"Buying TIME" Notebook: Download FREE!

We are pleased to provide this notebook as a tool to help you with working through your housing situation. The notebook was originally created in January of 2009 for attendees of the four (4) hour training “Buying TIME...When the money is running out.” One of the most important aspects of trying to deal with any problem is to keep the details straight, to document:

a. What has been done?
b. When was it done?
c. What options are available and need to be considered?
d. What is to be done next?
e. By whom? Why? When?
f. Who did you speak to and when?
g. What other action steps are required? By you? By the other party?
h. What deadlines are important? When will you follow up?
i. What laws or guidelines apply? Do you understand them?
j. Where can you get other information?
k. If a complaint is needed, where should it be filed? When? Why?
l. And other information which does not occur to me at this moment

As a trainer I felt it was important to give the attendees of the live seminar this notebook as a handout to help them get started. I weighed the extra cost the notebooks added to the cost of the presentations and felt it was a crucial expense. A couple of sponsors felt the cost of printing was not justified since essentially the notebook is blank pages which you can use to record your ‘adventure’. I strongly disagreed and have had numerous attendees to tell me how valuable they felt it would be to have a designated place to record all their communications. The goal setting page at the beginning is a good start. It encourages you to determine what you EXPECT to be your outcome and then commit to making it happen in a systematic way.

Positive reinforcement on a daily basis is also important. Having been reared in a poor family with limited resources and an almost total lack of support and encouragement of any kind, I learned early on the tremendous value of encouragement, particularly external encouragement to continue to believe that you could overcome seemingly insurmountable obstacles. When positive reinforcement is coupled with the knowledge you need to deal with the situation, you will be amazed at your ability to weather the storm.

The “Buying TIME Notebook” is a resource. It provides a mechanism, a system, coupled with encouragement to continue to pursue an outcome which you can be satisfied with. Click Here to Download Your Copy Today!

Use it and be blessed!

“Remember, knowledge can be empowering”

Mildred

FYI: Stimulus Package as a Home Purchase Motivator—Don’t Jump into Home Ownership

Even I get tired of me sometimes. Folks want to be all excited and I have to keep inserting nasty little details to muddy the waters. The idea of getting $8,000 as FREE MONEY to buy a house is so tempting that I even considered it for a few days myself. Thank goodness I woke up and realized, I had not been planning to buy a house, don’t really want to own a home at this particular point in my life, can’t handle the maintenance nor do I wish to be tied down to a specific home until I am absolutely sure where I want to retire in a few years.

I was recently asked by a young lady at a “Buying TIME” workshop whether or not she should consider buying a house now because of the stimulus money. I asked her a couple of questions to try to determine what answer I should I give her.

a. Were you thinking about buying a house already?

b. Do you know your credit score and have you checked with a lender to see how much home you can afford? Are taxes included in that payment?

c. Is your job stable enough that you feel comfortable making that kind of commitment?

d. Do you have any money saved for a down-payment?

e. Do you have a budget set aside for maintenance?

I have not answered her question yet and now she is frustrated with me. (I didn’t get to ask her the rest of the questions). Shouldn’t she just take advantage of this maybe once in a lifetime chance to get some free money to buy a home? My answer: Not unless the answer to all the questions I did ask are “YES”.

I have read the stimulus package and the guidelines for the $8,000. I am real clear that it does not come with an annual budget for maintenance, a new lawn mower and appliance package and 95 other things you need if you are about to step out into home ownership. I support home ownership and encourage anyone who is ready to take that step to do so. But because I am a consumer advocate who hopes that the folks who buy homes will live there as long as they choose and not be forced to let the home go because they did not understand all the responsibilities which go with owning a home, I beg you to slow down and consider all the aspects of that choice before you hurry on down and grab the money. Selecting a local HUD-approved housing counseling agency and taking a pre-purchase course as well as some on-line studying could help you avoid making a costly mistake.

Buying a home is a BIG decision; give it the respect it deserves. Owning a home can be extremely rewarding (I’ve owned before) but do it on your terms, when the time is right for you. Buy conservatively and ENJOY.

***An interesting footnote, “Buying TIME...When your money is running out” is a workshop designed to help folks who are struggling with managing payments on their current housing.  So the question raised above was from an attendee at a workshop which would indicate you are not ready to make a home purchase.

Copyright © 2008, Home Ownership Matters, LLC. All Rights Reserved.

(Please E-mail Heather at homeownershipmatters@gmail.com with any questions, comments or concerns you might have! We appreciate all comments and feedback, so please don't be shy.)

From the Desk of: Buying T-I-M-E

Never before has the expression “If I could just buy some time” meant so much to people. When you are facing foreclosure you need time to discover your options, analyze your situation and implement an action plan. Your most precious commodity is time…And it’s running out.

When your money is running out…

You don’t have time to wait for the trickle down effect of the stimulus package to make a difference in your personal situation. While the package will make a significant difference over the long haul for thousands of Americans, anyone who thinks it is going to quickly make a difference for EVERY American is kidding themselves. Facing reality is hard, but necessary. As a country, we have ignored hard truths with disastrous consequences for too long. Nothing will be gained by continuing to point fingers. However, we must immediately recognize that each of us has a role to play in correcting the serious housing problem we face as a country. (Even if your home is paid off, FREE and CLEAR). The housing market holds the key to stabilizing our country, so anything we can do to keep people in their homes is a step in the right direction.

First thing’s first...

DO NOT ABANDON YOUR HOME. Even when you are behind on your mortgage, no matter how far behind you are, DO NOT abandon your home until the entire legal process has been played out. You can stay in YOUR house until your right to possession has ended. Exactly when that time is will be determined by three (3) factors:

1. Type of foreclosure in your state: judicial or non-judicial
2. Whether you have a mortgage or a deed of trust
3. State statutes regarding sheriff or trustee sale and possession timeframes

Find out the answers to items 1, 2 and 3, and then abide by them. Make sure your lender abides by them as well. Things could improve while you are holding out. Hold on.

Things are changing radically and very quickly because of the magnitude of the housing problem. Your local courts could dramatically change the way they process pending foreclosures so that you have a chance to work things out with the lender. Stay in our home and fight for the chance to work things out. More banks are willing to work with borrowers today simply because they really can’t manage the huge backlog of homes which have already been lost to foreclosure. If you can present a viable plan, your chances of retaining home ownership are pretty good.

Second thing’s second…

I know you know that, but I needed to get your attention. Probably the second most valuable thing anyone will ever tell you to do to save your home from foreclosure is to

1. Demand the lender or servicer who is threatening to sue you for foreclosure produce the original note/deed of trust which says you owe them. In legal terms you are asking them to demonstrate that they are the “real party of interest.” In common language that means, prove I owe you. Prove you have the right to demand payments from me.
   
2. The most effective way to demand this documentation is with a “qualified written request”. You are entitled to request that and any other information you want which is related to servicing on your loan (any mortgage loan in the United States) under federal RESPA regulations. Details are taught in the workshop.

What Choices do I have????

