Stop-Forclosure-Package

Stop -Foreclosure-Package

FED-UP WITH YOUR SITUATION?

Your “10” Options to

”BUY TIME”

In Your Home

A Loan Modification
A Forbearance Agreement
Equity Partnering with Homeowners
Subject-To
A Short Sale
Chapter 13 Bankruptcy
Deed-in-lieu of foreclosure
Try to sell your home with a Realtor or Auction
Re-finance your mortgage
Do nothing and lose your home

DO NOT PAY ANYONE ANY MONEY

Dear Homeowner,

My name is Errol Forkner and I wanted you to have this important information concerning several great options you have regarding your property and its’ current situation. I can be reached at (720) 272-5799 or Counselor@FMSrvcs.net

Iwant you to know that you have several options other than losing your home in foreclosure. Please read these options and feel free to call me anytime to discuss the right option for your situation.

There is absolutely NO CHARGE for calling me. I am here to help you any way I possibly can.

Once you decide to work with me, we will contact the bank together (on your behalf) and this will take tremendous pressure off of you. Banks can be sneaky and can find ways to talk you into giving your house back to them which is great for them and terrible for you. If you choose that option, you’ll end up with a foreclosure on your credit report and a possible deficiency judgment. The bank never tells you this vital piece of information.

BANKS ALSO DON’T TELL YOU THAT THEY WILL REDUCE YOUR PRINCIPAL BALANCE AND YOUR INTEREST RATE.

My job is to help you make the right decision for your situation. Sjnce each situation is different, I want to share this Information Package with you so that you will understand your choices and make a good decision for your family.

Here are some of your options:

A Loan Modification
A Forbearance Agreement
Equity Partnering with Homeowners
Subject-To Agreement
Short Sale
Chapter 13 Bankruptcy
Deed-in-lieu of foreclosure
Try to sell your home with a realtor or public auction
Re-finance your mortgage
Do nothing and lose your home

Please take a few minutes to read each of these options. I will be awaiting your call (720) 272-5799

Sincerely

Errol Forkner Counselor – Counselor@FMSrvcs.net FMSrvcs.org

In December 2010 the Federal Trade Commission came up with what we believe is a fantastic bill. It is called the “MARS ACT” – Mortgage Assistance Relief Services.

This bill applies to anyone who offers homeowners assistance with their mortgage: attorneys, real estate investors, real estate agents, mortgage brokers, and more.

Here is the long and short of it:

No one can charge you a fee in advance for anything
No one can advise you to cease communication with your bank
No one can charge you a fee as they do certain parts of the service
No one can make guaranteed promises as to what they can do for you
They must tell you that they are a for-profit company and that they will make money if they are able to provide the services promised

They must not tell youto stop making payments to your bank and must advise you of what will happen if you continue to miss payments

They can’t tout special “insider” bank information to make you feel they have more experience than they do

Vou are able to walk away from the deal if at any point you feel uncomfortable and want out

No one can practice deceptive practices knowing that you are a homeowner with no experience in this arena

Basically- NO ONE can take advantage of you!

In order to comply with the MARS Act, we want you to be aware that it exists and it is our intention to follow it to the letter. Please sign your name and date this explanation agreeing that you have read and understand it:

Homeowner(s)

For a full disclosure of the MARS bill please research it online.

WHAT SHOULD WE DO AS HOMEOWNERS?

Loan Modification, Forbearance Agreement, Equity Partnering with Homeowners, Subject-To, Short Sale, Bankruptcy, Deed-in-lieu, Sell with a Realtor, Re-finance, or Do nothing and go to foreclosure.

This handbook is a quick reference to help you decided what is best for your family. Please contact an attorney for legal advice, an accountant for tax advice, a mortgage broker for loan information and questions or a real estate broker for real estate information and questions, however, read the last few pages of this handbook first.

Step 1: What’s best for my family?

You need to ask yourself today, what you want to do? Live in your home or move? What’s best for your family? The following pages will talk about several areas of your financial and family needs. This is just a guideline which offers suggestions and ways to help you. Each family has their own individual needs so we suggest that you use all resources available to you.

