Situation Analysis Questionnaire

We are pleased to post you a special link to help Real Estate Agents and home owners determine how we can best help them avoid a home going to foreclosure.

Please click on the following link to access a brief survey http://www.ZOOMSAQ.com.

Once you have completed the questionnaire simply hit "Submit". We will call you back shortly with the results of the survey.

Year-End Tips

3 Tips to Help You Avoid Foreclosure Headed into the New Year

Heading into the holiday season, you may have found some extra time to research how you can avoid foreclosure. If so, congratulations on taking the first and most important step in improving you situation - seeking help!

To be successful now and in 2011, here are the top three things you should focus on when exploring foreclosure alternatives:

1. Create a budget: When seeking an arrangement with your lender you must prove the monthly income shortfall that keeps you from making your mortgage payments. Create an itemized list detailing your monthly income and expenses. Pull together bank statements and check stubs for the last three months.

2. Know your options: It's important to know you have several options to consider, so you can take advantage of the solutions that is best for your specific situation. Find out more about your options on our website http://www.TheForeclosurePreventionSpecialists.com.

3. Contact an Experienced Agent: A licensed agent who has undergone specialized training is vital to successfully navigating foreclosure avoidance. As a CDPE-designated agent our company has trained extensively to provide you with the information you'll need to execute a strategy tailored to your situation.

Most major lenders have granted a two-week foreclosure holiday from December 20 - January 3. The sooner you contact us, the more options you'll have to prevent foreclosure and get back on track for a financially stable and successful 2011.

Short Sale Commission Disclosure

Some common agent questions regarding how to correctly note commissions as part of short sale listings. Most questions are regarding the BAC. The BAC must be an exact percentage or dollar amount.

For example, acceptable language would read something like, "This is a short sale. If Seller�s lender, as a condition of approving the sale, requires a reduction in the total commission agreed to by Seller in the Listing Agreement, any such reduction shall be divided ___________ (E.g. 50/50, or 60/40 etc.) between the Seller�s and Buyer�s Broker."

Fannie Mae and Freddie Mac Announce New HAFA Programs

Fannie Mae and Freddie Mac just announced the introduction of their own HAFA programs. They’re both scheduled to be implemented by August 1, 2010, and the programs are very similar to HAFA in that they simplify and streamline the use of short sales and deed-in-lieu (DIL) options and use similar forms and timelines. In addition, like HAFA, the program expires December 31, 2012. However, some of the major differences offered by the new Fannie Mae and Freddie Mac HAFA programs include, but are not limited to:

1. Both institutions will pay the servicer a $2,200 incentive fee for successful short sales
2. Both institutions will pay the servicer a $1,500 incentive fee for all successful DILs
3. The Deed for Lease (D4L) is available for borrowers who request and are approved to remain in the property following a successful DIL

Specific details on these programs can be found by visiting the following links: eFannieMae.com and Freddie Mac Bulletin

Our team of researchers at ZOOM! Loss Mitigation Specialists is keeping a close eye on the industry, including lenders and servicers, to keep all of the agents working with our company on top of the industry. Stay tuned for more updates!

Fannie Shortens Wait for Some Distressed Borrowers to Get New Loans

Fannie Mae announced it is reducing the wait time for some borrowers between when they complete a short sale or deed-in-lieu of foreclosure transaction and when they can obtain a new mortgage.

Previously, a borrower was required to wait four years before getting a new mortgage, or two years if their home sold in a short sale. Under the new guidelines, a borrower that previously completed a deed-in-lieu of foreclosure transaction can get a new mortgage in two years, provided the borrower has a 20% down payment.

If the borrower has a 10% down payment, the wait period is still four years. In some extenuating circumstances, the wait period can be reduced to two years with a 10% down payment for deed-in-lieu of foreclosure, but not for short sales.

Fannie Mae’s Desktop Underwriter (DU) origination software will be updated in June to reflect the new deed-in-lieu of foreclosure policy, but not short sales, as the software cannot at this time determine whether a borrower participated in a short sale.

Originators are required to manually underwrite mortgages after the waiting period if the borrower previously completed a short sale. This new policy is effective for manually underwritten mortgage loans with application dates beginning July 1, 2010.

The policy changes come as Fannie Mae develops its deed for lease (D4L) plan. At Thursday’s Texas Mortgage Bankers Association (TMBA) servicing conference, Miguel Gutierrez, program’s director, outlined the initiative, where in exchange for a deed-in-lieu of foreclosure, the homeowner-turned-renter pays fair market rent to stay in their home for up to 12 months.

