REAL ESTATE DI DALAM

“BAIL OUT” Tips and tools for navigating today’s economy

Who We AreAPRIL is a professional services group that specializes in three major industries: real estate (INTERO), mortgage, and insurance. We’ve been in the business since 1984. Our mission is to create lasting relationships within a “customers first!” environment based on mutual respect, trust, and integrity. Since our inception, we have partnered with our clients in their pathways to success and self-fulfillment.

Insurance & Mortgage Services

Bagaimana… Mencegah Foreclosure Membeli atau Menjual Rumah yang

Short Sale Membeli Rumah yang Bank Owned UU baru akan Membantu Anda Mendapatkan Bantuan dari

Pemerintah untuk membeli Rumah Mengurangi Mortgage Payment Anda

tanpa menjual rumah (no fee) Memberbaiki Kredit Anda Invest Rumah di Sacramento

How to Avoid the Foreclosure Trap – Limin Tjandrajati

Bagaimana Mencegah Foreclosure

BYMBA Statistic

Tips for Avoiding Foreclosure

Don’t ignore the letters from your lender Contact your lender immediately Know your mortgage rights Contact a HUD-approved Housing Counseling

Agency Prioritize your spending Avoid foreclosure prevention companies Don’t lose your house to foreclosure recovery

SCAMS! Equity Skimming Phony Counseling Agencies

What are your alternatives?

Special Forbearance

Mortgage Modification

Partial Claim

Pre-Foreclosure Sale

Deed in Lieu of Foreclosure

Short Sale

How to Buy or Sell Short Sale Homes – Ronny Budiutama

Bagaimana Membeli atau Menjual Rumah yg Short Sale

Short Sale Properties

DEFINITION

A real property sales transaction wherein the seller’s mortgage lender agrees to accept a loan payoff of less than what is owed.

Why Lenders Accept Short Sales

Lenders want to minimize its losses

When Lenders receive Properties, they incur costs and responsibility for property taxes, maintenance and other fees

Timeline to foreclose a property requires at least 6 months after seller’s first missed payment (Short Sales might be completed within 2 months)

It’s costly for lenders to foreclose on properties

Disadvantages

Takes more time than a regular sale (approx. 2 months more)

Lenders are not obligated to agree to a short sale They may opt for a foreclosure if they

believe they can get more money Accepted offer by the Seller may not be

accepted by the Lender. Seller might continue to send higher and more attractive offers.

Advantages

Property is maintained when Seller Occupies the property.

You can get the property at a discounted price.

Short Sale Process

Things to Know About Short Sale

The Lender may or may not approve offers. The lender will appraise the property.

The decision on prices will be up to the lenders/short sale negotiators.

Buyers need to wait from 1 months to 3 months to get lender’s approval.

Offers to be submitted with pre-approval letter and proof of funds.

How to Buy Bank Owned/REO Properties – Joachim Bucker

Bagaimana Membeli Rumah yg Bank Owned (REO)

BANK

Definition

REO = Real Estate Owned

It is a property which is in the possession of a lender as a result of foreclosure.

Advantages of buying a REO

Fast answer from Lender Short Turnaround Low Price

Disadvantages of buying a REO

Property may be in poor condition Few Disclosures, if any Property could stay active as a listing through the

process Some Lenders can reserve the right to cancel anytime Some Lenders have their own contracts (in their favor) Lender chooses its own Title/Escrow Company After acceptance, short contingency period (5 to 7 days) Removal of all contingencies within 10 days

REO Buying Process

Buyer-Agent-Agent-Lender. Acceptance within 48 hours Buyer has 48 hours to review and accept Lender’s contract 7 days to do Home Inspection, remove Contingency After 7 days, remove Loan and Appraisal Contingency All Contingencies removed within 10 days The process is done within 30 days net, any extra day may

be fined $150 to $350/day

Issues

Buyer must be prepared and pre-approved with a Lender

Financing must be ready to go because within 7 days, the Loan Contingency will be cleared

How the government can help you buy a home – Jackie Oei

Bagaimana Pemerintah Baru Akan Membantu Anda

Stimulus Bill 2009 Overview Passed through Congress and signed into law by

President Barack Obama on February 17, 2009 Various provisions including:

