting Pronouncements Policies

Interim Financial Reporting

Interim Financial Reporting

While the information presented in the accompanying interim financial statements is unaudited, it includes all adjustments, which are, in the opinion of management, necessary to present fairly the financial position, results of operations and cash flows for the interim periods presented in accordance with generally accepted accounting principles in the United States of America ("GAAP").  These interim financial statements follow the same accounting policies and methods of application as used in the December 31, 2011 audited financial statements of the Company.  All adjustments are of a normal, recurring nature. Interim financial statements and the notes thereto do not contain all of the disclosures normally found in year-end audited financial statements and these Notes to Financial Statements are abbreviated and contain only certain disclosures related to the three month periods ended September 30, 2012 and 2011.  It is suggested that these interim financial statements be read in conjunction with the Company’s audited financial statements and related notes for the year ended December 31, 2011 included in our Form 10K, filed with the Securities Exchange Commission on April 10, 2012.  Operating results for the three months ended March 31, 2012 are not necessarily indicative of the results that can be expected for the year ending December 31, 2012.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

The Company does not expect the adoption of recently issued accounting pronouncements to have a significant impact on its results of operations, financial position or cash flow.

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STATEMENT OF STOCKHOLDERS' EQUITY (DEFICIT) (Unaudited) (USD $)	Common Stock	Additional Paid-In Capital	Deficit Accumulated During Development Stage	Total
Balance, beginning at Dec. 09, 2010
Balance, beginning, shares at Dec. 09, 2010
Shares issued for services	500			500
Shares issued for services, shares	5,000,000
Shares issued for cash	102	30,498		30,600
Shares issued for cash, shares	1,020,000
Net loss			(8,425)	(8,425)
Balance, ending at Dec. 31, 2010	602	30,498	(8,425)	22,675
Balance, ending, shares at Dec. 31, 2010	6,020,000
Shares issued for cash	98	29,302		29,400
Shares issued for cash, shares	980,000
Net loss			(90,180)	(90,180)
Balance, ending at Dec. 31, 2011	700	59,800	(98,605)	(38,105)
Balance, ending, shares at Dec. 31, 2011	7,000,000			7,000,000
Net loss			(29,248)	(29,248)
Balance, ending at Jun. 30, 2012	$ 700	$ 59,800	$ (127,853)	$ (67,353)
Balance, ending, shares at Jun. 30, 2012	7,000,000			7,000,000

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INCOME TAXES

6 Months Ended

Jun. 30, 2012

Income Taxes

INCOME TAXES

NOTE D-- INCOME TAXES

Deferred income tax assets and liabilities are determined based upon differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company does not expect to pay any significant federal or state income tax for 2012 as a result of the losses incurred during the six months ended June 30, 2012 as well as additional losses expected for the remainder of 2012 as well as from net operating loss carry forwards from prior years.  Accounting standards require the consideration of a valuation allowance for deferred tax assets if it is "more likely than not" that some component or all of the benefits of deferred tax assets will not be realized.  As of June 30, 2012, the Company maintains a full valuation allowance for all deferred tax assets. Based on these requirements, no provision or benefit for income taxes has been recorded.  There were no recorded unrecognized tax benefits at the end of the reporting period.