Continue to live in my home

Family Budget
Loan Modification (1) or
Forbearance Agreement (2) or
Bankruptcy (6) or
Re-finance your mortgage (9)
Who can help me? WE CANJ

Move out of my home

Family Budget
Subject-to (4) or
Short Sale (5) or
Deed-in-lieu (7)
Try to sell your home with a realtor (8) or
Foreclosure by doing nothing and losing your home (10) or
Who can help me? WE CAN!
Important Resources that are Free…

What programs are available for me?

You’ll need to complete an Income and Expense Worksheet (see the Family Budget for this form). It would be very helpful and will save you time if this was completed before you talk to loss mitigation at the bank. There are several programs available in which the banks loss mitigation person will discuss with you:

Second Lien Modification Program (2MP)
FHA Home Affordable Modification Program (FHA-HAMP)USDA’s RHS Special Loan Servicing
Veteran’s Administration Home Affordable Modification (VA-HAMP)

REMEMBER, the laws change so often, check to see what options your bank currently offers.

OPTION #1 “THE LOAN MODIFICATION” and the “TRIAL MODIFICATION”

A loan modification simply means to change or modify the terms of your original loan. There are several types of loan modifications that may be available to you depending on the type of loan you have (Conventional, FHA, VA, etc.) and who is holding your loan. In some cases, this can mean having the payment reduced and/or having some or all of the delinquent payments added on to the end of your loan. Loan modifications are not automatic and you will have to qualify to receive one.

You may be contacted by various entities that want to “help” you get a loan modification. Virtually all of them charge an upfront fee that may range to thousands of dollars with no guarantee that you will actually receive the modification. You should avoid dealing with such people at all costs. They are out to take your money and not to help you.

►This is against the law read on MARS disclosure.

You can work directly with your lender, but as I mentioned earlier, be very leery of what they tell you. Don’t take anything you are told on faith – get it in writing. If the tell you they are delaying the foreclosure, verify that with the Public Trustee. There have been many instances of people who thought their foreclosure had been delayed or cancelled while they were talking with their lender only to find out after the fact that their home had been sold at auction.

Remember, the loan modification simply means to change or modify your original loan.

For example:

$200,000 Value of the home

$185,000	What is owed
$ 1,500	Monthly Payment
$ 10	Payments behind
$ 15,000	What is owed to bank in back
	payments
$ 2,500	Attorney fees

Call the bank and tell them you have one or two payments saved and that you want to do a loan modification. This means the bank will put the other eight or nine payments on the end of the loan increasing your original loan by a few months in length or they will re-modify the loan from an adjustable rate to a fixed rate.

Typically, the bank will require 1-2 of the back payments to be made plus, all attorney fees. If you have not saved any of the money that was supposed to be used for mortgage payments, you would not be able to take advantage of this option.

For example:

10 payments behind at $1,500 per payment. You pay 1 payment plus attorney fees. Due to the bank is:

1500 X 1 = $1,500

Attorney $2,500 Total Due $4,000

Note: If you have late payment fees, back real estate taxes, property inspection charges or forced insurance that has been added to your payment, the bank will make you pay this at this time as well. Sometimes they will waive the late fees. You will end up paying $4,000 to get current and to get out of foreclosure instead of $17,500.

Remember this point:

You can only do 1 loan modification per year. Some banks will review a modification every FOUR months. You can do a total of 4 over the length of the loan, but no more than one

per calendar year. If you refinance with another mortgage company then the loan modifications you did with the current mortgage company won’t count – a new mortgage company equals a clean slate.

With many of the NEW government bills in place the banks may be more lenient at this time.

The bank might ask for “Proof of Funds.” This means you have to

prove you have the $4,000 or proof that you are borrowing the funds. The bank may ask for a copy of your last 12 months of bank statements as well.

WHAT IS A TRIAL MODIFICATION?

