Brought to you by: Home Ownership Matters Training Institute INtro #33 “ Your Real Estate Advisor”
Description: The goal of this intro is to cover for viewers how to explain the reason for their default in a way which is ...
Explaining Your Default to the Bank... Copyright © 2008. Home Ownership Matters, LLC. All Rights Reserved. HINT:  “I don’t...
<ul><li>Here’s a  CLUE  to what they want to hear... </li></ul><ul><li>That the problem was: </li></ul><ul><li>Caused by s...
<ul><li>Acceptable Explanations  for a TEMPORARY Problem: </li></ul><ul><li>Death or illness of principal borrower </li></...
<ul><li>Acceptable Explanations which indicate  a PERMANENT problem: </li></ul><ul><li>Property repairs </li></ul><ul><li>...
A Picture is Worth a Thousand Words Has Always Been True... But, when you need a word,  you need the RIGHT word(s) To get ...
<ul><li>Resources: </li></ul><ul><li>Blog:   HomeOwnershipMatters.Blogspot.com Has numerous references on this subject whi...
Copyright © 2008. Home Ownership Matters, LLC. All Rights Reserved. Partial List of Webinars Offered by HOM Vol 01: Gettin...
HOM Disclaimer/Hold Harmless The material provided is deemed to be reliable and accurate at the time of publication.  Howe...
Survey You can take the survey online at:  http://www.surveymonkey.com/s.aspx?sm=2M63rhnWI80dBfs72fg_2f_2fQ_3d_3d   Or fax...
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HOM INtro #33: Why Are You Behind on Your Mortgage Payments? (At least, what are you teling the bank?)

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Yes, I know it is because you don’t have the money… but that is not a reason that the bank wants to hear. The REASON why you don’t have the money is more important than the fact they you can’t pay—in the lenders’ eyes. They are looking for reasons which are acceptable to them: an acceptable hardship or circumstance which triggered your inability to send your scheduled payment. They do NOT want to hear that you had to bail your drunken brother out of jail. Again. Nor it is a good idea to tell them the trip to Vegas was one you had planned for the past 2years so you had to go. I had to buy Christmas presents because I have young kids is also NOT an acceptable hardship. We’ll cover for you what ARE acceptable reasons for being in default. You can be better prepared to defend your position and your need for help when you know what is and IS NOT acceptable. We’ve got you covered.

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HOM INtro #33: Why Are You Behind on Your Mortgage Payments? (At least, what are you teling the bank?)

