ARE YOU A HOMEOWNER IN

“DISTRESS” AND

FED-UP WITH YOUR

SITUATION?

Beware of Real Estate Investors,

Mortgage Brokers, Attorney’s, and Your

Friendly Realtors

The “Information” Pack

Information Pack

Property Address: _______________________________

Date: _____________________

Dear __________________________________

My name is Ricky O. Gibson, Sr and I wanted you to have this important

information concerning several great options you have regarding your property and

its’ current situation. I can be reached at 318.717.1063

I want you to know that you have several options other than losing your home in

foreclosure. Please read these options and feel free to call me anytime to discuss

the right option for your situation. There is absolutely NO CHARGE for calling

me. I am here to help you any way I possibly can.

Once you decide to work with me, I will contact the bank on your behalf and take

this tremendous pressure off of you. Banks can be sneaky and can find ways to

talk you into giving your house back to them which is great for them and terrible

for you. If you choose that option, you’ll end up with a foreclosure on your credit

report and a possible deficiency judgment. The bank never tells you this vital

piece of information.

My job is to help you make the right decision for your situation. Since each

situation is different I want to share this Information Package with you so that

you will understand your choices and make a good decision for your family.

Here are some of your options:

1. A Loan Modification

2. A Forbearance Agreement

3. Subject-To

4. A Short Sale

5. Chapter 13 Bankruptcy

6. Deed-in-lieu of foreclosure

7. Do nothing and lose your home

Please take a few minutes to read each of these options. I will be awaiting your

call at 318.717.1063

Sincerely

Ricky O. Gibson, Sr

As Innovative Real Estate Investors, LLC

In December 2010 the Federal Trade Commission came up with what we believe

is a fantastic bill. It is called the “MARS ACT” - Mortgage Assistance Relief

Services.

This bill applies to anyone who offers homeowners assistance with their

mortgage: attorneys, real estate investors, real estate agents, mortgage

brokers, and more.

Here is the jist of the bill:

No one can charge you a fee in advance for anything

No one can advise you to cease communication with your bank

No one can charge you a fee as they do certain parts of the service

No one can make guaranteed promises as to what they can do for you

They must tell you that they are a for-profit company and that they will

make money if they are able to provide the services promised

They must not tell you to stop making payments to your bank and must

advise you of what will happen if you continue to miss payments

They can’t tout special “insider” bank information to make you feel they

have more experience than they do

You are able to walk away from the deal if at any point you feel

uncomfortable and want out

No one can practice deceptive practices knowing that you are a

homeowner with no experience in this arena

Basically – NO ONE can take advantage of you!

In order to comply with the MARS act we want you to be aware that it exists and it is our intention to follow it to the letter. Please sign your name and date this explanation agreeing that you have read and understand it: __________________________________________________________________

Homeowner(s) Date

For a full disclosure of the MARS bill please research it online.

What should we do?

Loan Modifications, Forbearance Agreement, Subject-To, Short Sale,

Bankruptcy, Deed-in-lieu, Do nothing.

This handbook is a quick reference to help you decided what is best for your

family. Please contact an attorney for legal advice, an accountant for tax advice, a

mortgage broker for loan information and questions or a real estate broker for real

estate information and questions however read the last few pages of this handbook

first.

Step 1: What’s best for my family?

You need to ask yourself today, what do you want to do? Live in your home or

move? What’s best for your family? The following pages will talk about several

areas of your financial and family needs. This is just a guideline which offers

suggestions and ways to help you. Each family has their own individual needs so

we suggest that you use all resources available to you.

Continue to live in my home

1. Family Budget

2. Loan Modification (1) or

3. Forbearance Agreement (2) or

4. Bankruptcy (5)

5. Who can help me?

Move out of my home

1. Family Budget

2. Short Sales (4) or

3. Subject-to (3) or

4. Foreclosure by doing nothing and losing your home (7) or

5. Deed-in-lieu (6)

6. Who can help me?

7. Important Resources that are Free…US!

What programs are available for me?

You’ll need to complete an Income and Expense Worksheet (see the Resource

Page for this form). It would be very helpful and will save you time if this was

completed before you see your housing counselor. There are several programs

available in which your counselor will discuss with you:

Home Affordable Modification Program (HAMP)

Principal Reduction Alternative (PRA)

Second Lien Modification Program (2MP)

FHA Home Affordable Modification Program (FHA-HAMP)

USDA's RHS Special Loan Servicing

Veteran's Administration Home Affordable Modification (VA-HAMP)

OPTION #1 “THE LOAN MODIFICATION” and the

“TRIAL MODIFICATION”

A loan modification simply means to change or modify the terms of your original

loan. There are several types of loan modifications that may be available to you

depending on the type of loan you have (Conventional, FHA, VA, etc.) and who is

holding your loan. In some cases this can mean having the payment reduced and/or

having some or all of the delinquent payments added on to the end of your loan.

Loan modifications are not automatic and you will have to qualify to receive one.

You may be contacted by various entities that want to “help” you get a loan

modification. Virtually all of them charge an upfront fee that may range to

thousands of dollars with no guarantee that you will actually receive the

modification. You should avoid dealing with such people at all costs. They are out

to take your money and not to help you. This is against the law read on MARS

disclosure on page 4.

You can work directly with your lender, but as I mentioned earlier, be very leery of

what they tell you. Don’t take anything you are told on faith – get it in writing. If

the tell you they are delaying the foreclosure, verify that with the Public Trustee.

There have been many instances of people who thought their foreclosure had been

delayed or cancelled while they were talking with their lender only to find out after

the fact that their home had been sold at auction.

Remember, the loan modification simply means to change or modify your original

loan.

Example:

$200,000 Value of the home

$185,000 What is owed

$ 1,500 Monthly Payment

$ 10 Payments behind

$ 15,000 What is owed to bank in back payments

$ 2,500 Attorney fees

Call the bank and tell them you have one or two payments saved and that you want

to do a loan modification. This means the bank will put the other eight or nine

payments on the end of the loan, increasing your original loan by a few months in

length or they will re-modify the loan from an adjustable rate to a fixed rate.