The bank will put you on what is called a “TRIAL MODIFICATION.” Meaning you will be in a “trial period” until you prove to the bank that you can make your payments on-time. The trial period usually lasts approximately 5 to 6 months. If you make all of the payments on time and I mean ON THE DAY DUE OR BEFORE… NOT ONE DAY LATE… then the bank will put you on a five-year modification or make your modification permanent!

If you are given a five-year modification the bank will review your situation at the end of that time and if everything is going according to plan the bank will continue the modification.

Once this is done, you are one step closer to keeping your home. If you choose this option, call me for some FREE advice so I can help you with this process.

OPTION #2 ,:’THE FORBEARANCE AGREEMENT”

If you don’t qualify for the Loan Modification, then the Forbearance Agreement may be better for you. The Forbearance is a workout agreement with the bank.

For example:

10 Payrnents Behind

$1,500 per Payment

$2,500 Attorney Fees

$17,500 Total Due to Bank without late payment fees or insurance fees

Here is how a Forbearance Agreement works:

The bank wm always ask for attorney fees and then approximately 40%-50% of the back payments.

Let’s look at this Example:

$2,500 – Attorney Fees

$6,000 – 4 of the 10 Payments

$8,500 •· Total Due

You need $8,500 to enter into the Forbearance Agreement. The balance of the 6 payments will be processed accordingly.

You have to qualify for this. Everyone qualifies, it’s just some will pay over 12 rnonths, some over 6 months.

Example:

$8,500 Down

6 Payments. Balance owned is 6 x 1500 = $9,000

This $9,000, depending upon your monthly income, will be added to your monthly payment as follows.

Example:

$1,500 is your monthly payment and you qualify for a NINE month program which means your new payment will look like this:

$1,500 Old Payment

$1,000 x 9 for past monthly payments

$2,500 per month for the next 9 months

Then at the end of the 9-month period, your payments will go back to $1,500 per month.

Remember these 2 Important Points:

90% of homeowners fall out of the Forbearance Agreement in the first 2-3 months, because of the failure to pay.
Just because you have worked out a deal with the bank, you are not out of foreclosure. You are still in foreclosure until your 9^th payment of $2,500 is made. Then and only then, will you get a foreclosure withdraw letter from the bank, stating your loan is current. In the meantime, the bank will keep passing the foreclosure sale date every month.

Let’s look at how this is done:

Let’s say today is March 26^th and you make a deal with the bank on this day. They will have you wire transfer or Western Union your money to a special account. Do not just mail a check. The bank will tell you where to Fed-Ex a cashier’s check if they want you to. They will not take

personal or business checks at this time. The bank will require certified funds.

Lefs say today is March 26^th. You need to send your $8,500 payment to the bank. Then starting on May 1st, your first payment, of the nine new payments, is due. Remember, the new payment amount is $2,500.

You will need to send this payment Certified Funds or however the Bank requires 3 to 4 days before it is due to make sure they receive it in time. You will be sending it on the 26^th or 27^th of every month. On the day before it is due, you need to call the bank to verify they received the money in time. This is a must.

This is how your foreclosure sale dates will look:

Let’s say today is March 26^th, you send $8,500. The sale date was April 6^th. After receiving the $8,500, the bank calls the public trustee office or the foreclosure file room, (or whoever sells the foreclosures in your area) and sets a new sale date of May 6th•
You make the payment on May 1st of $2,500. When the bank receives that payment, they will call and move the new sale date to June 6th•
You make the June payment then the bank will move the sale date to July 6^th•
If you miss the July payment that was due July 1st, on the 2nd of July, you do no longer have an agreement with the bank. Your forbearance agreement has been voided. Your house will go to sale on July 6^th, and you will get evicted.

– Now you are in trouble, but there is still hope. Let’s re-think what has happened here. You now only owe the bank

$7,000 from the foreclosure, plus your $1,500 for the July payment, which is your basic monthly payment.

You used to owe $17,500, of which you paid $8,500 down plus two payments of $1,000. You really paid $2,500 per month; however, $1,500 per month is for your normal May and June payments.

