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What is a DEFAULT property

What is a DEFAULT property. From the minute the owner of REAL PROPERTY fails to meet the monthly obligation of a loan agreement (31 days, 5pm), the REAL PROPERTY and or the homeowner then goes into default until the REAL PROPERTY: CURES OR TITLE IS TRANSFERRED

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What is a DEFAULT property

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  1. What is a DEFAULT property From the minute the owner of REAL PROPERTY fails to meet the monthly obligation of a loan agreement (31 days, 5pm), the REAL PROPERTY and or the homeowner then goes into default until the REAL PROPERTY: CURES OR TITLE IS TRANSFERRED A default advocate is a person who has knowledge of how to work with a homeowner and property that has MANY options and outcomes from the first missed payment or until the transfer of title ownership is completed.
  2. Lesson #1 “How money works”
  3. BANK C:\\ 1,000,000,000.00 RESERVER C:\\ 9,000,000,000.00 EXCESS C:\\ 10,000,000,000.00 TOTAL Federal Reserve Bank C:\\ CREATE : $10,000,000,000.00 C:\\ MONEY TRANFER COMPLETE 97% of all money is digital EXPANSION OF MONEY SUPPLY C:\\ 10,000,000,000.00 WILL EXPAND C:\\ 90,000,000,000.00 >>> 9X ANY DEPOSIT CAN BE CREATED FROM NOTHIN BANK C:\\ $10,000,000,000.00 C:\\ TRANFERING DEPOSIT TO RESERVE C:\\ 10,000,000,000.00 TRANSFER
  4. Lesson #2 Why NO REO &Lesson #3 Market Length 2006 2018 2012
  5. Work Smart Not Hard JUST FOCUS on MARKETING and CLIENTS Mitigate your files smarter Get Someone to mitigate your files
  6. Realtor Code of Ethics “When representing a buyer, seller, landlord, tenant, or other client as an agent, REALTORS® pledge themselves to protect and promote the interests of their client. This obligation to the client is primary, but it does not relieve REALTORS® of their obligation to treat all parties honestly. When serving a buyer, seller, landlord, tenant or other party in a non-agency capacity, REALTORS® remain obligated to treat all parties honestly.” (Amended 1/01)
  7. Bank & Seller Relationship Seller owns the property Bank owns the note not the house. The note is a lien on the property Agent works for seller not bank Seller and bank have adversarial relationship or they have opposite interests.
  8. What Qualifies for Short Sale Monetary Relocation Divorce
  9. Mortgages & Liens1st lien, 2nd lien, & HELOC 1st 2nd HELOC HOA LIENS TAXES
  10. Deficiency Judgments: What Happens to the Lost Money? If you do not know how a bank handles their loss you are in violation of fiduciary duty Ca$h Contributions and Promissory notes Debt Forgiveness and the Mortgage Forgiveness Debt Relief Act of 2007 and what it means! How 1st liens treat deficiencies vs. HELOC’s 1099 Forms Form 982 IRS
  11. The Mortgage Forgiveness Debt Relief Act of 2007 (MFDRA) H.R. 3648 signed into law By George W. Bush, December 20, 2007. H.R. 3648 was extended through 2012 by the Obama Administration in H.R. 1424 (The Emergency Economic Stabilization Act) Best summarized as “legislation passed by congress in which any borrower who receives a 1099 form as a result of a FC of short sale they are completely forgiven from having any IRS tax liabilities if A.) it is their primary residence or B.) they are insolvent” The vast majority of borrowers will fit into this category and have 0 liabilities
  12. 1099 A & 1099 C If a property goes to FC borrower will most likely get a 1099 A, an abandonment of debt. Statistically it will be 10-20% higher If property goes to short sale they will get a 1099-C, cancellation of debt. Prior to 2007 both would be considered taxable events to the borrower. This forgives that. In effect right now until 12-20-12.
  13. Post Short Sale Effects on Credit The Short Sale will be reported on the borrower’s credit report as a “settled” account and/or “paid but not in full” Much better than a Foreclosure 2 year recovery time The Short Sale MAY have a negative impact on the borrowers credit score (up to 200 pts, but WILL DROP in 2 years) Continuous late payments are what really destroys credit There is no magic formula for determining a FICO score after the Short Sale.
  14. Alternatives To Foreclosure Deed in Lieu Loan Modification Short Sale Bankruptcy
  15. What are the deal killers before you call the bank
  16. Short Sale & Loss Mitigation Timeline 30 – 60 Days 0 – 30 Days 60 – 90 Days Short Sale package submitted. BPO ordered. File is assigned to negotiator. Negotiations w/ bank(s) initiate 1st counter. Property is marketed to buyers. Receive short sale approvals. Lock in buyer and prepare for closing.
  17. Starting The Process Get a buyer on contract ASAP! Initial Offer Price is irrelevant. Its like playing cards! Stage 1- Order the BPO and get the file assigned BPO is the most important part of the process. A BPO agents job is to turn in a 30 day sale price Foreclosed/REO properties sell for a 25-27% discount Short Sale homes sell for a 11-13% discount
  18. PMI Companies Why are they such a pain in the ass? What is PMI and what’s it used for? Why you need to know this upfront How to find out if there is PMI on the loan and how you need to preplan your deal.
  19. Cash Contributions A way to offset the promissory note When the 4 invitations are present, current, strong financially, large loss to the 1st lien, or PMI involved What to offer them? The Cash VS. Time scenario.
  20. Promissory Notes Can the bank ask borrower for promissory note? Unsecured note. Should you advise seller to sign off on note. 4 invitations-Borrower is current, strong financially, large loss to the 1st lien, or PMI involved. Know these ahead of time!
  21. The 3 Funnels of marketing success Direct Marketing ANYTHING that is a direct to the homeowner and tangible for them to have Web Wordpress Website Social Media Management Search Engine Optimization Outreach What are you doing today to HELP 1 person!
  22. Direct Marketing Philosophies Permission Based Marketing VS Interruptive Marketing
  23. Direct Marketing 100 PRE NOD DQ 15 homes in 90 minutes Door Drop MONSTER™ Marketing
  24. Web Your clients will research you online Your clients are influenced by what they read online YOU MUST be on page 1 or 2 of the search engines for your ‘real estate term’ YOU MUST be on page 1 for your name YOU MUST use social media to keep in contact YOU MUST send emails to keep in contact ALL OF THIS IS FREE!
  25. Web
  26. Outreach What are you doing to help 1 person today? Contact your local library and get space Do weekly information gatherings with homeowner Walk the community Be seen Gather testimonials to build a relationship
  27. Testimonial
  28. Review Advocate Work Smart Not Hard Market MarketMarket Constant Outreach Keep Educated Be Confident
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