Typically the bank will require 1-2 of the back payments to be made plus, all

attorney fees. If you have not saved any of the money that was supposed to be

used for mortgage payments, you would not be able to take advantage of this

option.

Example:

10 payments behind at $1500 per payment. You pay 1 payment plus attorney fees.

Due to the bank is

1500 x 1 = $1,500

Attorney $ 2,500

Total Due $4,000

Note: If you have late payment fees, back real estate taxes, property inspection

charges or forced insurance that has been added to your payment, the bank will

make you pay this at this time as well. Sometimes they will waive the late fees.

You will end up paying $4,000 to get current and to get out of foreclosure instead

of $17,500.

Remember this point

You can only do 1 loan modification per year. You can do a total of 4 over the

length of the loan, but no more than one per calendar year. If you refinance with

another mortgage company then the loan modifications you did with the current

mortgage company won’t count – a new mortgage company equals a clean slate.

With many of the NEW government bills in place the banks may be more

lenient at this time.

The bank might ask for “Proof of Funds.” This means you have to prove you have

the $4,000 or proof that you are borrowing the funds, if so where are you getting

the money from. The bank may ask for a copy of your last 12 months of bank

statements.

WHAT IS A TRIAL MODIFICATION?

The bank will put you on a “TRIAL MODIFICATION” this is when the bank put

you on a Trial bases with the new payment that you qualify for. The trial period

will last approx. 5-6 months. If you make all of the payments on time and I mean

ON THE DAY DUE OR BEFORE…NOT ONE DAY LATE…then the bank will

put you on a 5 year modification. After the 5 year period the bank will review

your situation at that time. You must not miss any payments in the “Trial Period.”

Once this is done, you are one step closer to keeping your home. If you choose

this option call me for some FREE advice so I can help you with this process.

OPTION #2 “THE FORBEARANCE AGREEMENT”

WHAT IS A FORBEARANCE AGREEMENT?

If you don’t qualify for the Loan Modification, then The Forbearance Agreement

may be better for you. The Forbearance is a workout agreement with the bank.

Example:

10 Payments behind

$1,500 per Payment

$2,500 Attorney Fees

$17,500 Total Due to Bank without late Payment Fees or Insurance

fees, if any.

Here is how a Forbearance Agreement works:

The bank will always ask for attorney fees and then approximately 40%-50% of

the back payments.

Let’s look at this Example:

$2,500 - Attorney Fees

$6,000 - 4 of the 10 Payments

$8,500 - Total Due

You need $8,500 to enter into the Forbearance agreement. The balance of the 6

payments will be processed accordingly.

You have to qualify for this. Everyone qualifies, it’s just some will pay over 12

months, some over 6 months.

Example:

$8,500 Down

6 Payments. Balance owned. 6 x 1500 = $9,000

This $9,000 depending upon your monthly income will be added to your monthly

payment as follows.

Example:

$1,500 is your monthly payments you qualify for a 9 month program

which means your new Payment will look like this:

$1,500 Old Payment

$1,000 x 9 for past monthly payments

$2,500 per month for the next 9 months

Then at the end of the 9 month period, your payments will go back to $1,500 per

month.

Remember these 2 Important Points:

1.) 90% of homeowners fall out of the Forbearance agreement in the first 2-3

months, because of the failure to pay.

2.) Just because you have worked out a deal with the bank, you are not out of

foreclosure. You are still in Foreclosure until your 9th payment of $2,500 is made.

Then and only then, will you get a foreclosure withdraw letter from the bank,

stating your loan is current. In the meantime, the bank will keep passing the

foreclosure sale date every month.

Let’s look at how this is done:

Let’s say today is March 26th and you make a deal with the bank on this day.

They will have you wire transfer or Western Union your money to a special

account. Do not just mail your check in, the bank will tell you where to Fed-

Ex a cashier’s check if they want you to. They will not take personal or

business checks at this time. The bank will require certified funds.

Let’s say today is March 26th. You need to send your $8,500 payment to the

bank. Then starting on May 1st, your first payment, of the nine new

payments, is due. Remember, the new payment amount is $2,500.

You will need to send this payment Certified Funds or however the Bank

requires 3-4 days before it is due to make sure they receive it in time. You

will be sending it on the 26th or 27

th of every month. On the day before it is

due, you need to call the bank to verify they received the money in time.

This is a must.

This is how your foreclosure sale dates will look:

Let’s say today is March 26th, you send $8,500. The sale date was April 6

th.

After receiving the $8,500, the bank calls the public trustee office or the

foreclosure file room, (or whoever sells the foreclosures in your area) and

sets a new sale date of May 6th

. You make the payment on May 1st of

$2,500. When the bank receives that payment, they will call and move the

new sale date to June 6th

. You make the June payment then the bank will

move the sale date to July 6th

. If you miss the July payment that was due July

1st, on the 2

nd of July, you do no longer have an agreement with the bank.

Your forbearance agreement has been voided. Your house will go to sale on

July 6th

, and you will get evicted.

Now you are in trouble; however, there is still hope. Let’s re-think what has

happened here. You now only owe the bank $7,000 from the foreclosure,

plus your $1,500 for the July payment, which is your basic monthly

payment.

You used to owe $17,500, of which you paid $8,500 down and 2 payments

of $1,000. You really paid $2,500 per month; however, $1,500 per month is

for your normal May and June payments.

So you have $17,500

- $ 8,500 Down Payment

- $ 2,000 Payments (May and June)

$ 7,000 Due on past payments

+ $ 1,500 July Payment

$ 8,500 New Total due to the Bank

Let’s say today is July 3rd

, you owe $7,000 from the foreclosure and $1,500 from

the July 1st payment, which totals $8,500. This is your new total with the bank.

Now you call the same rep from the bank and do another forbearance agreement on

the $8,500. The bank will want $4,250 down, and the balance of $4,250 will be

split evenly over the next 7 months. This now makes your new payment for August

$1,500 plus $607.14 or $2,107.14. Your new payment will be $2,107.14 from

August 1st through February 1

st.

After Feb. 1st, if all payments are made on time, this is when you are out of

foreclosure and March 1st is when your old payment of $1,500 will resume.

