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H.E.L.P. for Homeowners ®...a program like no other. "Banks may have to swallow reductions in the principal of some troubled home loans to ward off greater.

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Presentation on theme: "H.E.L.P. for Homeowners ®...a program like no other. "Banks may have to swallow reductions in the principal of some troubled home loans to ward off greater."— Presentation transcript:

1 H.E.L.P. for Homeowners ®...a program like no other. "Banks may have to swallow reductions in the principal of some troubled home loans to ward off greater losses that could result from outright default." Federal Reserve Chairman, Ben Bernanke If you are like many other Americans in today's market and are facing foreclosure, in a modified loan or your home is simply just Upside-Down, we can help! The Home Equity Leverage Program for Homeowners has the ability to reduce your current loan balance and we are able to re-write your loan down to 95% of the current market value.

2 The H.E.L.P for Homeowners ® program is as follows: Your current mortgage will be pooled alongside the loans of other clients, categorized by lender. Once there is enough volume in the specified Pool, our investors will then negotiate a bulk purchase of the pooled notes and the servicing rights of those notes at the going or discounted rate. Giving you real market equity!Your current mortgage will be pooled alongside the loans of other clients, categorized by lender. Once there is enough volume in the specified Pool, our investors will then negotiate a bulk purchase of the pooled notes and the servicing rights of those notes at the going or discounted rate. Giving you real market equity!

3 How it Works We Pool notes for discounted purchaseWe Pool notes for discounted purchase 3 X X X X X X X X X X X X X X X X X Pooled Notes X X

4 Overview We collect loans from multiple Qualifying Borrowers.We collect loans from multiple Qualifying Borrowers. Once we have a large quantity of loans with a target bank, our investors will negotiate a bulk purchase of these loans with the respective lenders.Once we have a large quantity of loans with a target bank, our investors will negotiate a bulk purchase of these loans with the respective lenders. Our investors underwriting team will re-verify your submitted information and if you still qualify they will re- write your loan with the following terms (which are subject to change):Our investors underwriting team will re-verify your submitted information and if you still qualify they will re- write your loan with the following terms (which are subject to change): Loan is for 95% of the market value of your home at the time our investors purchased your loan from your lender.Loan is for 95% of the market value of your home at the time our investors purchased your loan from your lender. 30-year Fixed Rate principal and interest amortization30-year Fixed Rate principal and interest amortization There is a 3 year pre-payment penalty which amounts to 6- months of interest paymentThere is a 3 year pre-payment penalty which amounts to 6- months of interest payment

5 Example: You owe $500K on your home but it is only worth $360k. Our investors will bulk purchase the note from your current lender and re-write it back to you at 95% of the current market value ($342K), saving you over $158k!!!You owe $500K on your home but it is only worth $360k. Our investors will bulk purchase the note from your current lender and re-write it back to you at 95% of the current market value ($342K), saving you over $158k!!!

6 Qualification Requirements You must qualify for the loan terms at todays market price.You must qualify for the loan terms at todays market price. You must owe 125% or more than your home is worth.You must owe 125% or more than your home is worth. You must have monthly incomeYou must have monthly income No minimum credit score requiredNo minimum credit score required No minimum assets requiredNo minimum assets required Investment property is acceptedInvestment property is accepted

7 Why Banks Want to Sell the Notes The reserve requirement set by the Federal Reserve Board is a bank regulation that sets the minimum cash reserves each bank must maintain.The reserve requirement set by the Federal Reserve Board is a bank regulation that sets the minimum cash reserves each bank must maintain. Non-Performing assets put a strain on the bank reserve requirements so they must liquidate these assets.Non-Performing assets put a strain on the bank reserve requirements so they must liquidate these assets. Liquidating the assets put the bank in a better lending position.Liquidating the assets put the bank in a better lending position. It cost less to liquidate, then it does to foreclose, short sale or REO.It cost less to liquidate, then it does to foreclose, short sale or REO. 7

8 Why Banks Want to Sell the Notes Banks are in the business of lending, not managing real estate.Banks are in the business of lending, not managing real estate. We package both performing and non-performing notes together and do not allow the bank to cherry pick from the pool of notes.We package both performing and non-performing notes together and do not allow the bank to cherry pick from the pool of notes. We work directly with the banks wealth management and asset departments to negotiate the sale of the notes.We work directly with the banks wealth management and asset departments to negotiate the sale of the notes.

