WORD: Maturity

And the WORD for Today Is...

Maturity – the termination period of a mortgage note. For example, a 15 year mortgage will become mature in 15 years.

In sales law, the date a note becomes due is said to be its maturity date.

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

You can find more helpful definitions of WORDS like these in Your Real Estate Advisor which can be purchased at www.DovePublishingHouse.com.

(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.)

INtro #75: Your Mortgage Documents...Filled with Surprises

HOM INtro #75: Your Mortgage Documents...Filled with Surprises

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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.)

Current Event Commentary: The Beginning of a New Era

We are pleased to announce an addition to the line-up here are HomeOwnershipMatters.blogspot.com. Effective February 1st a new, regular component of the blog will be a “Current Event Commentary”.

This is a fairly significant change from most of the blog segments, which by and large have steered clear of any commentary on news stories and instead have focused on straight education with a minimum of opinions about the current news. It can be a little dicey when you start to mix commentary with facts, guidelines and personal experiences. Commentary is by definition—subjective, personal opinion.

Facts, rules, regulations, laws and personal experiences can all be documented, cross checked, verified.

They are SAFE. As long as you get the details accurate, who can challenge you? You simply tell them to go check the facts and get back to you. End of conversation.

Commentary—on the other hand—has no such shield to protect the author of the comment. It’s basically just YOU and YOUR opinion. For the “Current Event Commentary” blog entries I will need to be careful to clearly identify “I” to eliminate the possible misunderstanding that other team members here at HOM share MY opinion. They may; they may not.

I feel pretty alone. And yet I feel it is time to step away from the ‘safe’ teacher position, at least occasionally, and address how I feel about stories, changes and challenges facing many of today’s consumers. You may be personally facing some housing challenges and I want to take the opportunity to be candid about what I feel a particular new story or change in policy means for the average person.

I will address a current event when it relates to housing/mortgages/foreclosure in a way which I feel commands/demands my attention. You will already have heard the news so I won’t waste time re-reporting. Instead, I will provide you with an honest analysis, based on my experience in this field. I will cut it, slice and dice it and turn it sideways so I can help you figure out what was MEANT by what was stated (or left unstated). I have always believed, as Paul Harvey stated so forcefully “the REST of the story” was the telling part, the important part, the part lurking underneath the oft-quoted part.

You can bet there is more than meets the eye when a story is about banks or banking or any other aspect of our current housing crisis. Nothing is what it seems, promises are illusions and all the players seem to be clustered together.

I hope you’ll enjoy the “Current Event Commentary” beginning next week and encourage you to tell me what you think about it by emailing directly to: mildred_b_w@msn.com.

Modification Myth

MYTH—It is a widespread myth that borrowers who are in default have no money and therefore no way to pay for help with addressing their default situation. The argument is frequently the logic for non-profits who insist that it is somehow immoral for a borrower to be asked to contribute to the service which they need. While I support non-profits, I have never bought into this false thinking. I believe that most folks appreciate more what they have contributed to and think that non-profits could offer more services to more people if they adopted a sliding scale which allowed clients to pay according to income level with a provision for totally FREE service in situations which clearly warranted such.

REALITY—many borrowers do have money—SOME money. No matter what circumstance caused the default, many borrowers not only have some money but are both willing and anxious to find someone whom they feel can help them with their mortgage mess and are both able and expect to pay for that service. This is especially true of middle to upper income borrowers who are used to paying for any service they get and are more likely to be suspicious of service offered for FREE. As an example, the borrower in a $500,000 house who has been laid off is likely to have resources to make the mortgage payment for a while before savings, retirement and/or other accounts are depleted. This individual is looking for an attorney or similar professional with knowledge of the foreclosure process, possible impact on his taxes, etc to help with the tough decisions which have to be made. Additionally, this same borrower, while highly competent at his/her job is acutely aware that they are unprepared to negotiate for themselves in this arena. To my point, I recently personally coached a highly skilled attorney through the loan modification process and the mandatory meeting with the Lender shop which has been instituted by law in the state of Indiana. The attorney was able to do what I told her to do but she did not know WHAT to do or WHY certain things were important because this is not her area of expertise. She needed professional coaching to deal with the bank world. She is one of several consumers whom I have personally coached through the process and helped them to be able to represent themselves since I am not in a position to do so.

SOLUTION—Trained, competent foreclosure intervention counselors—who work for a fee, to represent those who cannot get representation at HUD approved or other such agencies. There is room in the market place for both. There are consumers at both ends of the spectrum who need appropriate, professional help. Recently I was asked by an upper income borrower what exactly I do other than the training for REALTORS. I explained that I am a consumer advocate and try to reach borrowers for whom I can provide FREE workshops or materials to in order to help make a difference in their situation. His question then was ”Why are you discriminating against people who have money?” The question caught me off guard and caused me pause. The truth is that I come from a background of poverty and I have a commitment to make as much of a difference as I can for those who are struggling. Does that mean I should not share my knowledge with those who can afford to pay for it?

It struck me as a novel concept. It resulted in a paradigm shift.

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.)

Assessing HAMP a year later

H A M P—Home Affordable Loan Modification Program was discussed in detail yesterday. If you missed it, it would be valuable to read it before you read today's blog.

First, let’s analyze what has been accomplished under the program. The program was projected to reach over 4 million homeowners with much needed help to sustain home ownership. The end of the year report indicates that fewer than 100,000 have, in fact, been granted permanent (5 year permanent) mortgage modifications since the program was implemented in March, 2009. For those 100,000 or so, they see it as a success (even if they do feel 20 years older because of the process). I feel pretty sure that the other 3,900,000 would consider it a failure. The horror stories of run-arounds, and lost paperwork and so on and so forth defies explanation and even the most mild-mannered person can be pushed too far.

Why Has HAMP failed?

The simple reasons are that it was created without a clear understanding of how the bank world works (the role of the guarantor behind the loan) and some other critical components were just overlooked.

Capacity—The dilluge of consumers instantaneously seeking help totally overwhelmed servicing shops who were already stretched past capacity because of defaults. Without funding for the hiring and training for substantial increases in staff to handle the flood of requests for help, the plan was doomed to be as ineffective as history has shown it to be. Individual lenders have sent PR teams across the country to talk about the way they handle modifications, but I am talking about a massive, organized, on-going effort to train the staff within the lender shops what was expected from the government and how the program was to be implemented. For a simple look at the capacity issue—I have folks tell me all the time, “You should be offering this and you should be doing that and why aren’t you answering questions online from individual borrowers?” I look at them like they’re crazy. HOM is a small company with 3 employees and the company’s income is generated almost exclusively from speaker fees. You want production equilvalent to a large company but you are not offering any funding or staffing just creating more jobs. The NEED for something does not translate into the CAPACITY to provide it without resources which include funding and personnel. HAMP did not adequately address the capacity to get the job done.

Resources—The expectation that only HUD approved housing agencies or similar non-profits should be the ONLY endorsed sources for help totally belies the fact that the program was designed for borrowers with mortgage balances up to $725,000 and non-profits primarily restrict their services to folks who earn less than middle income. Hence, no provision for a referral to anyone if you are not at the lowest end of the income spectrum. Worse, a condemnation (by our President no less) of any organization which offers help for a fee (to middle and upper income borrowers who are looking for such help). This major oversight means there were no guidelines, training, or criteria established for this needed service and YES, some vultures stepped in to fill the gap. California now has some pretty strong anti-vulture legislation which pushed most of the loan modification businesses there out of business, and not a day too soon for many of borrowers who have found that un-trained and un-regulated help can lead to a diastrous outcome.

Non-Profit Push Back

I understand that I am inviting non-profits to yell at me but before you start yelling to defend your position as the only people who care—What is your current back log? How many more people could you see? Is your staff already maxed out? Have all of your counselors received substantial modification and foreclosure law education in your state? Do you offer a sliding scale so any homeowner, any income level has access to your services? What is your success rate with completed modifications? Are borrowers re-defaulting within a few months? If the answer to any of those questions is yes, this indicate you are already serving your maximum capacity (and I am informed enough to know that most are). Stop arguing that help should ONLY be available to those whom you serve and embrace the idea that all borrowers, all income levels deserve to have representation to help them with the crazy world of banking. Businesses which have trained staff, operated ethically, with sufficient government regulations and appropriate bonds in place could go a long way to easing the foreclosure problem which continues to plague this county and will for the next several years. The time has come for the creation of Foreclosure Intervention Services—For Hire, as respectable businesses, listed in the phone book right next to non-profits as a resource for struggling borrowers. Repeat after me—Prohibition did not stop folks from getting alcohol—it just made the bootleg market prosper. When are we going to learn? Where there is a need—a provider will emerge.

Program Lacked Basic Understanding of the Bank World

It was a VOLUNTARY program. Lenders were not required to participate. In fact, they could NOT be forced to participate. It is not possible to force someone to alter the terms of a contractual agreement AFTER the fact. It doesn’t matter that the entity trying to compel cooperation was the US government. Mortgages are legally binding contracts. Lenders already had not only the contract with the borrower, but contracts with the investor, the guarantor, the hedge fund, and so on. The performance of one contract impacted several other contracts and therefore made it nearly impossible to make a significant change to the original contract (the mortgage) because of the cascading impact on all the other contracts which had grown out of the securitization of the underlying contract. Formulating a plan without a clearcut understanding of the securitization process was a major misstep in trying to implement HAMP.

Motivation Insufficient

Beyond the securitization problem, the issue of sufficient motivation to modify made the challenge almost insurmountable. While many would argue that the lenders were paid for their cooperation, that argument fails to address what they would receive by NOT cooperating. Now lenders are going to be mad when I state emphatically that they receive MORE to foreclose than they do to modify. How could that be you ask. Lenders lose money DURING the default process: they must pay the investor as agreed, incur expenses associated with the servicing of the loan, work to avoid having a lien placed against the property for failure to pay homeowners’ association dues, cover the cost of insurance to avoid an uninsured loss, etc, etc. All of these are out-of-pocket expenses—UNTIL a foreclosure is completed. Then, on ALL insured loans, which is MOST of them, the lender recoups many of the expenses which they have put out and collect the amount of the insurance on the loan. It is true that they will seldom get back the missed payments (that remains a loss to them) but the other expenses are usually reimbursable expenses. If you’ve wondered why it seems that the lender is not really trying to work with you, simply consider they need the process to be over, so a claim can be filed.

HAFA—A New Program announced on November 30, 2009 will be addressed next week.

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.)

Reflections on the Home Affordable Loan Modification Program

The Obama Administration announced the H A M P program with great fanfare on March 4, 2009. It was a bold step to address the foreclosure problem which was clearly swirling out of control. $75 Billion committed to reducing loan payments. Projected to help more than 4 million homeowners.

It Began With a Premise

Foreclosures in the country were occurring at break neck speed and something had to be done. The plan was conceived based on the premise that homeowners would pay their mortgages—IF they could. Despite being upside-down, borrowers are committed to retaining their home. Warren Buffet has been quoted as saying “Commentary on the current housing crises often ignores the crucial fact that most foreclosures do not occur because a house is worth less than it’s mortgage (upside down). Rather, foreclosure takes place because borrowers can’t pay the monthly payment they agreed to pay.” It is a premise with which I agree and an honorable premise on which to craft a resolution.

A Look At the Program

H A M P or Home Affordable Loan Modification Program was launched with the specific and ambitious goal of making sure that millions of Americans would have the opportunity to remain in their homes even though market dynamics and other factors beyond their control meant the value of the property had declined AND they were struggling with payments but they wanted to keep their home. The goals were clear, the mandate receiving strong support. It seemed a good thing—for all the right reasons.

Reduction in Payment

To address the ‘ability to pay’ the H A M P plan provided guidelines for getting those payments under control. Conservative banking guidelines for many years had shown that mortgage payments at no more than 31% of a borrower’s income usually prove to be sustainable so that OLD underwriting guideline was used as a benchmark for what should be the new goal to help us get out of this mess.

To accomplish this, lenders and their servicing partners were provided with guidelines to make this happen:

a. First, Reduce the payment amount so that it was no more than 31% of the borrower’s monthly income

b. Reduce the interest rate to as low as 2% as a way to get the payment down farther

c. Extend the term of the loan—up to 40 years—further reducing the monthly payment

d. If the payment amount was still more than 31% of the borrower’s monthly income, THEN funds from the H A M P fund would be used to pay whatever was needed to get the payment down to 31% of monthly income

Adjusting the principle balance was not an option addressed by this plan even though it was a logical step (in the opinion of this writer) and had been the objective of the ‘cram down’ component of the bankruptcy reform legislation defeated late in 2008.