Fannie expects the program to get a boost from the Home Affordable Foreclosure Alternative (HAFA) program, which offers incentives to servicers and second lien holders to consummate deed-in-lieu transactions. Gutierrez said Fannie hopes its program will benefit from increased workouts incentivized by HAFA.

Written by Austin Kilgore

Government Programs...Check Your Eligibility NOW!

There are a number of government programs available to provide you with solutions. Find out which program below matches your situation best, and then take a brief survey to see if you are eligible.

Government Programs:

- Home Affordable Foreclosure Alternatives (HAFA)
- Home Affordable Modification Program (HAMP)
- Home Affordable Refinance Program (HARP)
- Second Lien Modification Program (2MP)

Check your eligibility now on-line at http://www.checkyoureligibilitynow.com/ .

Take action, find out more about your options and learn if you are eligible. If your situation is urgent, or you have ANY questions, feel free to contact us at 1-800-480-1917.

Avoiding Arbitration During a Short Sale

Short sales have a tendency to make all aspects of a real estate transaction more complicated, and the payment of cooperative commissions is no exception. Here are a couple of tips to help you avoid commission questions and potential arbitration when dealing with a short sale:

Indicate the possibility that the commission may altered by the homeowner's lender

Most MLSs are allowing, and oftentimes requiring, that a short sale be identified as a short sale when it is listed. Along with this designation is the option of putting in a buyer's agent commission along with a note that indicates the BAC may be altered by the seller's lender.

If you don't indicate that the BAC may be lowered and it does get reduced, then you may be picking up the entire loss yourself as the listing brokerage. Consider the following example:

You have a short sale listing and have a total commission of 12 percent. You offer 6 percent BAC but do not indicate the possibility of the seller's lender requesting that the total commission be lowered.

You get an offer, and it is accepted. The lender approves the offer but asks for the total commission to be lowered to 8 percent. You lower the total commission and expect to only pay 4 percent to the buyer's broker. At closing, the buyer's broker demands the full 6 percent because they never agreed to a lowered commission. In this case, you will probably be stuck taking a 2 percent commission and paying the buyer's broker 6 percent because you offered the 6 percent BAC unconditionally.

Tell how the commission will be split

After you identify on the MLS that the total commission may be reduced, you will need to indicate how the total commission will be split if it is lowered. Most MLSs will allow you to detail how the commission will be split in the "Agent Remarks". It is easiest to put in a percentage split, e.g., 50/50, 60/40, etc.

Do not simply put a range for the BAC. Saying the BAC is 3-5 percent leaves many questions unanswered. Can the buyer's broker count on 3 percent if the overall commission is lowered? Is the commission 5 percent if it isn't lowered? Or is the commission 3 percent if the listing broker decides they only want to give 3 percent?

If you put in a range, it will likely cause problems at settlement because the buyer's broker has no idea what to count on and will likely dispute the percentage given. MLSs do not like, and usually do not allow, a range in the BAC.

Our very best suggestion - Once the short sale is approved by the lender(s), send a Commission / Escrow Agreement to the buyer's agent explaining exactly what the compensation will be and have the buyer's agent and the buyer's broker sign the agreement so that there is no misunderstanding at closing.

New Changes to HAFA Supplemental Directive

Making Home Affordable (MHA) just released an update to its Supplemental Directive 09-09 with some important clarifications for agents and participants in HAFA, in particular:

• Increased homeowner assistance for short sale and deed-in-lieu of foreclosure transactions
• Bankrupcy issues
• Vacating the property due to relocation
• Lienholder information

Check back often for all the updates you need on the HAFA program.

Can you really Cancel your home loan for up to THREE YEARS?

In the process of refinancing a loan, Federal law requires that the borrower be granted a right to rescind. The document itself indicates that the time to rescind is three business days. If, however, the correct protocol is not followed regarding the execution of this document, or the correct number of copies is not given to each borrower, the rescission period can be extended for up to three years. This is arguably one of the most valuable remedies available to consumers of all the potential violations in the Truth In Lending Act, HOEPA, EOCA, GLB, or Regulation Z.

Most people are familiar with the "three-day right to cancel" period after signing a refinance loan secured by a principle dwelling. Lenders even provide documentation that clearly identifies the procedure for canceling the loan and the time in which it can be done. What the documentation fails to explain is that if any one of three key aspects of the loan package is not properly completed, the three day period is extended to three years.

