FACILITATING

Your Property Connections has two customers, the seller and the Real Estate Agents. We pride our selves on working with the real estate community in such a way that benefits both the seller and Agent.

REFERRAL PROGRAM (SELLER)
If the owner of the home calls us, we will begin with all their options and help them decide what is the best way for them to go. Then proceed to give them the 1st few steps to begin that process. If they choose a short sale, YPC will assign an agent, meet with the owner to gather your documents (if you are local, if not we work by mail and fax) and within 5 days of having all your paper we we have the home listed actively and aggressively with an agent and a short sale package submitted to the lender. We give frequent updates to all parties and we are here to answer any questions. WHY CALL US? All we do is short sales, this is our specialty.

AGENT PROGRAM
Every agent that enrolls with our Facilitation Program is considered a partner in business. YPC has goals they need to reach such as any business, and YPC has designed a minimum goal for their partnering agents. We have a few different levels of participation for the Agent.

LEVEL 1
Agent has no minimums required, every agent has their own plan and can work with YPC on a case by case basis.

LEVEL 2
Every Agent is required to bring in a minimum of 2 files per month in order to reach the goals below.

Upon bringing in 2 files per month they will be rewarded by being put on a referral list. Any seller that YPC acquires through referrals or advertising will need a listing agent. YPC will give this seller to the next agent in line that has reached their goal.

LEVEL 3
Every Agent is required to bring in a minimum of 5 files a month which will put them on the referral list and have the availability of our office to make phone calls, use our conference room or an office on an appointment basis to meet with their clients for free.

Frequently Asked Questions

Your Property Connection, Inc. are not lawyers, accountants or foreclosure consultants. We cannot issue advise on any of these issues. We do advise you to consult with a lawyer and/or an accountant and read all documents that you are given so you are well educated about the process, and your decision. Thank you

In December of 2007 a bill signed by President Bush last week lets homeowners off the hook for a little-known tax bite that occurs when mortgage debts are forgiven. The reprieve applies to households that use short sales or other mortgage relief efforts during 2007, 2008 and 2009. Keep in mind that this has to be a PURCHASE $$$ loan, primary residence, and no liens against the house.

How much money will I receive from a short sale?
None, if a lender takes a short sale on your mortgage you will not receive any funds from the sale. Your bank is going to request a signed HUD Statement from the sale. This is a federal form that works like a receipt for the sale of the property. If we were to show you receiving no money on the HUD Statement provided to the bank, and then give you money, both you and our company would be guilty of fraud.

If I do a short sale, how much will I have to pay to sell my home?
Nothing, in most cases you will pay literally no sales costs if your lender approves the short sale. All commissions, title and escrow fees, and even most repair expenses are paid by the lender or the buyer as part of the short sale approval.

Can I simply deed my property to somone else and avoid the hassle?
Deeding your property to someone without paying off the loan is nearly always a bad idea. In the first place, the lender still considers you primarily responsible for payment on the loan. If loan payments do not get paid, or if the lender ultimately forecloses, this will show on your credit. Secondly, when you deed your property to someone else, you give up control of the property. Along with the deed goes the ability to control the property. Do not deed your property to someone without paying off the loan unless you have consulted with an attorney.

What sort of hardship would my lender consider legitimate?
To some extent, that will depend upon the lender considering the short sale request. Generally, so long as the hardship is real and the lender believes the loan is likely to become delinquent as a result, the short sale request will be processed by the Loss Mitigation Department.

Family illness or injury Disability Job Relocation Job loss/unemployment Forced Relocation Property equity deficient

Failed business Income Loss Separation/Divorce Adjustment in mortgage payment Increase in living expenses Death

I am current on my mortgage; will my lender consider a short sale ?
The answer is, maybe. Some lenders will accept a short sale file for approval on loans that are not delinquent. Other lenders will not accept the file until the loan is delinquent. We can put your short sale file together within a couple days and submit it for review. (Remember, there is no charge for this). That is the best way to determine if your lender will accept a file for short sale on a loan that is current.

Why would a lender agree to accept a short sale?
There are actually several reasons why a lender would approve a short sale payoff, including the following; Legal Concerns Mortgage lenders have come under legal pressure to work with borrowers to equitably resolve situations where borrowers are unable to meet their mortgage obligation, particularly when the borrower makes an effort to arrive at a compromise solution. Asset Management Expenses- If a lender acquires a property through foreclosure, the property will be managed until it is repaired and resold. It is expensive to manage real property. Reserve Requirement- For all delinquent and non-performing loans lenders must set aside funds in reserve to deal with potential losses. These funds cannot be put to work generating new loans until the bad loans are resolved.

I have two loans; can I still do a short sale?
Yes. a short sale transaction can work with 2,3 or 4 lenders but it is more difficult. In the end, no lender wants to own another home through foreclosure.

Who gets paid first?
The IRS, FTB, property taxes, primary lender, junior lenders and then anyone who has a lien on the property. This will change January of 2009 I just read an article that the IRS will take 2nd place to the lender if you apply. This is a huge change. Keep in mind it takes 30 days to apply for this. So if there are IRS liens on the property talk to the IRS about starting that process.

Do lenders approve all short sales?
NO, that is why it is critical to work with someone that has extensive experience at getting short sales approved. From the presentation of the short sale package to working with the lenders Loss Mitigations Department, it is important to find someone knowledgeable about the process. Also, many lenders such as Countrywide, SLS, Downey, Indymac have become servicers which mean they service the loan for an investor that actually holds the note. The short sale process needs to go through an approval process with the investor, this is what takes time.