Criteria for Participation

H A M P was created as an option for owner-occupied properties with outstanding balances of $729,750 or less. The homeowner was required to demonstrate a hardship caused by a factor or factors beyond their control. It applied to loans originated prior to January 1, 2009. Modified payments were set up for 3 months, as a test to see if the borrower could afford the new payment.

If they made that threshold, then the loan modification became permanent (for 5 years, so let’s say, semi-permanent).

Investors or speculators were exempted from participations. So if you had bought into the hype that building a piece of America was the way to financial security, you were on your own. Consequently, it was expected by a number of observers that the number of foreclosures in this segment would rise dramatically, and RISE they have.

Incentives

In order to facilitate this voluntary program, the H A M P initiative provided for financial inducement to all parties to participate. Servicers (and/or the lenders whom they represented) were to receive $1,000 for each completed modification. The plan called for an additional $1,000 for each year the modification remained in place with a cap after 3 years. The borrower could get $1,000 off their principal balance for each year, up to five years.

“Net Present Value” Test

In order to determine which loans should be modified, lenders/servicers were to conduct a ‘net present value’ test. The test was supposed to compare the expected cash flow which would be generated under the program (with a modified, performing loan) as compared with the expected cash flow if the loan were not modified (and continued non-performing if the borrower were already in default). Let’s see, some $ paid, versus $0 paid. Not a hard test really. Seems like a no-brainer to me.

Good intentions for a worthy cause. So how did it go wrong. Why have consumers across the country been yelling fowl by the hundreds of thousands? Why has the Administration acknowledged that the program has not reached nearly the scope that they projected? We’ll provide those assessments in tomorrow’s blog. Don’t miss it.

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.)

Press Release: HOM Announces Loan Modification Specialist (LMS) Certification in Las Vegas

NEWS RELEASE

FOR IMMEDIATE RELEASE – January 15, 2010

Contact: Mildred Wilkins at 1 (866) 507-5105 mildredwilkins@HomeOwnershipMatters.com

Home Ownership Matters Training Institute

Offers Loan Modification Specialist Certification in Las Vegas

Indianapolis, IN, January 15, 2010—National speaker and foreclosure intervention trainer Mildred Wilkins is pleased to announce that the (LMS), Loan Modification Specialist certification program for real estate professionals seeking to help borrowers modify their home mortgage loan will be offered in Las Vegas, Nevada March 11-13, 2010. The program has previously been offered only in Florida. Nevada has the dubious honor of being one of the hardest hit states with borrowers losing their homes to foreclosure. Many are seeking the help they need to avoid it.

With a number of loan modification businesses already in operation in the state, it makes sense to offer high quality training to those looking to provide consumers with an option when they face the challenge of trying to cope with the overwhelming task of preparing to deal with the lender’s shop. Professional training coupled with certification from a nationally recognized trainer and former Fannie Mae Broker-Specialist could give you the edge you need in the development of your business.

As the national news continues to report; the Administrations’ modification program implemented last spring has failed woefully in reaching even a fraction of the borrowers who qualify for help. There are some clear cut reasons why that is true, and those reasons will be discussed with clarity during this course.

Wilkins has been a foreclosure prevention trainer for several years, and has offered a 5 day training (FIS) Foreclosure Intervention Specialist certification for REALTORS® since 2005. The (LMS) certification program was developed in 2009 to meet the need for professionals who understand the process and are familiar with the ‘bank game’ to specifically focus on ONLY loan modification business development. Consumers deserve skilled representation to have at least a fighting chance at getting a modification when one is warranted. The program is designed for experienced professionals, whether attorneys, loan officers or real estate agents who already understand the mortgage process and are familiar with typical closing documents. (LMS) training will provide attendees with the tools to provide a high level of professional service while avoiding many of the pitfalls in this rapidly expanding arena.

The housing crisis has increased dramatically creating a need for a new field of knowledge—a new type of expert. Foreclosure is frequently avoidable but unfortunately consumers have limited opportunities to learn what options are available. Nor is there a way for consumers to identify professionals who have the ability to help them rather than perpetuate yet another injustice. (LMS) addresses that need by empowering real estate professionals to be prepared to handle borrowers in default with increased knowledge and the tools to be effective in working with lender shops to effect a successful modification or other retention option.

