FFROMROM W WALLALL S STREET. . .TREET. . .TTOO M MAINAIN S STREET. . .TREET. . .

TTOO E ELMLM S STREETTREET

Sandra M. Bonato, Sandra M. Bonato, Esq.Esq.

Wall StreetWall Street

Financial MeltdownFinancial Meltdown Lost Consumer ConfidenceLost Consumer Confidence Major Institutions Fail or Need Bail OutMajor Institutions Fail or Need Bail Out Bank Failures / ConsolidationsBank Failures / Consolidations

Main StreetMain Street

Credit UnavailableCredit Unavailable Consumer Spending TightenedConsumer Spending Tightened Businesses StruggleBusinesses Struggle Jobs are LostJobs are Lost

Elm StreetElm Street

Massive Lender ForeclosuresMassive Lender Foreclosures Underwater EquityUnderwater Equity Home Sales SlumpHome Sales Slump Housing Starts StopHousing Starts Stop Unemployment LoomsUnemployment Looms Assessment Delinquencies SkyrocketAssessment Delinquencies Skyrocket

Federal Financial Rescue BillFederal Financial Rescue Bill

$750 Billion Package$750 Billion Package Stabilize EconomyStabilize Economy Protect Credit and JobsProtect Credit and Jobs Mortgage and Foreclosure ReliefMortgage and Foreclosure Relief

But when?But when?

Will it come soon enough?Will it come soon enough?

Can Elm Street hold on?Can Elm Street hold on?

Money You Money You Don’tDon’t Have Have

Delinquent AssessmentsDelinquent Assessments Outreach LetterOutreach Letter Meet-and-Confer ProgramMeet-and-Confer Program Strict ConfidentialityStrict Confidentiality Fair Debt Collection Practices ActsFair Debt Collection Practices Acts Foreclosure Trustee AgreementsForeclosure Trustee Agreements

Money You Money You DoDo Have Have

Making it StretchMaking it Stretch FDIC ProtectionsFDIC Protections

DepositsDeposits $250,000 (Temporarily)$250,000 (Temporarily) Non-Interest Bearing Accounts Non-Interest Bearing Accounts

(Temporarily)(Temporarily) Setoffs for Bank LoansSetoffs for Bank Loans

Foreclosing and Taking RentsForeclosing and Taking Rents

In Lieu of Eviction – Former OwnersIn Lieu of Eviction – Former Owners New TenantsNew Tenants

Licensed Real Estate ProfessionalLicensed Real Estate Professional Requires Foreclosure / Lost Personal Requires Foreclosure / Lost Personal

ObligationObligation Subsequent Lender Foreclosure or WorkoutSubsequent Lender Foreclosure or Workout Rent Skimming / One-Year RuleRent Skimming / One-Year Rule

Major Repair ProjectsMajor Repair Projects Many ResourcesMany Resources

ReservesReserves Special AssessmentsSpecial Assessments Assessment IncreasesAssessment Increases Reserve Allocations in Operating BudgetReserve Allocations in Operating Budget Bank Loan LeveragingBank Loan Leveraging

Contract Review / Termination ClauseContract Review / Termination Clause

Can Elm Street Make It?Can Elm Street Make It?Yes, It Can.Yes, It Can.