This is truly a great option for homeowners. This is a strict plan and you do need

my assistance to do this.

I charge a small fee for helping homeowners do this. Please call me so I can help

you save your home. Remember, banks are sneaky, don’t trust what they say,

everything must be in writing, before any money is sent to them.

Call me at 318.717.1063 to help. Let me show you how to work the system.

OPTION #3 THE SUBJECT-TO

This could be one of your best options. Let’s discuss this option… you, the

homeowners, will convey the property to me by Warranty Deed or Quitclaim

Deed. In exchange, we can pay the arrearages to bring the mortgage current can

make the monthly mortgage payments until the property is sold or refinanced,

whichever comes first.

We will file the deed at the courthouse to protect our interest. We will pay you an

agreed upon amount of consideration when the property is deeded to us and then

we will discuss a date for you to vacate the premises. The objective of this method

is for us to take over the existing loan, bring the payments current, keep them

current for the length of our agreement, and therefore relieving you of the monthly

debt.

This agreement should be 3-5 years in length. The longer we make the payments

for you, the better your credit gets. If we pay the mortgage off immediately your

credit does not get any better and it will take years for you to rebuild your credit.

In every option, including this one, we want to make sure that all parties involved

are made aware of the details of this transaction.

REMEMBER… you, the homeowners, are being made aware that your names will

remain on the mortgage and although we intend to pay the mortgage payments on

your behalf, you remain fully liable for the mortgage payments.

For example, your property has a mortgage that is $9,000 in arrears, the monthly

mortgage payment is $1,500 per month and you are 6 payments behind. You, the

homeowners, want $1,500 cash to walk away from your property. In exchange for

clear and marketable title, I agree to pay the arrearages of $9,000 to the bank in the

form of a cashier's check or wire transfer. At this point when we pay the bank and

give you your money, you must vacate the premises. Our Equity Agreement must

be signed if you choose this option.

If you have, any questions about this option call me at 318.717.1063

OPTION #4 THE SHORT SALE

Briefly, a “short sale” is negotiating with a mortgage holder (bank) to accept less

than what is owed as payment in full.

A short sale is a strategy when there is a distressed homeowner who owes the bank

close to or more than what the property is worth.

Here is how it looks: The homeowners owe $200,000 to their first mortgage

holder and the payments are in arrears. Their property is worth $200,000 in

retail condition. With the proper negotiating strategies, we get the bank to

accept $100,000 to 150,000 as payment in full. Purchasing a $200,000 retail

property for 50% - 70% of its value is where we both are paid.

With proper negotiations, we take deals that most investors would pass on and turn

them into amazing deals. Most of our happiest homeowners have come from deals

that had no equity.

There are many controversies surrounding short sales. Many investors state that

banks do not do them or that you cannot get good deals anymore. The key to a

successful short sale is to build a great case.

We take the time to build a relationship within the banking industry. Building

these relationships will insure our success to help other homeowners.

Do not let anyone discourage you from working with me on this process. Work

with us and we will provide the solution for your situation. Ultimately, that is what

you want, isn’t it?

YOU MIGHT ASK…WHY DOES THE BANK SHORT SALE?

There are many reasons why banks accept short sales. The main reason is because

the payments are late and you, the homeowners, can prove that you can no longer

afford the property.

The property does not have to be in foreclosure for the bank to accept a short

sale. Some banks require the foreclosure notice to be served, while others

will accept a short sale when just a few payments are late.

There is no specific number of payments that must be delinquent for the bank to

open a short sale. Often homeowners will call us when they are not yet in default,

but cannot make any more payments. In this case, we contact the bank on behalf

of the homeowner (after you sign the Authorization To Release Information form)

and let them know that you won’t be able to make any more payments and to open

negotiations for a short sale before the payments are even late.

Let us look at a few more reason why banks short sale:

The mortgage is in arrears or foreclosure.

The property is in poor condition.

The homeowners have hardships and cannot make the payments anymore.

New homes in the area are being chosen over existing homes.

The area or neighborhood has depreciated.

The bank’s shareholders are concerned when there are too many defaulted

loans on the books.

Banks have reports due at the end of each quarter. They are more inclined to

accept short sales at the end of a quarter to “clean up their books.” The absolute

best time to get short sales accepted quickly is the last quarter of the year. We

have called banks on December 10th and been told the short sale would be

accepted if we would close by the end of the month! Banks short sale all year,

they just short sale faster in the last quarter.

Some banks are required to keep a cash reserve of up to three times the retail

value for each REO.

It breaks down like this: The bank has a $200,000 property and is required to keep

three times that amount as a cash reserve. This means the bank is sitting on

$600,000 in un-lendable money. Imagine if the bank has 2,000 foreclosures across

the nation! The homeowners could drag the foreclosure on for two years utilizing

the bankruptcy system. Would it be better for the bank to sit on $600,000 for two

years or accept a short sale today? The answer is obvious. The short sale is a

relief.

The area is crime ridden.

REO means real estate owned. Once a property is taken by the bank

at the foreclosure sale it is considered an REO. An REO is a

liability, not an asset. Too many liabilities will cause any business to

go under if not dealt with quickly.

The area is riddled with foreclosures proving a decline in the area.

Many homeowners do not realize that banks wholesale money. Banks

borrow money from larger banks and lend it to you. These banks must show

reports in order to borrow this money.

Think of it like a credit report: Every defaulted loan is like a black mark on the

credit report. The more foreclosures a bank is carrying, the riskier it appears. If

you were a larger bank lending to a smaller bank, would you lend your money to

the bank with more or less defaulted loans? Exactly … less! The bank needs to

borrow this money as inexpensively as possible so that it can make money lending

it to you.

As you can see, a short sale is often a welcome answer to a big problem. If the

bank takes the short sale it can write the loss off and clean up the books before any

reports are due.

AS A HOMEOWNER, WHERE DO YOU BEGIN?

There is a new “streamlined” HAFA (Home Affordable Foreclosure Alternatives)

short sale process offered by the Federal Government which you may qualify for.

