Industry experts guiding home owners through the complex issues of our current market.

 Why we are here.  Housing Default Trends.  Lenders don’t want your house, but there are hurtles & state organizations to help.  Solutions for Unaffordable Mortgages.  Avoiding Foreclosure.  Remaining a Home Owner.

 Minnesota Home Help is a group of industry professionals working together to find the best solutions available for difficult home ownership issues. By providing Minnesotans with an understanding of their options and available resources we are able to guide them to the solution that best fits their needs. Improving the housing economy one home owner at a time.

 Attorneys  Realtors  Accountants  Financial Advisors  Loan Advisors  Public and Non-Profit Organizations/Services Home Ownership Center (enter phone#)  Loan Modification  Credit Repair Lutheran Social Services (enter phone#)  Financial Counseling

 Mortgage payment exceeds the budget. Past Lending Practices Non-Traditional Loans  Finances and/or Credit in jeopardy No savings because house payment is too high Accumulating debt due to high house payment  Life circumstances have changed Job loss Death in family Growing family

 Home won’t sell for enough to pay off lender.  Need to downsize but cannot get home sold.  Cannot get lender to approve sale.  Cannot get lender to cooperate on restructuring the existing loan.

 Insert graphs 4 yr default trend % of foreclosures averted in 2008 vs 2009 Goal – to eliminate as many foreclosures as posible

 There is no “One Size Fits All” solution.  Put your family first.  Know your budget.  Know your options.  Talk to the experts.  Understand the laws.  Know the facts about your situation.  Legal advise is a must.

Transitioning into a future of home ownership that is better for you and your family.

 Review your budget & seek professional advise – Contact LSS or HOC  Does your current loan payment fit into your budget?  Mortgage should be ≤ 30% of Gross Income  Total revolving debt should be ≤ 45% including house payment.  May need to reduce cost of housing and perhaps other debt.

 Consult a Loan Officer about Refinancing Lower Rate, perhaps Fixed Rate Lower overall payment See Realtor before paying for appraisal  If no refinancing option works contact HOC Negotiate a Loan Modification Negotiate Forbearance  Some borrowers may not qualify for Refinancing or Loan Modification.

 Realtor will visit your home  Comparable homes Sold  Condition of home compared to those Sold  Market time to expect  Selling Options Traditional Sale – Home will sell for enough to pay off the existing home loan(s). Short Sale – Home value doesn’t support payoff and will require lender approval.

Note: Not all attorneys will charge you up front. Lenders will allow proceeds from the sale of the home to cover the payment of an attorney that is advising the seller and negotiating the short sale. Note: Do not do a short sale without consulting a RE Attorney that specializes in short sales.

 Review of your overall situation Terms of your home loan(s) Refinance history and equity drawn Personal Hardship Repayment ability Liability of Second Mortgage or other Liens Tax Liability – You may be directed to an Accountant  To Short Sale or Not To Short Sale  Review final terms of the short sale

 You have gathered the facts about your personal situation and the options available to you. Loan Modification/Refinance Sell the home Rent out your home Short Sale Deed in lieu of foreclosure Foreclosure

 Better to sell prior to sheriff's sale  Better to sell without missing payments  Avoid the emotional strain and credit damage of a foreclosure  Start with Legal Consultation  Prepare home for sale

 Listing - market value is key  Showings - allow every showing possible  Negotiating offer with buyer  Negotiating accepted offer with lender  Lender approval and terms  Title Work and Closing  Professional service fees paid out of the proceeds of the sale at closing.

 The Foreclosure Process You have spoken with an attorney and exhausted your options. Giving it to the lender  Deed in Lieu of Foreclosure  Accelerated Redemption  Foreclosure by Advertisement Sheriff delivers notice of foreclosure Public notice of Sheriff’s Auction 6 month period following sheriff’s sale  New laws allow deferment of sheriff’s sale You can still work things out with the lender during redemption. You may sell the property during this period May need bank approval for sale In a specific situation the property may be sold for less than what is owed by the seller without getting lender approval (see attorney) Redemption ends - All rights to the property are that of the lien holder

 Why you want to avoid Foreclosure. It destroys your credit. Second mortgage can file a judgment. Home owners association can file a judgment. More difficult to borrow in the future. Higher interest rates and fewer loan options. Red flags on rental applications. May have to pay higher rent or larger rental deposit.

 After Foreclosure FHA 3 yrs Conventional 5 yrs  After Short Sale Immediately Must have good payment history Must have good credit score (650 or higher)  Contract for Deed/Rent to Own Requires Downpayment or Option Fee Consult a loan officer to review the terms of financing the seller/landlord is offering  Is the monthly payment ≤ 30% of Gross Income  Is your total revolving debt ≤ 45% including house payment  Are you on track to qualify for a loan to pay off the seller/landlord in 3-5 years

Remember the Basics!  Budget Set your budget Stick to your budget Be educated and buy smart Seek the help of a professional  HOC – Home buyer classes Not just for first time home buyers Lower default rate

 Why am I having a hard time getting the lender to restructure my loan?  Can a lender take funds from my retirement account in a short sale?  What if I owe more on the home than I can afford even after modifying the loan?

 You know your options  You know your resources  Put the system to work for you Contact HOC today to get started! Modify the loan! Stay in your home!

 Loan Modification – HOC  Financial Counseling – LSS  For more resources visit: