AmeRestart
Financial Solutions for a Second Chance

Loan Modification in Easy Terms

www.AmeRestart.com
626.653.2751

Cornel Hunter – presenter

Dennis Duling

Wells Fargo, CitiBank,

Some background – Programs and alternatives
Things hat come in two’s
Government and Ease
Bank and Attorney
You and Your Best Deal
Things that go bunmp in the night
AMERestart as a solution

Alternatives and

1. Forebearance – forgiving or mving deliquent poaments, fees, charges that the loan becomes

2. Loan Modification – same note but modified, not a refinanance,
An agreement with your lended to improve the terms of your orifginal proimisssory note to achience a more affordable attractive monthle payemnst for some periuod of time. This could mean lower monthly payment

previous APR – 6.625 NEW APR 4.25
Previous payment 2,251. 72
Savings of over 1,000

3. Short Sale – once you take this choice, it’s done. When your home is worth less than the amount you owe, your lended may agree to allow you to settle your debt by seeling your home at market value

4. Cash for Keys – banks use as an inticement, about to go into foreclosure,
Some lenders essentially pay you to move out and hand over the keys, this acounds foreclosure expenses and gives you money for moving

5. Deed in Lieu – no cash for keys, Sor of a cash for keys without the cash m your lender accepts your signed deed saving them the expense and

6. Foreclosure – lender goes through the extrended, legally intensive provess of taking back the property

7. Bankruptcy
can be a stalling tactic you use the court to help settle your assets and liabilities

8. SIS – sit in stue- suffer in stew
suffer in silince – not the right option

Life offers choces and excusies but both

Government and Ease:
These terms are not always at odds

FDIC Plan – Indimac plan – owner occ, seriously delinquent, a full doc mod lowering payments to achieve a 38% DR- debt ratio

Hope Now – alliance – current or deliequent

Hope for Homeowners – curr or dling over 31%, fed givt participates

Other permitations – project lifeline

Obama’s 75 billion Workout Plan
Two parts refi – up to 105% of the value of the home at a lower int rate
Loan Mod –
encourages lender to get borrower to 38% DR
Treasury participates in getting borrower to 31%
Verifications and hurdles

Recidivsm back in trouble in 6 months
back in default in excess of 40%.
Interest rate freeze is the best
Modifiying loans has questionable long-term success, with many borrowers falling behind again.
Principal reduction – very few will do.
Interest Rate reduction

The Ease-
Generally easy to know if you qualify
if you haven’t heard by now, you probably don’t
streamlined
created a model

Some difficulty
not highly motifiaceted
difficult to know

Do I have to have an attorney? – no, but don’t need one for a divorce either, highly recommended
Will my bank give me the best deal – banks do what is best for tem
How do I mknow – can you afford to keep your home

If you are doing yoru self
be patient
be througo
keep copies of everthing
bank speak your hardship letter
loo over the numbers caerfully
get direct cotnact people lines
following regulary 8-12 weeks
if you stop making payments; don’t spend the money
do your research

AND

Cibsuder a “do it yourself kit”
if your not doing it yourselft consdier a very good attorney

Use an attorney:
find a compnay with experioence
there is a “secret handshake”
they do it for a living
they know the backroom guys in the Loss Mitt
There is a “foresnsic threat” – people know that an attorney has the ability to ask for docs, etc.. bad deal for bank to get an attorney asking
they can get more than one bite
find a company with options

find a company with proven results

7.668 negotiatioed to 1.%
11k ssavings

So what’st the secret handshake
Fivce yeses

Yes you can modify 2nd mortgage
yes you can modify investment properties
yes you can modify jumbo loans
yes you can be current when you ask for a modifications
yes you can negotiate their first offer, or accept the first offer and go back in again
yes you can apply with adverse credit

Bank does not want to have to writedown a loan

This is not a refinance – it is only modifying

So hw;at
The bank and the servicer are different
timing is NOT on your side
packaging your request is a single bite at the apple – do it right the first time
if your idea of a good time does not including stainging in line to request an irs audit use an attorney
not yoru brother in layws next door neighbor – an attorney

So what’s the secret handshake or five keeys to qualifying

Hardship letter and duration
2 dept ratios & net cash
supporting documentation
controlled – “other” dept
lender buying habits
understand that everything is changing effective march 4.

stat your having difficutly and ask ifr a modification
explain timeframes and the effect oin your life today
explain what youve tried to do before requesting the modification
express your appreciateion
handwrite date and sign it

Things that go bump in the night
your lender works weird hours, keep yuour phone on and a headset handy
be sure you have all of your numbers and email address
be sure the addresses match
know what your lender wants to see in income and expense
expect contined request for things you may have already sent

if your idea of a good time does not include standing in line to request an IRS audit — use an attorney

375k
9.5% to 5.5%
previous $3717 to $2083

1. You can do it on your own
Help wuith doing it on your own –
detailed workbook
hardship letters guidelines
financial worksheets
customitxed forms and documents
loender requirements
tips, tools, and suggestions
preofessional pre -audit tuneup
AmeRestart will look over the letters, etc.. before you send.

2. The FULL severice option
NOD – or BK intercepting
forebearance
property management advice
shortsale
refinanance
credit profiling
trank and purseue legale
$1,400

over 70 years of cumulative experience
we know the secret handshake
we know the loss mit guys in the back roomk
our fees are simple fair and straight forward
you are represented by an attorney
we take the creditor phone calls
we guarantee our work
web site to answer your questions
$3,000

Oyur service guarantee
Free initial assessment
no upfront fee
three day right to rescind
pay for services
100% guarantee on owner occupied
100% guarnantee on investment properties
mutliple transaction discounts

Dcided on your own or attorney
when you’re done pullinng uyour own teeth pick yup the phone
cortega@amerestart.com
626.653.2751
Cherisse Ortega

Takes calls on cell phone: 949.285.4808

Takes some questions:
1. are programs available to those that are current – you don’t have to be deliquent – you need a hardship, for a fixed rate …

Sheila bears program –

banks can anticipate what is happening –

Most programs will be a fixed for a time and then go adjustable – to get you out of the jam – within the 5 years.

Will bank move quicker if it is occupied – not neccesarily -sometimes move quicker with owner occupied

They are all taking a while, inundated –

obama plan pays banks before the loans became deliquent

– the bank is in for how to do I protect the bank –

Learn to talk in terms of the bank