FHA Credit Guide Lines - Foreclosure and Short Sales Part IV

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DEROGATORY CREDIT CAN’T STOP YOU! COLLECTIONS, CHARGE OFFS, JUDGEMENTS, TAX LIENS AND LATE PAYMENTS CANNOT STOP YOU FROM BUYING NOW

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FORECLOSURE AND SHORT SALES

PART IV


Eric Lawrence Frazier, MBA President|CEO|Broker CaLDRE 01143484 | NMLS 461807 800-401-8994 ext. 703 The Power Is Now Inc. CAldRE 1980407 | NMLS 1435243


INTRODUCTION ERIC LAWRENCE FRAZIER, MBA President | CEO | Broker CALDRE 01143484 | NMLS 461807 THE POWER IS NOW INC. CALDRE 1980407 | NMLS 1435243 MEDIA COMPANY ESTABLISHED 2009 Radio | TV | Magazine | Events | Mortgage Services | Real Estate Services ADDRESS: 3739 6th Street Riverside, CA 800-401-8994 ext. 703 eric.frazier@thepowerisnow.com 4


PRESENTATION DISCLAIMER The Power Is Now Mortgage Services is a Mortgage Brokerage licensed by the State of California Bureau of Real Estate (license #1980407) and the National Mortgage License System and Registry (license #1435243), and is a division of The Power Is Now Inc. (license # 01980407). The Power Is Now Inc. is not affiliated with any state or federal agency. The Power Is Now Real Estate Services is also licensed by the State of California Bureau of Real Estate (licensed #01980407), and is a division of The Power Is Now Inc. The Power Is Now Inc., is an Equal Housing Lender. Our corporate office is located at 3739 6th Street Riverside, CA 92501. Our Telephone and Fax number is 800-4018994. Eric Lawrence Frazier MBA, is a California licensed Loan Originator (NMLS license # 461807), and a licensed Real Estate Broker (CA Bureau of Real Estate license #01143484). Restrictions may apply to all loan programs. The Information and/or data is subject to change without notice. All loans are subject to credit approval. The information is not a commitment to lend or extend credit. Not all loans or products are available in all states. The Power Is Now Mortgage Services and Real Estate Services are A Division of The Power Is Now Inc., and are only licensed to conduct business in the State of California.

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MISSION The mission of the Power of Now Inc., is to inspire, educate, and empower real estate professionals, and consumers to build wealth through real estate with information, services and support that will give them the power to act now for their future.

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VISSION The mission of the Power of Now Inc., is to inspire, educate, and empower real estate professionals, and consumers to build wealth through real estate with information, services and support that will give them the power to act now for their future.

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OUR COMPANY MANTRA

WE ARE AT OUR BEST AND WE MAXIMIZE OUR SUCCESS WHEN WE ACT NOW. OUR POWER IS NOW! 18


OUR COMPANY SLOGAN

WE MAKE HOMEOWNERSHIP DREAMS A REALITY

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INTRODUCTION As a Mortgage Brokerage, The Power Is Now Mortgage Services has access to many lenders that offer programs for first time homebuyers, move up buyers, investors, churches, non-profits and foreign nationals. We are a full service mortgage brokerage.

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DEROGATORY CREDIT CAN’T STOP YOU! COLLECTIONS, CHARGE OFFS, JUDGEMENTS, TAX LIENS AND LATE PAYMENTS CANNOT STOP YOU FROM BUYING NOW

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10 PART CREDIT SERIES

Collection Accounts

Judgements Tax Liens

Bankruptcy 7 and 13

Foreclosure and Short Sales

Deed In Lieu of Foreclosure

Credit Counseling.

Debt and obligations

Divorce and Separation

Student Loan Debt.

Strategies to improved your credit scores.


FORECLOSURE AND SHORT SALES

PART IV


AGENDA

Pre-Foreclosure Sales (Short Sales)

Deed-in-Lieu of Foreclosure

Foreclosure


PRE-FORECLOSURE SALES (SHORT SALES) Pre-Foreclosure Sales, also known as Short Sales, refer to the sales of real estate that generate proceeds that are less than the amount owed on the Property and the lien holders agree to release their liens and forgive the deficiency balance on the real estate.

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PRE-FORECLOSURE SALES (SHORT SALES) UNDERWRITING GUIDELINES

The Lender must document the passage of three years since the date of the Short Sale. If the Short Sale occurred within three years of the case number assignment date, the Lender must manually underwrite the loan. This three-year period begins on the date of transfer of title by Short Sale.


PRE-FORECLOSURE SALES (SHORT SALES) REQUIRED DOCUMENTATION

If the credit report does not verify the date of the transfer of title by Short Sale, the Lender must obtain the Short Sale documents.


FORECLOSURE UNDERWRITING GUIDELINE The Lender must manually underwrite the loan if the Borrower had a foreclosure in which title transferred from the Borrower within three years of case number assignment.

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FORECLOSURE REQUIRED DOCUMENTATION If the credit report does not verify the date of the transfer of title through the foreclosure, the Mortgagee must obtain the foreclosure documents.

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DEED-IN-LIEU OF FORECLOSURE UNDERWRITING GUIDELINES The Lender must manually underwrite if the Borrower had a DIL of foreclosure in which title transferred from the Borrower within three years of case number assignment.

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DEED-IN-LIEU OF FORECLOSURE REQUIRED DOCUMENTATION If the credit report does not verify the date of the transfer of title by DIL of foreclosure, the Lender must obtain a copy of the DIL of foreclosure.

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DEROGATORY CREDIT CAN’T STOP YOU! COLLECTIONS, CHARGE OFFS, JUDGEMENTS, TAX LIENS AND LATE PAYMENTS CANNOT STOP YOU FROM BUYING NOW

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