Before explaining what these three defects are, it is helpful to first understand what canceling, or "rescinding" a loan really means. In a very general sense, to rescind is to "undo". Basically put the injured party back to their original position. When a person rescinds a loan during the three day period the loan is simply not funded. There are no closing costs because there is no closing (exceptions such as appraisal fees may apply). The borrower simply keeps their existing loan; but what about when the loan has already closed? What about when the borrower has made payments on the loan for say, two and half years? In that case, what happens is that all closing costs and all interest paid to date on the loan are returned to the borrower. I highlight these two items because most people find the need to read them several times. The truth is there are other favorable events that take place, but this should at least peak your interest.

What makes a loan rescindable for more than three days?

First, a loan must qualify, that is it must be a refinance, or non-purchase loan, secured by a principle dwelling (Second mortgages and home equity lines of credit qualify since they meet the requirements above.) 15 U.S.C. § 1635(a); 12 C.F.R. §§ 226.15(a) 226.23(a)

Second, there must be a failure by the creditor to provide accurate material disclosures or the notice of right to cancel in the prescribed manner. 12 C.F.R. §§ 226.15(a)(3), 226.23(a)(3). Regulation Z defines, in no uncertain terms, what the term material disclosures is intended to include. "The term "material disclosures" means the required disclosures of the annual percentage rate, the finance charge, the amount financed, the total payments, the payment schedule, and the disclosures and limitations referred to in sections 226.32(c) and (d)." 12 C.F.R. § 226.23(a)(3)(fn48). In a typical loan transaction these terms can be found on a document called "Truth In Lending Disclosure Statement". The numbers on this disclosure statement must be accurate to within very narrow tolerances. Depending on the type of loan, the Annual Percentage Rate (APR) must be within 1/8 of 1 percentage point of the actual APR. 12 C.F.R. § 226.22(a)(2). The total finance charge can not be understated by more than $100 in most cases, and not more than $35 if the creditor has initiated foreclosure proceedings. 12 C.F.R. §§ 226.23(g), 226.23(h). It is necessary to carefully examine the final closing statement and compare it to the Truth In Lending Disclosure Statement to identify possible discrepancies.

The notice of right to cancel is perhaps the most straight forward requirement of the creditor set forth by TILA, yet the most commonly violated. It seems apparent from reading TILA, Regulation Z and the associated commentary, that Congress was concerned with two aspects of the creditor/borrower relationship. First, they wanted to make sure borrowers received as much disclosure as practical so that they can make an informed decision. Second, they wanted to make sure that borrowers had ample time to consider this decision after being presented with all the details. The three-day right to cancel is intended to accomplish this second concern.

The law is very clear on what is required when it comes to the notice of right to cancel. Each borrower, must receive two notices of right to cancel which clearly and conspicuously disclose: (1) the retention or acquisition of a security interest in the consumer's principal dwelling; (2) the consumer's right to rescind the transaction; (3) how to exercise the right to rescind with a form for that purpose, designating the address of the creditor's place of business; (4) the effects of rescission; and (5) the date the rescission period expires (Regulation Z § 226.23(b)(1)(i-v)). In an effort to assist creditors, Regulation Z even includes a model form showing exactly what must be disclosed. 12 C.F.R. § 226 App. H. Unfortunately, creditors often leave the completion of these forms to the closing agent or notary public. Given the recent rise of "mobile notaries" or "loan document signers", the environment is fraught with negligence when it comes to this duty.

To understand how this negligent disclosure occurs, it is important to understand how the loan signing is conducted in practice. After loan documents are generated and issued by the lender, they are sent to an escrow company designated often times by the mortgage broker. Typically the loan documents are transmitted via email but regardless of the form, the escrow company prepares the loan document package, including the lender documents with documents prepared by escrow. The notice of right cancel is one of the documents provided by the lender, however since the lender does not know when the borrower will ultimately sign the documents, they typically leave certain fields on the notice blank, specifically the date the rescission period expires (see item #5 above). The documents are then presented to the borrower, often in the comfort of their home with a "mobile notary" present to notarize the requisite documents and direct the signing. The notary public will usually present the borrowers with a "copy package" of the loan documents that is an exact duplicate of the ones to be executed and returned to escrow. This is often where the problem arises. A prudent lender will put sufficient copies of the right to cancel in the loan documents when they deliver them to escrow. In a transaction with a husband and wife this usually means a total of five (5) copies, two per borrower as required by statute, and one to be acknowledged by the borrower and returned to the lender. However the notary will often presume that the copy package contains all necessary paperwork for the borrower(s) and proceed to have them execute all notices and retain them in the package. When the lender receives five notices they logically presume that the borrower is in possession of a copy package and thus the remaining four are redundant. The problem is that the notary never opened up the copy package and properly completed these notices and thus, the borrower never received adequate notices of right to cancel. This scenario has numerous variations but the result is that many borrowers were never properly given their notice of right to cancel, and as such, are entitled to rescission pursuant to TILA.

