How To Get $13,571 in The Next 29 Days - MISUniversitymisuniversity.com/new-books/MCSSdwnld/dwnlds/ebooks/Stopping... · For some people, life just gets in the way. Sometimes bad

MISuniversity.com 2

How To Get $13,571 in The

Next 29 Days

Helping People Stop The Foreclosure On Their Home

http://www.MISUniversity.com

MISuniversity.com 3

About the Author

Mike Warren is a real estate investor who is an expert in the field of pre-

foreclosures. Mike is the founder of MISUniversity.com, a website dedicated

to teaching real estate investors and homeowners how to stop the

foreclosure on people’s homes. The website offers learning opportunities for real

estate investors around the country through various on-site seminars, coaching

programs, teleseminars, an interactive membership website, home study

courses, and audio CD and DVD educational materials. Mike offers a series of 52

"Forbearance and Pre-foreclosure Tips That Will Make Your Pockets FAT

with CASH!" absolutely FREE-of-charge by logging onto

www.MISUniversity.com.

MISuniversity.com 4

How To Get $13,571 in The

Next 29 Days

Helping People Stop The Foreclosure On Their Home

BY Mike Warren

Copyright © 2013 Mike Warren

http://misuniversity.com

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, recording or otherwise, without the prior written permission of the author.

MISuniversity.com 5

DISCLAIMER AND TERMS OF USE AGREEMENT The author and publisher of this Ebook and the accompanying materials have used their best efforts in preparing this Ebook. The author and publisher make no representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the contents of this Ebook. The information contained in this Ebook is strictly for educational purposes. Therefore, if you wish to apply ideas contained in this Ebook, you are taking full responsibility for your actions.

EVERY EFFORT HAS BEEN MADE TO ACCURATELY REPRESENT THIS PRODUCT AND IT'S POTENTIAL. EVEN THOUGH THIS INDUSTRY IS ONE OF THE FEW WHERE ONE CAN WRITE THEIR OWN CHECK IN TERMS OF EARNINGS, THERE IS NO GUARANTEE THAT YOU WILL EARN ANY MONEY USING THE TECHNIQUES AND IDEAS IN THESE MATERIALS. EXAMPLES IN THESE MATERIALS ARE NOT TO BE INTERPRETED AS A PROMISE OR GUARANTEE OF EARNINGS. EARNING POTENTIAL IS ENTIRELYDEPENDENT ON THE PERSON USING OUR PRODUCT, IDEAS AND TECHNIQUES. WE DO NOT PURPORT THIS AS A “GET RICH SCHEME.”

ANY CLAIMS MADE OF ACTUAL EARNINGS OR EXAMPLES OF ACTUAL RESULTS CAN BE VERIFIED UPON REQUEST. YOUR LEVEL OF SUCCESS IN ATTAINING THE RESULTS CLAIMED IN OUR MATERIALS DEPENDS ON THE TIME YOU DEVOTE TO THE PROGRAM, IDEAS AND TECHNIQUES MENTIONED, YOUR FINANCES, KNOWLEDGE AND VARIOUS SKILLS. SINCE THESE FACTORS DIFFER ACCORDING TO INDIVIDUALS, WE CANNOT GUARANTEE YOUR SUCCESS OR INCOME LEVEL. NOR ARE WE RESPONSIBLE FOR ANY OF YOUR ACTIONS.

MATERIALS IN OUR PRODUCT AND OUR WEBSITE MAY CONTAIN INFORMATION THAT INCLUDES OR IS BASED UPON FORWARD-LOOKING STATEMENTS WITHIN THE MEANING OF THE SECURITIES LITIGATION REFORM ACT OF 1995. FORWARD- LOOKING STATEMENTS GIVE OUR EXPECTATIONS OR FORECASTS OF FUTURE EVENTS. YOU CAN IDENTIFY THESE STATEMENTS BY THE FACT THAT THEY DO NOT RELATE STRICTLY TO HISTORICAL OR CURRENT FACTS. THEY USE WORDS SUCH AS “ANTICIPATE,” “ESTIMATE,” “EXPECT,” “PROJECT,” “INTEND,” “PLAN,” “BELIEVE,” AND OTHER WORDS AND TERMS OF SIMILAR MEANING IN CONNECTION WITH A DESCRIPTION OF POTENTIAL EARNINGS OR FINANCIAL PERFORMANCE.

ANY AND ALL FORWARD LOOKING STATEMENTS HERE OR ON ANY OF OUR SALES MATERIAL ARE INTENDED TO EXPRESS OUR OPINION OF EARNINGS POTENTIAL. MANY FACTORS WILL BE IMPORTANT IN DETERMINING YOUR ACTUAL RESULTS AND NO GUARANTEES ARE MADE THAT YOU WILL ACHIEVE RESULTS SIMILAR TO OURS OR ANYBODY ELSES, IN FACT NO GUARANTEES ARE

MISuniversity.com 6

MADE THAT YOU WILL ACHIEVE ANY RESULTS FROM OUR IDEAS AND TECHNIQUES IN OUR MATERIAL.

The author and publisher disclaim any warranties (express or implied), merchantability, or fitness for any particular purpose. The author and publisher shall in no event be held liable to any party for any direct, indirect, punitive, special, incidental or other consequential damages arising directly or indirectly from any use of this material, which is provided “as is”, and without warranties.

As always, the advice of a competent legal, tax, accounting or other professional should be sought.

The author and publisher do not warrant the performance, effectiveness or applicability of any sites listed or linked to in this Ebook.

All links are for information purposes only and are not warranted for content, accuracy or any other implied or explicit purpose.

This Ebook is © copyrighted by Mike Warren/misuniversity.com and is protected under the US Copyright Act of 1976 and all other applicable international, federal, state and local laws, with ALL rights reserved. No part of this may be copied, or changed in any format, sold, or used in any way other than what is outlined within this Ebook under any circumstances without express permission from Mike Warren/misuniversity.com

MISuniversity.com 7

How would you like to have more profitable real estate deals than you could possibly handle? Sound like a great problem? Well, by working in the foreclosure loss mitigation business, you have the ability to help a whole lot of people in America today, while increasing “tenfold” the number of short sales that you work with on a monthly basis.

Does this sound scary?

It might to some people. If you are like our other affiliates, who like to help people and get paid very well for doing just that, then this business is perfect for you. Do not worry if you have too many short sale deals on your plate each month. We can help you resolve each of those short sales, and in some cases, do most of the work for you. In return, we can partner with you; we’d split the fees. We will talk about how we can be your partner in later sections of this manual.

Let us state right off that while you will get more short sales as a byproduct of the loss mitigation business, short sales are not going to be our primary focus. We will show you throughout this manual how to make money helping people stop the foreclosure on their home. You will be helping people and getting paid very well for your efforts.

In this special report, you will learn all about helping people stop a foreclosure on their home. This process is often referred to as “loss mitigation.” You are now in the business of helping people. You are becoming a “workout specialist.” Specifically, you help people work out how to save their homes from foreclosure. You do this without the homeowners having to get a new mortgage on their property, sell their home, or declare bankruptcy. You are saving lives and families.

In addition to their collections department, most lenders have a loss mitigation department. They use names such as:

• Loss Prevention • Default Resolution • Mediation Department • Asset Protection Division

They are all different names that mean the same thing — loss mitigation.