Let’s consider the answer to that question. It is critical that you start with an honest inventory of your situation. How far behind are you? Do you have the resources to resume payments? If not now, when will you be able to do so? What do you want to do? What are you ABLE to do? Why should the bank consider your proposal? You’ll need to able to defend it as being reasonable, based on your current circumstances.

Space in this article will not allow me to go into detail but I will provide you with the options you can consider. Do further research on each of them, online, in the library, on websites such as HomeOwnershipMatters.com Or at the blog: HomeOwnershipMatters.blogspot.com.

1. Options to keep the house—special forbearance, loan modification or a partial claim. You need to learn what each of these means and how it works
2. Options to let the house go—short sale, assumption or deed-in-lieu. All of these options are better than foreclosure but you need to know exactly how they work to avoid creating yet another problem for yourself down the road.
3. Reverse mortgage could be considered, it could be your solution. Be sure to use a government backed reverse mortgage if you decide to use this option.
4. Receiving disability payments (if you have a claim pending) could make the difference. Hold on until you know what you will be receiving
5. Acquiring a roommate could change your finances—get started working on it (I mean a roommate who will PAY—not one who will add to your expenses)
6. Selling unnecessary items in order to cover the gap until you get a permanent solution. Ebay or Craigslist could bring in some immediate cash. (Stop crying—we are trying to save your home and Buy “T I M E”).
7. Some other solution which has not even occurred to me

“Answer” the summons

The summons is your official notification that the lender has moved to legal action. The court notifies you via the “summons”. Your response should be to the clerk of the courts, the lender/servicer and their attorney. It is critical that your answer be received within the legally stipulated timeframe in your state. It is strongly recommended that the answer be sent by certified mail, with a signature required. This is a task which you can handle on your own, with a little coaching.

Basically, an answer should acknowledge that you are aware of your situation and that you are working with the lender on a plan. Specify what that plan entails. If you are challenging whether or not the lender has the legal right to foreclose (due to failure to produce the original note or demonstrate that they are the “real party of interest”) this is your time to say so. The foreclosure is likely to be stalled based on the quality of a timely, well prepared “answer”.

Buying “T I M E” workshops offered…

Workshops to teach consumers what they can do to “save themselves” will be offered in cities across the country beginning in March. All workshops will be posted to the HOM calendar as soon as they are confirmed so look for one in your area soon. These workshops are 3 hours in length with an hour after for questions and answers. Attendees will leave with a comprehensive packet which details all the options outlined above as well as a sample “qualified written request” with complete instructions on how to use one most effectively. Each borrower who attends will also walk away with clarity on how to prepare an “answer” since this is also critical if legal action has begun.

Want to host a workshop in your town?

The commitment is simple and inexpensive. A workshop can be offered anywhere in the country if a host is willing to provide a suitable space and advertising to let the public know that the event will be held. There is no fee for the speaker (donations will be accepted) but expenses to the event must be covered. For a nominal expense you can offer a very valuable training which can save homes in your community. For details about what is required, please send an email to Heather at meade.heather@gmail.com.

Local initiative is needed

We all have high expectations of the new administration but our President has said repeatedly, and has demonstrated with his grassroots campaign, that the masses can make a difference, when they choose to become involved. If every person who reads this article would share it with the people in your personal database, you would help several people to avoid foreclosure.

If the leaders of organizations would share the articles and the link to the blog with your entire company, you might save not only their home but the home of some of their family members or friends. Driving people to the blog and website so that they can get practical, easy to understand information to help them with their personal choices could make a big difference. Anyone reading this who has the connections to have a workshop in your city or a program aired on Public Access or Government Access television or local radio show could reach thousands of folks with some concrete/self help which could make all the difference in your community. I am a teacher and a writer. I know the role I am to play. I ask each of you to find your role in helping our country get back on its feet. We must find some resolution to our housing problems.

“Working together, we can make a difference”

Copyright © 2009, Home Ownership Matters, LLC. All Rights Reserved.

(Please e-mail Heather at homeownershipmatters@gmail.com with any questions, comments, or concerns you might have. We appreciate all feedback, comments, and especially your questions. Don't be shy!)

Q&A: Miscommunication—Papers Served

Q. I have not made my mortgage payments for the past six months but the lender had said they would try to do a modification and make the payments lower so I could afford them since I am back at work. Today I received a notice with the word “summons” on it indicating that the lender has filed for foreclosure. It says I have 20 days to respond. I have no idea what to do. Who do I respond to? What do I tell them? Do I need an attorney to do this? Please give me some answers—FAST.

A. First, calm down and let’s take this one step at a time. You do not need an attorney to handle this. (Yes, an attorney can do it but one is NOT necessary.) The “summons” is a notification from the court that the lender has filed legal action against you because you are defaulted on the loan. How much time you have to respond will be determined by your local state foreclosure laws and the terms of your mortgage note or deed of trust. Take a few minutes to check your state statues to be sure you respond within required timeframe or you lose any rights you would have had.

Second, you need to provide an “answer”. An answer will notify all interested parties that you do not plan to lose your home to foreclosure.

An answer will give you time—a valuable commodity--

• time to verify that the plaintiff is the ‘real party of interest’ (if not, this is GREAT news for you)
• time to get your disability claim finalized and start to receive payments
• time to work out a modification, short sale or other option
• time to complete a reverse mortgage and get current
• time to get back to work and resume payments

It is important that you provide an answer to all interested parties: the party who sent the summons/notice (usually the clerk of the courts), the attorney representing the plaintiff as well as the lender themselves. I suggest all copies be sent with return receipt requested and that they require a signature. It is crucial that you keep this information so you can prove (if need be) that you provided the answer within the legal time frame.

An “answer” can be crucial to buying you the time necessary to save your home. However, there is little point in using this option if you have already determined that you simply cannot afford the home.

Do some research on-line or go for it. I am confident you can do it.

Copyright © 2009, Home Ownership Matters, LLC. All rights Reserved. "Answer Book in a Foreclosure Climate" by Mildred Wilkins, available in 2009 from www.DovePublishingHouse.com.

(Please e-mail Heather at homeownershipmatters@gmail.com with any questions, comments, or concerns you might have. We appreciate all feedback, comments, and especially your questions. Don't be shy!)

Did You Know: Loan Screw-ups

FYI—Loan Screw-ups

It is important that you know some of the ways the servicer of your loan frequently fails in their responsibility to handle their job as they should. Their failure could give you the reason you need to block a pending foreclosure. There are many things they do wrong or fail to do at all but the more common items include:

• Failing to make timely payments from your escrow account
• Failure to aggressively work at a loss mitigation attempt when requested to do so
• Sending you inconsistent letters demanding payment
• Failing to honor forbearance agreement (not you—them)
• Failing to give you proper notice of a servicing transfer and your rights related to that transfer
• Failing to properly apply payments during the transfer period, possibly creating a default
• Failing to provide a timely or complete response to a qualified written request
• Choosing to apply force-placed insurance when you, in fact, already had coverage in place
• Returning mortgage payments
• Improperly placing your payment in a suspense account
• Posting your payment late and/or misapplying your payment
• Threatening foreclosure when, in fact, you are not delinquent
• Charging excessive fees for the use of attorneys, inspections, etc
• Charging fees for services which have not YET been performed
• Creating a default by misapplication of the payments you have sent in

This is just a partial list of things which servicers do on a regular basis which can wreck havoc with your loan. At the least, it can be an inconvenience. At the worst, it can actually cause you to be in default and in foreclosure through no real fault of your own. It happens. Even when you have actually missed mortgage payments and are struggling to keep your home, the loan servicer is still required to handle the account with certain fairly standard and reasonable guidelines. Too often, they fail to do so and you end up getting the short end of the stick. Unless consumers demand they stop the unfair practices and produce documentation of how they have handled your file (via a qualified written request) they will continue to operate like they all got training in the wild, wild west where anything was okay.

