It’s hard to make a choice about what to do if you don’t clearly know what your choices are. We want help by providing you with some basic information on the possibilities. This one hour webinar is designed to give you clarity on the options you might consider if you are in default. Options for retention will be discussed as well the options if you are no longer able to afford your home and need to transition into other housing. This webinar gives an overview of the most common options. For more details once you think you know which route you wish o take, we suggest you view one of the Intros about that specific option.

1. PALM— Practical Application of Loss Mitigation With: Mildred Wilkins Foreclosure Intervention Specialist Brought to You By: Home Ownership Matters Training Institute

4. Becoming Familiar with the Bank Departments Retail: Loan Generation Customer Service Loss Mitigation Disposition Copyright © 2008. Home Ownership Matter, LLC. All Rights Reserved.

6. Loan Moves from Customer Service to Loss Mitigation When: Varies by loan type and servicer Influenced by type of foreclosure in your state Government and Government-Backed — 90 Days Non-Conforming — As Soon As 31 Days Copyright © 2008. Home Ownership Matter, LLC. All Rights Reserved.

7. REALTOR’s Role Understand the foreclosure intervention process well enough to know: *What? *When? *Why? *How? *Who? Copyright © 2008. Home Ownership Matter, LLC. All Rights Reserved.

8. Foreclosure Specifics Judicial or Non-Judicial Resources: Realty Trac — www.RealtyTrac.com National Consumer Law Center — “ Foreclosure Prevention for Housing Counselors” HOM’s Website — www.HomeOwnershipMatters.com Foreclosure & Loss Mitigation Section Copyright © 2008. Home Ownership Matter, LLC. All Rights Reserved.

10. Copyright © 2008. Home Ownership Matter, LLC. All Rights Reserved. Foreclosure Intervention is a TEAM Sport

11. Juggling Your Hats as Today’s “ New” Real Estate Professional Education/Advisor Budget Counselor Social Worker Valuation Expert (BPO) Salesperson Extraordinaire Loss Mitigation Go-Between Copyright © 2008. Home Ownership Matter, LLC. All Rights Reserved.

12. You Must Avoid... Copyright © 2008. Home Ownership Matter, LLC. All Rights Reserved. Legal Counsel Tax Accounting Family Therapy Recommendation Strongly encourage the use of disclosure forms which refer customers/clients to other service providers who are outside your area of expertise

14. Workout Options Copyright © 2008. Home Ownership Matter, LLC. All Rights Reserved. an O P P O R T U N I T Y not a R I G H T **Borrower must qualify AND cooperate in “good faith”

17. T I M E is of the ESSENCE Copyright © 2008. Home Ownership Matter, LLC. All Rights Reserved. Use of the QWR to Buy T I M E Federal Law Provides Protection (Google QWR) NCLC — www.ConsumerLaw.org HOM’s Blog — HomeOwnershipMatters.blogspot.com HOM’s Site — www.HomeOwnershipMatters.com (Foreclosure & Loss Mitigation Section) Recommendation: HOM INtro #28: Demand Your Note: a Foreclosure Intervention Strategy HOM INtro #29: QWR: A Powerful Consumer Foreclosure Intervention Tool

23. What Is It? An option which allows the borrower to stop making payments— with permission—for a period of time PROS: • This workout is handled by Customer Service • Does not require an extensive paperwork • Is verbal and can be instituted immediately CONS: • It is verbal, less concrete • Increased chance of misunderstanding between borrower and lender (because it is verbal) • May be rescinded or changed (because it is verbal) Forbearance Copyright © 2008. Home Ownership Matter, LLC. All Rights Reserved.

24. What Is It? A long term, written agreement which allows the consumer who is in default to delay payments for a stated period of time. PROS: • Can offer a better long term solution • May allow a time with NO payments, based on circumstances • May extend for a year or more, based on circumstances CONS: • Can be problematic—IF the lender does not record the new, modified loan Special Forbearance Copyright © 2008. Home Ownership Matter, LLC. All Rights Reserved.