MISuniversity.com 8

Your clients will be individuals who are behind on their mortgage payments and are in danger of being foreclosed upon. According to the American Mortgage Brokers Association, approximately 1.5% of all the mortgages in the United States are in default at any given time. Think about that number for a moment. This is regardless of the current economic market.

Thousands of people file for protection under bankruptcy laws every year (in 2002, there were over 1.5 million personal bankruptcies). Many of them were homeowners who were in danger of losing their homes. They simply are not aware that there are non-bankruptcy alternatives. For most people, their home is their single biggest, most precious asset. Often, the only options that present themselves to beleaguered homeowners are investors attempting to take their home or attorneys advising them to file bankruptcy. With the new bankruptcy law, which became effective on October 17, 2005, this option is more difficult, though it still applies. The most important aspect of the bankruptcy code is the “automatic stay” provision, which provides homeowners the ability to “stop” or “stay” a foreclosure by simply filing for bankruptcy. It also puts an immediate stop to all contact and collection activities from the lender or mortgagee (and other creditors). The new bankruptcy law requires that a debtor receive credit counseling from an approved non-profit credit counseling agency prior to filing Chapter 7 or Chapter 13 bankruptcy.

A Loss Mitigation Professional, or LMP (you) has the ability to save a homeowner’s home, their credit, dignity, equity, family, and the embarrassment of filing for bankruptcy. Let us first examine why so many homeowners are delinquent on their mortgages in the first place.

For some people, life just gets in the way. Sometimes bad things happen to good people through no fault of their own. For others, it is a medical issue. Some lose their job and remain unemployed for a long period of time. Since they are unemployed, they have no income and quickly burn through all of their savings.

History has shown that the most common reason for foreclosure is divorce. When a couple gets divorced, they are both still obligated to

MISuniversity.com 9

pay the mortgage, but oftentimes neither wants to be responsible for the payments. Both parties dig in their heels, expecting or demanding that the other party pay the bill. When neither party pays, the mortgage goes into default. If the mortgage remains unpaid, the creditor will eventually foreclose. In this scenario, both the husband and the wife lose not only their house but also any equity they may have in the property.

When foreclosure takes place, severe credit rating damage and significantly reduced future purchasing power are experienced by the

homeowner, in addition to the loss of their home. Upon foreclosure, both the homeowners and the lender suffer. The homeowners no longer have a home; the lender no longer receives a principal and interest payment on the money advanced to buy or refinance

the home. Upon foreclosure, the lender will end up with the property as a “REO” (Real Estate Owned). The lender must now attempt to sell the property in order to recover some of the investment and/or the balance due on the loan. In some cases - in fact, most cases - the property may be sold below the loan balance. In almost every case, the home will be sold below its market value.

Lenders do not like to foreclose, because they do not want the property. The property must be sold, and it could take several months or years to sell it. Market conditions for home sales often change from month-to-month and year-to-year. In an economic downturn, property moves very slowly, even when offered at below market value or forced sale prices.

Rather than taking the home back, the lender would prefer to have the homeowners continue to live in the property and make some form of payment. Money is a product, and lenders lend money for a profit (the gross profit to a lender is the interest on the loan amount). In the first years of a loan, the majority of the payment is applied toward interest only. Very little is applied to pay down the principal. After several years of making mortgage payments, a small portion of each payment is then applied to pay down the principal loan balance. It is in the lender’s interest to keep receiving those payments, since it

MISuniversity.com 1

generates a good cash flow, which allows the lender to make more loans, earning still more interest.

The above statements might lead you to believe that since the lender(s) make their profit in the first few years, they would be eager to foreclose because they could then sell the property, repeating the process endlessly. It may seem that this would be the case; however, lenders generally do not make money on REOs. Often they do not even recover the balance due when they end up with an REO. Most homeowners will not even bother to notify the mortgage holder (lender) when they first discover they will not be able to meet their payments. Once they get two months behind, the homeowners avoid the lender and do not respond to the lender’s calls or letters. The result is that the homeowners, in most cases, find themselves in foreclosure when they have fallen three months behind.

Your services are needed in assisting these individuals.

Your job, as a workout specialist, is to determine the best way the homeowners can catch up on their delinquent payments within the scope of their available finances. You then submit a package to their mortgage lender and/or their agents outlining a method of payment and, when necessary, speak with the lender’s representative to negotiate on behalf of your client.

ShortSaleMasters.com 10

Not every person who calls in for assistance with stopping the foreclosure on their home is a good candidate for us. There will always be a percentage of homeowners who simply cannot afford to keep their homes. In our experience, between 30% and 50% of the calls we receive are from homeowners who simply cannot make their regular monthly payment. In this scenario, the only real option is for the homeowners to sell their house and for us to do a short sale on the property to stop the foreclosure from appearing on the homeowners’ credit report. In some cases, we can even give the homeowners a little bit of cash to help them start over with a new home in another area. Most investors who do short sales already know that the only way to give the homeowners cash in a short sale situation is by buying some of the personal property that is in the house.


Huge Upside Are you totally committed to doing what it takes to make the income you want? I ask you that question because I know a lot of people will go 95% of the way toward getting what they want and then stop just shy of their victory. If they would just take one more step and hang in there just a little longer, they would get it all.

Stopping foreclosures allows you to make $2,000 a month, $15,000 a month, or more. Your income is totally dependent on your efforts. What you put into the business is exactly what you will get out of the business. You may be happy doing just one deal a month for $2,000. You may only work deals that will make you $5,000 or more per deal. Think about it; you only have to do ten $5,000 deals per month in order to make $50,000 a month.

Realistically, a foreclosure deal could yield you a cash profit of $1,000 to $5,000 or more. If you only want to put in 10 to 12 hours each week, there is no reason you cannot do one or two of these deals a month.


Virtually No Competition As you will soon discover, there are many foreclosures out in the marketplace, but few know what to do with them. You see, most of your competition will want only properties with high equity, where the payer (debtor) is willing to walk away from their home. Well, guess what? Stopping foreclosures has very little real competition. We (you) only want deals where the homeowners want to save their home. We can pick and choose the very best of the foreclosure deals to work on. Nearly every bank treats a foreclosure as food poisoning. They do not want it in their system, and they want to get rid of it as quickly as possible. None of the banks, mortgage companies, or investors want a house for which they provided financing to end up in foreclosure.

Banks want to get rid of the foreclosure, because too much defaulted paper on a bank’s books can force the bank to close down. Therefore, they must seek other methods for resolving potential foreclosures. This predicament creates a huge opportunity for you to make money while providing a valuable service to distressed homeowners. Your efforts can create a win-win situation for the homeowners and the bank.


WHAT IS FORECLOSURE?

Let’s take a moment to review some of the basics about foreclosures.

What does foreclosure mean? If a debtor falls behind in their monthly house payments, the lender may try to take the house back. This process is called foreclosure. In foreclosure, the debtors lose not only their house, but also all of the money they have invested in it.

How was the debtor’s home financed? The foreclosure procedure will vary depending on the type of financing that was obtained when the house was purchased. Financing a home is usually done through one of the following methods:

• Mortgage • Deed of Trust • Real Estate Contract

Look at the documents the debtors signed when they bought the house in order to determine what type of financing they have.

What is the foreclosure procedure?

Mortgage If the debtor falls behind in their monthly mortgage payments the lender/ bank/ mortgage company can begin the foreclosure procedure immediately. Verify your state’s guidelines on the foreclosure process and requirements.