What should you do if you suspect your servicer is not dealing with you fairly?

Step One: File a qualified written request following guidelines discussed elsewhere on this blog. (Do additional research on the web; see this entry on Buying TIME from our blog).
Step Two: Try to find an attorney who will represent you in challenging their right to foreclosure.

You must move quickly and with a firm action plan so that you don’t become another foreclosure because the consumer didn’t know that they could fight back.

The “Buying TIME” Foreclosure First Aid Kit, available at www.DovePublishingHouse.com would be of great benefit to you as well.

Copyright © 2008, Home Ownership Matters, LLC. All Rights Reserved.

(Please E-mail Heather at homeownershipmatters@gmail.com with any questions, comments or concerns you might have! We appreciate all comments and feedback, so please don't be shy.)

From the Desk Of..."Mama Said"

“There’d be days like this...”

They try to warn us and still we are surprised. After all, they’re old and tired and out of the loop. How could they possibly have known? Perhaps they ‘remember’ more than we have yet to learn.

REALTORS...“Invisible” Casualties

They are not documented in the statistics, these self-employed (independent contractors) who call themselves REALTORS. They cannot draw unemployment nor is there a plan to cover their non-existent medical insurance premiums. They don’t garner a lot of sympathy in a lot of circles either. And to add injury to insult, they are sometimes blamed for participating in creating the crisis which has engulfed them as well. On a regular basis they call or email me wanting some advice on what can be done to save their personal residence. With increasing regularity attendees in short sale classes were motivated to attend by a need to save their own home. It is a sign of the times.

How Did We End Up Here?

I went on record as early as 2002 stating we were likely to dance dangerously close to a repeat of 1929 if we did not immediately halt the outlandish predatory lending, the crazy new construction financing and the whole speculative silliness on our coasts. After selling real estate for several years and keeping a close eye on the escalating foreclosures moving through the pipelines at Fannie Mae, I could see where we were headed.

My ex-husband and I purchased our first home in 1979 at 16% interest (with excellent credit I’ll have you know) so I had some familiarity with the housing drama of the mid-70’s and into the 80’s. But that was a housing crisis; this is a full-blown economic crisis. That was regional, this is international. I am only 58 and while I could see the tip of a nasty iceberg, I could not see, nor truly imagine, how much of the iceberg was underwater. (No pun intended). A housing problem which is restricted to one industry, or one region or demographic group, cannot create the kind of havoc which we are experiencing as an economic tsunami. The economic crisis which is crippling our country, and the world, will not improve dramatically in the short term; so it behooves all of us to “adjust as necessary”.

Life’s Lessons

The purpose of lessons is to get us prepared for the test. However, as adults, all too often we act as though we have forgotten that tests are a part of life, show up when and where you least expect them and are administered whether you are prepared or not. Welcome to the classroom for the test on “Living Large” or it might be called “Analysis of the Aftermath of an Unattended Bubble”.

I Was at a Crossroad

After a particularly difficult period following my divorce in the fall of 1991, I eventually emerged from an extended fog where I had felt overwhelmed and unable to cope. I had been summarily thrown off the “middle-class, stay-at-home mom, PTO president, Girl Scout leader” train into a new life as a divorcee. The house had been lost to foreclosure and the beautiful Celebrity station wagon (the ultimate status symbol) had been towed away during dinner. I was left to raise two wonderful children, sans child support.

Early Preparation Comes in Handy

In the wee hours of the morning I had a life altering revelation. I called Mama at 6 a.m. (she was already up) to tell her my great news. With a new sense of feeling empowered and ready to take on the world, I happily reported, “I am so glad that I was born poor and Black, in the south.” Her concerned reply was “Girl, are you alright?” I was better than alright, I was ecstatic. I had suddenly realized that I had within me the capacity to over-come things much more challenging and with a lot less maturity and preparation. I was healthy, college-educated (a testament to perseverance) with marketable skills as an interior designer and seamstress. I could figure it out.

Personal Inventory

A long held personal commitment to never giving up took that option off the table. Going home (back to Alabama) was also not an acceptable option for me, even though I strongly encourage others to consider it. What marketable skills could produce enough income to support us in the new apartment? I dabbled with interior design; I could expand it. As an excellent seamstress with strong referrals, I sought and was successful in getting my name added to the list of recommended seamstresses at a bridal shop and 3 home decorations shops. Mildred’s Speciality Fashions had been my hobby; it now became my dominant source of income (you see there was a downturn in the economy, and folks who previously would have called DECORATING DEN now called me instead). I also decided to supplement that income with house cleaning (a day job) which allowed me to continue to be available to the children and work into the night on the design and sewing. I let all my customers know that I needed more work and requested referrals. I expanded my cake decorating hobby and created a business card for that as well.

Long term planning

My income was sufficient as long as I worked 16-18 hours a day, 7 days a week. I needed to plan to cover college costs so I decided to plan for and become a REALTOR. (I know, better hours right?) January 1993 I joined the F.C. Tucker Company full-time, continued to work my evening gigs for 2 years and moved to six figures within 6 years at an average sales price of $150,000. In Indiana. The plan worked, I evolved, my needs and my life shifted and I founded HOM in 2002 because I saw this coming.

Are you where you need to be?

The most important question should not be whether or not you can survive. You CAN if you CHOOSE to do so. The deeper question is whether it is time for you to make a move...

a. Within the real estate industry

b. Into a fresh industry

c. Step back and expand a hobby or long held dream

Silver Linings in Unexpected Places

What looks and feels like a crisis can frequently be the catalyst which moves us to a long overdue change. Take some time and reflect on what is really important to you...family, friends, leisure time, personal development, spiritual growth or something I failed to include. Is there a chance that the upheaval in your real estate career is providing an opportunity to re-align yourself more closely with deeper values? Is this a chance to shed some undesirable aspect of your present life? Are you enjoying managing your rentals? Are you really seeing any gain from them? Could a smaller house, or even an apartment, relieve some pressure and make you life more pleasant? Have you really considered how you want the next stage of your real estate career to go, or are you foolishly grabbing any straw you see floating—hoping it will turn into a lifejacket?

Methinks the REALTOR needs a doctor

As a real estate professional it’s time you had a check-up. I would recommend you be tested for:

• Financial stability (or lack thereof)
  
• Emotional duress and mental stability
  
• Viable game plan
  
• Analysis of both short and long term goals
  
• Prognosis for longevity
  

There are not a lot of clinics which offer the services you need but I can offer you some helpful reading which can be found on this blog, specifically these two entries:

• “Realtor at the Crossroads” on January 25, 2009
• Surviving Debt on May 6

I feel pretty confident you’ll find some other entries which are helpful as well.