You owed $17,500

–	$	8,500 Down Payment
– +	$ $ $ $	2,000 Payments (May and June) 7,000 Due on past payments 1,500 July Payment 8,500 New Total due to the Bank

Let’s say today is July 3^rd, you owe $7,000 from the foreclosure and $1,500 from the July 1st payment, which totals $8,500. This is your new total with the bank. Call the same rep from the bank and do another forbearance agreement on the $8,500.

The bank will want $4,250 down, and the balance of $4,250 will be split evenly over the next seven months. This now makes your new payment for August $1,500 plus $607.14 or $2,107.14. Your new payment will be $2,107.14 from August 1^st through February

1st_

After Feb. 1st, if all payments are made on time, you are now out of foreclosure and March 1^st is when your old payment of $1,500 will resume.

This is truly a great option for homeowners. This is a strict plan and you do need my assistance to do this.

, Remember, banks are sneaky, don’t trust what they say, everything must be in writing, before any money is sent to them.

Call me at (720) 272-5799 to help. Let me show you how to work this option.

Option #3 Equity Partnering with Homeowners

This option is always one of best options for homeowners.

This keeps them in the deal till you fix it up (if it needs it) and sell it to buyer. With this option, you the homeowner and I will go into an Equity Partnering Agreement. After all expenses are paid we will do Equity Sharing on the profit.

If this is an option you would like to consider, let me know. With this option, you the homeowners must have equity and will need to move out of the home. We will also pay you an upfront Equity Advance so you can move. Also, if you are behind in payments, we will have to pay those to cure the default. All rehabbing or fix up will be paid for by us.

Remember, this is a huge financial risk for us, so we will do everything we can to make a huge profit for both or us. With this option, we want to be turning the house in 90 days or less.

If you owe more than the property is worth this option will not work. Contact me at Counselor@FMSrvcs.net me at (720) 272-5799

OPTION #4 THE SUBJECT-TO

This could be one of your best options. Let’s discuss this option… you, the homeowners, will convey the property to me by Warranty Deed or Quitclaim Deed. In exchange, we can pay the arrearages to bring the mortgage current. I will make the monthly mortgage payments until the property is sold or refinanced, whichever comes first.

We will file the deed at the courthouse to protect our interest. We will pay you an agreed upon amount of consideration (money) when the property is deeded to us and then we will discuss a date for you to vacate the premises. The objective of this method is for us to take over the existing loan, bring the payments current, keep them current for the length of our agreement, and therefore relieving you of the monthly debt.

This agreement should be 3 to 5 years in length. The longer we make the payments for you, the better your credit gets. If we pay the mortgage off immediately your credit does not get any better and it will take years for you to rebuild your credit and buy another home. In every option, including this one, we want to make sure that all parties involved are made aware of the details of this transaction.

REMEMBER… you, the homeowners, are being made aware that your names will remain on the mortgage and although we intend to pay the mortgage payments on your behalf, you remain fully liable for the mortgage payments.

For example: Your property has a mortgage that is $9,000 in arrears, the monthly mortgage payment is $1,500 per month and you are SIX payments behind. You, the homeowners, want $1,500 cash to walk away from your property. In exchange for clear and marketable title, I agree to pay the arrearages of $9,000 to the bank in the form of a cashier’s check or wire transfer. At this point when we pay the bank and give you your money, you must vacate the premises. Our Homeowners Agreement must be signed if you choose this option.

If you have questions, contact me at Counselor@FMSrvcs.net me at (720) 272-5799

OPTION #5 THE SHORT SALE®

Briefly, a “short sale®” is negotiating with the mortgage holder (bank) to accept less than what is owed as payment in full.

A short sale is a strategy used when a distressed homeowner owes the bank close to or more than what the property is worth.

(Jr’ Here is how it looks: The homeowners owe $200,000 to their first mortgage holder and the payments are in arrears. The property is worth $200,000 in retail condition. With the proper negotiating strategies, we get the bank to accept $100,000 to

$150,000 as payment in full. Purchasing a $200,000 retail property for 50% – 70% of its value is where we both get paid.