I am concerned about my credit, how will a short sale affect my credit?
The big key here is to avoid foreclosure. By nearly any measure, a foreclosure is the most damaging event your credit status can encounter - worse than bankruptcy. In the course of getting your short sale approved you may miss your mortgage payments, and these will show on your credit. By avoiding foreclosure, you will likely be able to resume normal borrowing (car loans, credit cards, consumer goods and such) relatively quickly.

My income problem was temporary. Do I need to sell my home?
You may be able to keep your home, ask your lender for forbearance or a modification. You need to convince your lender of two things: The problem that caused the mortgage payment disruption was beyond your control illness, injury, temporary disability or forced job change are a few examples and you are now solidly in a position to stay current on your mortgage payments and make some progress towards making up the delinquent amount.

What is a Forbearance Agreement?
A Forbearance Agreement is a written agreement with your lender in which you arrange to keep your home. The agreement will normally include two primary elements: The borrowers promise to remain current on the mortgage going forward Some plan for making up the delinquent interest and other charges. It may mean making additional payments to the lender or the delinquent amount could be added to the loan to be paid later.

How do bankruptcies affect the possibility of doing a short sale?
Most lien holders won't consider a short sale if the homeowner is in bankruptcy...why? Because negotiating a short sale payoff is considered a collection activity. Collection activities are prohibited in bankruptcy. Look up 'bankruptcy' on the internet and read what kind of ramifications it has on credit. IT ALSO DEPENDS ON WHICH ATTORNEY YOU USE, some agree with short sales and some don't. YPC has a some great referrals, interview them and find out which fits your needs.

How late in the foreclosure process can someone begin a short sale?
It is best to have about 45 days remaining before a proposed Trustee Sale, to allow the lien holders to have a bare minimum time to review the a short sale package. Many lien holders prefer to have at least 90 days to review a short sale package, however, YPC has successfully closed short sale purchases with as few as 7 days until a trustee sale date.

How long does a short sale take?
It seems to be averaging between 3 to 10 months

What is the Time line for foreclosure?
8 months if you do nothing! 3 - 4 months late you received a NOTICE OF INTENT TO FORECLOSE (NOI) this expires in 30 days, 5th month you receive an NOTICE OF DEFAULT (NOD) this transfers the note to an attorney to proceed with the foreclosure, 6th - 8th month is the actual foreclosure period, then there is 3 weeks of an advertising period and given a sale date and then it is sold at an auction. This is providing the lender is on track with their paperwork.

What is a Due on Sale Clause?
"Due on Sale" Clause (DOS) Provision in a mortgage or deed of trust calling for the total payoff of the loan balance in the event of a sale or transfer of title to the secured real property. A contract provision which authorizes the lender, at its option, to declare immediately due and payable sums secured by the lender's security instrument upon a sale of all or any part of the real property securing the loan without the lender's prior written consent. For purposes of this definition, a sale or transfer means the conveyance of real property of any right, title or interest therein, whether legal or equitable, whether voluntary or involuntary, by for deed, leasehold interest with a term greater than three years, lease-option contract or any other method of conveyance of real property interests. Standard language which states that the loan must be paid when a house is sold.

Will lenders allow a short sale when the owner has some or a good amount of equity?
If a property has what the lender would consider a substantial amount of equity, chances are they would consider allowing the property to foreclose and then reselling it closer to the retail value.

Why do banks short sale?
Here are the most common reasons banks will agree to a short sale:
The mortgage is in arrears or foreclosure.
The property is in poor condition.
The homeowner has hardships and cannot afford the payments.
New homes in the area are being chosen over existing homes.
The area or neighborhood has depreciated in value.
The banks shareholders are concerned when there are too many defaulting loans on the books.
Some banks are required to prove a loss each month
Some banks are required to have an amount equal to or up to six times the retail value of each REO.
An REO is a liability, not asset. Too many liabilities will cause any business to go under if not dealt with quickly.

Why does the short sale process work?
Your lender runs different scenarios on your property to determine what they will get for a return on their investment. Your lender takes the following factors into consideration:

• The foreclosure process costs them money.

• They may have to pay Realtor costs of up to 6% of the selling price of the house.

• There are holding costs involved, for example, how long will the house stay on the market?

• They may have to make repairs on the property.

• They have to carry property insurance.

For these reasons, the bank is sometimes willing to take less than what is owed on a property. The question we ask is "Does the bank want their money now?" or "Do they want the same amount of money, or possibly less money, six months from now when the property goes into full foreclosure?" A bank must decide if they are willing to take the chance on a short sale. If the bank goes into foreclosure the bank incurs expenses such as lost payments, attorney fees, Realtor fees and possible court costs.

Can I short sale a nice property?
Absolutely! As you can see, banks short sale for many reasons other than the poor condition of the property. My property is in rough shape and needs work; can I still do a short sale? Absolutely,the lender knows the risk of loss goes up when they foreclose on a property that needs lots of work. Aside from expense of completing the work, lenders are simply not set up to get the work done. They are in the loan business, not the fix-it business.

Why should I, the homeowner let YPC purchase this property? What makes YPC different than other investors?
We have the staff, the facilities, knowledge and the willingness to devote great deals of time to purchase any hardship property.

What are some of my other alternatives?
Our company is not a tax adviser, an attorney, a real estate professional, or a representative of your lender. However, some of your other options are as follows; ask YPC for our options page for more detail.

• If you want to keep the house try these options.

• Continue paying the loan and wait out the slump, refinance, personal or hard money loan, Talk to your lender about forbearance.

• If you do not want to keep the house these are your options (see the foreclosure page for details)

• For sale by owner, deed-in-lieu of foreclosure, short sale, bankruptcy.

Can I repair my credit?
You can repair your credit. We have a great credit repair program for you, visit that page and see.

Do you have to put a sign in my front yard?
Yes. There needs to be interest created in your property. Signs also make it easier for [erspective buyers to spot the house.