Ms. Wilkins sold foreclosed properties for Fannie Mae’s disposition department out of Dallas, Texas for 2 ½ years. She has received loss mitigation training from NeighborWorks America, Fannie Mae and HUD and Legal Services. Since founding HOM in 2002, she has been quoted in the New York Times, BusinessWeek and the Huffington Post. She has appeared on MSNBC and NPR. In addition, foreclosure related articles she has written have been published in BAS and REALTOR® magazines around the country.

Wilkins has taught for Graduate REALTOR Institute (GRI). She is also a member of the faculty of NeighborWorks America as a trainer in Foreclosure Intervention. She is regularly a speaker or trainer at numerous state/regional conferences on foreclosure intervention, predatory lending, loss mitigation and/or mortgage fraud. She is widely recognized as a leading expert on these subjects. HOM has been certified as a continuing education provider for real estate professionals in Colorado, Nebraska, Kansas, Ohio, Indiana, Kentucky, Tennessee, Oklahoma, Iowa and Alabama. Wilkins is an approved instructor for attorneys in Indiana and Ohio.

Today’s challenges require more expanded knowledge than ever before. Get the edge you need! Register today!

www.HomeOwnershipMatters.com for registration/information.

Email: MildredWilkins@HomeOwnershipMatters.com

WORD: Letter of Intent

And the WORD for Today Is...

Letter of Intent – is a formal method used by a prospective purchaser (developer, traditional buyer, or lessee) to show they are interested in acquiring a property. A letter of intent is not an offer and does not create a legal obligation for either party. A developer may use letters of intent to help secure financing for the project based on the expressed intent from one or more potential tenants.

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

You can find more helpful definitions of WORDS like these in Your Real Estate Advisor which can be purchased at www.DovePublishingHouse.com.

(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.)

WORD: Preliminary Title Report

And the WORD for Today Is...

Preliminary Title Report – refers to a report showing the condition of the title before a sale or loan transaction. It is prudent for real estate agents to request a preliminary report immediately upon the listing of a property for short sale due to the increased likelihood the defaulted borrower may have other “challenges” such as unpaid taxes or home association dues. It important to have this information to get a clearer picture of the borrowers’ financial liabilities as well as to allow adequate time to resolve any issues which must be resolved prior to closing. An updated title report should be prepared prior to closing and the issuing of a title insurance policy.

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

You can find more helpful definitions of WORDS like these in Your Real Estate Advisor which can be purchased at www.DovePublishingHouse.com.

(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.)

Intro #5: What is a Hardship Package?

HOM INtro #5: What is a Hardship Package?

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(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: Trick-e-ration

It’s NOT a check; it’s TRICK-E-RATION

When is depositing a check a BAD thing?

And….the correct answer is: When it is Trick-e-ration.

I got a check in the mail

You know how it is this time of year, money is tight and utility bills are high and you are looking for an answer to your finances in any shape, form or fashion. I am right there with you. This morning when I took the trash out I checked the mail, which I had not done the day before (I had enough bills already, thank you very much). To my surprise there was an unexpected check there, from a company I recognized, with my correct name and address and everything.

Trick-e-ration begins

It really looked like a check. The edges were all perforated for you to be able to easily tear it open. It clearly stated on the outside “check enclosed”. There really WAS a check inside. Payable to me or the bearer. Payable at (or drawn on) JPMorgan Chase Bank. I admit it, I went and got a deposit slip and placed the check with my purse so that when I went out later in the day I could deposit it. It did cross my mind to wonder why the Fun Club was sending me a check but hey, money is money. I needed the little check for $9.25. I even said “Thank you Lord”.

Bad things could happen . . .

I sat down to write my blog for today on something else totally different and laid the check beside me on the desk. That is when I noticed that there was a small box underneath the amount for the check and just above the signature line which said:

“By cashing or depositing this check you are purchasing a membership in AutoVantage Enhanced. Void if amount over $9.25.”

Almost got me

Many folks who know me think of me as a ‘smart person’. And the truth is that I probably am fairly bright. I know my subject matter and I am a college graduate and I make a decent living traveling around the country and speaking on the issues of foreclosure, mortgage fraud and the like. However, the truth is that ‘smart people’ make mistakes just like anyone else because being smart in a particular area does not mean you know any more that anybody else in some other subject matter and ALL of us make mistakes. If I was not in the habit of STUDYING contracts and looking for some kind of ‘trick’ in things related to banking and business, I would have gotten got. I stopped, studied my ‘gift check’ and decided they were trying to trick me into signing up for a subscription to something I had never even heard of before.

