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SHORT SALE TRAINING Legal Center Network. Who is Legal Center Network? LCN is a technology platform and network of Attorneys, Agents and business professionals.

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Presentation on theme: "SHORT SALE TRAINING Legal Center Network. Who is Legal Center Network? LCN is a technology platform and network of Attorneys, Agents and business professionals."— Presentation transcript:

1 SHORT SALE TRAINING Legal Center Network

2 Who is Legal Center Network? LCN is a technology platform and network of Attorneys, Agents and business professionals. LCN has the following divisions: 1. Short Sales 2. Bankruptcy 3. Litigation 4. Tax Issues

3 Short Sale Division Over 10 years experiencing handling short sales nationwide with a variety of lenders Online software platform that handles all the short sale paperwork for you regardless of lender. This platform is also a communication hub with all people involved with the transaction. We will update both sides of the transaction as well as sellers and answer all questions for you. Has successfully closed 1,000’s of short sales nationwide.

4 Why Use Legal Center Network We can legally stop foreclosure auctions without fake bankruptcies that lead to title issues. Frees agents up from administrative tasks that takes money out of their pocket keeping them from getting new clients. 3 rd party verification when it comes to denial of modification from our attorneys.

5 One stop shop for all needs Attorneys to sue the bank if needed Attorneys to handle a 1099 when received by bank Attorneys to handle any bankruptcy that may be needed after or before a short sale Attorneys to provide credit repair after a short sale to give a buyer down the road CPA’s to provide financial plan to fiscal health Attorney review for your client at the end of the short sale for all disclosures and info on 1099 issues.

6 Technology Platform LCN hosts a technology platform that allows all people involved in the transaction to communicate. Escrow, Selling, Listing Agents and whoever else may be associated with the file can receive all updates at one time as file progresses. Platform includes all docs necessary for short sale regardless of the lender. It will even walk the borrower through step by step from mortgage statement, hardship letter, type of employment and lenders to provide all necessary docs freeing up agents from document collection.

7 Technology Platform - 2 Technology platform also provides the ability to have an attorney step in on any needed service such as 1099 issues or foreclosure postponement. There is a file tracking progress bar, ability to upload property info and calendar and create tasks options. All at no cost to the agent for these functions when we handle the short sale.

8 Why Short Sales High Market Volatility It’s known that QE must end or risk hyper inflation however when the word taper is mentioned markets cringe and rates jump. ObamaCare despite the denials is a job killer. 300 companies have stated they are cutting hours and cutting jobs. This translates to lack of consumer spending which is a huge driver for the market!

9 Why Short Sales - 2 We are reaching 17 Trillion dollars in debt which we cannot pay back. Credit rating has already been reduced due to out of control spending. Nothing has changed which could mean we may get another credit rating reduction which would affect interest rates and consumer confidence. These issues simply leave open the opportunity for short sales to continue strong for sometime to come.

10 CA Home Owner Bill of Rights One of the best benefits of the Bill of Rights is what is called precluding of dual tracking. This specifically prohibits creditors from recording a notice of default or notice of sale when a borrower has applied for a workout solution and that application is pending. Should these right be violated we have attorneys who can sue for enforcement and damages on behalf of borrower. Landlord/Tenant – Bill requires purchasers of foreclosed property to honor existing lease agreements and give tenants 90 days prior to

11 CA Home Owner Bill of Rights - 2 Mandatory contact at least 30 days prior to filing a Notice of Default (Only applies in the specific circumstances described below) With those principles in mind, SB 1137 required the lender or servicer of the loan to contact the borrower, or to try with due diligence to contact the borrower, at least 30 days prior to filing the NOD. Requiring lenders and servicers to contact borrowers before recording an NOD was intended to give the lender or servicer an opportunity to assess the borrower’s financial situation and explore options that would allow the borrower to avoid foreclosure. SB 1137 also required that borrowers be advised of their right to request a subsequent meeting with the lender or servicer, and be provided with a toll free number to find a HUD-certified housing counseling agency.

12 CA Home Owner Bill of Rights - 3 Unlike the tenant protections below, the contact requirements of SB 1137 apply only to loans originated between January 2003 and December 2007, which are secured by owner-occupied residential real property, where the borrower has not filed for bankruptcy, surrendered the property, or contracted with an entity to extend the foreclosure process. By facilitating early contact between borrowers and lenders, the bill sought to avoid unnecessary foreclosures and facilitate the modification or restructuring of loans in appropriate circumstances.  Tenant protections require additional notice prior to sale, and a 60 day notice prior to eviction after foreclosure

13 New HUD FHA short sale requirements Effective October 1, 2013 U.S. Department of Housing and Urban Development (HUD) has announced the following changes to their Federal Housing Administration (FHA) Short Sale requirements: Eligibility Requirements: To successfully complete a short sale under the FHA short sale program, the borrowers must meet the following requirements: The mortgage must be in default, on the date the short sale transaction closes.

14 New HUD FHA short sale requirements -2 Financial Hardship Validation Requirement: For a standard pre-foreclosure sale, servicers must use a Deficit Income Test (DIT) to determine a homeowner's financial hardship. The IRS Collection Financial Standards will be used to verify homeowners expenses not reflected in their credit report. Only owner- occupied properties are eligible for the standard pre foreclosure sale. Cash Contribution: As a new condition, you might be required to make a final payment (sometimes called a cash contribution) before or at closing. This payment will reduce the deficiency balance.

15 New HUD FHA short sale requirements -3 Borrower's Incentive Compensation: If you are an owner occupant, acting in good faith, and successfully selling your property, you may be eligible for an incentive of up to $3,000. If you are required to make cash contribution, you are not eligible for this incentive.

16 We Are Looking For Plaintiffs!! We are currently looking to interview possible plaintiffs for a possible class action law suit against Nationstar. It is believed that some of the policies and procedures of this lender are having a negative and what we believe to be legally questionable adverse affect on people associated to short sales. If you or your clients fits any of the below info please call to discuss.

17 We Are Looking For Plaintiffs!! 2 In a previously closed transaction did you have a buyer that was forced to use Nationstar as a lender to receive closing credits towards purchase? In a previously closed transaction did you bring an offer to the table, then were told that your buyer had to go through to bid at which time they were then forced to pay a 5% premium for the winning bid? Did you lose 1/2 your commission on a double ended deal through from a buyer you brought to the table?

18 Difficult Deal? We can litigate! Case example #1 – Client loans roughly 85k to a homeowner and get put on the deed for the loan. Homeowner defaults on payments. Our Attorneys will sue for to enforce the agreement or remove the homeowner from title and force a sale on the property to recover money (there is equity in the property). Case example #2 – Homeowner in modification and receives letter acknowledging such from lender. 3 weeks later lender forecloses. Our Attorneys can sue to have auction reversed due to new protections afforded homeowners.

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