You would also benefit immensely from attendance at a “Buying TIME” and “Short Sale: Not Your typical Transaction” class. Both could be scheduled locally, by your real estate board. It is no small thing that funding for these courses might be provided by NAR as part of their Foreclosure Intervention and Prevention Response program. Talk to your local board today about scheduling one, or both, of these classes.

Copyright © 2008, Home Ownership Matters, LLC. All Rights Reserved.

(Please E-mail Heather at homeownershipmatters@gmail.com with any questions, comments or concerns you might have! We appreciate all comments and feedback, so please don't be shy.)

Q&A: Crisis Budget

Q. We have been in our house for several years and did not refinance or get a second mortgage like so many people seem to have done over the past few years. We have managed to make our payments on time and things were fine until they cut back my hours at work six months ago. We struggled but we were still getting by until my husband was laid off two months ago. He cannot find a job even though he is trying really hard. We have already talked to the bank about trying to work with us on the mortgage but they can’t with the little bit of income we have. I don’t even care about the house any more. What can we do to try to keep food in the house until we have to move? We need help just to survive. Can you make any suggestions? We will try anything.

A. For many people today the truth is that they, like you, are in survival mode. I will not address any possibilities for saving your home since your focus is survival of your family. First, you should be applauded for looking at the survival issues as being more urgent than your housing issue.

I would encourage you to immediately adapt a crisis or survival budget. I will cover a whole list of things to do, some I am sure you’ve already thought of but some which you might not have considered. Here goes.

1. Household necessities—food and medicine

• Cook at home—no fast food
• Switch to store brands, minimize food purchases when possible by using simpler dishes (spaghetti instead of lasagna)
• Use coupons and watch for store specials
• Check again to see if you NOW qualify for food stamps
• See if the “Angel Food Ministries” is available in your area
• Look for short dated meats which are dramatically reduced (use immediately or freeze)
• For prescriptions—switch to generics and/or ask your doctor for samples

2. Car expenses

• Can you switch to a lower car payment? Use public transportation?
• Get rid of a second car? Carpool?
• Reduce the number of miles you drive, saving on gas
• Increase the deductible on your insurance to get a lower monthly premium
• Barter for an oil change but DO NOT delay when one is needed

3. Minimize household expenses

• Get rid of cable and minimize the expenses with a land line if you also have a cell phone
• Go to a minimal package with your cell phone company
• Reduce personal care expenses for haircuts, nails (can you barter for the hair or do it at home?)
• Change entertainment to free park or other community events instead of movies, bowling etc
• Cut out playing the lottery or other gambling
• Give up cigarettes or drinking (big saving on 1 or both of these)

4. Look for ways to generate income such as:

• Selling items on eBay
• Holding a garage sale
• Taking items to a consignment shop
• Take in a roommate—be upfront with them about your mortgage situation
• Sell items you don’t need at a flea market
• Look at your skills to see if anyone will pay you for a skill you have (mowing lawns, painting, childcare, fixing items, any one of 50 things)
• Do you have a hobby which could generate income (cake decorating, sewing)

5. Other possibilities

• If the car is paid off, reduce the insurance coverage to liability only
• Change the number of dependents on your W-2’s
• Use conservation methods to reduce your utility bills

6. Housing

• Apply for government subsidized housing (Section 8), even if there is a long waiting list
• Consider moving in with someone (family/friend) for a period of time
• Use techniques for “buying TIME” to stall foreclosure until your situation improves

This is typically called a crisis budget, you can get the definition, and more information, here.

Please share any suggestions you are already using which are not included in the list above. We’ll use them in a future blog and you can help someone else to make it over the hump. We really are all in this together. (You can either leave a comment here, or send an email to Heather at homeownershipmatters@gmail.com).

Copyright © 2008, Home Ownership Matters, LLC. All Rights Reserved.

(Please E-mail Heather at homeownershipmatters@gmail.com with any questions, comments or concerns you might have! We appreciate all comments and feedback, so please don't be shy.)

Loan Modification Specialist (LMS) Certification Offered in Florida

Dates: July 27, 28, 29, 2009
Times: 8:30-4:30 every day

Location: Perdido Bay Golf Resort
1 Doug Ford Drive
Pensacola, FL 32507

Sponsor: Home Ownership Matters Training Institute

Trainer: Mildred Wilkins, (FIS) Foreclosure Intervention Specialist

Former Fannie Mae Broker-Specialist

Get the training you need from someone who has:
1. Learned property valuation from Fannie Mae

2. Sold real estate/processed many successful short sales

3. Lost a home to foreclosure/I can teach you about deficiency judgment

4. Learn from a professional; TO BECOME MORE PROFESSIONAL

Registration: Early bird registration ends 4/25, so HURRY and register TODAY, seats are VERY LIMITED: ONLY TEN AVAILABLE! (Yes, ONLY 10)

Lodging: The Cottages at Perdido Bay (http://www.perdidocottages.com) (Lodging NOT included in the price of the certification)

Course Description:

This Loan Modification Specialist (LMS) certification program is comprehensive, rigorous 3 day training designed to prepare attendees to successfully facilitate loan modifications. Professional development is necessary to be competitive in this emerging field. This certification has been designed and is taught by a former Fannie Mae Broker-Specialist who has specialized in foreclosure intervention training since 2002.

Wilkins created the (FIS) Foreclosure Intervention Specialist certification program for REALTORS, the first such certification for real estate professionals in the nation in 2005. (FIS) for Housing Counselors was added in 2006. The (LMS) certification will set apart those who have taken substantive hands-on training and are truly prepared to call themselves ‘specialists’.

Let the (LMS) certification move you closer to transitioning into a whole new career. There is pent up demand for this service, a limited number of qualified providers and even less training available for those in the private sector who currently own or plan to open a for-profit business.

(LMS) certification. Your answer. Today. Register. NOW!!!!

Why offer certification?

HOM Training Institute is the training arm of Home Ownership Matters, LLC. Providing quality education to real estate professionals such as REALTORS, attorneys and housing counselors has been the focus of the institute for several years, with the goal of training professionals to be competent in the fight against foreclosure. The dramatic increase in the sheer number of modifications which are being utilized, along with the fact that most individuals or organizations which offer them have little to no training in the field has created a need for practical, comprehensive training in this area. HOM Training Institute is responding to that need with the (LMS) certification training. The consumer is the person who ultimately benefits from this program.

Is this training right for you?

This is a fast-paced, but comprehensive, look at the many details which need to be considered if you have concretely decided, OR you are contemplating opening, a business which specializes in providing loan modification services. You will not be taught how to create a database of consumers who have already received foreclosure notices from public records and do direct mailing to them to get business. You will, instead, be taught how to set up a professional office where you meet with clients who have been referred to you from sources such as local counseling agencies, your local foreclosure hotline, reputable non-profit organizations and others in the community who are looking for competent, professional loan modification service providers to meet the growing need as the housing crisis deepens. While there is a significant move across the country to provide training to housing counselors within non-profits who help low to moderate income borrowers, there is no corresponding training to meet that same need for middle to upper income borrowers who are simultaneously struggling.

