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Principal Reduction Affiliate Presentation


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Trust Deed Principal Reduction Program

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Principal Reduction Affiliate Presentation

  3. 3. The Downward Housing Spiral<br />As option arm loans recast to higher interest rates and jobs evaporate, people all over the US are being forced to default on their mortgages.<br />These foreclosures depress property values and leave more area homeowners in a compromised position.<br />The additional foreclosures and short sales further depress home values until the average homeowner owes the bank more money than their property is worth.<br />Even homeowners that are current on their mortgage begin to walk away from their under-water properties.<br />Whole neighborhoods have become virtual ghost towns, negatively impacting the entire community with more lost jobs and failed businesses.<br />
  4. 4. Can anyone impact this disaster?<br />You can!<br /> As an eMerge affiliate, you can be part of the solution to this dangerous financial meltdown!<br /> If you can identify homeowners that owe more than their property is currently worth, and that meet a predetermined profile, you can save their home and eliminate negative equity in their property in many cases.<br /> Through a revolutionary program backed by private equity funds, you can be well compensated for providing a critical service to the roughly one million families who are in need and who qualify.<br />
  5. 5. A Simple, Powerful Concept<br />You are able to help homeowners who are under water on their home mortgage because:<br />Our highly experienced negotiators secure a sell price from the present note holder at a discount from current market value, not the mortgage balance.<br />Our investors purchase the note at the discounted price. <br />They then drop the note amount to the CMV. <br />The homeowner’s mortgage payment is greatly reduced.<br />Applicants keep their home, rebuild their credit and build equity as property values rebound.<br />The downward financial spiral is disrupted.<br />
  6. 6. Program Fees<br /> Standard Negative Equity $895 <br /> Second Trust Deed, HELOC $175<br /> If we are unable to accept the file for negotiation, at any point, the unused portion of the fee will be returned to applicant.<br /> If eMerge accepts an applicant into the program and negotiations do not produce an acceptable principal reduction, a minimum of $295 will be returned to the applicant.<br /> Applicants that can not be assisted through a principal reduction may elect to roll into our partner’s very successful short sale program.<br />
  7. 7. How We Do It<br />We package notes in bundles of 10, 20, 30 notes or more to be negotiated as a group.<br />Note<br />Package<br />eMerge Financial Advisors Copyright 2010<br />
  8. 8. Why Banks Will LiquidateUnder-Water Mortgages<br />Banks are in the business of lending, not real estate.<br />Many homeowners today are non-performing borrowers, meaning that they are late or are in foreclosure.<br />It costs the bank less to liquidate than it does to short sale, foreclose or REO the property.<br />Banks will negotiate to sell bundles of non-performing notes at a discount from the current market value.<br />The bank can lend immediately on the money they receive from the liquidation.<br />
  9. 9. The Bank’s Options<br />Lenders normally have three options for debt resolution: Short Sale, Bank Ownership (REO) or Foreclosure.<br />Each takes time and will produce a different result…<br />The banks<br />now have<br />a fourth<br />Option!<br />Bank Nets$18,000<br />Bank Nets $15,822<br />Bank Nets $2,288<br />Bank Looses $42.000<br />eMerge investor purchases the note & assumes all liabilities<br />
  10. 10. The Client Profile is Critical<br />Lenders and investors each have a monetary range in which they will work…<br />Lender’s Sell Price Range<br />< Lower Price Higher Price ><br />Investor’s Buy Price Range<br />< Lower Price Higher Price ><br />The cross-<br />over determines<br />our Client Profile<br />Buy Price<br />Sell Price<br />Investors have a price range at which they will buy a note.<br />Lenders have a price range at which they will sell a note.<br />Our highly experienced negotiators secure the lowest sale price possible from the lender.<br />Careful client profiling assures the highest<br />purchase price possible from investors. <br />
  11. 11. Qualifying Applicant Profile<br />To ensure success, applicants must meet a specific profile.<br />We can assist homeowners who:<br />Live in a single family residence<br />Occupy the home as their primary residence<br />Are behind on their mortgage payments<br />Are upside down by 20% or more<br />Currently receive a verifiable income<br />Will have a mortgage debt to income ratio of 31% or less after negotiation<br />Are staying current on their other debts (preferred)<br />No mortgage insurance (PMI)<br />
  12. 12. Benefits for the Homeowner<br />Principle is reduced to the current market value giving the homeowner a true incentive to stay in their home.<br />Their monthly payment can be reduced by 25% to 50%.<br />The homeowner is now current on their payments.<br />Delinquent homeowners can rebuild credit by simply making their lower mortgage payment on time.<br />There is no new origination so no closing costs.<br />Taxes and insurance can be paid through escrow.<br /> People can save their homes, build equity for the future and help preserve their communities!<br />
  13. 13. Not a Loan Modification<br />This program is not:<br /><ul><li> A loan modification
  14. 14. A short sale
  15. 15. A short refi
  16. 16. A deed in lieu of foreclosure
  17. 17. A forbearance
  18. 18. A program for the unemployed
  19. 19. A new origination</li></ul>This program is:<br /><ul><li> A trust deed principal reduction
  20. 20. A restructured note
  21. 21. Many American homeowner’s last best chance</li></ul> for financial independence!<br />
  22. 22. Qualifying Properties<br />We currently accept single-family residences.<br />The following property types do not currently qualify:<br />Non-owner occupied<br />Agricultural Properties<br />Raw Land<br />Mobile / Manufactured Homes<br />Multi-Family Units<br />Mixed-Use Properties<br />Condos<br />Properties with construction Loans<br />
  23. 23. The Principal Reduction Process<br />You present the program to qualified homeowners.<br />Help applicants fill out the app and forward to eMerge.<br />Applicants send guaranteed funds to 3rd party trustee.<br />Trustee disburses funds beginning with a credit check.<br />eMerge orders a BPO or desktop appraisal.<br />eMerge orders a drive-by or full appraisal.<br />File goes to processing for submission to negotiator.<br />If negotiation is successful, note goes to the investor.<br />Investor reduces note balance to CMV.<br />Homeowner is now current, note becomes performing when the first payment is made on time.<br />
  24. 24. It is Time to Get Started<br />Thousands of American homeowners<br />need your help!<br />Direct & Fax: 800.834.9163<br /><br /><br /><br />