In defense, a lender will undoubtedly raise the fact that they are in possession of an acknowledged copy of the notice of right to cancel which clearly states the borrower acknowledges that they received two copies of such notice. TILA addresses this defense in section 1635(c) stating "Notwithstanding any rule of evidence, written acknowledgment of receipt of any disclosures required under this subchapter by a person to whom information, forms and a statement is required to be given pursuant to this section does no more than create a rebuttable presumption of delivery thereof. (emphasis added)". 15 U.S.C. 1635(c). Further case law has indicated that this is a low burden (See Cooper v. First Gov't Mortg. & Investors Corp., 238 F. Supp. 2d 50 (D.D.C. 2002)). Presumably the defective notices to the borrower(s) are likely in possession from their copy package is at least a strong argument in overcoming the presumption.

Raising the Issue of Rescission

Although a rescission claim can be brought initially in a complaint, it is often prudent and more cost effective to do so by sending a letter. The letter should be sent to the current lender who, although may not have been the original party to the loan transaction, is still liable under TILA. 15 U.S.C. § 1641(a). A borrower should be prepared to "tender" which is a requirement of TILA and basically means the borrower must return the money that is still owed to the creditor. 15 U.S.C. 1635(b). Essentially, the calculation requires taking the money that was actually received by the borrower or paid to others on their behalf (such as the payoff of the previous loan), and deducting all interest payments and attorney's fees. Since it is likely the borrower will not have this money on hand, it is best to have the borrower arrange for a new loan conditioned on the rescission, and notify the creditor of this fact in the rescission letter. Technically, the lender has 20 days after receipt of a notice of rescission to terminate the security interest and return all monies owed. 15 U.S.C. 1635(b). Returning the monies owed is usually done in the form of a new "payoff statement" reflecting the adjusted amount. Given the severity of this remedy, a lender will often respond with reasons as to why they do not feel rescission is proper. A discourse can ensue that can last for any length of time. At some point it may be necessary or appropriate to file a suit in order to conduct proper discovery and ultimately have the question resolved in court. Regardless of the method of obtaining a rescission, it is important to note that the lender is responsible for reasonable attorney's fees and costs. 15 U.S.C. 1640(a)(3). This is of particular importance because without such a provision the remedy is often meaningless to a borrower despite obvious justification.

Top 6 Short Sale and Loan Modification Acronyms in 2009

TARP

2008 Troubled Asset Relief Program, the main Wall Street bailout vehicle, continued to be a political football in 2009. In March, the Treasury said its remaining $300 billion kitty would be used to buy up toxic assets and clean up balance sheets. It was the kind of vague compromise that pleases no one.

TALF

Designed to loosen consumer credit, the Fed's Term Asset-Backed Securities Loan Facility doesn't need Congress to approve spending of its $1 trillion budget. It lends cash to banks with mortgage-backed and other securities as collateral. And with a March expiration, expect a flurry TALF deals in coming months.

PPIP

The Treasury also gave us the Public-Private Investment Program for legacy assets in March, Under it, private investors team with the government to buy up toxic assets for a song - if sellers go along. The has stalled and shrunk, but once it gets rolling, TARP and TALF money will keep it liquid. We hope.

HAFA

The Home Affordable Foreclosure Alternatives program does not take effect until April 5th, 2010. The program offers borrowers foreclosure alternatives. It provides guidance to servicers and includes general terms and conditions, evaluation process, documentation, and reporting requirements. As part of the Home Affordable Modification Program (HAMP), HAFA provides financial incentives to servicers and borrowers who utilize a short sale or a deed-in-lieu (DIL) to avoid foreclosure on a HAMP-eligible loan.

HAMP/HARP

You can't stop the Home Affordable Modification and Refinancing programs; you can only hope to contain'em. One entices servicers to reduce homeowners' loan payments; the other aids borrowers with little to no equity. A bold move by the Obama administration...but some wonder how many foreclosures it merely delayed.

CFPA

Under "drastic government measures," see the Consumer Financial Protection Agency. Congressman Barney Frank's brainchild, the proposed council would safeguard the economy's overall stability and protect consumers' credit rights. Now, if only you could get Congress - and the Fed - to go along with the plan.