Deed of Trust If the homeowner falls behind in their payments, the lender can foreclose on their house without going to court. The lender can also foreclose on a deed of trust or mortgage this way.

Real Estate Contract If the homeowner falls behind in their payments on a real estate contract, the lender can end or forfeit the debtor’s contract without going to court. The lender


may also foreclose the contract like a mortgage. In most areas, if the lender intends to forfeit the debtor’s real estate contract without going to court, they must first send the debtor a Notice of Intent to Forfeit, and then send a Declaration of Forfeiture.

If the lender forecloses on a real estate contract like a mortgage, he must follow the procedure for foreclosing on a mortgage described earlier.


FORECLOSURE PROCEDURES BY STATE The foreclosure process varies somewhat from state to state, and depends primarily on whether the state uses mortgages or deeds of trust for the purchase of real property. Generally, states that use mortgages conduct judicial foreclosures; states that use deeds of trust conduct non-judicial foreclosures. The principal difference between the two is that the judicial procedure requires court action.

To foreclose in accordance with the judicial procedure, a lender must prove that the mortgagor is in default. Once the lender has exhausted its attempts to resolve the default with the homeowner, the next step is to contact an attorney to pursue court action. The attorney contacts the mortgagor to try to resolve the default. If the mortgagor is unable to pay off the default, the attorney files a Lis Pendens/ action pending with the court. The Lis Pendens gives notice to the public that a pending action has been filed against the mortgagor. The purpose of the action is to provide evidence of default and to get the court's approval to initiate foreclosure.

Non-judicial foreclosures are based on using deeds of trust that contain the power of sale clause. The clause enables the trustee to initiate foreclosure without having to go to court. The trustee is required to issue a notice of default and notify the Trustor/ borrower accordingly. If the Trustor does not respond, the trustee initiates the steps for conducting the foreclosure sale.

Please join our free newsletter to get a complete listing of the foreclosure laws in all 50 states. Visit www.MISUniversity.com.

Less Common Foreclosure Processes

Strict Foreclosure Although most foreclosures are handled through either the judicial process or by non-judicial processes, a few states - such as Vermont and Connecticut - will allow the lender to take title without a foreclosure sale. This procedure is called strict foreclosure. To initiate strict foreclosure, the lender asks the court to establish a certain period of time during which the delinquent mortgagor must satisfy the indebtedness. This type of foreclosure moves rapidly through the court. If the debt is not paid during the time allowed, legal title is awarded to the

lender and the mortgagor retains no rights of redemption.

Entry Foreclosure Another foreclosure process allowing the lender to take title without a foreclosure sale is entry foreclosure. A few New England states, such as New Hampshire, Maine, Vermont and Connecticut, have allowed this type of foreclosure to be exercised under certain conditions.

That the lender can take title to the property without benefit of court action, and that the lender/ mortgagee forecloses by evicting the mortgagor and taking physical possession of the property, are the two main differences between strict foreclosure and entry foreclosure. Entry foreclosure is the swiftest foreclosure procedure of them all.

NOTE In most states, a deed of trust or mortgage are used as security for the sum borrowed. In Arizona, Kentucky and Maryland both can be used.

NOTE Laws change constantly. Check with your local law library for the most up-to-date information regarding foreclosure procedures in your area.


Reasons for Foreclosure

To a homeowner, foreclosure is a shocking experience. When foreclosure takes place, it is extremely costly to the homeowners because not only have they lost their home, they have also lost any equity they may have built up in the property. (Equity is the difference between the true market value of the property and the balance owed and/or the total amount of all liens against the property). Along with the loss of all equity, people losing their property due to foreclosure also lose the amount of their original down payment and any money spent on improvements since they bought the home.

As we mentioned earlier, there are many reasons why property (home) owners find themselves in the type of financial trouble that could result in foreclosure. Here are some of the most common reasons.

1. Economic Downturn The downsizing of many companies was a major reason for the declining job market in the early nineties. Companies that downsize create employee layoffs and/or changes in job classifications. The economic trend over the last few years has generally required more than one person in each household to work. The combined income created more buying power for the family unit. Company downsizing resulted in one or more family members losing their job(s) and/or a reduction in the number of hours worked by one or more family members. The loss of income created a budget problem for many families, making it hard to keep up with their mortgage payments and other bills.

The downturn in the economy resulted in declining property values. Before the economical downturn in the early 1990s, property values, for the most part, had continually increased. Now, we are again seeing a decline in property values. This decline has created many problems. Lower property values caused an inability on the part of many homeowners to refinance, making them unable to take advantage of the lowest interest rates available in many years. Many homeowners found that they could not refinance or borrow against their home equity to consolidate their debt load (bills). When homeowners lose part of their income due to situations such as economical downturn and the decline of property value, the result,


in many cases, is the loss of their home due to foreclosure.

2. Balloon Payments A balloon payment is the final installment payment on a note that is

greater than the preceding installment payments and which pays the note in full. Many homeowners bought during the so-called good times, when property values were appreciating/ increasing rapidly. Sellers were able to sell their homes at two to three times the original cost. Many sellers were willing to carry back a 2nd or 3rd

mortgage/ note/ loan on the property themselves. The length of time the seller would carry the paper/ note/ loan would generally be three to five years. The new borrower/ homebuyer usually made interest only payments on the carry back. At the end of the three to five-year term, the entire balance on the 2nd or 3rd loan/ note carried back by the previous owner would be due.

Once the note reached the maturity date at an agreed upon time, the entire sum/ balance of the carry back loan would then be due and payable to the seller/ previous owner. Unfortunately, the property value did not always appreciate/ increase, meaning that the new homeowners could not refinance or borrow enough money to make the payment. The missed balloon payment started the process ending in foreclosure.

3. High Payments During the late 1970s and through most of the 1980s, home values increased all over the U.S. Many buyers thought the home prices would continue that upward trend. Many expected the property values to continue to spiral upward, and some even expected property values to possibly double and triple. A number of buyers bought properties they could barely afford with the intent to refinance later at a lower interest rate or possibly to sell and capture the profit. Many persuaded themselves that if they didn’t buy immediately, they would be unable to buy in the future, when prices were expected to be significantly higher. Some buyers made a lot of money buying and selling properties. However, many others lost their properties as a result of high monthly payments they could not maintain. (Many are in trouble right this minute and need help.) This resulted, in many cases, in foreclosure.

MISUniversity.com 20

4. Speculation Many real estate investors bought on speculation. They theorized that buying several properties, and using them as rentals, would make them millionaires in a short period of time. Some did just that, but many others had problems. The lack of experience in managing rental properties, plus the problems accompanying rental properties, became a nightmare for many. The change in economic conditions created additional problems when the renters could no longer afford to pay the required rent. When the rents were not coming in as expected, the owners could not keep up with the loan payments. Other problems included some of the payments on properties being more than the rental income (the rental income was less than the loan payment), creating a negative cash flow for the property owner. Declining property values also created a situation wherein properties would not sell for enough money to pay off the existing mortgage. Foreclosure was frequently the result.

