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Weathering the Storm of Home Foreclosure Session II.12: Pre and Post-Investment Strategies for Homeownership: Foreclosure Prevention (Source: Number of foreclosure filings taken from statistics provided by North Carolina Administrative Office of the Courts) Threats to Homeownership:

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weathering the storm of home foreclosure

Weathering the Storm of Home Foreclosure

Session II.12: Pre and Post-Investment Strategies for Homeownership: Foreclosure Prevention

slide2

(Source: Number of foreclosure filings taken from statistics provided by North Carolina Administrative Office of the Courts)

threats to homeownership
Threats to Homeownership:
  • High Cost Mortgage
  • Too Much Home
  • Track Homes Offered by One Builder
  • High Maintenance Homes
  • Home Equity Theft
  • Un-educated Home Buyer
  • Job/Income Loss & Poor Health
high cost mortgage
High Cost Mortgage:
  • Adjustable/Variable Rates
  • Less Than 30 Years
  • High Interest Rates
  • Discount Points
  • Junk Fees
  • High Debt to Income Ratios
  • Pre-Payment Penalties
  • Insurance Packing
  • Unsigned Good Faith Statements

Place Restrictions on

the 1st Mortgage

Product !

slide5

Affordable Monthly Payments

Too Much Home

Know Your Supply & Demand

Soft-Second to Make Home

More Affordable NOT to Buy

More Expensive Home

Burdensome Mortgage Payment

problems with the large tract national and regional builders
Problems with the Large Tract National and Regional Builders
  • The Builder Controls all the Players
    • Realtor
    • Lender
    • Attorney
  • Non-Sustainable Financing
  • Great Expectations
  • Bait & Switch
  • Early Homebuyers at Great Risk
  • Foreclosures Lead to Depressed Values
  • Renters Displace Homeowners
  • No or Weak Homeowners Association
slide7

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“Large Tract Village”

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Prices, terms, and offer are subject to change without notice and valid on select home sites with financing by Lotsof$ Mortgage

Company only. See on site sales consultant for details builder paid closing cost. Designer kitchen appliance upgrade available

for a limited time only, subject to change without notice. Actual appliances may vary from photos. * Must use LotsofLaw real estate

Attorneys, must qualify for lowest rate and the 2.5% rate is for the 1st year, the second year it is 4.5% and caps at 6.5% the third

year. The APR is 7.75% Must also use LotsofRealty Real Estate Company. No outside Realtors welcome.

slide8

Prices, terms, and offer are subject to change without notice and valid on select home sites with financing by Lotsof$ Mortgage Company only. See on site sales consultant for details builder paid closing cost. Designer kitchen appliance upgrade available for a limited time only, subject to change without notice. Actual appliances may vary from photos. * Must use LotsofLaw real estate

Attorneys, must qualify for lowest rate and the 2.5% rate is for the 1st year, the second year it is 4.5% and caps at 6.5% the third year. The APR is 7.75% Must also use LotsofRealty Real Estate Company. No outside Realtors welcome.

slide9

Beware of the Fixer Upper

Avoid High Maintenance Homes

  • Professional Home Inspections
  • Lead Awareness (Pre 1978)
  • Beyond Minimum Standards
  • Home Warranties
  • Mold/Radon/Asbestos
  • New vs. Existing
  • Energy Efficient
slide10

The Home

Equity Thief

Protection Through Long Term

Soft Second Mortgages

Grants Provide No Protection

Loans Requires Loan

Subordination Or

Loan Payoff

educating the homebuyer
The Role of Realtors & Lenders

Seriousness of Offers to Purchase

What I Qualify For, I Cannot Afford

Why they call it a “Good Faith Estimate”

Understanding the Closing Documents

How to operate items in the home

The Basics of Home Maintenance

Who to call when You can’t make the Monthly Payment

Pre Homeownership Training

Post Homeownership Training

Educating the Homebuyer
post homeownership escrow incentive program
Post HomeownershipEscrow Incentive Program
  • $300 Escrow Account at Closing from Buyer
  • Meet with Counselor 6-12 Months after Purchase
  • Pull and Review Credit Report
  • Inspect Home for Maintenance Issues
  • If Homeowner participates in one on one session with Counselor and Home Maintenance is Acceptable the Homeowner receives $250 of $300 back. The balance of $50 is retained by Center for Home Ownership.
  • Homeowner has up to 18 months to come into compliance
  • If compliance is not met within 18 month period the entire $300 is kept by the Center for Homeownership
obstacles to helping homebuyers
Obstacles to Helping Homebuyers:
  • Psychological Factors:
    • Denial
    • Fear
    • Shame
  • Re-Active as Opposed to Pro-Active
  • Scam Mortgage/We Buy Homes/Companies
  • No Early Warning System
loss mitigation
Loss Mitigation
  • NCHFA Pilot Home Foreclosure Protection Program
  • NCHFA Mortgage Assistance Program under MRB Program
  • FHA Programs