With proper negotiations, we take deals that most investors would pass on and turn them into amazing deals. Most of our happiest homeowners have come from deals that had no equity.

We take the time to build a relationship within the banking industry. Building these relationships will ensure our success to help other homeowners.

Do not let anyone discourage you from working with me on this process. Work with us and we will provide the solution for your situation.

YOU MIGHT ASK… WHY DOES THE BANK SHORT SALE?

There are many reasons why banks accept short sales. The main reason is because the payments are late and you, the homeowners, can prove that you can no longer afford the property.

<:JT> The property does not have to be in foreclosure for the bank to accept a short sale. Some banks require the foreclosure notice to be served, while others will accept a short sale when just a few payments are late.

There is no specific number of payments that must be delinquent for the bank to open a short sale file. Often, homeowners will call us when they are not yet in default, but cannot make any more payments. In this case, we contact the bank on behalf of the homeowner (after you sign the Authorization To Release Information form) and let them know that you won’t be able to make any more payments and to open negotiations for a short sale before the payments are even late.

Let us look at a few more reason why banks short sale:

• The mortgage is in arrears or foreclosure.

• The property is in poor condition.

• The homeowners have hardships and cannot make the payments anymore.

• New homes in the area are being chosen over existing homes.

• The area or neighborhood has depreciated.

• The bank’s shareholders are concerned when there are too many defaulted loans on the REO means real estate owned.

Banks have reports due at the end of each quarter. They are more inclined to accept short sales at the end of a quarter to “clean up their books.” The absolute best time to get short sales accepted quickly is the last quarter of

Once a property is taken by the bank at the foreclosure sale it is considered an REO. An REO is a

liability, not an asset. Too many liabilities will cause any business to go under if not dealt with

quickly. the year. We have called banks on December 10th and been told the short sale would be accepted if we would close by the end of the month Banks short sale all year, they just short sale faster in the last quarter.

Think of it like a credit report: Every defaulted loan is like a black mark on the credit report. The more foreclosures a bank is carrying, the riskier it appears. If you were a larger bank lending to a smaller bank, would you lend your money to the bank with more or less defaulted loans? Exactly … lessl The bank needs to borrow this money as inexpensively as possible so that it can make money lending it to you.

• Some banks are required to keep a cash reserve of up to three times the retail value for each REO.

It breaks down like this: The bank has a $200,000 property and is required to keep three times that amount as a cash reserve. This means the bank is sitting on $600,000 in un-lendable money. Imagine if the bank has 2,000 foreclosures across the nation! The homeowners could drag the foreclosure on for two years utilizing the bankruptcy system. Would it be better for the bank to sit on

$600,000 for two years or accept a short sale today? The answer is obvious.

Other reasons the banks will short sale:

• The area is crime ridden.

• The area is riddled with foreclosures proving a decline in the area.

• Many homeowners do not realize that banks wholesale money. Banks borrow money from larger banks and lend it to you. These banks must show reports in order to borrow this money.

As you can see, a short sale is often a welcome answer to a big problem. When the bank takes the short sale it can write the loss off and clean up the books before any reports are due.

AS A HOMEOWNER, WHERE DO YOU BEGIN?

There is a new “streamlined” HAFA (Home Affordable Foreclosure Alternatives) short sale process offered by the Federal Government which you may qualify for. HAFA promises short sale approval within 10 days and gives the seller $3,000 in cash at closing to help with moving expenses. Because HAFA is a government-sponsored program, it’s a lot more complicated than that.

You then have to give the bank a deed in lieu of foreclosure (see Option 7) that can be used by the bank if a successful short sale isn’t made. This can readily happen if the bank sets the price to high, which they tend to do or in the event other lien holders such as a second mortgage holder or homeowners association fail to agree to the short sale. In that event, you will end up losing the house and will not be paid the $3,000.

In most cases, the best option is to have us negotiate the short sale for you. It is important to realize that when submitting a short sale package, we are building a case, the better the case, the better the chance of getting the short sale approved. With proper negotiations, we take deals that most investors would pass on and turn them into amazing deals. Most of our happiest homeowners have come from deals that had no equity.

Think of yourself as an attorney preparing for a court hearing. If the attorney shows up unprepared, the case will be lost.

Do you remember the OJ Simpson trial? Did you think he was guilty? If you think he is guilty, why do you think he walked away from a double murder charge? His attorney had built a great case.

• His defense case was presented better than the prosecution’s case. Short sales are the same concept, the better the case, the better the deal.

Having done so many over the years, we know exactly what the banks are looking for. Before we submit your short sale package, let us look at an overview of what we are about to do for you:

• We are going to submit a total of three offers. Each offer will have a different focus and will be higher than the previous.

The first offer will focus on your distress, the distress of the property, and the overall hardship of the situation. This will be our initial offer and our lowest.

The second offer will focus on the distress of the neighborhood, crime, job losses, natural disasters, or whatever is happening in the area. In this offer, we will raise our initial offer to get closer to the number the bank countered at.

The third offer is our highest and final offer. In this offer we will focus on the financial loss to the bank by denying our short sale. We will break down, step-by-step, how much the bank will actually lose, how long this will take, and we will send a copy to the loss mitigation reps boss. This is called the LLR (Loan Loss Reserve).

The short sale process is very complex. Most of the time, you cannot short sale your own home, if you could everyone would. With this process, you need expert help and that is why we are here. If you choose this option, call me ASAP so we could get you on the road to financial recovery. Let us show you how we can short sale your mortgage and eliminate the bank. This is a great so1·ution for your situation and everyone wins!

The Short Payoff verses The Short Sale

How is this different than the short sale? Let’s say you are an “underwater homeowner” and your house is worth $200,000 and you owe $210,000. Depending on your financial situation, you might try to negotiate a short payoff with your lender. In this scenario, the lender agrees to release the lien (its interest in the property) allowing it to be sold to a new buyer. The lender agrees to accept less than the amount owed on the property to release the lien, this is called a “short payoff.”

The only catch is the previous lender, the one that took the short payoff, will instruct you to sign a promissory note for the difference OR SOME of the difference agreeing to “pay-off’ this unsecured line of credit according to the terms of the promissory note.

The promissory note is an un-secured document that is basically, an IOU to the previous bank.

The Downside:

A. You must be current on your mortgage payments.

8. You must have good credit.

C. You must be able to prove that you have the ability to pay-off the debt in a reasonable amount of time…basically 3 to 5 years.

The Upside

A. You keep your good credit and can purchase another home or anything else you want.

B. You never fall behind with your payments and never get your

name in the paper, which can be embarrassing. When is the best time for a “Short Payoff?”

A. You might request a short payoff when your home has lost value dramatically or even just enough to make it impossible to sell. This is the case with most of the underwater homeowners.

B. You do not have the ability to pay the large amount to get completely out of the property.

Will all lenders do a “Short Payoff?”

No, not all lenders will; however, you will never know if you never ask.

Remember, the advantages of the Short Payoff is that you are able to move-out of your property and get on with your life. There SHOULD BE no negative feedback on your credit. We help negotiate that in with the promissory note for you.

If for some reason down the line, you lose the ability to pay the promissory note, the credit ramifications to you are significantly smaller.

Call me for your free advice at (720) 272-5799 or email me at Counselor@FMSrvcs.net

OPTION #6 “THE CHAPTER 13 BANKRUPTCY”

First, you need to contact a bankruptcy attorney. We are not attorneys and cannot give you legal advice.

The Chapter 13 bankruptcy is the reorganization of debt. This bankruptcy is going to buy you the time you need to get the property short saled and for us to help you out with the short sale process.

Call me, and I will share with you, what I have seen other homeowners in your same situation do to maximize their time to stay in their home. If you choose this option, call me ASAP.