9 This is not a Loan Modification THIS IS NOT:THIS IS NOT: A Loan ModificationA Loan Modification A Short SaleA Short Sale A Deed in Lieu of ForeclosureA Deed in Lieu of Foreclosure A ForbearanceA Forbearance THIS IS:THIS IS: A Principal Reduction LoanA Principal Reduction Loan NO Minimum Credit Score Rate and Term RefinanceNO Minimum Credit Score Rate and Term Refinance 9

10 Frequently Asked Questions What guarantees can you give me that this will work?What guarantees can you give me that this will work? None. There are no guarantees. We will do our best, but our efforts can fail for reasons including but not limited to : None. There are no guarantees. We will do our best, but our efforts can fail for reasons including but not limited to : - Your bank not willing to negotiate. - Your second or third lenders not willing to negotiate. - Your job/income situation changing. - Your job/income situation changing. - Information on your application not being completely accurate. - Information on your application not being completely accurate. - Our investors denying your application.

11 What if I lose my job after I apply?What if I lose my job after I apply? We will try to work with you, but you must be able to qualify to re-pay the new loan. Our investors are looking for a return in exchange for the service they are providing. If you are unable to qualify and make payments for the new loan, the investors will not purchase your loan from your current lender and you will likely face foreclosure. How long will the process take?How long will the process take? There is no exact answer. Expect between 60 and 90 days depending on your bank. We have to wait to get enough loans with your lender to make your lender willing to negotiate. If we do not get a lot of loan applications from people with your lender, it will take time to get our volume high enough to get a discount on the purchase.

12 Do I have to be late for this to work? Do I have to be late for this to work? No. We will be purchasing bulk loans from the bank. Some will be late and some will not be. However, you do have to owe 125% more than your home is worth. How is this different that a Loan Modification? How is this different that a Loan Modification? A loan modification may have tax and credit implications depending on your lender. Remember, this is a bulk short- purchase of your loan from your lender. They have agreed to sell your loan to our investors at a discount. Thats how we are able to re-write your loan at your homes current market value. A loan modification company will work with your lender to modify your existing loan. We are not working with your lender, we are buying your loan in a bulk short-purchase along with other loans. A loan modification company will work with your lender to modify your existing loan. We are not working with your lender, we are buying your loan in a bulk short-purchase along with other loans.

13 Do you stop Trustee Sales?Do you stop Trustee Sales? No. We will recommend you a firm that has success in delaying Trustee Sales. They will sign a contract with you and you will only be billed when the Trustee Sale is delayed. Nobody can stop a Trustee Sale forever. They will try and help you buy time so that your Re-Write can be approved or you can get current with your loan. They delay the Trustee for 30 days at a time and you are billed each time they are successful.

14 What does it cost?What does it cost? Program Consulting Fee totaling $3,895. NOTE: IN CALIFORNIA, ADVANCE FEES ARE PROHIBITED. IN THIS CASE, FEES MUST BE PAID UPON COMPLETION OF SERVICES.

15 Our goal is solely to assist homeowners. We have no interest in owning your home or prospering from your misfortune. We can assist you to resolve your current situation so you can stay in your home with and affordable mortgage. As professionals who understand the mortgage industry from years of experience, we know how to help you.Our goal is solely to assist homeowners. We have no interest in owning your home or prospering from your misfortune. We can assist you to resolve your current situation so you can stay in your home with and affordable mortgage. As professionals who understand the mortgage industry from years of experience, we know how to help you. Put our expertise into action and you could become another one of our countless satisfied clients. Let our caring staff help you! Edward M. Cox Broker/President SouthWest Equity Mortgage x 101


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