Tax relief for individuals and companies Healthcare Education Infrastructure Investment Aid to low-income, unemployed, and retirees Energy Housing Scientific Research

Housing Provisions Included in Tax Relief for individuals Homebuyer Credit: $8000 credit for First Time

Homebuyers if home is bought between 1/1/2009 and 12/1/2009

Home Energy Credit: For homeowners who make their homes more energy efficient in 2009, they can receive credit for 30% of the cost up to $1500 i.e. Installing energy efficient windows, doors,

furnaces and air conditioners $12.7 Billion for Other Housing Provisions

Who qualifies for the Credit?

Homebuyer Credit First time homebuyers meaning you have

not owned a home for the past three years Home bought between 1/1/2009 and

12/1/2009 Credit phases out as your income increases

starting at $75K for singles and $150K for couples

Apply by filing your income taxes and claim it on your tax return

California Tax Credit 2009 New Homes/New Construction bought

between March 1, 2009 – March 1, 2010 $10,000 Tax Credit No Income Restrictions Anyone can apply, does not have to be a

FTHB

Below Market Rate Units (BMR)

New construction required to set aside 15% as BMR units for more than 5-unit developments

Must be sold to low to moderate-income households

Price is restricted by City if you resell (lower appreciation)

Works on a lottery system

Below Market Rate Units (BMR)

Down payment Assistance Loan Program

Financed through Mayor’s Office of Housing (MOH) DALP will act as a second loan to an approved first

mortgage lender Term will be deferred for 30 years, due on sale or title

transfer Maximum loan amount is up to $150,000 or 30% of the

purchase price, whichever is less Only for market rate units, does not include BMR Size of household must be compatible with size of

property being purchased Repayment proportional to amount borrowed

Applicant Eligibility

Borrower Must: Be a First Time Home Buyer purchasing a Single Family Home in San

Francisco Meet Income Limits Qualified Household Member Minimum 2.5% Down payment, not including Closing Cost Asset/Reserve Limitation Qualify for First Mortgage with an approved lender Homebuyer Education Certificate Owner Occupied

DALP Income Limits

Household Size

1 2 3 4 5 6 7

80% AMI $52,800 $60,350 $67,900 $75,450 $81,500 $87,500 $93,550

90% AMI $59,400 $67,900 $76,350 $84,850 $91,650 $98,450 $105,250

100% AMI

$66,000 $75,450 $84,850 $94,300 $101,850 $109.400 $116,950

110% AMI

$72,600 $83,000 $93,350 $103,750 $112,050 $120,350 $128,650

120% AMI

$79,200 $90,550 $101,800 $113,150 $122,200 $131,300 $140,350

Maximum Loan Limits

Household Income

80% AMI and

under

81%-90% 91% - 100%

101%-110%

111% - 120%

Subsidy Up to $150,000

Up to $135,000

Up to $120,000

Up to $105,000

Up to $90,000

Maximum DALP loan amount is up to $150,000 or 30% of purchase price whichever is less. The loan amount will be determined based on the applicant’s income, assets, size of household and debt to income ratio

Purchase Price capped at $625,000

Loan must be 30 years fixed, fully amortizing

Next Steps

List of Approved Housing Counseling Agencies

Asian, Inc.

www.asianinc.org

Mission Economic Development Association (MEDA)

www.medasf.org

San Francisco Consumer Credit Counseling Service of San Francisco (CCCSF)

www.housingeducation.org

San Francisco Housing Development Corporation (SFHDC)

www.sfhdc.org

San Francisco Urban Community Housing Corporation (SF Urban CHC)

www.sfurbanchc.org

How to lower your mortgage payment without selling – John Oei

Lower your Mortgage Payment

What is Loan Modification?

1. Lower the Interest Rate (by 1/8%)2. Reduce or Defer the Principal3. Extend the amortization period4. Soon…..Mortgage Credit Certificate

(MCC)Part of the Stimulus Plan 2008

Who Qualifies?