26. What Is It? Payment made to the lender, by the insurer on the loan, which allows a borrower to become ‘current’ after they have been in default. PROS: • Can make all the difference in helping you to get back on track with your mortgage • Removes the need to come up with a substantial past due amount in order to retain your home • Usually carry an interest rate of 0% • Usually are repaid once the main mortgage has been repaid CONS: • Has to be repaid when the borrower leaves the home (even if there is a short sale approved) • Are not used nearly as broadly as they might be • Not advertised as available from the Private Mortgage Insurance companies nor government providers Partial Claim Copyright © 2008. Home Ownership Matter, LLC. All Rights Reserved.

28. What Is It? Is an opportunity to list and sell a home when the borrower is in default BUT has equity in the home Lender Approval NOT Required PROS: • Does NOT require lender approval or participation • Needs an aggressive REALTOR and a client willing to list the home at an amount which will generate an offer—N O W CONS: • Must be completed rather quickly Pre-foreclosure Sale Copyright © 2008. Home Ownership Matter, LLC. All Rights Reserved.

29. What Is It? Sale of the home when a borrower is in default AND upside down which must be approved by the lender since less than full mortgage payoff will be covered by the new buyer’s loan . Lender Approval Required PROS: • Positive option to avoid foreclosure • Requires lender approval AND a REALTOR competent in the process of short sales CONS: • May leave borrow to face a deficiency judgment • Could require borrower to sign an unsecured note for the amount of the deficiency • Could leave borrow to face tax consequences due to shortage being treated as ‘gift income” Short Sale Copyright © 2008. Home Ownership Matter, LLC. All Rights Reserved.

30. What Is It? Intervention option which allows a new borrower to take over your payments Lender Approval Required PROS: • May be possible even when the mortgage is coded as “unassumable” • Could be your last ditch effort to avoid foreclosure • Might work for a potential purchaser who does not a sufficient down payment CONS: • Will require approval of the new buyer by the lender • Does not relieve you of the obligation UNLESS the lender signs a “release of liability” form • Should be utilized only with the help of a competent attorney Assumption Copyright © 2008. Home Ownership Matter, LLC. All Rights Reserved.

31. What Is It? An option for walking away from your home which means you work with the lender to get them to voluntarily accept the property instead of foreclosing against you. Lender Approval Required PROS: • Slightly better than being foreclosed upon • Avoid the ‘foreclosure’ tag being added to your credit • May allow an opportunity to reduce a possible deficiency CONS: • Requires lender approval • Cooperation from a 2 nd lien holder is mandatory • Should be completed with the help of a competent attorney because of deficiency and insurance issues Deed-in-Lieu Copyright © 2008. Home Ownership Matter, LLC. All Rights Reserved.

32. When you are not the RIGHT professional that means anything other than PRE-FORECLOSURE SALE or SHORT SALE When Should REALTORs Refer? Copyright © 2008. Home Ownership Matter, LLC. All Rights Reserved.

35. Mildred Wilkins, President Home Ownership Matters, LLC 7399 N Shadeland Ave. #164 Indianapolis, IN 46250 Toll Free: (866) 507-5105 Fax: (877) 587-4507 For More Information About the Author: [email_address] http://www.HomeOwnershipMatters.com http://HomeOwnershipMatters.blogspot.com For a copy of HOM’s FREE Article Archives Service, E-mail Heather at: HomeOwnershipMatters@gmail.com THANK YOU! Copyright © 2008. Home Ownership Matter, LLC. All Rights Reserved.

36. Copyright © 2008. Home Ownership Matter, LLC. All Rights Reserved. You can take the survey online at: http://www.surveymonkey.com/s.aspx?sm=2M63rhnWI80dBfs72fg_2f_2fQ_3d_3d Or fax this to (Toll Free): (877) 587-4507 Name: _________________________________ Phone: _____________________ Firm Name (If Applicable): ______________________________________________ Address: _____________________________________________________________ City: ____________________ State: ____________ Zip: ______________________ E-Mail Address: _______________________________________________________ I would like to be added to the HOM Distribution List: ___ Yes ___ No I understand that my information will not be sold or shared with anyone other than HOM ---------------------------------------------------------------------------------------------------------- Please let us know if you have any questions or comments: ____________________________________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________ What would you like to see HOM do in the future? (Webinars, courses, e-mails, articles, etc): ____________________________________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________ Thanks for your input, we really appreciate it! Survey