5. Changes in Government Many changes have taken place in the tax laws in recent years. Some states changed the property tax rules, which doubled and tripled the property taxes for some properties after they were sold to new buyers. If the new buyers were not aware of the tax changes that were on the way, they might not be able to pay the new property taxes, which could have increased by several hundred dollars a year. Other changes were made regarding the assumption of existing loans. Some loans were not assumable at the old lower rates. Some buyers were forced to accept a much higher interest rate than they had expected. Many home buyers discovered they simply could not afford the new payment. Many increased their use of credit cards). Unfortunately, many homeowners soon found the monthly payments on all of their bills — credit cards, home payments, auto payments, etc. — were now beyond their ability to maintain. Again, the result, quite often, was foreclosure.

6. Farm Belt, Poor Farm Prices Many farms were bought with the thought that land values and farm/ product prices would continue to increase. Frequently, the farm/ product prices declined along with the land values. The farmer had paid a high price for the land and often, the interest rates were high as well. The


downturn in the economy hit farmers hard. Lenders decided to reduce their risk by cutting back on advancing funds against next year’s crop/ future products, making it very hard for the farmers to financially survive. The result was often foreclosure.

The above six reasons are not the only reasons for foreclosure, but they are some of the most common. Foreclosure conditions have created problems for both homeowners and lenders. In good economic times, foreclosures may not be as costly to the lender as in poor economical times. In good times, they may be able to sell the property for full price and recover their investment/ balance owed the lender. In a poor economy, however, lenders often suffer tremendous losses when they end up with a property. Again, as a reminder, lenders do not like to foreclose; the last thing they desire to have is another piece of property. In poor economical times - in fact, at most times - lenders are very willing to negotiate to avoid complete foreclosure. Quite often, forbearance agreements can be worked out with the lender or lenders.

NOTE Forbearance is an agreement by the lender to be patient with the homeowner. The point is to work out a payment schedule that is reasonable for the lender and affordable - with some hardship - for the homeowner/ buyer. The payment plan is for a specified period of time, during which the homeowners are allowed to make up their back payments. Working out a forbearance plan with a lender is not an easy task for homeowners. Lenders will grind the homeowners into the ground in their efforts to collect the back payments due.

When a third party gets involved, such as a loss mitigator or foreclosure consultant, most lenders will agree to work out a payment plan. The preferred payment plan would be completed within twelve months, or less.


Lenders, mortgage companies and banks will rarely agree to a forbearance payment plan that requires more than 12 months to complete. Keep in mind that such an agreement is not to be taken lightly. Foreclosure is a serious situation, and it must be handled in a very businesslike manner. We will explore a forbearance payment plan later in this material. When you have worked out such a plan with the lender, the homeowners must adhere to whatever agreement is agreed upon. All future payments must be made on time, and they must include a portion of any arrears/ back payments, as agreed to by the lender(s).


The Forbearance Agreement

The stars of loss mitigation are known by a number of different names, but they are best known as “forbearance agreements” or “repayment plans.” The forbearance agreement can be a powerful tool in an effort to convert non- performing loans (loans that are not being paid back) to performing status loans (payments that are current).

The motivating force behind loan workout agreements is simple — it is easier and cheaper than foreclosure. Taking back a property by foreclosure is bad for the lender and possibly the most expensive way to enforce a mortgage obligation. Losing a property to foreclosure is obviously bad for the borrower. Finding a way to get the lender paid without having to foreclose benefits both the borrower and the lender.

How Forbearance Agreements Work Forbearance agreements typically occur because the mortgage owner/ lender started foreclosure proceedings against the homeowners/ mortgage payers. The homeowners/ borrowers either do not have the financial ability to reinstate/ satisfy their loan and they cannot, or do not want to, file for bankruptcy in order to stop or slow the foreclosure process. In most situations, the borrower will lose his/her home to the bank or a third-party purchaser in the foreclosure sale. A borrower offered a forbearance agreement has the opportunity to reinstate the loan over a period of time. A typical arrangement requires the borrower to pay an amount up front, to be applied against the arrears, and then to pay the remaining balance of the arrearage in six to twelve equal monthly installments. This payment is in addition to the regular monthly mortgage payment. Assuming the forbearance agreement is properly drafted and that a court will enforce it, the agreement will retain the viability of the lender’s declaration of default and pending foreclosure until the borrower has fully met all of the terms under the forbearance agreement and cured all defaults. The pending foreclosure keeps the borrower motivated to perform according to the terms of the agreement.


NOTE

Remember the foreclosure is not canceled; it is only postponed pending the payments required of the homeowner. If the homeowner misses a payment, then the lender/ the mortgage owner can start the foreclosure process right where it was left off. Only after all overdue payments have been brought current, is the foreclosure canceled.

In judicial foreclosure states, forbearance agreements may be documented in the form of a stipulation that is approved by the court.

In non-judicial foreclosure states, however, forbearance agreements are simply creatures of a contract. As contracts, the court only reviews them after a controversy has arisen and the mortgage owner — typically defending a wrongful foreclosure action — has asked the court to strictly enforce the terms of the forbearance agreement.

NOTE When the bank starts foreclosure when the homeowner is

not in default, it is called a wrongful foreclosure action.


Loss Mitigation Is a Client-Oriented Service Loss mitigation counseling, when packaged and marketed properly, is a client- oriented, client-centered service. This does not mean that what the client says goes. A client-centered service of this type addresses the basic needs and expectations of the client, while maintaining control of methods and approaches used to accomplish these goals.

Successful marketing of the loss mitigation/counseling concept is enhanced by your ability to portray your service as being client-centered. All advertising must focus its main message on how this service will meet the needs of potential clients.

The above statement may sound obvious, but you would be amazed at how many new mitigation specialists totally overlook this concept. Client-oriented marketing involves placing your advertising focus and image development on your predetermined understanding of what the client’s needs are. If the client believes he/she can achieve a desired end by utilizing your services, you will have no problem acquiring new clients. On the other hand, if you fail to emphasize the importance of the services you provide, clients will assume they can do it themselves.

You should avoid using the traditional benefits list or hard-sell approaches for this type of service. You also should not make any promises or guarantees to stop their foreclosure. What you are offering your clients is an enhanced opportunity to acquire your assistance to rectify their problem, usually after they have experienced failure on their own. Your knowledge of the preventative foreclosure techniques should be the key selling point of your services. You have something your clients need but do not have — a working knowledge and expertise associated with acquiring a solution to their mortgage problems.

I will discuss specific marketing approaches for this service in later chapters. For now, you should focus your marketing concerns on two important marketing considerations — identifying your clients’ needs and developing a marketing plan that will meet your expectations, as well as your budget.


Identify Your Clients’ Needs By the time you begin representing a particular case, your client will have possibly suffered through one or more disappointing denials for help from his/her lender, other lenders, etc. The client may be upset and even desperate. Your ability to acquire this person as a client will depend on your ability to recognize and address the client’s needs at the time of your first contact.

The following is a list of client needs, which you should be aware of and attempt to satisfy with your initial meeting or phone call. If these needs are addressed, few clients will turn down your service and fewer yet will be dissatisfied, regardless of the outcome of the case.

1. The client will want to discuss with you his/her disappointing experiences when trying to rectify his/her delinquent mortgage problems. Allow the client to tell you his/her story.

2. The client will need empathy. Tell the client that you understand and sympathize with his/her dilemma and that you will do everything you can to remedy the situation.

3. The client will have financial concerns. Ease the client’s concerns by being open and honest about the cost of your services. Explain (openly) the various fee options (if any) for the services you provide.

4. The client will wonder about your skills in this field. Discuss the specifics of the client’s case with him/her as an opportunity to demonstrate your superior knowledge of the foreclosure process in your state and where he/she fits in this process.