HAFA promises short sale approval within 10 days and gives the seller $3000 in

cash at closing to help with moving expenses. But, because HAFA is a

government-sponsored program, it’s a lot more complicated than that. To enter the

program you first have to apply for a loan modification under HAMP (Home

Affordable Modification Program) and then either fail to qualify or quit making

payment after a modification has been approved. You then have to give the bank a

deed in lieu of foreclosure (see Option 6) that can be used by the bank if a

successful short sale isn’t made. This can readily happen if the bank sets the price

to high, which they tend to do or in the event other lien holders such as a second

mortgage holder or homeowners association fail to agree to the short sale. In that

event, you will end up losing the house and will not be paid the $3000.

In most cases the best option is to have us negotiate the short sale for you. It is

important to realize that when submitting a short sale package, we are building a

case, the better the case, the better the chance of getting it approved. With proper

negotiations, we take deals that most investors would pass on and turn them into

amazing deals. Most of our happiest homeowners have come from deals that had

no equity.

Think of yourself as an attorney preparing for a court hearing. If the attorney

shows up unprepared, the case will be lost.

It is important to realize that when submitting a short sale package, we are building

a case, the better the case, the deeper our discount. Think of yourself as an attorney

preparing for a court hearing. If the attorney shows up unprepared, the case will be

lost.

Do you remember the OJ Simpson trial? Did you think he was guilty? If you

think he is guilty, why do you think he walked away from a double murder charge?

His attorney has built a great case. His case was presented better than the

prosecution’s case. Short sales are the same concept, the better the case, the better

and the deal.

Having done so many over the years, we know exactly what the banks are looking

for. Before we submit your short sale package, let us look at an overview of what

we are about to do for you:

We are going to submit a total of three offers. Each offer will have a

different focus and will be higher than the previous.

The first offer will focus on your distress, the distress of the property, and

the overall hardship of the situation. This will be our initial offer and our

lowest.

The second offer will focus on the distress of the neighborhood, crime, job

losses, natural disasters, or whatever is happening in the area. In this offer,

we will raise our initial offer to get closer to the number the bank countered

at.

The third offer is our highest and final offer. In this offer we will focus on

the financial loss to the bank by denying our short sale. We will break

down, step-by-step, how much the bank will actually lose, how long this will

take, and we will send a copy to the loss mitigation reps boss.

The Short sale process is a very complex. Most of the time, you cannot short sale

your own home, if you could everyone would. With this process, you need expert

help and that is why we are here. If you choose this option, call me ASAP so we

could get you on the road to financial recovery. Let us show you how we can short

sale your mortgage, eliminate the bank, it is a perfect solution for your

situation…everyone wins.

The Short Payoff verses The Short Sale

How is this different than the short sale? It also has to be done in a certain way. If

you are an “underwater homeowner” let’s says your house is worth $200,000 and

you owe $210,000. Depending on your financial situation, you might try to

negotiate a short payoff with your lender. In this scenario, the lender agrees to

release the lien, their interest in the property, allowing it to be sold to a new buyer.

The lender agrees to accept less than the amount owed on the property to release

the lien, this is called a “short payoff.”

The only catch is the previous lender, the one that took the short payoff, will

instruct you to sign a promissory note for the difference OR SOME of the

difference agreeing to “pay off ” this unsecured line of credit according to the

terms of the promissory note.

The promissory note is an un-secured document that is basically, an IOU to the

previous bank.

The Downside:

A. You must be current on your mortgage payments.

B. You must have good credit.

C. You must be able to prove they have the ability to pay off the debt in a

reasonable amount of time…basically 3-5 years.

The Upside

A. You keep your good credit and can purchase another home or anything else you

want.

B. You never fall behind with your payments and never get your name in the

paper, which can be embarrassing.

When is the best time for a “Short Payoff ?”

A. You might request a short payoff when your home has lost value dramatically

or even just enough to make it impossible to sell. This is the case with most of the

underwater homeowners.

B. You do not have the ability to pay the large amount to get completely out of the

property.

Will all lenders do a “Short Payoff?”

No, not all lenders will; however, you will never know if you never ask.

Remember, the advantages of a Short Payoff is that you are able to move out of

your property and get on with your life. There SHOULD BE no negative feedback

on your credit. We help negotiate that in with the promissory note for you.

If for some reason down the line, you lose the ability to pay the promissory note,

the credit ramifications to you are significantly smaller.

Call me for your free advice at 318.717.1063

OPTION #5 “THE CHAPTER 13 BANKRUPTCY”

First, you need to contact a bankruptcy attorney. We

are not attorneys and cannot give you legal advice.

The Chapter 13 bankruptcy is the reorganization of debt. This bankruptcy is going

to buy you the time you need to get the property short saled and for us to help you

out with the short sale process.

Call me and I will share with you what I have seen other homeowners in your same

situation do to maximize their time to stay in their home. If you choose this option,

call me ASAP.

Call me at 318.717.1063

This process is remarkable. We call it the “Bankruptcy Short Sale”

OPTION #6 –

“THE DEED-IN-LIEU OF FORECLOSURE”

The deed-in-Lieu of foreclosure is when you give up ownership of your home and

deed it back to the bank. The bank will always accept this; however, it is not a

good option for you. The reason it is not a good option is that the bank will

typically place a foreclosure on your credit and you could end up with a 1099-C

sent to the IRS for additional income if the bank sells the property for less than

what you owe.

Let us explain what a 1099-C is. The bank takes back a house that has a mortgage

balance of $200,000 and is worth $200,000. The bank ultimately sells the house

for $150,000. Since the bank just lost $50,000, they will send you and the IRS a

1099-C. The banks do not tell you that they will send this to you or the IRS.

Remember, the banks are sneaky. This is never an option, unless you get it in

writing from the bank that they will not 1099 you on your taxes. A 1099 is

ordinary income to you that is reported to the IRS. If you were in the 30% tax

bracket, you would have to pay approximately $15,000 in taxes to the IRS for

losing your home. Pretty sneaky on the bank’s part, don’t you agree?

If you have any questions about this, please contact me at 318.717.1063

OPTION # 7 – DO NOTHING AND LOSE YOUR HOUSE

It doesn’t sound like an option; however, I must present to you all of the options.