1. Must have Financial Hardship2. Owns a Home as a Primary Residence

More solutions for Homeowners, less for investment properties.

Laws & Regulations CA ABX2 7 Foreclosure Moratorium 1. Imposes a 90 day foreclosure moratorium to allow

distressed homeowners time to work out loan modifications with their lenders.

2. Allows lenders to avoid the moratorium if they have a comprehensive loan modification program based, in part, on criteria set forth by the Federal Deposit Insurance Corporation. Loans may be modified several ways, including interest rate reductions, extension of the loan term, or principal reduction.

3. Provides oversight and accountability by requiring regular reports to the legislature on loan modifications and foreclosure reductions, and coordination with appropriate state regulators.

Foreclosure Timeline

Intent for Notice of Default

Sent

30 Days

Notice of Default

Recorded

90 Days

Notice of Trustee’s

Sale

2 weeks

Trustee’s Sale If no bid,

forecloses and becomes REO

If Owner occupied:

□ 3 Days notice to pay rent or quit

□ 5 Days Summon

□ May take more than 1 month to be evicted

What is Hardship?

Divorce Loss of Income / Loss of Job Sickness Disability Others…. Need to make Hardship Letter

Lower Interest Rate

Lower to 1/8 % and compare if you have 31% of your income for paying PITI, principal, interest, tax, insurance.

Reduce / Defer Principal

Reduce principal amount to Market Value of the House

Extend Amortization Period

Extend to 50 years or more to reduce the monthly payment

Mortgage Credit Certificate

Qualify only if you have Mortgage Credit Certificate

First Time Home Buyer (does not own a home for 3 years).

Annual tax credit of 15% of the annual interest paid on the mortgage.

Income Limit and Purchase Price Limit

Income Limit

Size of Household Non-Targeted Area Targeted Area

For 2 persons $ 135,720 $ 135.720

3 or More $ 158.340 $ 158.340

Purchase Price Limit

Type of Property Non-Targeted Area Targeted Area

Existing Home 696,118 850,810

New Home 601,950 735,716

Example of Reduce the Interest Rate

Effective Interest Rate Without MCC With MCC

First Mortgage Amount $300,000 $300,000

Mortgage Interest Rate 5.75% 5.75%

Term 30 30

Monthly Mortgage Payment Principal

$313.22 $313.22

Interest $1,437.50 $1,437.50

MCC Rate N/A 15%

Monthly Credit Amount N/A $215.63

Effective Monthly Mortgage Payment

$1,750.72 $1,535.09

Effective Interest Rate 5.75% 4.58%

Intake Form

Information on Home Being Foreclosed:

(Yrs Purchased, Mkt Value, Loan Bal, Int. Rate) Take Home Income Plus Other Income (Rental

Income) Monthly Expenses Net Income after paying expenses (-$ 400)=

Available to pay the mortgage. Mortgage Debt to Income Ratio (31-38%) Living Expense Ratio (41-48%)

Documentation

□ Hardship Letter□ Financial Statement & Intake Form□ W2, 1040, 1 month of Pay Stub□ Bank Statements to all account□ If Self Employed:

□ Personal tax Return and Corporate tax return

□ Profit & Loss Statement

Program Requirements

Buyers Eligibility: First time Homebuyer (Non-Targeted

Area), For Targeted Area, not required be first time homebuyer.

Meet Income Limits Owner Occupancy Homes must be in San Francisco Pay $ 400.00 to the City & County of San

Francisco

How to Increase your Credit – Vonny Oei

Bagaimana Memperbaiki Kredit Anda

CREDIT CONTROLS LIVES

Limit or expand our financial stability

Increase or decrease the quality of life you are living

Open or close doors to employment opportunities

Affect your income by way of interest rates

Limit or expand your purchase choices

What is a credit report? Your credit report is a snapshot of your credit

history It, almost by itself, will determine your eligibility

for future credit One of the main determinants on the report is

your credit score, a distillation of your credit history into a three digit number

This number is called the FICO score. It is named after the Fair Isaac Corporation, who invented the computer software used to derive it.