What to expect:

As attendees, you will:
1. Receive clarity on the legal process of foreclosure (state specific) and the applications for a potential loan modification

2. Cover the components of the mortgage documents which specifically impact the possibility of workouts

3. Learn the elements necessary for a successful modification and the practical strategies for implementing such a workout

4. Receive instructions on how to successfully (LEGALLY) block foreclosure long enough to complete the modification process

5. Gain a thorough understanding of the inner workings of the Loss Mitigation shop and how to work effectively with them

6. Leave this training with a clear picture of the ethical and legal constraints which should (and must) govern your business in order to avoid lawsuits

(LMS) Loan Modification Specialist
Certification Training

Day 1: Practical and Professional Strategies
Session I: Understanding the Foreclosure Process

This session will cover the basic process for foreclosure, beginning with default and culminating in the particulars of the foreclosure process. Both judicial and non-judicial foreclosure will be discussed, since they are vastly different. It is impossible to help someone effectively with a modification without understanding the bigger picture of what the foreclosure process is for your state and where the consumer is in that process. The class will cover the differences between foreclosure with a note and foreclosure under a deed of trust. Additionally, such things as redemption rights will be covered with a general focus on what they are and the intention under the law (and the way they are abused by foreclosure intervention scam artists). Each attendee will have an opportunity to get clarity on the ‘specific law’ for your state in a timeframe tailored for this purpose.

Lunch—The Perdido Grill

Session II: Loan Modification—An Intervention Solution Whose Time Has Come

This session will provide clarity on the details of what exactly constitutes a modification, the components of a good, sustainable one and how to structure such a workout. Just as important, this session will cover the risk factors which can undermine a mod and cause the consumer to re-default. Learning to more accurately analyze the short term capacity of the borrower and the long term feasibility of the workout proposal, prior to an agreement being reached, are the keys to long term sustainability. Success should be measured not by whether or not you got someone to say yes, but by whether or not the workout is ‘working’. If the answer is no after a month, then it would fail the test of a workout. It was, in fact, just a band-aid. This training is designed to train you how to offer long-term, sustainable proposals for modification and get them accepted.

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Individual appointments for state law coverage

(filled on a 1st come, best choice basis)

Appt 1—5 until 6 p.m.

Appt 2—6 until 7 p.m.

Appt 3—7:15 until 8:15 p.m.

Day 2: First Thing’s First for a Successful Modification
Session III: “Buying TIME” – When the Money is Running Out

The focus of this session is worth the cost of the training, even if you failed to attend any other sessions. Time—or the lack thereof, is a major stumbling block to any successful workout—including a modification. This session will cover a highly successful strategy which combines strategic and legal restraints that will give you several extra months and a very strong negotiating position. When time is on my side—and I have your undivided attention—then we can work something out. Using the power of an under-utilized federal law will give you the time you NEED to get the attention REQUIRED for a successful workout. A team of foreclosure attorneys have put together a comprehensive list of all the possible ‘audit items’ you might use to challenge the servicing on a loan or the validity of the loan itself. This TOOL will be the focus of this session. Let’s say, “It gets a servicer’s attention.”

Lunch—The Perdido Grill

Session IV: Behind the Scenes of a Loan Servicer’s Shop

As a former Fannie Mae Broker-Specialist the trainer was introduced to the inner workings of the disposition department of the largest insurer of properties in the United States. That introduction to the mindset behind the scenes, as well as subsequent Fannie Mae training on servicing, has been invaluable in teaching students in other classes what to expect from the servicer’s shop. Once you understand the mindset, you are better prepared to GIVE THEM WHAT THEY WANT—to get what you need. It’s a basic negotiating concept—the trick is knowing what the other party wants (which is seldom what they ACTUALLY tell you they want) and then being able to provide it. A successful modification agreement—in truth, an agreement between two parties for anything—hinges on a meeting of the minds with whether or not the needs of both parties are being addressed. Crafting a modification which has the potential to be both accepted and sustainable for the consumer is possible when you understand what the servicer shop truly wants.

**********************************************************

Individual appointments for state law coverage

(filled on a 1st come, best choice basis)

Appt 1—5 until 6 p.m.

Appt 2—6 until 7 p.m.

Appt 3—7:15 until 8:15 p.m.

Day 3: Practical and Professional Strategies
Session V: Modification Stripped Down

We’ll cover the basics of modification during this session. How to determine what recommendation to make and what supporting documentation should be supplied in order to validate that recommendation. Would a combination of components work better for this borrower? Is the medication a permanent ‘fix’ to the borrower’s financial situation or must you consider some additional long term strategy? Does the modification agreement provide protection from onerous terms? Is your client protected with a provision for timely recording of the modification to avoid repercussions during a subsequent transfer to a new servicer? If you don’t already know how to do all of the above mentioned things, then sign up today so you can learn how to structure a modification which will provide immediate relief and long term sustainability for your client. Remember: “If it ain’t on the paper, it don’t exist.” Feel free to repeat that quote by HOM founder Mildred Wilkins.

Lunch—The Perdido Grill

Session VI: Ethical and Legal Constraints

This final session is, perhaps, the most important session. It will focus on the need for clearly understanding how critical it is not only that you operate a modification business in an ethical manner, but that you also avoid even the appearance of borderline behavior. A number of states have already enacted legislation which covers businesses and individuals who are “foreclosure intervention counselors”. Offering a modification for a fee would definitely put you in that category. Not only are you obligated to abide by Federal privacy laws and fair housing laws, but there is an assortment of other laws which are geared to protect consumers from unscrupulous providers of service. There is, and will continue to be, aggressive investigation and prosecution of organizations and individuals who seek to take advantage of consumers during this trying time. HOM is basically a consumer advocacy agency and is, therefore, strongly supportive of legal action against any modification service provider who uses their knowledge and influence to take advantage of a consumer who has trusted you to help them at this difficult time. HOM will not endorse nor condone any illegal or unscrupulous behavior as it relates to foreclosure intervention, including loan modifications. Attendees of all training sessions offered by the Institute will clearly recognize that behavior above board, at all times, is continually advocated and expected of HOM graduates. Completion of a HOM Institute training should not be used as a cover for unscrupulous behavior. Be forewarned that the reputation of the company will be fiercely and publicly defended if a graduate seeks to use the integrity of the company in order to validate themselves.

**Dinner option available: Class vote required!

REGISTER TODAY, it may be the only way you are able to reserve your spot! Remember, there are only TEN spots open for this training!

Other training dates: May 25-27 and June 8-10

Airports:

Pensacola; 17 Miles Away
Mobile; 55 Miles Away
Okaloosa Regional; 53 Miles Away
Ft.Walton Beach; 48 Miles Away

REO Assumptions and Assertions

REO Assumptions and Assertions

Biggest Assumption: They just need to dump it

Translation: They’ll take any kind of crazy offer

Assertion: N-O-T YET

As a former Fannie Mae Broker–Specialist, I can provide insight into the real world of buying and selling bank-owned properties. First, forget most of what you think you know about such transactions—you’re probably way off target.