You can play out the eviction process in the court system. If you want to do that

then you need to call an attorney that specializes in the eviction process. Have that

attorney tell you how to work the system to stay in your home. Remember, while

you are doing this SAVE YOUR MONEY SO WHEN YOU MOVE YOU HAVE

SOME!

If you pick this option call me!

Beware of Realtors

Sometimes Realtors can be helpful; however, most of the time they just get in the

way. They come to you and say, “I have a buyer for your home.” They say this to

get you to list your property for a long-term listing. If they say this… it is ok to

give them a 24 hour listing. We give them a 24 hour listing so they can bring the

buyer by that they promised you. Most Realtors will not do this because they do

not have a buyer, they just want a listing.

They will tell you that they need the listing agreement through the closing date.

All you need to do is put instructions on the sales contract in the “additional

provisions part” stating what the Realtor will make. This is the safest way for you

NOT to be tied up in a long-term listing. Just watch yourself. They will also tell

you not to work with investors.

Make sure that everyone you work with puts everything in writing, including a

way you could get out of the transaction without any further damage to you or your

situation.

Please call me so I can show you how you may benefit by working with me.

Call me at 318.717.1063

Beware of Mortgage Brokers

Why? Mortgage brokers will promise to get your property refinanced even with

your faltering credit. They will burn up you precious time while you are in

foreclosure. They will tell you what you want to hear, to get you to work with

them, knowing darn well that they cannot perform on what they promised you.

Folks, please be careful of these individuals. They typically ask for a $300.00

application fee. Do not give them any money ever!

Call me, I help you work out the numbers to see if you actually qualify for a

refinance. If you are more than 90 days behind on your mortgage payment, the

most you might qualify for is a 75% loan to value loan.

Example: Value of your home $ 300,000

75% loan-to-value is $ 225,000 + closing fees of approx $5,000.

Therefore, if you owe more than $ 230,000 you will not get the loan. In addition,

your interest rate will be much higher, so you have to qualify for that, too. If you

are over 90 days past due on your monthly payments, chance of getting a 75% loan

is approx 20%. On the other hand, you have about an 80% chance of getting a 70%

loan on your property. So let us look at those numbers:

Example: Value of your home $ 300,000

70% loan-to-value is $ 210,000 + closing fees of approx $5,000.

If you owe more than $ 215,000, you will not get the loan. I am not here to give

you bad news … just here to give you the facts, no fluff.

Whether you work with me or not, REMEMBER these important points in

this booklet.

Call me for more information at 318.717.1063.

Beware of Real Estate Investors When working with real estate investors be very careful. If they do not put

everything in writing and give you copies “DON’T WORK” with them…period.

Most real estate investors will tell you what you want to hear to get you to sign

everything and then everything they say changes.

This is why we love the MARS agreement. It puts everything in writing so that

ALL parties fully understand what is happening. Putting everything in writing

takes out the “he said, she said” in our conversation and ultimately, will give you

the comfort you need in working with us.

The more investors you interview the more you will realize that working with

us and our systems is what will be best for you.

Just be careful whom you are dealing with. Have them explain how much you will

be getting and how much they will be making on your home. Get this in writing

them! Have them use an “Equity Agreement” or a “Homeowners Agreement of

Understanding” which will help you understand the process that they will be using

to get you out of your situation.

If you have any questions please call me at _____________________________.

In order for us to contact your bank on your behalf and get the details of your

situation, we need you to sign the following agreement:

Authorization to Release Information

To Whom It May Concern:

I give my permission for you to release any and all information to

__________________________________________________ and

_________________________________________regarding my property located

at _______________________________________________________________.

In Reference to any mortgage(s), liens and/or judgments, medical conditions

payoffs, or any other information needed to work on my property.

________________________________________ ___________________________________

Owner: Co-Owner:

Borrower _________________________________________________

Address:___________________________________________________

City/State/zip: ______________________________________________

Phone cell _________________________________________________

SS# LAST______________________________________________

Date of birth _______________________________________________

Mortgages (1st)

Address: __________________________________________________

Phone:___________________________ Fax______________________

Loan number ______________________________________________

Contact Person______________________________________________

The Family Budget

You need to look hard at cutting excessive spending. To help you figure out your

problem areas complete the Monthly Income & Expense Worksheet found

following this section. Take your time and INCLUDE ALL EXPENSES.

After completing your worksheet review the following to find areas you can lower

or cut your spending. Be aggressive!

What can you lower or stop spending?

Private Schools

Is there other alternative that may work?

Can you volunteer your time and talents to lower the costs?

Car pool

Less gas, more time with collogue.

Travel

Earlier/Later flights are cheaper.

Parking

Can you park one block further for free?

Children Sporting Activities

Consider moving your child to a team that is a lower cost.

See if you can volunteer your time and skills to lower the cost.

Look to see if this activity really is benefiting your child or if another activity

would suit them better.

Entertainment

Lunches and Dinner

Pack a lunch if you can. It’s cheaper and healthier.

Look for discounts and try different restaurants. There’s several discount

websites to find a nice restaurant for “Date Night.”

Movies

There are several free movie and sporting events on local stations, take a look.

Dish, Direct TV, and Cable also have several free and low cost rentals.

Look at alternatives: Netflix offers unlimited movies for $8/ month. Going out to

the movies will cost an average of $15‐$20 per person with ticket and snacks. If

you see one movie per week that’s $1,040 per year per person!

The price of popcorn, soda and candy are a fraction of the cost ($0.25 per can of

soda, $1.32 for (6) bags of Pop Secret Movie Popcorn and $0.89 for a bag of

peanut M&M’s = $2.46 versus $12 at the theater!)

Coffee

Who doesn’t love Starbucks, but at $5 bucks at shot with one coffee every work

day that’s $675 for the year. Make your own and bring it to work.

Sporting or Concert Events

Yes, it’s important for some entertainment, just pick and choose what fits your

budget FIRST. Think of what’s best for your family. Always chose what you

NEED over what you want.

Sporting activities

A top of the line running shoe is $80‐140 depending on your shopping skills.

You’ll get a better workout and will cost you less. Also, consider the equipment

and entertaining cost during and after the events.