Marketing is Marketing

At first I was not mad with them for using this unique way of marketing. It is a brilliant plan. It almost worked on me. But then I start to think about the many folks, especially seniors, who would fall for this and get themselves into trouble because if you deposit this little pitsy check, bad stuff starts to happen.

Bad things you didn’t expect

On the back of my ’gift check’ where you endorse it.

“READ CAREFULLY BEFORE SIGNING”.

By cashing this check I agree to a thirty day trial offer in AutoVantage Enhanced. I understand that the $15.99 monthly fee will be automatically charged to my credit card with Great Fun unless I cancel my membership by calling 1-877-397-4430 before the end of the trial period. I understand that after my first year I will be charged $16.99 per month for the next twelve months and I will also be charged every month thereafter at the then-current monthly fee, unless I call to cancel and owe nothing thereafter.

CHECK VOID IF ALTERED OR UNSIGNED

X_________________________________________________

Signature of Payee required for processing T71479105

Warning

Please read again (or for the first time if you never read it before) the blog entry for April 16, 2009 on your signature. Now I am mad. I am very, very mad. I am mad not because they A LMOST got me but I am mad because I can see how they got my mom and your mom and hundreds of thousands of others who either cannot read well or did not read and signed themselves into a long term mess for some magazine subscription that they never would have signed up for had some slick marketing guru not come up with the novel idea of sending out a real check—with TRICK-E-RATION strings attached. Just a comment: when legitimate people need to send a check in the mail—for legitimate reasons—NEVER do they write on the outside, CHECK ENCLOSED. They try to avoid advertising to your mail carrier or anyone else that you have received a check. Clearly, the reason it was written on the outside of my ‘gift check’ was to ensure that I would open it and hoping I would cash it without closely examining exactly the nasty strings attached. Clearly, TRICK-E-RATION. I am going to forward my ‘gift check’ to the Attorney General’s office for every state in the union and hope that they will help these folk with their next advertising campaign.

BE forewarned…

If you read the introduction of why I write this blog I readily admit that I have done almost all the wrong stuff you can do related to housing and it is only through God’s grace that I have survived to report the outcome and point you in a better direction. I am awfully glad the check came so I would have yet another ‘personal educational experience’ to share with you. I don’t always enjoy the lessons of life; frequently they are harsh and not nearly as gentle as this near miss. However, I appreciate all of them. All of them have led to the place where I am and will take me on to where I am destined to be. The same is true for you.

Embrace today! Be grateful that things are as good as they are and watch out for Trick-e-ration!

Know that you are blessed!

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.)

Use of HOM Copyright Material

Articles and forms which have been provided by HOM may be used for your personal use without concern about a complaint. You MAY NOT, however:

1. Remove the copyright notation
2. Change ANYTHING — title, headers, etc
3. Remove the name, company name or other identifier of the author
4. Reproduce for the purpose of selling or otherwise gaining benefit from the use of copyright material

IF you violate standard copyright guidelines, relative to HOM materials, you should expect:

1. An Ethics complaint, at the least
2. A lawsuit if you have sought to gain financially from the use of HOM material
3. Public identification of your improper use of HOM materials

You SHOULD:

Contact Heather (HomeOwnershipMatters@gmail.com) or myself for permission to use HOM materials on your website or marketing we will gladly provide you with a release which will clearly identify the restrictions on use so there is no misunderstanding. It is NOT complicated to avoid copyright infringement

We are happy to partner with real estate boards, other organizations and brokerage firms to provide foreclosure related articles and materials. The goal of the company is to be a partner with other real estate professionals in spreading information which will be helpful to the general public. The use of HOM material, whether it is a portion or an article in its entirety, with proper credits will never create a problem.

We will, however, not allow blatant misuse of HOM materials without addressing the issue when it comes to our attention.

Common courtesy, adherence to ethical guidelines and use of good judgment will avoid any problem.

Sincerely,

Mildred

Mildred Wilkins, President and Founder

Home Ownership Matters, LLC Toll-Free: (866) 507-5105 Fax: (877) 587-4507

7399 N Shadeland Ave. #164 Website: www.HomeOwnershipMatters.com

Indianapolis, IN 46250 Blog: HomeOwnershipMatters.blogspot.com

INtro #14: Who You Gonna Call?

HOM INtro #14: Who You Gonna Call?

