Brought to you by: Home Ownership Matters Training Institute Your Mortgage Documents... Filled with Surprises INtro #75 “ ...
Goal <ul><li>The goal of this intro is to direct your attention to the little landmines hidden in your mortgage documents—...
Thirty— That’s  30  YEARS of a    Relationship... <ul><li>YOU and YOUR BANK </li></ul><ul><li>IF’s AND’s BUT’s </li></ul><...
1. Servicing of Your Loan Copyright © 2008. Home Ownership Matters, LLC. All Rights Reserved. Servicer A —  Aurora Loan Se...
2. Occupancy/Securing of Property This house has been found vacant and unsecured and has been re-keyed in accordance with....
3.  Default/Acceleration  (also called breach) [Date] [Addressee] Dear [Name]: Reference is made to a certain promissory n...
4.  Force-Placed Insurance Copyright © 2008. Home Ownership Matters, LLC. All Rights Reserved. Dear Mr. Smith, We are here...
5.  Escrow Adjustments Your new mortgage payment, effective last month,  is _____$$$$$$$____ Copyright © 2008. Home Owners...
6. Prepayment Penalty Yes, you can pay us back early... But it’s going to cost you. $5,000 $8,000 $10,000 Copyright © 2008...
7. Power-of-Sale Copyright © 2008. Home Ownership Matters, LLC. All Rights Reserved. <ul><li>No court appearance required ...
8. Due on Sale Clause Creates an issue for contract sales. *Watch out for the investor who tells you it doesn’t matter Cop...
9. Release of Liability and/or  Assumption Section Copyright © 2008. Home Ownership Matters, LLC. All Rights Reserved. *Wh...
10. Deficiency 2 years later... “ We came up a little short when  we sold your old home...” Copyright © 2008. Home Ownersh...
Recommended Action TODAY... Pull out your mortgage documents and study the above mentioned sections to see what your oblig...
Resources <ul><li>Blog:   HomeOwnershipMatters.Blogspot.com Has numerous references on this subject which will be enlighte...
Partial List of Webinars Offered by HOM Copyright © 2008. Home Ownership Matters, LLC. All Rights Reserved. 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 #75: Your Mortgage Documents...Filled with Surprises

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Surprises usually make up happy but the potential surprises hidden in your mortgage documents could lead to anything from a mild headache to a full blown heart arrest. Imagine your surprise when you discover that yes, you can sell the house you bought 1 ½ years ago but there will be a $5,000 penalty for doing so if you hold the mortgage for less than 3 years. Imagine your surprise that after you notified the bank that you were moving out since you could not afford to catch up the payments you come home and discover that the locks have been changed and you are locked out of your home.

Surprises—unpleasant surprises—frequently prescribed by your mortgage documents—in language you never understood—but agreed to at closing.

Take a look now—so you can anticipate and make plans to offset the negative impact of potential surprises.

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HOM INtro #75: Your Mortgage Documents...Filled with Surprises

  1. 1. Brought to you by: Home Ownership Matters Training Institute Your Mortgage Documents... Filled with Surprises INtro #75 “ Your Real Estate Advisor”
  2. 2. Goal <ul><li>The goal of this intro is to direct your attention to the little landmines hidden in your mortgage documents—the surprises which can throw you for a loop when you least expect them. </li></ul><ul><li>Legal </li></ul><ul><li>Lethal </li></ul><ul><li>Lurking </li></ul><ul><li>Hidden in Plain Sight </li></ul>Copyright © 2008. Home Ownership Matters, LLC. All Rights Reserved.
  3. 3. Thirty— That’s 30 YEARS of a Relationship... <ul><li>YOU and YOUR BANK </li></ul><ul><li>IF’s AND’s BUT’s </li></ul><ul><li>Let’s discuss the More Problematic Sections </li></ul><ul><li>(in no particular order) </li></ul>Copyright © 2008. Home Ownership Matters, LLC. All Rights Reserved.
  4. 4. 1. Servicing of Your Loan Copyright © 2008. Home Ownership Matters, LLC. All Rights Reserved. Servicer A — Aurora Loan Servicing Servicer B — Lending Services of Texas Servicer C — Trimble Financial USA Bank
  5. 5. 2. Occupancy/Securing of Property This house has been found vacant and unsecured and has been re-keyed in accordance with... Copyright © 2008. Home Ownership Matters, LLC. All Rights Reserved.
  6. 6. 3. Default/Acceleration (also called breach) [Date] [Addressee] Dear [Name]: Reference is made to a certain promissory note under date of [date], in the original amount of $[dollar amount]. You have defaulted under said note in that the installment due on [date], In the amount of $[dollar amount] has not been paid. Accordingly, demand is hereby made upon you for full payment of the entire balance on said note in the amount of $[dollar amount], including accrued interest to date. In the event the entire balance is not paid within the next seven days, we shall refer this matter to an attorney resulting in additional costs of collection. Copyright © 2008. Home Ownership Matters, LLC. All Rights Reserved.
  7. 7. 4. Force-Placed Insurance Copyright © 2008. Home Ownership Matters, LLC. All Rights Reserved. Dear Mr. Smith, We are hereby notifying you that the insurance on your home is now being provided by XYX Company. The annual premium is ________ and that has caused an increase in your monthly payment of $75.00. Your escrow was short...
  8. 8. 5. Escrow Adjustments Your new mortgage payment, effective last month, is _____$$$$$$$____ Copyright © 2008. Home Ownership Matters, LLC. All Rights Reserved.
  9. 9. 6. Prepayment Penalty Yes, you can pay us back early... But it’s going to cost you. $5,000 $8,000 $10,000 Copyright © 2008. Home Ownership Matters, LLC. All Rights Reserved.
  10. 10. 7. Power-of-Sale Copyright © 2008. Home Ownership Matters, LLC. All Rights Reserved. <ul><li>No court appearance required </li></ul><ul><li>Fast as lightning </li></ul><ul><li>Your home ownership rights could be stripped in as little as 2-3 months </li></ul><ul><li>Option available to lenders in 27 states Is your state one of these?! </li></ul><ul><li>*Non-judicial Foreclosure is the primary method of foreclosure in 17 states. </li></ul><ul><li>Source: http://www.all-foreclosure.com/procedures.htm </li></ul>
  11. 11. 8. Due on Sale Clause Creates an issue for contract sales. *Watch out for the investor who tells you it doesn’t matter Copyright © 2008. Home Ownership Matters, LLC. All Rights Reserved.
  12. 12. 9. Release of Liability and/or Assumption Section Copyright © 2008. Home Ownership Matters, LLC. All Rights Reserved. *What unsuspecting Co-borrowers look like
  13. 13. 10. Deficiency 2 years later... “ We came up a little short when we sold your old home...” Copyright © 2008. Home Ownership Matters, LLC. All Rights Reserved.
  14. 14. Recommended Action TODAY... Pull out your mortgage documents and study the above mentioned sections to see what your obligations are under the terms of the mortgage and note. Review these with an attorney if you are not absolutely sure that the actions you are considering to deal with your housing situation will not be made worse based on the sections we discussed today. Happy Reading and Best of Luck! Copyright © 2008. Home Ownership Matters, LLC. All Rights Reserved.
  15. 15. Resources <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>HOM Intros: #26, #35, #50, #63 and #74 </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.
  16. 16. Partial List of Webinars Offered by HOM Copyright © 2008. Home Ownership Matters, LLC. All Rights Reserved. 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
  17. 17. 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.
  18. 18. 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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