5. Explain your service to the client, and tell him/her what to expect from your service. Telling the client what your service can and cannot do will reduce the client’s dissatisfaction with your service in the off chance that you are not able to rectify his/her problem.


Develop a Marketing Plan

To get the most value from your marketing campaign, you must first develop a plan of action that will take into consideration the clients’ needs and your specific financial and time based circumstances. We’ve already identified some important client needs; let’s turn our attention to identifying your marketing objectives.

Marketing objectives are determined by evaluating the following list of criteria, which can affect the final approach you take in marketing your services.

• The amount of time you wish to spend practicing the service. • The amount of capital available for advertising. • The profit levels you wish to earn from your service or the number of

clients you wish to attract. • The need to attract qualified customers. • Developing or maintaining control of the quality of your service. • Expanding services to an even larger market.

The list above contains some very important considerations when developing your marketing approach. Your marketing plan must address these considerations in order to meet your specific needs. Let’s discuss each of these criteria separately and determine how they can affect your marketing plan.

1. Time Available The amount of time you wish to spend actually practicing as a loss mitigation specialist/foreclosure consultant is extremely important to your marketing approach. Whether you intend to practice on a full or part-time basis must be determined before you take any action to promote your service. It makes sense that those planning to practice as a loss mitigation specialist on a part-time basis or who are looking only for supplemental income would not need as intense a marketing strategy as those who will be practicing full time.

However, the quality of the marketing approach for the part-time specialist must be as professional as that of a full-time practitioner. Whether started on a full or part-time basis, you must develop the trust factor relationship between you and your clients. Trust is easy to develop, if your marketing


approach exemplifies knowledge and a professional demeanor.

2. Capital Available For Advertising The amount of capital available for your marketing campaign is another crucial factor in the development of your marketing strategy. If you have substantial investment capital, you should consider placing your marketing emphasis on radio, television, and print advertising. Individuals with less advertising capital should rely more heavily on referral sources, news releases, print advertising, internet, and community-based contacts. Regardless of your financial circumstances, all of the above methods should be used, to a greater or lesser degree. Simultaneous use of these advertising approaches, with emphasis placed on those areas you can afford, will readily create a strong client base for your service.

3. Financial Return You must also determine what type of financial return you would like to earn from your service. It is not enough to decide that you want to make all the money you can. You must set specific financial goals for your service.

4. Attracting Clients The need to attract qualified clients is extremely important. A qualified client is any individual who has fallen behind on his/her mortgage obligation and has the ability to pay for your services. The cost of this service can run from $500 to $2,000, possibly more in major metropolitan areas. I cover exactly how to determine your fee in my free newsletter at http://www.MISUniversity.com.

You will discover that clients fall into three basic categories.

a) The first category is the destitute client who cannot afford any type of service. Do not write this unfortunate group off. We will show you ways of serving their needs while simultaneously enhancing the reputation of your service.

b) The second group is the financially stable client. These individuals quite frequently have professional backgrounds and can easily afford your services. These clients often go to lenders for help, only to realize that


they may not qualify for a loan. They may contact an attorney about their problems, but if they are unwilling to declare bankruptcy, an attorney can offer them no other options. These clients represent a smaller percentage of all applicants who are in need of your help. These clients will begin to utilize your services in greater numbers after you have established community recognition.

c) The third category of clients is the blue-collar sector. These individuals are the backbone of our country and do not like asking for help. They make up the majority of applicants for your services and represent a total cross section of the American people. These folks usually are distrustful of attorneys and fear the potential cost of their services. They often try to borrow money from friends, relatives, and lenders before realizing there is no hope. These clients will utilize your services, if they are made aware of them. Even if you find that you cannot help them, if you’ve shown good value for their money and treated them fairly, they will be appreciative and will spread the good word about your service.

5. Maintaining Quality of Service The quality of your service is an important marketing consideration. Some students of loss mitigation services foolishly opt to go for the bucks before sharpening their loss mitigation skills.

Good foreclosure consultants are always successful! A wise specialist will start slowly, giving him or herself the time needed to master the art of conflict resolution techniques before he/she embarks on an all-out marketing campaign.


6. Expanding Your Market As you will discover, it is possible to assist a person no matter where he/she resides. You can even assist a case in another state. After you have established your service, you may wish to begin out-of-state marketing of your services.

An out-of-state marketing campaign can be expensive or inexpensive, depending on your approach. Give yourself at least one year or more of experience before expanding your services in this manner. As part of your business goals, you should have a plan to expand into other states and regions of the country. This type of out-of-state expansion is a natural progression for your services. Keep out-of-state expansion in mind as an eventual business goal for your company.


Professional Image as a Marketing Tool No matter what type of business you decide to start, your personal and professional image will always play a key role in your success. Loss mitigation services are no different.

Loss mitigation is a service with heavy emphasis placed on trust and competence. In most cases, the client will pay for your services in advance or make a deposit, followed by regular payments. The client must be able to trust and rely on your honesty and judgment. If you are to market this service successfully, you must actively develop and maintain an open and professional image. The following is a list of suggestions for developing such a professional image for your service. This list is designed to help you promote your service and create goodwill with the public.

1. Communicate With Your Clients a) Explain your service. b) Explain your fee structure up front. c) Understand and discuss options with your client. Let them know if you

believe you will be able to help him/her. d) Discuss possible outcomes of your client’s case, both the positive

alternatives and the potential denials. e) Give no guarantees concerning the outcome of a case. f) Keep your clients up to date on the progress of their cases. g) At the end of each case, contact your client in writing and explain the

final disposition of his/her case. In other words, summarize for the client whether you or not you were able to help them. Consider surveying his/her satisfaction.

2. Advertise Your Service Consistently The longer your advertisement is visible, the more credible your service will become. As potential clients become familiar with your service’s name, message, and logo, they are much more likely to trust and utilize your service.


3. Understand Your Craft Seek to learn as much as possible about delinquency techniques through first person accounts, community assistance programs, and working relationships with lenders, as well as local, state, and federal government agencies. It is never wise to create an adversarial relationship with any lender or agency. Be friendly, open, and professional; you will find that lenders and agency offices can be very helpful to your service. A friendly working relationship with lenders is also noticed and respected by clients.

4. Dress Appropriately This section assumes you actually meet with a client. In most cases, we never meet face-to-face with the client. Almost everything is done over the phone and by mail. The informal professional look is an excellent image to portray as a foreclosure consultant. Too much formality could frighten the client away by giving the impression of a high priced service. The client may feel he/she cannot afford your service and will avoid you. Too informal an image could give a non-professional impression. You must attempt to balance your image, which requires judgment and knowledge of your local market.

5. Join a Business Organization The Better Business Bureau (BBB) and your local Chamber of Commerce are excellent organizations to join. Membership fees range from $200 to $375 per year. The Better Business Bureau requirement in our area is simply one year in business with no unsettled complaints. The Chamber of Commerce usually does not require any length of time in business.

6. Make Community Appearances This is especially important in small communities. Take every opportunity to talk about your service in a public forum. Be sure to have plenty of business cards to hand out.


7. Home Office If you operate your service from a home office, do not be afraid to let your clients know this. Most of the foreclosure consultants who purchased our program in the U.S. are operating from a home office.