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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.)

WORD: Satisfaction

And the WORD for Today Is...

Satisfaction – the discharge of an obligation by paying the amount which was due. The term is used most often in relationship to a mortgage, deed of trust or contract. It may also be used to indicate payment of a debt such as a judgment.

Satisfaction is also the term used to describe the instrument which is recorded to say payment has been made.

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

You can find more helpful definitions of WORDS like these in Your Real Estate Advisor which can be purchased at www.DovePublishingHouse.com.

(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: Money in the Bank

Q: If I want to do a short sale and I have money in the bank (let’s say $10,000) can my lender take that money from me?

A: I have some good news and some bad news.

Good news: No, a lender cannot force you to withdraw money from your personal accounts to give them if your home is upside down. Nor can they withdraw money from your accounts if you are in default. Their hands are tied in relationship to other assets you may have, they only have control of your house.

Bad news: You can’t force them nor compel them to approve a short sale IF YOU HAVE $10,000 IN THE BANK. But they do have control of your HOUSE. They can—and will—refuse to allow the short sale to close unless you have demonstrated that you have no resources with which to cover even part of the shortage.

So, I expect your question then becomes, “How would they know what I have in the bank?” And the answer is: you have to tell them. In order to even be considered for a short sale you must provide details of your finances through an extensive hardship package. They will usually ask for the last 2 years’s tax returns, most recent 3 months’ bank statements, savings accounts, etc. (You should keep in mind that your loan application detailed what accounts you had). You will also be required to sign stating that you are telling the truth.

The servicer has an obligation, imposed by the guarantor, to be sure that you DON’T have resources to offset the anticipated loss before they agree to let you close. It’s that catch 22 thing again, you ain’t got enough money, but you are blocked because you do have money.

Likely outcome: They will most likely agree to a short sale provided you cough up the $10K. I said they can’t just take it, which is different than refusing to play ball until you fork it over.

I encourage you to watch INtro #5 “What’s a Hardship Package Anyway?” It’s available, FREE, at www.HOMwebinar.com

Good luck!

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.)

Press Release: HOM Announces (FIS) Course in South Carolina

NEWS RELEASE

FOR IMMEDIATE RELEASE – January 5, 2010

Contact: Mildred Wilkins at (866) 507-5105

Lora Able at (843) 760-9400 x125

Home Ownership Matters announces 1st Foreclosure Intervention Specialists (FIS) course offering in South Carolina

Indianapolis, IN, January 5, 2010—HOM President and Founder Mildred Wilkins joins Lora Able, Director of Education, Charleston-Trident Association of REALTORS®, in announcing that (FIS), a comprehensive foreclosure certification program, will be offered for the first time in the state of South Carolina. Registration was officially announced during a live webcast with Ms. Wilkins on December 15th. More than 27 REALTORS® have already registered; capacity is set at 75. The Foreclosure Intervention Specialist Program (FIS) has additionally been approved for CE credit by Real Estate Commissions in Colorado, Kansas, Ohio, Oklahoma, Nebraska and Indiana. The program has been offered in Florida without CE credit to attendees from a number of states. NAR provided funding for this critical training.

This certification program was developed in 2005 by Mildred Wilkins, president of HOM, LLC headquartered in Indianapolis, Indiana. The program provides 30 hours of material in a classroom setting designed to prepare attendees to become knowledgeable about the options available to consumers who are in default on their home loans. Included in the course are components which address the foreclosure process, ethics, fair housing, the short sale process as well as options for keeping the home. Real estate professionals need a broad knowledge base to make appropriate recommendations when a default has occurred. (FIS) training provides that broad base.

The practice of real estate has evolved rapidly as foreclosures have increased dramatically, creating a need for a new field of knowledge. Foreclosure is frequently avoidable but unfortunately consumers have limited opportunities to learn what options are available. Nor is there a way for consumers to identify professionals who have the ability to help them. (FIS) addresses that need by empowering REALTORS® to be prepared to handle borrowers in default with increased knowledge and professionalism.

The Foreclosure Intervention Specialist (FIS) certification will set apart those agents who have taken extensive training to be prepared to handle the challenges associated with transactions when the consumer owes more than the property is worth on the open market. The training can alter the outcome of mortgage default when a consumer chooses an agent who is an (FIS) specialist. The completion of this program will also help licensees avoid liability while helping them to work more effectively to avert foreclosure.

