To Foreclose or not to Foreclose? Guidelines to Help Determine

How Hard to Push Your Borrower

JUST A LITTLE ABOUT OUR COMPANIES

Foreclosure - Escrow Closings -Title Servicing the states of California Arizona Nevada

Alaska Oregon Washington Idaho Montana and Texas

WHAT WE WILL DISCUSS

WE HAVE AN HOUR TO TALK

10 MINUTES: FORECLOSURE

20 MINUTES: THE TOOLS OF FORECLOSURE (FRIEND OR FOE)

20 MINUTES: PUSHING YOUR BORROWER

10 MINUTES: QUESTION AND ANSWERS

RULES FOR TODAY

NO LEGAL OR TAX ADVICE WILL BE PROVIDED. CONTACT YOUR LEGAL AND TAX PROFESSIONALS REGARDING THESE TYPE OF MATTERS.

YOU WILL NEED TO TAKE YOUR OWN NOTES. ASK QUESTIONS..THIS IS AN OPEN DISCUSSION DONT BE AFRAID OF FORECLOSURE (949) 252-8300 EXT. 190 RANDE D. JOHNSEN RJOHNSEN@TRUSTEECORPS.COM

FIRST 10 MINUTES: FORECLOSURE

foreclosure frklZHr/ noun noun: foreclosure; plural noun: foreclosures the process of taking possession of a mortgaged property as a result of the mortgagor's failure to keep up mortgage payments.

BASIC DEFINITIONS

DEED OF TRUST MORTGAGE PROMISSORY NOTE ASSIGNMENT ALLONGE NOTICE OF INTENT SUBSTITUTION OF TRUSTEE NOTICE(S) OF FORECLOSURE

TRUSTEE / ATTORNEY BENEFICIARY / TRUSTOR / TRUSTEE MORTGAGOR / MORTGAGEE NON-JUDICIAL FORECLOSURE JUDICIAL FORECLOSURE RECEIVER

DIFFERENT KINDS OF FORECLOSURES (DIFFERS BY STATE & SITUATION)

NON-JUDICIAL FORECLOSURE DEED OF TRUST / NOTE GENERALLY DOES NOT REQUIRE COURT

ACTION

GENERALLY NO RIGHT TO REDEEM WHAT YOU SEE IS WHAT YOU GET NO RECOURSE

JUDICIAL FORECLOSURE MORTGAGE ALWAYS REQUIRES COURT ACTION GENERALLY RIGHT TO REDEEM USED TO CLEAN UP ISSUES RECOURSE

20 MINUTES: THE TOOLS OF FORECLOSURE

RESEARCH PLAN & BUDGET - OUTSOURCE

RESEARCH PLAN & BUDGET - OUTSOURCE

DONT PLAN ON EATING THE ELEPHANT WITH ONE BITE DONT BLOW YOUR ENTIRE BUDGET ON THE FIRST TRANSACTION RESEARCH WHO YOU WANT TO WORK WITH ASSEMBLE YOUR TEAM TRUSTEE / ATTORNEY TITLE (COMPANY & ABSTRACTOR) - SKIP TRACER DOOR KNOCKERS LOAN SERVICER - INSURANCE AND REAL ESTATE AGENTS PRODUCT SOURCES - ETC

DONT BE AFRAID TO OUTSOURCE

COMPLIANCE

BE FAMILIAR WITH: THE FORECLOSURE LAWS IN THE STATE WHERE THE PROPERTY IS LOCATED STATE LAWS (TIMELINES, HOMEOWNER BILL OF RIGHTS, MEDIATION, ETC.) CFPB FDCPA RESPA TILA

THE TOOLS OF FORECLOSURE (FRIEND OR FOE)

FRIEND GETS THE HOMEOWNERS ATTENTION FORCES A LIMITED TIMEFRAME PROPERTY SOLD AT PUBLIC SALE IT GETS THEIR ATTENTION MOST PEOPLE GIVE UP EASIER, IF WELL PREPARED