Gambling

Remember, if you can’t make your finances then stop Gambling.

Insurance

Get new quotes on auto and home insurance.

If you combine auto and home you should get a discount.

Pay more attention to your driving and avoid all tickets. If you have no

violations in 3 years, your premiums will drop.

Health Insurance

Ask your employer about a using pre‐tax dollars to pay for out of

pocket expenses.

Credit Cards

Do you pay annual fees? If so, shop for a better card with no annual fees.

Look into consolidating your credit cards into one card. If you have good credit,

there are several credit card companies offing low fixed rates for balance transfers.

Pay your card on line every week. By doing so you’ll avoid paying interest.

Pay online always. When you write a check it takes days and sometimes weeks

before companies will post the credit on your account.

Problems making your credit card payments? You don’t have to hire a Consumer

Credit Counselor, you actually have a right and can perform the same benefits

yourself by doing the following steps:

1. Contact each credit card at their customer service center. Tell them

that you’re having a hard time to make your payments.

2. The credit card company will stop further charges to be made on the

card and will set up a payment program based on your income and

debts.

3. Complete the Income & Expense Worksheet next to the Resource

page of this booklet. This option is not for you to lower your

payments and then spend more money. It’s designed to help you keep

current on your payments and get the debt paid off.

4. Ask the customer service center if you can consolidate your other

credit card debt to lower your payments.

5. Also try to lock in the card at a lower interest rate.

Income Withholdings

If you get a tax refund over $1,000 contact your payroll person to increase your

withholdings. You need more money monthly not once a year.

ATM and Cash Advances

If you’re being charged or pay interest on the cash STOP USING THEM!

If you were charged $1.50 for each time you pulled out $50.00 and did this every

week, you just paid 3% for getting your own money. This cost you $78.00 or 24

gallons of gas, (20 mpg is 576 miles) which is about the distance you drive back

and forth to work for a month. Cash advances on credit cards are worse.

Streamline Refinance

Contact a licensed Mortgage Broker or your lender.

There are no appraisals and title insurance required.

Very minimal closing costs ($300 ‐ $900).

Don’t roll in thousands of dollars to refinance. Only refinance if it makes sense.

Have your lender/ broker make comparisons of rolling in your closing costs versus

no closing costs but higher interest rate.

Shopping

Clothes – only buy what you need NOT what you want. Make a list and only buy

what’s on your list. Never buy something just because it’s on sale. Remember,

you don’t save money when you shop, it costs you money.

Food – make a list and only buy what’s on the list. Don’t shop when hungry. Try

to buy in bulk if it fits your family and budget. USE COUPONS!

Housing goods – again, only buy what you need. Always make a list BEFORE you

look.

If you’re buying a larger purchase wait 30 days, shop on line and in stores to see

where the best price is and which location at which to purchase. Then ask yourself:

“Do I really need this?”

Phone , Internet, Movie & Sport Channel, Cell Phone

With today’s technology, all vendors will fight to earn your business. Look at

combination packages to see if they will make sense for your needs.

Monthly Income & Expense Worksheet INCOME CURRENT PAYMENTS DELINQUENT Gross income Net income (Before Taxes) (Take Home)

Borrower's Monthly Income Spouse/ Co‐borrower's Income Other Income

Total Income $ ‐ $ ‐

FIXED EXPENSES: CURRENT PAYMENTS DELINQUENT

Rent 1st Mortgage 2ndMortgage 3rd Mortgage Homeowners Assoc. Dues Trash Cable/ TV/ Internet Medical & Dental Insurance Life Insurance Car Payment/ Lease #1 Car Payment/ Lease #2 Car Payment/ Lease #3 Car Insurance Student Loans Alimony/ Child Support Child Care/ Babysitter Savings Private School Tuition SubTotal

VARIABLE EXPENSES CURRENT PAYMENTS DELINQUENT

Utilities: Gas & Electric Cigarettes/ Tobacco (Stop Smoking) Health Club Memberships Entertainment/ Meals Out Cell Phone Home Repairs & Maintenance Utilities: Water Phone (Land Line) Groceries/ Cleaning items Gas/ Car repair/ Maintenance Bus Fare/ Parking School: Tuition, books, lunches Diapers/ Formula/ Baby Supplies Chapter 13/ CCC Credit Cards Card #1 Card #2 Card #3 Card #4 Card #5 Card #6 Card #7 Children Allowance Out of Pocket Medical/ Dental Church Tithes/ Charities Clothes Dry Cleaning/ Laundry Hair Cut/ Nails/ Toiletries Misc. Expenses Total Expenses: GROSS: NET: Net Disposable Income INCOME: $ - $ ‐

Your First Step to

Getting Out of Your

Situation

Let’s talk to your attorney together, so

there is no misunderstanding with all

parties involved.

The “Action Pack”

The Action Pack

Date: __________________________

Property Address: __________________________________________

__________________________________________________________

__________________________________________________________

Dear __________________________

The following documents are all the documents we need to help you get

out of your situation. Please sign everything with the correct name that is

on the document. If it has your legal name with middle initial, please

sign correctly. The documents that need to be notarized will have the

notary at the bottom of the document.

Make sure you sign your name in front of a notary. Bring your

driver’s license with you at signing. If you have any questions please

call me at 318.717.1063 as soon as possible.

Equity Agreement

The Agreement to Agree

AFFIDAVIT OF THIS AGREEMENT IS NOT AN ADDENDUM TO PURCHASE AGREEMENT DATED __________________, 20___

THIS IS AN IMPORTANT LEGAL CONTRACT CONCERNING THE SALE OF YOUR HOME AND SHOULD BE READ CAREFULLY. CONTACT AN ATTORNEY BEFORE SIGNING.

STATE OF ___________ PARISH OF ______________________) THIS AGREEMENT (hereinafter referred to as the “Agreement”), becomes effective on _____________________________________________, ____________________________________________2015, by __________________________ and ____________________________ hereinafter referred to as “Seller(s), and _____________________________________________ hereinafter referred to as “Buyer and or assigns”.