Try to set aside a formal meeting area for client interviews in your home. If this is not possible, be willing to go to the client’s home for at least the initial interview. A face-to-face meeting with your client will help build that all important trusting relationship.

NOTE

Most clients prefer to meet in their home. Foreclosure consultants working outside their area should attempt to enhance credibility via other organization referrals, whether statewide or in other parts of the country. This is essential, since most foreclosure consultants choose not to have face-to-face meetings with potential clients.

Image is an important consideration in the marketing of a professional service, especially the loss mitigation services. There is no substitute for professionalism in the eyes of a client who is in need of help. Try to achieve a professional image in all aspects of your marketing campaign. If you are unsure how to create a professional image in your written literature, you can seek help from an advertising agency, the Small Business Administration, printers (e.g., desktop publishers), or an university business writing program. Also, many minority small business programs may be available in your area for a small fee, or even for free. There are a multitude of books available on the subject of business structure, writing, and image creation.

If you have problems projecting a professional image in your media ad campaign, you can seek help from the same sources stated in the previous paragraph. For specific advertising help, you should turn to the media source


you are going to use to produce your ad. Never underestimate the power of image in the development of a successful loss mitigation service.

Competition It has been our experience, and the experience of our students, that it does not matter if there is someone in your area who is already doing this business. There is so much opportunity available that everyone can profit nicely while providing a desperately needed service.


Delinquency and Foreclosure Rates Checking foreclosure rates in your state can be done by checking with your local or state housing authorities, Mortgage Banker Association (MBA) in Washington D.C., Chamber of Commerce, mortgage associations, and state agencies. The internet is a useful tool for this type of research.

One way to determine marketability is to check your local paper’s notice of default and foreclosure sections to get an idea of the number of defaults and foreclosures in the area. If you find few homes listed in this section of your paper, do not assume your area is not marketable. Some states do not require that a notice of default be recorded as a matter of public record. Many people will file for bankruptcy protection in order to avoid foreclosure and will, therefore, not appear in the paper. If you discover a large number of homes listed in the foreclosure section of the paper, you will know that the potential exists for abundant clients.

Another way to check for posted defaults or foreclosure is by using a foreclosure listing service, also referred to as a foreclosure list broker. These companies will provide their clients a compiled list of recent notices of default and foreclosures for a fee that ranges from $40 to $200 per month.

Foreclosure listing services will be dealt with in a later chapter. You may opt to go directly to the County Recorder’s Office at the county courthouse to find out how many notices of default and/or foreclosures (e.g., Sheriff Sales and/or Trustee Sales) are filed in the County Recorder’s Index Book. You can ask a clerk for help. They will be more than willing to explain how to find and use court records. Notice of default procedures are explained in greater detail in a later chapter.


Marketing Your Expertise With Other Sources After you have established your service, another marketing strategy would be to consider contacting local attorneys in your area to sell your services to them. You would be working directly for the attorney, processing all necessary paperwork, as well as contacting the lenders. What do attorneys have to gain from this arrangement? First, they will receive a fee from the client. In the event that you cannot work out an acceptable arrangement with the lender, or if the client breaches the agreement after it has been entered into, the attorney can then process bankruptcy protection, for which he/she will charge another fee. Keep in mind, however, that your earnings will be less, simply because you will be paid for your services by the attorney. This option, however, does provide a regular income and allows you to operate as a contractor for more than one attorney. This, of course, cuts your advertising cost as the attorneys provide your clientele.

NOTE You can work for more than one attorney, thus increasing your income. When you charge per job, some attorneys refer to this as piecework.

Consider marketing your service to local and national community sources. Many groups who assist individuals in distress may consider making referrals to your business. Some non-profit groups will be bothered by the fact that you charge a fee for your service and may not be willing to refer clients to you. We utilize referrals from non-profit organizations that may be limited in what they offer the potential client. This is a tremendous networking strategy that should not be overlooked.

There are other sources; use your imagination. The possibilities are endless. If you come up with a new idea of your own, please share it with us. Alternatively, you could start a business locating delinquent clients across the country and refer them to our organization.


Pricing Your Services

Listed below are guidelines for pricing your services. These are the same guidelines that we use when we approach homeowners who are in foreclosure.

Pricing Your Service One of the most important aspects of a successful business is to determine appropriate fees for services rendered. You will need to charge enough to offset expenses, including your salary. We find that there is great variety among providers of loss mitigation services in the range of fees they charge.

Many individuals engaged in loss mitigation charge their clients a mortgage payment. This means that if the client pays a monthly mortgage payment of $1,000, you would charge $1,000 for your service. We charge a minimum of $1,000 for most cases; however, there will be clients that demand smaller fee structures.

We find that charging a sliding scale fee based on the monthly mortgage amount to be much more acceptable. As mentioned above, we charge $1,000 per client. The amount charged is usually equal to one month’s mortgage payment rounded up to the nearest $250. This includes initial and follow up client meetings, plus all hours in the initial 60 days devoted to completing the case. On the off chance that we perform work for a client after the initial 60 days, we charge $150 per hour.

For example, if a case takes 65 days to complete and you work 120 minutes between day 61 and day 65, then the charge added to the initial $1,000 is $300 ($150/60 minutes = $2.50 per minute. $2.50 per minute X 120 minutes = $300), for a total fee of $1,300.00. We find this fee acceptable as it allows us to provide for our expenses while still making a profit. You will need to determine what is acceptable to you and your clients.

You need to keep in mind that if your area supports lower average mortgage rates, the above rates may be excessive. We lower our fee when dealing with clients who have low mortgage payments. For example, if a client's mortgage payment was $234 per month and they were two months behind, we would not charge them $500 to resolve their problems since their total delinquency is only $468 and this is less than your proposed fee of $500. In other words, if they could afford to pay you $500, they could bring their delinquent mortgage


account current and would have no need of your services. In a similar situation, we suggest that you charge $150 to $195, and no more than $234. Use your best judgment in determining your fee.

Generally, a maximum fee is restricted by what a geographical region can bear economically. Determine your maximum based on specific research regarding your geographic location on average home price, income levels, etc.

What Is A Short Sale?

You may be wondering what to do if the homeowner cannot continue to make their monthly mortgage payments. You will probably not be surprised to learn that you cannot stop every foreclosure. We may try, but realistically, we can’t help everyone.

When it is clear that the homeowner will lose their home to foreclosure, switch to our second turnkey system, the short sale.

A short sale is a lender’s agreement to accept less than what is owed as an alternative to foreclosure. For instance, a lender holds a $100,000 mortgage on a property that is worth $95,000 in its current condition. If the borrower finds a buyer who is willing to spend $95,000, there would not be enough money to pay the lender the $100,000 that is owed. Because there is not enough money to pay off the lender, plus any taxes or commissions that may have accrued, this deal is referred to as being “short”.

Check This Out: A bank will often release its mortgage on the property, allow the property to be sold at $95,000, and accept the net proceeds from the sale as full payment of the borrower’s obligations!

If the borrower is in default, the lender has the right to foreclose on the property, so why would a lender accept less than is owed?

It’s all about the money. What do we mean by this?

