Foreclosure MediationVictoria Ring, Certified Paralegal

Sponsored by 713Training.Com LLC

Overview

Current Foreclosure Rates

Prospecting Methods

Gathering Information

Closing the Deal

Mediation and Proposal

The topics covered in this presentation are:

Current Bankruptcy Statistics

Finding Work as a VBA

Overview of Schedule I and J

Reaffirmation Agreement

Non-Compliance Issues

Foreclosure Bankruptcy

Foreclosure Statistics

112% Rise Over the First Quarter of 20071 in 194 homes have been repossessed

April 2008

Foreclosures increased in 46 states and90 of the nation's 100 largest metro areas

April 2008

Even “safe” areas had an increase;i.e., Connecticut saw a 300% increase

April 2008

The worst areas are the Southwest withan average of 1 in every 54 homes.

April 2008

More Foreclosure Facts

2,934,626 foreclosure listings in the US.

The top 5 foreclosure states are:

California - 303,777 foreclosure listings Florida - 191,706 foreclosure listings Ohio - 105,880 foreclosure listings Texas - 79,683 foreclosure listings Georgia - 52,210 foreclosure listings

Bankruptcy Statistics

Filings increased 28.6% over thesame period one year ago

Sept 2008

Total of 88,663 filings in September;an average of over 2,955 per day!

Sept 2008

Bankruptcy filings are higher in 2008than before the law changed in 2005

Year 2008

9,743 business filings in last 90 days;an average of over 108 per day!

Sept 2008

What does this all mean?

Your Foreclosure Mediator

It means there is enough work out there to provide you with:

• A secure, long-term career

• The chance to escape financial problems others are experiencing

• The ability to help people living on Main Street America

• Knowledge in knowing you are making a difference in someone else’s life!

Prospecting for Foreclosure Clients

Locating homeowners who are prospective clients for your foreclosure mediation services is through your local legal newspaper.

LegalNewspaper Newspaper

Advertising

Too general of an audience

Most people do not answer phone

Foreclosure ads are considered bogus

DirectSales

TV and Radio

Advertising

Legal newspapers list actual foreclosures

5% 10%

80%

5%

Finding Work as a VBA

Debtor Creditor

Foreclosure

Medical

DivorceBankruptcy covers

a wide field

Skilled Virtual Bankruptcy Assistants are in high demand and can basically pick and choose different areas of law to work in.

Locating Bankruptcy Attorneys:

http://www.nacba.orghttp://www.lawyers.com

Gathering Basic Information

The payment history of the borrower is also deciding factors in mediation

Foreclosure Mediationis not the solutionfor every situation

Amount of debts owed; both secure

and unsecureAlso monthly

expenses like food, clothing, etc.

Qualifying the

Prospect

General Financial

Statements

Asset and Liability

Documentation

Schedule I:Income

Schedule J:Expenses

The Borrower is Number 1

Various mediation

techniques are available

Two Examples Are:

2.Forbearance and reamoritization

Mediating with the Financial InstitutionThere are a variety of different ways to mediate with the lender and each situation will be unique and different.

1.Modifying the terms of the

loan

Mediation in Bankruptcy

Different Chapters that are filed in bankruptcy effect the mediation

For farmers

Chapter 11 are for debtors or businesses

who owe more than $250,000

Chapter 13 allows the

debtor up to five years to

pay arrearages

Chapter 7 is a complete

liquidation of unsecured

debts

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Closing the DealBringing Together in Harmony

Negotiating with Lender

Research and Strategic Planning

Information

Reaffirmation Agreement

• Attorney must superviseAttorney must supervise

Information

Reaffirmation

Filed in Court

Compliance

Debt, asset and liability information is gathered to determine what the debtor can afford.

The Reaffirmation Agreement is filed in court and signed by the debtor(s)The Reaffirmation

Agreement is negotiated between attorneys for the lender and debtor

Debtor must comply with the terms of the Reaffirmation Agreement or lender may be able to seize property immediately

A Reaffirmation Agreement provides a built in protection for the lender if debtor does not comply.

CONTACT SPEAKER:

Victoria Ring: http://www.713training.com