Real Estate Agents Team Up with Short Sale Specialists

Many agents around the Country have partnered with ZOOM! Loss Mitigation Specialists. ZOOM! is dedicated to helping process and negotiate short sales on behalf of the real estate agent and their client. Their job is to obtain short sale approvals in a timely manner with the very best approval terms and conditions for the homeowner. At ZOOM! our agents and our clients come first. Agents and homeowners are welcome to give us a call for a no obligation situation analysis at 1-800-480-1917 or visit our website at http://www.ZOOMLossMitigation.com.

Substitution of Trustee Law & Legal Definition

A Substitution of Trustee is a form filed when a successor trustee takes the place of a previous trustee. A successor is a person or entity who takes over and continues the role or position of another. For example, many grantors and their respective spouses act as the initial trustees of a revocable living trust. In this situation, they remain in control until they are incapacitated or die. Then pre-selected successor trustees are appointed in under the terms of the declaration of trust. Usually a spouse, family member or trusted friend are selected as successor trustees. A second successor is a person nominated to take over responsibilities of the first successor in the case of death or disability of the first successor. A Substitution of Trustee form is often filed when a loan on real property is paid off or refinanced. It does not necessarily reflect the name of the current property owner. For example: if you assume a loan the Substitution of Trustee/Deed of Reconveyance is recorded in the name of the original borrower, not the current homeowner.

Short Sale Agent Referral Program

Attention Agents!!!

Hate Listing and Selling Short Sales?

Hate Calling the Banks?

Hate Spending Valuable Time and Marketing Money?

If the answer is "Yes"! Then the ZOOM! Loss Mitigation Short Sale Referral Program is for you!!!

ZOOM! Loss Mitigation Specialists has received a record number of inquires and referrals since 2008. Agents and Homeowners have reached out to our company due to our industry high success rate of a 96% approval rate and an 84% close ratio for short sales in 2009.

Below are a few of the reasons why agents refer their clients to our company:

- They have listings in jeopardy of expiring.
- They have gone on a listing appointment only to find out the the sellers can't sell at the suggested price.
- Their Sellers won't lower or can't lower their price to a level which would allow them to sell.
- They are working with Sellers who owe more on the property than what the property is worth. - They have a Seller facing foreclosure or a looming sale date.

You've come to the right place! You can earn a referral fee for doing the right thing for your Seller or listing prospect.

Why refer your listing(s) or prospects to ZOOM! Loss Mitigation Specialists?

The ZOOM! Loss Mitigation Specialists team has helped hundreds of homeowners around the Country stop foreclosure and successfully avoid a foreclosure.

We employ full-time licensed short sale negotiators on our team. We strongly suggest they you call and review your clients situation in detail.

If you choose to refer your Utah client to our team of specialists, you will receive $100.00 upon the homeowners enrollment in our short sale program and an additional 25% referral fee upon closing.

Please call our office at 1-800-480-1917 for more information.

FHA Announces Policy Changes to Address Risk & Strengthen Finances

In summary this is going to cost homebuyers MORE money. While no "date" has been set, the press release said it would be late spring/early summer when these changes are expected to take place.

Some of these changes will include:

1. Lower credit scores will require more money down.

2. Up Front Mortgage Insurance Premium (MIP) will increase by 1/2%. Changing from 1.75% to 2.25%.

3. Seller contributions will decrease from 6% to 3%.

If you have any questions about this or any other subject simply e-mail it to Questions@ZOOMLossMitigation.com.

HAFA - Home Affordable Foreclosure Alternatives Summary

The U.S. Treasury announces a plan to simplify and expedite the Short Sale approval process called HAFA - Home Affordable Foreclosure Alternatives Program.

These HAFA alternatives are available for all HAMP-eligible borrowers who:

1. do not qualify for a Trial Period Plan
2. do not successfully complete a Trial Period Plan
3. miss at least two consecutive payments during a HAMP modification, or
4. request a short sale or deed-in-lieu

As is typical with government programs, this is all simply explained (note a trace of sarcasm) in an easy to read 43 page document (if you would like a copy please email ClientCare@ZOOMLossMitigation.com) or for those of you who prefer the shorter version, the summary is below.

Summary:

- Complements HAMP by providing viable alternatives for borrowers who are HAMP-eligible.

- Utilizes borrower financial and hardship information collected in conjunction with HAMP, eliminating the need for additional eligibility analysis.

- Allows the borrower to receive pre-approved short sale terms prior to the property listing.

- Prohibits the servicer from requiring, as a condition of approving the short sale, a reduction in the real estate commission agreed upon in the listing agreement.

- Requires that borrowers be fully released from future liability for the debt.

- Uses standard processes, documents and timeframes.

- Provides financial incentives to borrowers, servicers and investors.