The Devil’s in the Details . . .

If you’re assuming they just need to dump it, you are half way right. They do, they really do, but not at any price. The most common misconception is that the holder of REO property will accept any offer without consideration for the value of the collateral. I suspect you’ve been watching too much late night television. While it is true that the increased volume of foreclosed properties means a substantial increase in REO inventory, the basic business principles which govern liquidation are not changing as rapidly as they need to (or as you had hoped they would.)

Harsh New Reality

It is a harsh new reality that today’s market is being flooded with REO’s. Thousands more will be added in the months ahead as a result of the backlog which has been created because of political posturing. As a consequence, both federal agencies (HUD, VA, Fannie and Freddie) and private mortgage insurance carriers will need to adjust their guidelines during the upcoming months. Unfortunately, as a practical matter, in the meantime, they and loan servicers must operate within the guidelines of existing regulations and existing contractual stipulations until they are amended. They will be relaxed—necessity will dictate that they must be. The consequence will be a ‘let’s make a deal free-for-all.’ Good for agents and buyers—not so good for price stabilization. But it has to happen and the sooner we get to it the better.

They Don’t Know Its Value

You’re right on target with that assertion. The “local market reality” is a piece of data which is hard for the servicer to grasp when they handle properties around the country from a centralized location. The truth is, their usual resources are less than reliable. They must rely on:

• Their appraisal, and we know how likely that is to be inflated
• A $50-$75 BPO—okay, does anyone really think you’re getting an accurate evaluation with a product produced in a BPO mill? Do you really think that they are trying to determine value with that document? (They are NOT. They are fulfilling a servicing requirement to have a BPO performed.)
• Their gut instinct
• The loan amount shown in their computer—but since when has that been connected to the ACTUAL value of the property?

Hence, the market will dictate and that process takes time. If the property is ‘rejected by the market’ for an extended period of time then it is declining in both actual and perceived value. It’s in everyone’s best interest to determine fairly accurately, from the onset, what is today’s market value. Consequently, the servicer needs a current, as-is appraisal. While many appraisers were rewarded for inflating values during the boom years, they are now stuck with the unpleasant task of trying to justify vast differences between former and current value. Market correction is not enough of an explanation but the recently sold comps don’t lie. It’s worth what someone will pay for it—today—not last year.

The Law of Supply and Demand

In time (I think within the next three to four months) the inventory will be so high that the valuations will plummet and get in line with what a ready and able buyer is willing to pay a reluctant REO owner. During the boom years hundreds of thousands of houses were built across the country without any clear need based on population growth. Speculation in real estate was HOT. The jobs created, the loans generated, and false illusion of prosperity made for wonderful headlines.

I was nearly thrown out of a Foreclosure Task Force meeting in Indiana in 2006 when I dared to mention the need for a moratorium on new construction since the city had already built more than 30,000 new homes in 5 years for only 10,000 new residents. I mentioned a college business class on supply and demand. I visited Denver in 2006 and thought they were building homes for the entire United States to move there. Then I moved to Florida and quickly observed that enough new houses were being built there for the few folks who didn’t want to move to Denver or Indianapolis. Shall I mention Atlanta, Las Vegas and twenty other cities which issued building permits without checking to see where the buyers were coming from. We are paying the piper (and we will be paying for the next ten years) for allowing an excessive amount of housing to be built. We created an economic situation which will dictate FEWER aggregate occupied households as people move to sharing homes in order to survive the financial crisis created, in part, by the ‘creative financing’ used to sell the new housing stock.

In time, the newly created rental housing market (previous homeowners, now renting again) will absorb much of the current excess single family housing but we will have changed the dynamics of communities across the countries from single family, owner-occupant to rental dwellings, perhaps housing more than one family. Investors are the most likely purchasers for the glut of foreclosed homes which will hit the market during the next two years. As businessmen and women, they will make decisions based on totally different criteria than buyers who would be owner-occupants. Financial institutions will have no choice except to reconsider their options when holding costs, fines from municipalities and other constraints dictate they do something to stop the bleeding. Excess has its payback. The law of supply and demand will not be ignored; pretending it does not exist is a sure fire way to pay the piper.

Now About that Insurance and Title Work

If you do not know the difference between a ‘marketable title’ and a ‘clear title’ this would be an excellent thing for you to research if you are planning to purchase an REO property. Suffice it to say that the REO you are purchasing can have gaps in the title coverage which leave room for undisclosed liens to surface after the closing and bite the new owner in the proverbial behind. Since you will have signed numerous documents which stated that you understood that you had no recourse after closing: you will not be surprised when I tell you: YOU HAVE NO RECOURSE AFTER CLOSING.

Watch for an upcoming webinar on the HOM website: “Buying REO is Risky Business”. You might want to put that on your schedule.

Copyright © 2008, Home Ownership Matters, LLC. All rights Reserved.

(Please e-mail Heather at homeownershipmatters@gmail.com with any questions, comments, or concerns you might have. We appreciate all feedback, comments, and especially your questions. Don't be shy!)

Q&A: Acquiring Real Estate with Tenants

Q: We have just bought an investment property which the seller lived in and rented out the other side. The seller has already agreed to vacate prior to closing but we do not know what to do abut the tenant. How do we get them out of the second unit?

A: Acquiring rental property which is currently occupied can be a good or a bad thing. Depends. I love that word. Depends.

Depends on:

1. Whether or not your contract says that the purchase is subject to the current tenant’s lease. What that means is: If their lease expires in 10 months, they belong to you and they stay for the next 10 months
2. If your contract states that their tenancy expires if there is a transfer of the real estate, then you have the RIGHT to get rid of them and we need to get to the “HOW”. But before we do, if they are good paying tenants, why don’t you want to keep them? Do you have other plans for the property which requires that they move? Did you forget to consider this before you started the buying process?
3. If you are not absolutely sure what your state law is concerning landlord-tenant rights, now would be an excellent time to check. And
4. Finally, if they will not leave nicely, and you really want them to go, then you will need to do a forceful eviction.

A forceful eviction should always be handled in accordance with state law. So don’t even suggest that is what you plan to do until you have read/studied the guidelines on what is required in your state.

The local sheriff’s department is an excellent place to start with a quick phone call to ask them what is the procedure, what forms are required, how much it costs, how much notice must you give, etc.

Additionally, they can probably direct you to the correct website to study up on this new aspect of your adventure as a new landlord.

P.S.
I almost forgot. You might consider offering them “CASH-for-Keys”. That’s a tidy little concept which is fast gaining popularity as a way to get folks out of foreclosed homes and could be used in this scenario as well.

“CASH for KEYS” is handy when you need someone to go away quickly, quietly and without leaving a mess. Simple—You offer cash as an incentive to vacate your property. How much cash depends on their needs and how badly you want them gone. Is it worth $1000 to have them out in 10 days? It is if the eviction process takes months and could cost you a lot. It is if the clean-out could cost you twice that amount or if they do damage on their way out as a way of getting back at you for a forceful eviction. Is it worth $500 if they leave in a month but agree to leave the home in good condition, promise to remove all trash and other debris and go away nicely?