FOE

COST MONEY STATE AND FEDERAL COMPLIANCE ISSUES LITIGATION

SOME FIGHT TOO LONG FOR NOTHING

EFFECT OF FORECLOSURE ON TITLE FORECLOSURE ELIMINATES LIENS NOT DEBT FORECLOSURE WIPES OUT ALL RECORDED JUDGMENT LIENS JUNIOR TO THE DEED

OF TRUST. FORECLOSURE OF A PURCHASE MONEY DEED OF TRUST ELIMINATES ALL RECORDED ABSTRACTS WHICH ATTACHED AT THE TIME OF PURCHASE, AS THE PURCHASE MONEY DEED OF TRUST WOULD HAVE PRIORITY OVER THE ABSTRACTS PURSUANT TO CIVIL CODE 2898 OR APPLICABLE STATE LAW EXCEPTIONS

PROPERTY TAXES DELINQUENT HOA DUES OR A PORTION THEREOF IN SOME STATES MUNICIPAL LIENS (WASTE, ABATEMENT, SEWAGE, ETC.) LIS PENDENS IN CERTAIN SCENARIOS

IF THE SECOND MORTGAGE LENDER DOES NOT RECEIVE ENOUGH MONEY FROM THE FIRST MORTGAGE LENDERS FORECLOSURE TO SATISFY THE DEBT, IT CAN SUE THE HOMEOWNER IN COURT FOR THE DIFFERENCE AS LONG AS STATE LAW DOES NOT PROHIBIT THIS ACTION (I.E. RECOURSE).

WHAT WE NEED FROM YOU (TO INITIATE FORECLOSURE)

DECLARATION OF DEFAULT AND DEMAND FOR SALE OR LETTER OF ENGAGEMENT DEFAULT INFORMATION

UNPAID PRINCIPAL BALANCE DATE OF DEFAULT MONTHLY PAYMENT AMOUNT RATE ADDITIONAL NOTICING ADDRESSES/REQUIREMENTS (IF ANY)

COPY OF DEED OF TRUST ASSIGNMENTS PROMISSORY NOTE AND ENDORSED NOTE/ALLONGE COPIES OF CORRESPONDENCE TO DATE OR DEMAND LETTERS (IF ANY)

20 MINUTES: PUSHING YOUR BORROWER

GUIDELINES TO HELP DETERMINE

HOW HARD TO PUSH YOUR BORROWER

LETTERING STRATEGIES AND WHAT I DO ON MY PERSONAL NOTES

UNDERSTAND YOU ARE LIKELY NOT THE FIRST TO SEND THEM A LETTER YOU MAY BE THE FIRST TO DO SOMETHING ABOUT IT

THE WAKE UP 30-DAY DEMAND LETTER STATUTORY NOTICES(S) WITH STATE SPECIFIC LANGUAGE

FORECLOSURE AFTER DEMAND EXPIRATION CALLING HOMEOWNER (SKIPTRACE) DOOR KNOCKER ADDITIONAL (COURTESY) NOTICES

WORKOUT DOCUMENTS

TALKING TO THE HOMEOWNER THERE ARE NO ORAL CONTRACTS OR AGREEMENTS ASKING FOR THE KITCHEN SINK OR ASKING FOR ONE PIECE AT A TIME

Request for Modification Affidavit Pay Stubs Bank Statements Tax Returns Hardship letter Other items or verification

RESOURCES

CONSUMER FINANCIAL PROTECTION BUREAU WWW.CONSUMERFINANCE.GOV MORTGAGE BANKERS ASSOCIATION WWW.MBAA.ORG ALLREGS WWW.ALLREGS.COM UNITED TRUSTEES ASSOCIATION WWW.UNITEDTRUSTEES.COM GOOGLE (NEWS CLIPS) WWW.GOOGLE.COM CALIFORNIA MORTGAGE BANKERS ASSOCIATION WWW.CMBA.COM USFN WWW.USFN.ORG PROPERTY RADAR WWW.PROPERTYRADAR.COM BIDBIDDIRECT.COM WWW.BIDBIDDIRECT.COM

WWW.BIDBIDDIRECT.COM

LAST 10 MINUTES

QUESTION AND ANSWERS

RANDE JOHNSEN (949) 252-8300 EXT 190

RJOHNSEN@TRUSTEECORPS.COM