1. Property location for Seller(s): __________________________________ Address __________________________________ City, State, Zip

__________________________________ Home Number __________________________________ Cell Phone Number __________________________________

Work Number Fax Number

2. Buyer’s business address:

__________________________________ Address __________________________________ City, State, Zip

__________________________________ Office Number

__________________________________ Cell Phone Number Fax Number

3. Nature of this Agreement: For distribution of all funds (including deduction of expenses) for the above referenced property. 4. Duration of this Agreement: This Agreement remains in full force and effect until the completion and distribution of all funds, including the successful closing of the above referenced property. Unless the homeowner gives me in writing that he/she wishes to be released from this agreement.

5. Applicable to Successors. This Agreement and each provision herein shall be binding upon and applicable to, and shall inure to the benefit of, the parties hereto and their respective heirs, legatees, successors, assigns and legal representatives, except as otherwise expressly provided herein.

6. Contribution of Capital: Each seller(s) shall contribute capital and

additional resources as follows:

A. ____________________ and ________________________ will sign a Limited Power of Attorney to __________________________________________________.

I agree to sign a limited power of attorney to the Buyer or his assigns

to deal with any clerical, human, computer and/or mathematical

errors that may occur in the processing of the documentation for the

property or any future dealing with lender, lien holders or any other

parties that may have an interest in the property. I declare that any

and all documents signed by my attorney-in-fact shall be valid as if

they had been initially, signed and delivered by me personally.

B._______________________________________ and/or assigns is responsible for taking care of all research and legal forms relating to the payoff from the Foreclosure Attorney. C. ___________________and______________________ will sign an Authorization to Release form in order that __________________________________ and/or assigns can negotiate with the Bank or Mortgage Company and other liens on their behalf

7. Appropriation of Expenses: The following represent expenses

associated with the sale of the above referenced property.

A. Payoff with Foreclosure Attorney B. Title Insurance C. Closing Costs D. Lender Fees E. Liens and Judgments F. Cost of Realtor (if involved 3%) G. Fee to _______________________and/or assigns of 10% of the

sales price. H. Code Violations I. H.O.A. Fees J. Court ordered payments

Please note “all unforeseen expenses” that arise will be added to expenses.

8. Profits and Losses: Net profits of this Agreement will be divided proportionately between the parties as follows:

_________________________ and _________________________

will receive 50% upon a successful closing after all expenses are

paid. If a Short Sale is worked out with the mortgage company then

the Seller(s) will receive no profits from this transaction. This

payment is fair and adequate consideration for my rights in the

property, even though this may be less than what I could expect to

gain from either curing the loan and/or negotiating a workout or

forbearance or modification with my lender and/or refinancing the

debt and/or placing the property for sale on the open marketplace

either myself or through a real estate broker and that I am knowingly

and willingly agreeing to accept this consideration knowing these

options and other potential options are available to me.

Buyer has the right to buy whatever Seller(s) want to sell. A “Bill of Sale” will be used for this sale.

Seller(s)__________________________________________

9. Termination of this Agreement: This Agreement will only terminate upon the completion and distribution of all funds, including the successful closing of the above referenced property. 10. I _______________________________ Seller(s) waive my right to the _______________% of equity today and any other future equity that the buyer creates by taking the $ ____________cash on or before this ____________ day of

__________________, 20__.

I will vacate the property located at ________________ on or before ________________________.

I accept that if I do not vacate on or before _______ day of ______________, 20___, I will pay a $250.00 fine per day until the property is vacated. Seller(s)___________________

My initials attest to my Understanding and Acceptance of Paragraph 10:

11. Both Buyer and Seller(s) agree that according to the condition of said property, what’s going on in the market , and the Seller(s)situation, said property is worth between $____________________ and $__________________.

Our initials attest to our Understanding and Acceptance of Paragraph 11: Seller(s)_________________ Buyer ______________________

12. Seller(s) understand and accept that they may have to sell the said property “BELOW MARKET VALUE” to avoid foreclosure proceedings. The sale price is “Strictly” the discretion of _______________________and/or assigns.

My initials attest to my Understanding and Acceptance of Paragraph 12: Seller(s)________________________

13. Seller(s) realize that the Buyer/and or assigns will try to find a Real Estate Investor that will buy their house “BELOW MARKET VALUE” so that the Seller(s) can stay in the house with the option to purchase the property for an agreed and predetermined amount. The Seller(s) will have a minimum of 36 months to 48 months in which to buy the subject property. Seller(s) realize that the Buyer has nothing to do with the agreement between the Real Estate Investor and the Seller(s). The Investor that buys this house is in no-way a partner in any corporation with the Buyer and is buying the house as an independent party. The Seller(s) also realize and understand that 85% of distressed homeowners in this situation fail in their attempt to buy their property back. They also agree and understand that failure to make payments on time will result in an EVICTION and the loss of the right to buy the subject property.

My initials attest to my Understanding and Acceptance of Paragraph 13:

Seller(s)_________________________________ 14. Seller(s) are currently in default of their loan(s) and am unable to make up their back payments or continue making further payments. They have attempted several other avenues of action to remedy their financial situation, including:

________________________________________________________________________________________________________________________________________________________________________

15. As the Seller(s) we agree to the following and our initials attest to our Understanding and Acceptance of the following statements.

A. I am entering into a contract to sell and transfer my property to _________________________________, (“Buyer”) who will not assume or pay any present mortgage, deeds of trust, or other liens or encumbrances against the property. I understand that signing a deed is a relinquishment of all my rights, equity and/or interests in the property. I understand that I will remain primarily responsible for all payments due on such mortgages, deeds of trust, or other liens or encumbrances and for any deficiency judgment sought by the lender after or upon foreclosure. I understand that if the underlying liens (mortgages or deeds of trust) contain a “due on sale” clause, said lender(s) may accelerate the balance due on the loan. I specifically understands that this loan may (or may not, at Buyer’s option) be paid on a monthly basis by buyer, but will not be assumed or paid off completely at this time, and that this loan will remain in Seller's name and may continue to appear on my credit report, which may affect seller’s ability to obtain future credit advances from other lenders. No payment of any kind shall act as an assumption of any duties of payment on the loan.