If the lender foreclosures on the property to get its money back, it will incur the following:


• Costs of the foreclosure • Costs of taking the house back • Costs to fix the property to resalable condition • Costs of getting property ready for sale • Holding costs • Insurance costs • Commissions on selling the property

If the lender forecloses, prepares the property for sale and pays the selling and transaction costs associated with disposing of the property, the lender may be lucky to net $70,000. Additionally, this $70,000 will come at some unknown point; possibly 10 to 24 months in the future, maybe longer. The lender must consider the time it takes to actually foreclose on the property. (See the foreclosure statutes chart on page 39 to 40.) If the lender auctions the foreclosed property, the lender will almost certainly be the highest bidder, so selling the property using a real estate agent is the lender’s best alternative. Given this situation, before or during the foreclosure process the lender must also consider how long it will take a real estate agent to sell the property.

What is a lender to do?

The lender must analyze the deal. Often, the lender will conclude that a cash offer today for $65,000 is better than the uncertain possibility of getting $85,000 a year from now.

Huge Profit Potential

Here lies the opportunity to make huge profits while creating WIN-WIN-WIN real estate transactions that help people.

First, let’s look at a great opportunity to earn some HUGE profits! Keep in mind that you are helping a homeowner out of the very negative situation that arises when they cannot even afford to sell their home without having to come up with cash out of their pocket.

You purchase the property using the short sale method for $65,000, you spend $4,000 on transaction costs and some clean up, painting and yard work. Now that the property has been cleaned up, it is worth $100,000.


Quickly, you sell the property for $95,000. Realistically, we can assume that you will incur another $6,000 in transaction, selling, utility, and miscellaneous costs. After everything is said and done, you put $20,000 ($95,000 selling price - $65,000 purchase price - $4000 cleaning costs - $6000 miscellaneous costs = $20,000) net profit in your bank account! What would a check for $20,000 do for you and your family next month?

Would you pay off some credit card debt?

Finally get rid of those bills that have been hanging over your head?

Would you take your dream vacation?

Would you pay for your child’s education expenses or get caught up on retirement savings?

Unlocking the Secret

The great secret about short sales is that they provide you with the largest profit checks in residential real estate investing. However, short sales also help people who will thank you profusely for what you do for them; people who truly want and need your help.

Let’s take a moment and look at the Mary, the homeowner. Mary is in a bind. She has no equity in her home. Assuming she sells her home for 100% of the fair market value or FMV, Mary can’t afford to sell because she’d have to come up with cash out of pocket in order to pay the closing costs.

Mary had listed her property with a real estate agent for months, all to no avail. She tried to sell it “by owner” for $95,000. This didn’t work either. Finally, Mary called several real estate investors, all of whom said, “Sorry, there’s no equity in your house, I’m not interested.” This is a no win situation for Mary, who owes her lender $100,000 on a house that she’s been unable to sell.

This is where you come in.

After seeing one of your ads, Mary contacts you. You have the answer to her problem. You know that lenders will take discounts, sometimes very


substantial discounts, on what they are owed. This is a WIN-WIN-WIN situation for everyone involved. Mary wins when you get the property off her back. The bank wins when you get them cash today rather than some unknown, and probably smaller, amount at some point in the future. You win by getting a hefty paycheck while helping someone in need.

US Lending Industry Position

The US lending industry has a problem. CNN, Bloomberg, Time magazine and almost every publication you can imagine says that the real estate market is hurting because lenders, for many years, have loaned money to nearly anyone with a pulse.

Underwriting standards dropped as interest rates dropped and the lending industry became increasingly competitive. This led to loans being granted in favor of borrowers and/or being attached to property that had no chance of meeting the loan obligations. Don’t pity the bank. Don’t be fooled into thinking that they are not making any money. Banks are refinancing homeowners or giving negative amortization loans and are still making billions of dollars a year in profit. This is, in part, why lenders are willing to take discounts on loans.

The price range of the home doesn’t matter. From the $120,000 new construction condo, all the way up to the multimillion dollar mansion, the problems and your opportunity to help remain the same. The only difference between the two is your paycheck. The higher the price of the house, the more you discount it and the higher your profit.

What About the American Dream?

For years now, low interest rates have subsidized a runaway housing boom larger than any seen since World War II. Builders love the new subdivisions that consist of row after row of cheaply built tract homes. You know what we’re talking about; you’ve seen them when they’re new. The nearby interstate exits are lined with flags, and large signs advertising “New Homes - Now Selling” are everywhere. These homes have all the amenities. They come complete with Jacuzzi tubs, new energy efficient appliances, and free access to a clubhouse and swimming pool.


Here Come the Agents

Real estate agents and mortgage brokers make their fees from getting the buyer to the closing table. Builders advertise incentives, pay closing costs, offer extra bonuses and make exclusive arrangements with mortgage companies and sales agents, so that the buyer can get into their new home with “No Money Down” or only a “$199 Down Payment!”

Along comes Mary.

Mary is a first time home buyer; She doesn’t have any quality furniture to put in her brand new home. She buys furniture and other knick knacks, in order to make her house into her dream home. Mary pays for everything on credit.

Everything goes along fine for the first year. The property is starting to show a little wear and tear, but Mary does not have enough money to make repairs since the bills for her knick knacks are coming due.

And now, the bad news.

Mary gets laid off from her job. She has very little savings. A couple of months go by. During this time, Mary borrows money from family and friends. Mary is having problems finding a job and finally realizes that she has no choice; Mary needs to sell her home. Since very little time has passed since Mary purchased her home and there are other homes in her neighborhood that are selling for less than what she paid, there is no equity in her home. Mary is frustrated and panicky. She does not know what to do. Mary can not even sell her house. If Mary sold her home through a real estate agent for what she paid for it, she would still need $5,000 in order to cover the closing costs. Needless to say, Mary does not have $5,000; if she had $5,000 she would not be in this position.

Mary’s situation is desperate.

Mary starts to call the investors who have signs on the road saying “We buy Houses” or “Sell Your Home in 7 Days”. All of the investors she speaks with ask her how much equity she has in the home. When she tells them she has no equity, each says he or she can’t help her.


No matter which direction Mary turns, she runs into a brick wall. She can’t find a way out of this financial nightmare.

Finally, Mary calls you. You tell her you have a solution to her problem. You want to try something called a short sale. You explain that a short sale is where you get the lender to accept less than the full amount owed on the mortgage. The best part is that you can get the house and the financial burden off of Mary’s back. When you ask her if she wants your help, what do you think Mary says?

She says YES!

By solving Mary’s problem, you become her hero. You are the only person who was willing to help her. What a difference you have made in Mary’s life. Since foreclosure is one of the most stressful situations that a person can experience, by lifting Mary’s financial burden you may have literally saved her marriage and/or family. You leave the closing table with a substantial check and perhaps a testimonial letter from Mary blessing you for helping her.

What about Rich People?

John is an executive for a large corporation. John is very well paid and lives in a beautiful neighborhood in a $3 million dollar home overlooking a golf course. Life is great. John has it all: the great family with 2 kids and a dog, a nice company car, a golf club membership and plenty of perks.

Due to a downturn in the global economy, John has just been informed that his division is going to be outsourced to another country. John is unemployed.

At first, John is confident that he can get another job. After all, he is the best at what he does. He calls recruiters and surfs the internet. In talking with recruiters, John finds that his entire industry is downsizing and, as a result, it will be extremely difficult for John to find a new job.

John starts to worry. He has an $11,000 a month mortgage payment, golf club dues, insurance, health care costs and more. Ten months go by without a single good job prospect. John is running out of money. He had his house listed with a real estate agent, but it was competing with several


other large estates for sale. The real estate market is in flux, property values change depending on location, buyers are looking for great deals and John can’t afford to drop his price any further.