  1. 1. Brought to you by: Home Ownership Matters Training Institute INtro #33 “ Your Real Estate Advisor”
  2. 2. Description: The goal of this intro is to cover for viewers how to explain the reason for their default in a way which is true but will increase their chances of getting help instead of guaranteeing that they lose their home. Some explanations are better than others, and while we never advocate that you misrepresent the facts—the truth of the matter is, that what you say can open doors or seal your fate. Watch your mouth! Copyright © 2008. Home Ownership Matters, LLC. All Rights Reserved.
  3. 3. Explaining Your Default to the Bank... Copyright © 2008. Home Ownership Matters, LLC. All Rights Reserved. HINT: “I don’t have the money” is NOT the right answer! T R U E ...but definitely the WRONG answer.
  4. 4. <ul><li>Here’s a CLUE to what they want to hear... </li></ul><ul><li>That the problem was: </li></ul><ul><li>Caused by something beyond your control </li></ul><ul><li>Resulted in a decrease in your income, or an increase in your expenses </li></ul><ul><li>Temporary and you are now ready to resume payments, even if the amount needs to be modified </li></ul><ul><li>Unfortunately permanent, but you are willing to cooperate with a short sale or deed-in-lieu of foreclosure </li></ul>Copyright © 2008. Home Ownership Matters, LLC. All Rights Reserved.
  5. 5. <ul><li>Acceptable Explanations for a TEMPORARY Problem: </li></ul><ul><li>Death or illness of principal borrower </li></ul><ul><li>Illness of a member of your family (travel or care required) </li></ul><ul><li>Death of a close family member (travel or other expenses needed) </li></ul><ul><li>Marital problems (separation or divorce) </li></ul><ul><li>Unemployment or underemployment </li></ul><ul><li>Income curtailed due to: garnishment, reduction in commissions or overtime, loss of a part-time job </li></ul><ul><li>Excessive obligations—temporary problem— needing to pay deductible for accident, mom needed a car repair </li></ul><ul><li>Military service </li></ul><ul><li>Other (there are numerous other reasons but we gave you a start. </li></ul>Copyright © 2008. Home Ownership Matters, LLC. All Rights Reserved.
  6. 6. <ul><li>Acceptable Explanations which indicate a PERMANENT problem: </li></ul><ul><li>Property repairs </li></ul><ul><li>Inability to sell property </li></ul><ul><li>Employment transfer to another city </li></ul><ul><li>Inability to rent the property </li></ul><ul><li>Incarceration (you or someone who was contributing to the payment) </li></ul><ul><li>Military service (could lead to a permanent situation of inability to pay) </li></ul><ul><li>Long-term unemployment </li></ul><ul><li>Business failure (self-employed or your employer’s business) </li></ul><ul><li>Fraud associated with the loan </li></ul>Copyright © 2008. Home Ownership Matters, LLC. All Rights Reserved.
  7. 7. A Picture is Worth a Thousand Words Has Always Been True... But, when you need a word, you need the RIGHT word(s) To get help with your mortgage default, you MUST PRESENT YOUR PROBLEM IN LANGUAGE THE BANK PEOPLE UNDERSTAND *Remember to present a true picture of your situation, since you will be required to provide documentation of whatever explanation you have given them. Copyright © 2008. Home Ownership Matters, LLC. All Rights Reserved.
  8. 8. <ul><li>Resources: </li></ul><ul><li>Blog: HomeOwnershipMatters.Blogspot.com Has numerous references on this subject which will be enlightening </li></ul><ul><li>HOM’s Website: http://www.HomeOwnershipMatters.com </li></ul><ul><li>Websites You Might Check Out: </li></ul><ul><li>http://www.dsnews.com </li></ul><ul><li>http://www.mortgagenewsdaily.com </li></ul><ul><li>http://www.implod-o-meter.com </li></ul><ul><li>http://www.hud.gov </li></ul>Copyright © 2008. Home Ownership Matters, LLC. All Rights Reserved.
  9. 9. Copyright © 2008. Home Ownership Matters, LLC. All Rights Reserved. Partial List of Webinars Offered by HOM Vol 01: Getting to the Closing Table   Vol 02: Is it Fraud or “just predatory”?   Vol 03: Brokers: Are Your Agents Putting You at Risk?   Vol 04: PALM—Practical Application of Loss Mitigation   Vol 05: Secrets of a Professional BPO   Vol 06: Fair Housing Vol 07: Seller is the Lender   Vol 08: Short Sale: Not Your Typical Transaction   Vol 09: Foreclosure Intervention: Why Do You Need a Specialist? Vol 10: Buying REO is Risky Business   The BT Series   Vol 11: Buying TIME—When Your Money is Running Out Vol 12: Mr. Smitherman—The Connection for Your Housing Situation Vol 13: Q W R—In Detail Vol 14: Foreclosure: a PROCESS & an EVENT Vol 15: Taking Charge of Your Housing Situation
  10. 10. HOM Disclaimer/Hold Harmless The material provided is deemed to be reliable and accurate at the time of publication. However, the subject matter is undergoing almost constant change and you should assume responsibility for current research on procedures, policies, guidelines and changes in the law concerning your housing situation. Trainer has relied upon such sources as the National Consumer Law Center but is NOT an attorney. This information is provided as a community service. Please seek legal counsel to address your specific mortgage or housing situation and to determine your rights and responsibilities. Home Ownership Matters, LLC and contributing author hereby disclaim any responsibility or liability which may be asserted or claimed arising from reliance upon the information provided. Copyright © 2008. Home Ownership Matters, LLC. All Rights Reserved.
  11. 11. Survey You can take the survey online at: http://www.surveymonkey.com/s.aspx?sm=2M63rhnWI80dBfs72fg_2f_2fQ_3d_3d Or fax this to (Toll Free): (877) 587-4507 Name: _________________________________ Phone: _____________________ Firm Name (If Applicable): ______________________________________________ Address: _____________________________________________________________ City: ____________________ State: ____________ Zip: ______________________ E-Mail Address: _______________________________________________________ I would like to be added to the HOM Distribution List: ___ Yes ___ No I understand that my information will not be sold or shared with anyone other than HOM ---------------------------------------------------------------------------------------------------------- Please let us know if you have any questions or comments: ____________________________________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________ What would you like to see HOM do in the future? (Webinars, courses, e-mails, articles, etc): ____________________________________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________ Thanks for your input, we really appreciate it! Copyright © 2008. Home Ownership Matters, LLC. All Rights Reserved.

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