Call me for your free advice at (720) 272-5799 or email me at Counselor@FMSrvcs.net

This process is remarkable. We call it the “Bankruptcy Short Sale”

OPTION #7 ”THE DEED-IN-LIEU OF FORECLOSURE”

The deed-in-Lieu of foreclosure is when you give up ownership of your home and deed it back to the bank. The bank will always accept this; however, it may not be a good option for you. IN many cases, the bank will place a foreclosure on your credit and you could end up with a 1099-C sent to the IRS for additional income if the bank sells the property for less than what you owe.

Let us explain what a 1099-C is:

The bank takes back a house that has a mortgage balance of

$200,000 and is worth $200,000. The bank ultimately sells the house for $150,000. Since the bank just lost $50,000, they will send you and the IRS a 1099-C. The banks do not tell you that they will send this to you or the IRS.

Remember, the banks are sneaky. This is never an option, unless you get it in writing from the bank that they will not 1099 you on your taxes. A 1099 is ordinary income to you that is reported to the IRS. If you were in the 30% tax bracket, you would have to pay approximately $15,000 in taxes to the IRS for losing your home. Pretty sneaky on the bank’s part, don’t you agree?

If you have any questions, call me for your free advice at (720) 272-5799 or email me at Counselor@FMSrvcs.net

OPTION #8 TRY TO SELL YOUR HOME USING A REAL ESTATE AGENT and/or Public Auction

You may say “I’m going to list my house with a real estate agent.”

I would say “Great!” What do you think you might list it for? Do you realize that you need to disclose to your listing agent that you are behind in payments or in foreclosure?

Even if your listing agent got a contract on your house today, it will take 30 to 45 days to close in most cases? If your sale date is before that, then this will not be an option. So you can see that listing it with an agent right now might not be an option, unless you’re willing to sell it well below market value. Even below market value, it will still take about 30 days to close.

Let’s do the right thing, let me… work with you… and show you how we can buy you some time and get you some cash and get you out of this situation.

90% of homeowners that are behind in payments have to sell their home quickly which means that they have to sell way below market value for a fast closing to beat the

foreclosure date! Do you fall into this category? CAN YOU DO THAT AND STILL GET CASH?

IF SO, DO IT! CALL ME AND I WILL HELP YOU WITH YOUR

REALTOR.

— BEWARE OF REALTORS

Sometimes Realtors can be helpful; however, most of the time they just get in the way. They sometimes will come to you and say, “I have a buyer for your home.” They say this to get you to list your property for a long-term listing. If they say this, it is ok to give them a 24-hour listing. We give them a 24-hour listing so they can bring the buyer by that they promised you. Most Realtors will not do this because they do not have a buyer, they just want a listing.

They will tell you that they need the listing agreement through the closing date. All you need to do is put instructions on the sales contract in the “additional provisions part” stating what the Realtor will make. This is the safest way for you NOT to be tied-up in a long-term listing. Just watch yourself. They will also tell you not to work with investors.

Make sure that everyone you work with puts everything in writing, including a way you could get out of the contract without any further damage to you or your situation.

Please call me so I can show you how you may benefit by working with me.

If you have any questions, call me for your free advice at (720) 272-5799 or email me at Counselor@FMSrvcs.net

OPTION #9 REFINANCE YOUR MORTGAGE

You may say, “I’m working with my mortgage company.”

I would say… you’re working with you mortgage company, that’s great. What is your mortgage broker saying about getting you out of your situation?

If you are behind in payments, does the mortgage broker know that? Did you tell them about that? If you told them, what did they say about that? If you are behind, how many payments are you behind?

If you are more than 90 days behind on your monthly payments, you will only qualify for a 55% to 60% of the loan-to-value. Do you understand what that means?

If you have a $200,000 house, you will be able to borrow only $110,000 to $120,000. If you are 60 days behind you will be lucky to get a loan for 75% of the value. Being 30 days late you might get as much as 85% of the value.