As a Fannie Mae Broker-Specialist I was authorized to grant up to $1000.00 for ‘cash-for-keys’ provided you agreed to leave the home broom-swept, everything intact and you vacated by the time you said you would. Cash-for-keys is a reasonable request/offer when you have acquired real estate and need to remove the ‘body’ which remains. The amount is negotiable and should hinge on the size of house, time of year, how fast the home will be vacated, is the money required for a deposit on another property, moving expenses or other legitimate need to facilitate the ‘body’ disappearing.

General guidelines for cash-for-keys include:

1. A written agreement which states all the particulars—how much, to whom, by whom, what is expected, when will money be delivered
2. It must be signed by someone in authority with the agency who is offering the cash
3. You should assume that if you do not have a copy—you do NOT have an agreement
4. Terms of acceptability—home broom swept, all trash removed, etc.
5. Specific date and time these must be completed
6. Other details as the parties deem necessary

WARNING: Cash-for-Keys is a type of contract. Give it the respect of a contract. If you have entered into a cash-for-keys agreement (contract) you must honor all the terms as you agreed or you should expect NOT to receive the money. If you promised to vacate by 5 p.m. on Friday that is not the same as 8 a.m. on Saturday. I’m sorry, you lose.

Copyright © 2008, Home Ownership Matters, LLC. All Rights Reserved.

(Please E-mail Heather at homeownershipmatters@gmail.com with any questions, comments or concerns you might have! We appreciate all comments and feedback, so please don't be shy.)

FYI: Surviving Debt

The Challenge

We are going to address one of the biggest challenges facing everybody today—how do you survive debt? How do you get through the difficulties of today—whatever those challenges may be—and live to fight another day? Our stories are different—each with its own details—but the struggle is becoming a common one. It is more often now being felt by folks from all backgrounds as well as all income levels. Folks who have not had financial difficulties and would not have expected to be faced with them at this point in their lives are suddenly trying to figure out where to go from here, and how to survive.

A Strategy

For starters, you have to simply exist long enough to implement a strategy.  Following my divorce back in 1991, I was struggling both emotionally as well as financially. I had been a stay-at-home mom for 12 years, taking care of the house and the kids and suddenly I am a divorcee after 20 years with two kids to provide for—without benefit of child support. My mother gave me some of the soundest advice I have ever received to help me through that difficult time. If you follow it, it will help you through whatever lies ahead.

• Rule 1: Never allow yourself more than 24 hours to fuss and fret over a problem.
  
• Rule 2: When you think you can’t go on, stop, rest and TIE a KNOT.

Let me explain the rules. Rule #1 does not literally mean that you must have a resolution within 24 hours. Rather, she was saying don’t get mired down in the problem. Refuse to get stuck (depressed, cave in to a feeling of hopelessness). Take the time you need and ALLOW yourself to feel the frustration you are feeling related to the problem at hand. That may require a day or two; it may take a week. Do it. Feel it. Then shake it off and formulate a plan to deal with the issue at hand. Be conscious of the fact that you are moving through a process—with the emphasis on MOVING.  

Rule #2: This key can provide success with any undertaking. Imagine mountain climbing. When you reach a slope which is too steep or you are simply tired from the journey, stop and rest. But don’t forget you are on a slope. We don’t want to lose the ground you have already gained; so Tie a Knot. You may slip back a bit, but you won’t undermine the progress you have made already. It is paramount that you stop to analyze your situation, revise your plan from time to time and then, with determination, move forward. The combination of steps 1 and 2 can pull you through almost anything.

A Resource

One of the best resources available to help with unraveling the issues associated with your credit is called “Guide to Surviving Debt”. This wonderful book is published by the National Consumer Law Center. The cost is $20.00 for a single copy but costs less if you are buying several copies for an organization. Telephone order: (617) 542-9595. Email: publications@nclc.org

Get the resource, remember the rules and you’re on you way.  

Copyright © 2008, Home Ownership Matters, LLC. All Rights Reserved.

(Please E-mail Heather at homeownershipmatters@gmail.com with any questions, comments or concerns you might have! We appreciate all comments and feedback, so please don't be shy.)

Welcome!

Welcome to Home Ownership Matters’ Blog!

Why write this blog? Quite simply because the time is right. Because I understand where you’re coming from. I have been urged by many students in my training sessions to start a blog for several years. It seemed like a daunting task until I hired my current Marketing Assistant, Heather Meade. Her training and expertise has made this possible at a time when the housing crisis has made it more important than ever that consumers be given basic information to help them make informed choices about so many of the challenges associated with real estate today.
Who is Mildred Wilkins?

I am a foreclosure intervention and loss mitigation trainer, a speaker. I am a consumer advocate who also happens to write. Most importantly, I’m a person, just like you, who has had hopes and dreams and inspirations blow up in my face. I have grown and survived DESPITE those blow-ups. I have lived—therefore I teach.

Writing is our most basic and clearest form of communication. The internet, via such tools as this blog (and website; www.HomeOwnershipMatters.com) has made it possible to reach thousands of folks in real time. I invite you to share my real estate lessons. I love to tell my students; “I’ve already taken the class and paid the price for this lesson. You can listen and avoid having to take it yourself.” I have benefited in other areas of my life from listening to the folks who already did it the wrong way so I could avoid their pitfall. I had no such teachers in real estate, so I had to learn the hard way—MYSELF.

I’ve gone from being born Black and poor to uneducated parents in southern Alabama, to graduating with honors from college, to middle income with a position at Purdue University, to a stay-at-home mom, to a divorcee with two children. I did my 6 months on welfare.

I’ve done most of the wrong things related to home ownership—and survived to tell the story. I’ve purchased several homes. I’ve built a new home ---and walked away at closing leaving thousands in a deposit on the table. I’ve bought without an inspection—leading to disastrous problems being uncovered a few months later. I’ve gone through foreclosure—and ended up with the deficiency judgment to prove I was there. Miraculously, I had not filed bankruptcy until AFTER the judgment for the deficiency on the car ($8 K and the house $28 K were recorded). I filed bankruptcy, started over and rebuilt my credit. I’ve lost a child, gone into depression and destroyed my credit again.

Professionally, I worked as a full-time REALTOR for 10 years in Indianapolis; I’ve helped others to buy their dream home. As a Broker-Specialist for 2½ years for Fannie Mae I sold their foreclosed properties. I was required to participate in the forceful eviction process as a representative for Fannie Mae. I was in charge of clearing out the remains of homes abandoned by folks in desperation when time ran out and the sheriff’s sale was imminent. I’ve written a weekly newspaper column on real estate to address the common concerns and complaints of consumers who don’t know where to turn. I’ve received professional training on Loss Mitigation. I’ve spent hundreds of hours studying laws, regulations, guidelines, pending legislation—all relating to predatory lending, mortgage fraud, foreclosure, bankruptcy, fair housing, appropriate disclosure and other subjects which directly impact our housing issues.