You get a call on one of your ads stating that you buy luxury homes.

You set an appointment to meet with John at his home. John is very proud of his home. He shows you all of the special features and explains how the house should sell quickly since it is in great condition and is full of upgrades. During your conversation with John, you learn that he just wants to stop the financial bleeding. He wants out of the house; he’s out of money and wants to avoid having a foreclosure on his credit report. He says he will help in any way he can, if you can just stop the foreclosure.

You explain the short sale process to John and make it clear that you cannot guarantee the success of the deal since you have not spoken with the bank, but that you intend to do the very best you can.

John completes the paperwork you need and you are ready to go. The process takes a couple of months. After shuffling paperwork through different levels at the bank, voila! The bank realizes something very important. They do not want this house.

The bank agrees to take $2,190,000 as payoff on John’s loan. You find a buyer who is eager to buy the property at a hefty discount. At $2,400,000, the buyer gets John’s home at a $600,000 savings over what similar properties in the area are selling for. Your gross profit is $210,000. After paying assorted basic selling costs, you walk away with $130,000 in net profit.

Would you be happy with this fee? Would $130,000 make a difference to you and your family?

Would John be upset? The simple answer is no.

In fact, John is very happy to get rid of the house. He could not sell it on his own. John needed out, and you’ve provided an opportunity for him to just walk away. You were able to negotiate with the bank for a discount; you’ve created a WIN (for John) – WIN (for the bank) – WIN (for you) situation.


Historically speaking, in America today there are more foreclosures than there have ever been. There is tremendous opportunity to help people while getting paid very well for your efforts. Deals are available everywhere, all you really have to do is let people know that you can help them. Did you know that according to the American Consumer Association almost 50% of the American population has bad credit? This means your neighbors are probably hurting and could use your help.

In any newspaper or financial site today, you will read about rising foreclosure rates, corporate layoffs, job outsourcing to foreign countries, corporate scandals causing people to lose their life savings, stock market fluctuations, etc. Now is the time to get into the short sale business. You are reading this educational information because you are finally ready to make the leap from making someone else rich to making yourself rich.

Alan Greenspan, former Chairman of the Federal Reserve, was quoted as saying:

“The apparent froth in housing markets may have spilled over into mortgage markets. The dramatic increase in the prevalence of interest-only loans, as well as the introduction of other, more-exotic forms of adjustable-rate mortgages, are developments that bear close scrutiny. To be sure, these financing vehicles have their appropriate uses. But to the extent that some households may be employing these instruments to purchase a home that would otherwise be unaffordable, their use is adding to the pressures in the marketplace.”

Increasing property values have convinced many existing homebuyers and real estate speculators that the market will only go up, but no boom lasts forever. Interest rates are rising and real estate appreciation is flat-lining.

The biggest reason for increases in the foreseeable future, are adjustable rate mortgages or ARMs. Varied sources say that over the next 1 – 2 years alone, almost $3 trillion dollars in ARMs will begin to adjust, causing homeowners to pay several hundred dollars more each month on their mortgage payments. Minimum payments on credit cards are also increasing. When combined, these factors mean that the average the homeowner must get a very, very, large raise or change their spending


habits if they want to avoid financial trouble.

Ask any mortgage broker. Even they will admit that the rise in mortgage defaults comes as no surprise. Here is a quote from the Mortgage Bankers Association:

“The increase in delinquencies is not surprising . We have been expecting an up-tick in delinquencies due to a number of factors: the seasoning of the loan portfolio, the increased shares of the portfolio that are ARMs and sub-prime mortgages, as well as the elevated level of energy prices and rising interest rates.”

So what’s the bottom line?

Opportunity is knocking at your door. Are you going to answer? Does making over $100,000 per year excite you? What about calling your own shots? You pick and choose what deals you work on and when you work. Regardless of the market conditions, people will always borrow more than they can afford. This creates opportunity for you to help them while making a great income.

What To Do Next

Get on the internet and register for my next webinar or teleseminar. Get registered. Like others before you, you’ll be on the path to success.

Now read this: You can do it. Don’t let anyone tell you otherwise. More people fail, not because they can’t do the work, but because their so-called support structure causes them to believe that they can’t succeed. We heard the phrase “don’t try, do” once. If you only try, then you leave the possibility that you will fail wide open. If you “just do it”, like the Nike commercial says, you will be successful.

Over the years, we have met many very successful people who have made a lot of money. We have found that all successful money-making people have three things in common:


• Knowledge • Wisdom • Action

Knowledge is not power, it is information. Wisdom is knowing what to do with what you know. Action is the real power; it turns your dreams and desires into reality.

Now is the best time for you to get started. Do you want to follow the crowd and work a 9 - 5 job making someone else rich or do you want to take control of your financial future?

We have a question that we like to ask a lot of students at our seminars about the bad debt industry.

“Are you going to be like the average Joe, who gets up and walks out after learning how they can now take charge of their financial life, or are you going to take charge right now and enjoy life?”

Imagine that you don't get started with the program today and you move the clock ahead one year. Is your life any different than it is today? Sure, you might get a new car or get a promotion at work, but your life is essentially the same.

Move the clock back to today. You get started today and start looking for judgments that you can purchase or flip to another investor. You start making an additional $5,000 - $10,000 per month in extra income.

Move the clock ahead one year. How is your life now? Are you able to pay off your bills? Go on that dream vacation? Buy that big screen TV you have always wanted? Maybe you have more time to spend doing the things you want to do with your family.

For many affiliates, it is hearing the stories of other successful foreclosure investors that motivate them to go out and “just do it”. Please write to our office with your foreclosure investing success stories. Include your written permission for us to share your success with others.

Get Started Now and Take Action!


Reading books is fun and you can acquire a lot of information, but information does not make you money. Your ability to take action on the deals you find is what puts money in your pocket.

We want to help you in any way that we can.

Here is how you take action.

We have formed a team of individuals who are serious about creating wealth for themselves and their families. The team is called the Success Team. We are looking for a few individuals to become members of the Success Team.

Unfortunately, we cannot work with everyone. We simply do not have the man power to do so, but if you are open minded and teachable, can set aside a few hours per week to work the business, and you are serious and committed to changing your financial situation, then what we want you to do is call our office.

We have a small team of business consultants who will take the time to conduct an initial interview for the Success Team. These consultants have been given the responsibility of selecting the Success Team members.

Once again, while we want everyone who is serious to call now, do not be offended if we cannot work with you, because we simply cannot work with everyone, but we do want EVERYONE who is serious about changing his or her life to call.

The website is http://www.MISUniversity.com

Believe in the power of you. Who you were in the past does not determine who you will be in the future. Control your own destiny.

Get started today.

Pick up any newspaper and you will see that this money-making opportunity will only get bigger. People all over the country need your help right now! Today!

You have an awesome opportunity sitting in front of you. Don’t regret not taking action today. Pick up the phone and get on the call now. 888-901-8132


Want to know more? Register today for one of our free live Teleclasses where I can spend about 2 hours explaining

everything in detail so you can get started right away. Please visit our website at http://www.MISUniversity.com

to register NOW!

Documents

How To Get $13,571 in The Next 29 Days - MISUniversitymisuniversity.com/new-books/MCSSdwnld/dwnlds/ebooks/Stopping... · For some people, life just gets in the way. Sometimes bad