How much do you owe on your mortgage? What is your house worth? What would that loan-to-value be, to get you out of your situation? So you see that refinancing your house if you are over 90 days late probably will not be an option. I hate to tell you this… some mortgage brokers don’t tell you the truth. I apologize for being so blunt; however, I tell people the truth… not what they want to hear. Let me show you what I can do to help you buy time, OK?”

This is the typical conversation that I have with homeowners. So many homeowners have $150,000 and owe $140,000 on it and are three months behind in payments and they have a mortgage broker that charges them up front fees… Appraisals, Application fees, Credit Check Fees, Background Check Fees with no intention of getting the loan approved because the know that can’t.

BEWARE OF MORTGAGE BROKERS

Why? Mortgage brokers will promise to get your property refinanced even with your faltering credit. They will burn-up your precious time while you are in foreclosure. They will tell you what you want to hear, to get you to work with them, knowing darn well that they cannot perform on what they promised you.

Folks, please be careful of these individuals. They typically ask for a $300 application fee. Do not give them any money, ever!

Call me, I will help you work out the numbers to see if you actually qualify for a refinance. If you are more than 90 days behind on your mortgage payment, the most you might qualify for is a 55% to 60%, loan to value loan.

Example: Value of your home

55% loan-to-value is approx. $5,000.

$300,000

$165,000 + closing fees of

Therefore, if you owe more than $165,000 you will not get the loan. In addition, your interest rate will be much higher, so you have to qualify for that, too. If you are over 90 days past due on your monthly payments, chance of getting a 60% loan is approximately 10%. I am not here to give you bad news … just here to give you the facts, no fluff.

Whether you work with me or not, REMEMBER these important points in this booklet.

If you have any questions, call me for your free advice at (720) 272-5799 or email me at Counselor@FMSrvcs.net

OPTION #10 DO NOTHING AND LOSE YOUR HOUSE

It doesn’t sound like an option; however, I must present all of the options to you.

You can play out the eviction process in the court system. If you want to do that then you need to call an attorney that specializes in the eviction process. Have that attorney tell you how to work the system to stay in your home.

Remember, while you are doing this SAVE YOUR MONEY SO WHEN YOU MOVE YOU HAVE SOME!

If you pick this option, call me _

BEWARE OF REAL ESTATE INVESTORS

When working with real estate investors be very careful. If they do not put everything in writing and give you copies “DON’T WORK” with them… period. Most real estate investors will tell you what you want to hear to get you to sign everything and then everything they say changes.

This is why we love the MARS agreement. It puts everything in writing so that ALL parties fully understand what is happening. Putting everything in writing takes out the “he said, she said” in our conversation and ultimately, will give you the comfort you need in working with us.

The more investors you interview the more you will realize that working with us and our systems is what will be best for you.

– FED-UP WITH YOUR SITUATION?

Your “10” Options to

”BUY TIME”

In Your Home

A Loan Modification
A Forbearance Agreement
Equity Partnering with Homeowners
Subject-To
A Short Sale
Chapter 13 Bankruptcy
Deed-in-lieu of foreclosure
Try to sell your home with a Realtor or Auction
Re-finance your mortgage
Do nothing and lose your home

DO NOT PAY ANYONE ANY MONEY

Dear Homeowner,

I want you to know that you have several options other than losing your home in foreclosure. Please read these options and feel free to call me anytime to discuss the right option for your situation.

There is absolutely NO CHARGE for calling me. I am here to help you any way I possibly can.

BANKS ALSO DON’T TELL YOU THAT THEY WILL REDUCE YOUR PRINCIPAL BALANCE AND YOUR INTEREST RATE.

Here are some of your options:

A Loan Modification, A Forbearance Agreement, Equity Partnering with Homeowners Subject-To, A Short Sale Chapter, 13 Bankruptcy, Deed-in-lieu of foreclosure, Try to sell your home with a realtor or public auction. Re-finance your mortgage
Do nothing and lose your home

Please take a few minutes to read each of these options. I will be awaiting your call (720) 272-5799

Sincerely

Errol Forkner Counselor – Counselor@FMSrvcs.net FMSrvcs.org

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