Ms. Wilkins is a former Fannie Mae Broker-Specialist who sold foreclosed properties for their disposition department out of Dallas, Texas. She has received loss mitigation training from NeighborWorks America, Fannie Mae and HUD. Since founding HOM in 2002, she has been quoted in the New York Times, BusinessWeek and the Huffington Post. She has appeared on MSNBC and NPR. In addition, foreclosure related articles she has written have been published in BAS and REALTOR® magazines around the country.

Wilkins has taught for Graduate REALTOR® Institute (GRI). She is also a member of the faculty of NeighborWorks America as a trainer in Foreclosure Intervention. She is regularly a speaker or trainer at numerous state/regional conferences on foreclosure intervention, predatory lending, loss mitigation and/or mortgage fraud. She is widely recognized as a leading expert on these subjects. HOM has been certified as a continuing education provider for real estate professionals in Colorado, Nebraska, Ohio, Indiana, Kentucky, Tennessee, Oklahoma, Iowa and Alabama. Wilkins is an approved instructor for attorneys in Indiana and Ohio.

Today’s challenges require more expanded knowledge than ever before. The next (FIS) training is scheduled in Florida the week of Feb 22-26. Combine education and vacation. Get the edge you need!

Or register for the course in Charleston, South Carolina scheduled to begin March 15th. Education directors who are interested in auditing the first 3 days or scheduling an (FIS) training series in your area may contact Mildred directly. Funds from NAR’s FPR grants could make this certification a viable option for your membership. Call today!

www.HomeOwnershipMatters.com for registration/information.

Email: MildredWilkins@HomeOwnershipMatters.com

WORD: Accord and Satisfaction

And the WORD for Today Is...

Accord and Satisfaction – refers to the legal term which applies when you clearly indicate that the payment you are making represents the full and final payment to resolve a disputed debt. If the creditor accepts the payment, the law treats that payment as the final payment.

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

You can find more helpful definitions of WORDS like these in Your Real Estate Advisor which can be purchased at www.DovePublishingHouse.com.

(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.)

WORD: Accord

And the WORD for Today Is...

Accord – in real estate refers to an agreement by which one accepts something different (usually less) than what is owed on the debt as full satisfaction. It is critical that the borrower get some written documentation, prior to payment of funds, that the agreed upon amount will be considered payment in full. A borrower may negotiate for such a settlement when there is a dispute about the amount which is actually owed or the creditor agrees to accept a lower amount due to decreased likelihood they can collect the full amount. This type of agreement is called “accord and satisfaction”.

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

You can find more helpful definitions of WORDS like these in Your Real Estate Advisor which can be purchased at www.DovePublishingHouse.com.

(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: Offer Doesn't Cover Loan

Q: A common question over the past year has been: “What happens if I am trying to sell my house and I am not able to get a new buyer who will pay as much as my outstanding loan?” “What are my options then?”

A: The questions you raise are faced by many borrowers across the country and the answers to your questions vary somewhat depending on several factors:

a. Your circumstances, including your reason for default

b. Your guarantor, meaning who ultimately is holding the loan and stands to lose the amount NOT being offered by the new buyer

c. Your resources, ie. Money in savings, retirement account, etc.

d. Current restrictions or requirements from external forces such as the TREASURY

Ordinarily, to sell your home, you need to get an offer which will cover all the costs associated with the transfer AND cover the full amount due to the lender to pay off your mortgage in full. In today’s climate frequently the value of the home has fallen and that is not possible, creating what is now commonly called a ‘short sale’. The lender may require one of more of the following options:

1. You sign an unsecured note for the difference (or an amount you negotiate which is less than the difference but will satisfy the guarantor).

2. You bring a check to closing for the difference between the offer and the amount owed.

3. Someone other than you (the real estate agent, the purchaser) pay the difference or a negotiated, compromised amount in order to allow the closing to move forward

HOW do you handle a potential sale when you are not likely to get all that you owe from a new buyer?

Select a REALTOR® who is experienced in handling short sales in your area and work closely with them in providing everything your lender/servicer is requesting in order to get them to accept an amount which is consistent with the current value of the home.

IF you cannot negotiate a compromise for less than the full amount owed: THEN foreclosure is frequently the outcome.

Best of luck with your attempt to move your home in today’s market. With market savvy and determination, it can be done!

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.)