Provides risk assessment software to the 3 bureaus –

Equifax, Trans Union, & Experian

FAIR ISAAC COMPANY

Let’s Remember the Names

There are now FOUR credit bureaus:

Experian Equifax (TRW) – they had the first database TransUnion PRBC

□ Relatively new, about FIVE years old

□ Reports Non-Traditional Credit such as rent, cellphone, and insurance bills

□ Has its own 3 digit score

http://prbc.com

The credit bureaus will assemble data reported to them from utility companies, credit card companies, banks, credit unions, mortgage companies, and other lenders

When an account is started at a lender, it is reported to the credit reporting agencies

Each month the account is open, the lender sends a report to the credit reporting agency

Lenders, landlords and employers then purchase reports to assist them in assessing credit risk

Usually all three credit reporting agencies get the same information but not all the time

On occasion, an entry will show on one agency’s report that is absent on the others

You can now receive a free copy of your credit report from each of the three credit reporting agencies once a year. You should take advantage of this opportunity

Stagger your requests so you can receive a report about once every four months.

Note any changes or incorrect entries and evaluate them. If they are incorrect, take action at once.

What is on your Credit Report?

Your Address and past addresses Your Social Security Number Your Telephone Number

Credit items that are reported include both positive and

negative credit activity

Negative Credit Items:

Late payments Foreclosures Judgments Collections And any other negative factors

FICO Credit Scores

Credit scores and risk levels perceived by lending institutions:

Excellent: Over 750 Very Good: 720 to 749 Acceptable: 680 to 720 Uncertain: 620 to 679 High Risk: less than 620

Note: FICO scores are viewed differently by individual institutions according to each institution’s internal policy

How Many Points Do I Lose?

Trade Line Payments (8-20 Points) Late Payment on Mortgages (15-45 points) Paid/Unpaid Collections (15-30 points) Judgments (20-30 points) Federal and State Tax Liens (20-30 points) Foreclosure (45 points or more) Bankruptcy (70-100 points)

How Many Points Do I Lose?

Trade Line Payments (8-20 Points) Late Payment on Mortgages (15-45 points) Paid/Unpaid Collections (15-30 points) Judgments (20-30 points) Federal and State Tax Liens (20-30 points) Foreclosure (45 points or more) Bankruptcy (70-100 points)

□ 35% Payment History

□ 15% Length of Credit History

□ 30% Amounts Owed

□ 10% New Credit

□ 10% Types of Credit in Use

How do “Inquiries” count? HARD INQUIRIES

Only “permissible use” credit inquiries count against you including credit card offers

SOFT INQUIRIES

Credit reports you pull yourself or from a consumer site do not count

For Mortgage or Auto Loans: FICO counts multiple inquiries during a 14 day period as just once inquiry

- You should secure an account ASAP

How long does it stay on report?

BK 7, 11, 13 10 Years

Collections 7 Years

Public Record 10 Years

(Except Trans Union) 7 Years

Inquiries 2 Years

Know Your Rights!

Homework: Look for the following:1. Fair Credit Reporting Act

2. Fair Debt Collection Act

3. Fair Accurate Credit Transaction Act

4. Fair Credit Billing Act

5. HIPPA Act - Health Insurance Portability and Accountability Act

We are an affiliate office of:□ Over 15 years’ combined training and experience in specialty industries:

real estate, mortgage, debt management, and credit enhancement

□ Offers financial solutions and financial recovery strategies

□ Simplifies and deconstructs the complexities of credit-related and business growth issues.

□ Assesses the clients’ needs and recommends alternative choices and customized solutions packages

□ New York Times’ bestseller, “Debt Cures,” by Kevin Trudeau, mentions some of Clear Credit Exchange’s advice for the credit-challenged

□ CCE’s President and CEO also wrote the foreword to Jamaine Burrell’s book on “How to Repair Your Credit Score Now.”

□ The Clear Credit Exchange and Corporate Genesis offices are located in Santa Clara, California

You can do this on your own

OR

You can ask the Professionals for help!

How Can We Help You?

1. Call us with your questions

2. When appropriate, you will give us permission to pull your credit report. A dedicated April Financial Processor will work with you

3. We will have a strategy session for the next steps