What will be included in this blog?

Each day we will share with you information we consider relevant to home ownership. For the first month or so most of the entries will be related to today’s more urgent housing issues—all those components connected to struggling to make your mortgage payment. We will eventually move on to home maintenance, taxes, insurance, and all sorts of other things, so continue to log on. Read and share. You could be just the answer someone needed today.

Contents:

• Today’s WORD—Will be an attempt to help you learn how to ‘talk bank’. Regular folks seldom know what the bank people are talking about. You hear the words, you may even know the words, but what the words MEAN is a whole other thing. It’s hard to communicate when you don’t know the lingo—Hence, Today’s WORD. Read it, learn it, share it.
• Fast FACTS—It is a basic fact that when you are making decisions, not just when you are purchasing a home, but ALL decisions relating to your finances become housing decisions. For instance, filing for bankruptcy impacts your future housing options. We’ll share some pearls of wisdom related to housing. We’ll make a diligent effort to give you FACTS which are relevant for most of the country. We encourage you to hold them close; treat them like the pearls they are.
• Myths and Misunderstandings—One of life’s cruel realities is that it does not matter how sincere you are—IF YOU ARE MISTAKEN. Too many folks across the country today honestly believed they could refinance out of a variable rate loan before the rate increased. They believed because they were ASSURED by a broker that they could. They believed that the broker was: working in their best interest and regulated by the banking industry. They were wrong on both counts and now they can’t afford the home they love. They misunderstood how brokers and banking work. They did not know the meaning of the word—prepayment penalty. We’ll shed some light on some common myths—clear up a few misunderstandings and prepare you to make better choices. Pass it on!
• Articles from the desk of . . .—will be included about once each week. These articles are slanted toward real estate professionals and many have appeared in REALTOR magazines or Broker-Agent somewhere in the country. Taking a course on the subjects discussed is the best way to become more competent in dealing with today’s transactions but reading any or all of these articles will certainly have a positive impact on your business. There is an ARCHIVE of articles available, FREE, upon request. For the complete list, please e-mail Heather at homeownershipmatters@gmail.com.
• Did You Know?—I didn’t think so. Well, anyway, I thought should share. There are tidbits—mere tidbits—of information which can dramatically change how we operate and therefore, dramatically change our outcomes. I am ecstatic when someone shares such a tidbit with me. Whether ordinary or extraordinary, if I didn’t know then I could not incorporate it into my life. Even if they say “Millie, every body knows that” I will happily say, “I didn’t, until now”. Knowledge is truly a powerful thing–I have always had an immense respect for knowledge. I revel in trying to attain more. I humbly share any I have. Embrace knowledge–whatever the source. Use it—Share it. Benefit from it.
• “Your Real Estate Advisor”—will be resurrected and added to the mix within the next two months. That was the name of the real estate advice column I wrote in Indianapolis for 5 years back in the 90’s. (It is also the name of my second book). We’ll talk about EVERYTHING housing: buying, selling renovating, building, maintaining, remodeling, and losing. Don’t be selfish—share the info—with family, friends, maybe even somebody you don’t particularly like. Make them wonder.
• Give me a “Q”—we’ll take a commonly asked question and provide an answer. Please keep in mind that the answer will be MY answer. By that I mean that what you will get is my opinion. That’s because it’s my blog. I expect you to have different opinions and encourage you to share those. Unlike the “FACTS” section we can have lots of answers to a single question. I am promising neither a rose garden nor THE answer. I promised you AN answer. You mustn’t yell at me. I’m sensitive.

Enjoy the blog. It is intended to educate while keeping your attention. The words are all mine. Heather is responsible for everything else. You may reach her by commenting on this blog, or e-mailing homeownershipmatters@gmail.com

Q&A: Signing Documents

Q. Signing Documents

My wife and I purchased a home a month ago and we have not felt good about the whole deal from the time we left the closing. The lender we used had told us that we would have to pay points to get the rate down so we could afford the payment and we agreed to that. The problem is that when we got to the closing, the amount they had on the loan documents was a lot higher than what we had been told earlier by our lender. The title company said there was nothing they could do about it and that we just had to sign the papers? Is that true? We felt trapped, had all our stuff packed and felt we had no choice except to go ahead. Now we are not so sure. Did we make a mistake and if so, what can we do about it now?

A. The answers to your questions, in the order in which you asked them are: No. No. Yes and Probably not much.

Let’s talk about your problem which, unfortunately, happens all the time to folks. I will address first this specific situation and then the general problem of papers which don’t match up to what you had been led to believe would be included.

It is the responsibility of a title company to handle all the details of the closing in accordance with state law and in compliance with the details in the contract signed by the seller and the buyer. In addition, the title company is obligated to accept instructions from the lender for many details associated with the closing. Those details include what forms should be in the closing package what amounts should be inserted in all the documents related to money, etc. SO, when the title company said there was nothing they can do, what they meant was, “There is nothing we can do UNLESS the bank gives us some other instructions.”

When you are closing a real estate transaction the title company is the facilitator for that transaction. For a large percentage of closings, the title company has no relationship with either party and is simply being paid to process the paper work and assure that it is a transaction which was properly and legally handled. But there are times when the title company is, in fact, an agent for a party to the transaction. This is called dual agency. This means they are working for one specific party to the deal. This is most common if you are buying a new construction home and the title company is the company picked by the builder (sometimes owned by the builder) to handle all their transactions.

In addition, if the home you are buying is a bank-owned home, then the title company is, in fact, working for the owner of the foreclosed property (whether that is a lender, servicer or insurer/investor). SO, when the title company said there was nothing they could do, what they meant was “There is nothing we can change UNLESS we get different instructions from our principal (the lender/servicer/insurer).

Did you make a mistake? I have to tell you that you did. It probably doesn’t make you feel a lot better to know that almost everyone makes the same mistake.

THE MISTAKE: Believing that because someone presented you with papers that you must sign them. You DO NOT have to sign them. No, you can not go ahead with the transaction unless you sign them, but that also means that the other people can’t get what they want either. If you insist that the papers have to be changed to what you were told before (especially if you have a good faith estimate which documents the amounts you should be paying) then there is a very strong chance that the lender will change their instructions to the title company, the papers will be changed accordingly and then all of you can re-convene in order to close the deal.

This is almost certainly not going to happen this afternoon. But it can happen. It is worth holding out for. It is worth making everyone else uncomfortable until you get the deal you were told you would be getting.

Is there anything you can do now? I doubt it because you signed all the papers. You used your most prized possession and endorsed yourself into a pickle. You can hold on to the lesson you learned, share it with others and promise yourself to never again sign documents which you don’t clearly understand or which do not correspond to the agreement with the other party.

JUST DON’T DO IT!

© Copyright 2009, Home Ownership Matters, LLC. All rights Reserved. "Answer Book in a Foreclosure Climate" by Mildred Wilkins, available in 2009 from www.DovePublishingHouse.com.

(Please e-mail Heather at homeownershipmatters@gmail.com with any questions, comments, or concerns you might have. We appreciate all feedback, comments, and especially your questions. Don't be shy!)