B. The Buyer may to attempt to negotiate a Short Sale with the owners of the liens on my property. I understand that the buyer will not be doing this on my behalf, however, on his own accord in trying to make

this deal work for the Buyer. Buyer has not made me any promises, guarantees or representations about his ability to complete this task, save my credit or stop the foreclosure process. I understand fully and completely that if purchaser is not able to negotiate the short sale with the lender, the lenders may proceed with foreclosure.

I further understand that if the lender accepts a short sale, this may or may not relieve me of my personal responsibility for the loan and may affect my credit score. I also understand that if this property is not my principal residence any forbearance or forgiveness of debt by lien holders may result in a taxable gain and I should consult with a qualified tax advisor to discuss the implications of such a gain if I should receive a form 1099 from the lender. C. I understand that Buyer makes no promises or obligations as to curing back payments or making additional payments on my loan. Even if Buyer cures the back payments on my loan, I understand that this does not obligate Buyer to continue making payments unless they specifically say so in the Purchase Agreement. At Buyer’s sole discretion, Buyer may decide to stop making payments on my underlying notes and any time and transfer title back to me by quitclaim deed. In that event, I shall accept such deed in lieu of any obligation required by Buyer to make any additional payments or obligations, express or implied, and such acceptance shall act as a complete waiver of any claims or liability against the Buyer. D. I have had the opportunity to seek legal, tax and financial counsel as to this transaction. I understand that the Buyer is not my agent, representative or real estate agent in this transaction and is not acting on my behalf. The Buyer has made no representations as to seller’s legal rights or options with regard to his property. I UNDERSTAND THAT THIS DOCUMENT DOES NOT DEFINE OR EXPLAIN MY RIGHTS OR OPTIONS, and I have had the opportunity to seek legal, financial, tax or other professional counsel to weigh my options, my rights and the legal consequences of this transaction. E. I understand that this agreement is a negotiated sale of my property, even though my existing loan(s) may not be paid off. I understand that this transaction is not a loan, a temporary arrangement, a partnership or

anything other than a transfer of ownership by sale of the property to the Buyer. F. I understand Buyer may assign the Purchase Agreement to another party for a profit and that I may be closing the sale with someone other than Buyer. I also understand Buyer may close in the name of a nominee or related company, or may choose to resell the property to another party for a profit.

G. Buyer agrees to provide me with copies of documents I have signed. I may request additional copies of said documents at any time by paying the cost of reproduction. H. I understand that I may have certain rights under the state or federal law, including, but not limited to bankruptcy, redemption or other equitable rights that may give me additional rights to equity or continued possession of the property, and that by transferring ownership I may be giving up such rights. This disclosure is not to be construed as a list of my rights or legal advice, but simply an acknowledgment that I have investigated my rights under the law. I. I understand that Buyer may make a substantial profit from this transaction and that his primary motivation in engaging in this transaction is to make a profit from the rental or resale of the property. J. I understand that Buyer may choose to close this transaction without the use of a formal process, a title company or escrow company. Buyer may choose to record the conveyance documents themselves. I also understand that this transaction may not involve title insurance or any title guarantees normal associated with a transaction. K. I am not under the influence of alcohol, drugs or any other ailment at this time that would affect my ability to read this document and make an intelligent decision as to the consequences of signing it. My initials attest to my agreement of A-K above. Seller(s)_____________ Seller(s)____________

16. In the event a dispute arises between any Parties, the prevailing party shall be entitled to recover reasonable attorney’s fees and court costs incurred. The venue for court

will be in the Parish of_________________ State of_______________ or deemed by Buyer and/or assigns.

17. In the event that any paragraph in this contract is deemed not to be legal in the State of _______________________ then that paragraph is the only paragraph that will be renegotiated not the entire contract. 18. Seller agree that by initializing paragraph 18 English is their first language.

Seller(s)_____________ Buyer____________

Concerns or objections to this agreement from Seller

__________________________________________________________________

__________________________________________________________________

_________________________________________________________________

Signed and Entered into this Agreement with _________________ __________________Buyer and/or assigns on this the _______ day of __________________, 20___. ___________________________________ Buyer ___________________________________ Seller ___________________________________ Seller

State of _____________________§ Parish of ___________________§ Sworn and Subscribed to me by __________________________ and _________________________________, who personally executed the foregoing Equity Agreement before me (a notary public) on this the _____ day of _________________, 20___. ______________________________

Notary Public My commission expires on_____

State of _____________________§ Parish of ___________________§ Sworn and Subscribed to me by __________________________ and _________________________________, who personally executed the foregoing Equity Agreement before me (a notary public) on this the _____ day of _________________, 20___. _____________________________ Notary Public My commission expires on ______

Power of Attorney

(Real Estate)

KNOW ALL BY THESE PRESENTS, that I,

___________________________________of ________________________Parish, State

of _________________________, do hereby, constitute and appoint

__________________________________________, of ____________________Parish,

State of _________________________, to act on my behalf as my true and lawful said

attorney-in-fact, and in my stead for my sole use and benefit to bargain, sell, convey,

purchase, encumber or contract for the sale of purchase, the following described real

estate property situated in the Parish of _____________________________, State of

____________________________, to wit:

Said attorney-in-fact is hereby authorized and empowered to collect such monies

as may become due from the sale, to execute Deeds of Trust, acknowledge and deliver

contracts for sale, and execute any other instruments in writing (of every kind and

nature), including, but not limited to, the sale and loan closing documents, as well as any

other written statements. I hereby give said attorney-in-fact full power of revocation,

ratifying and confirming all that said attorney-in-fact shall lawfully do or cause to be

done by virtue of this Power of Attorney and the powers contained herein.

*This Power of Attorney shall not be affected by disability of the principal.

*This Power of Attorney shall become effective upon the disability of the

principal.

*This Power of Attorney automatically expires upon the completion of the

distribution of all monies involved in the final closing for the above

described property - in which this limited Power of Attorney was set forth.

EXECUTED this _______day of ____________________________, 20__.

_______________________________________

Principal

STATE OF _____________________ §

§

PARISH OF ___________________ §

The foregoing instrument was acknowledged before me this _______ day of

_______________________, 20___, by ______________________________________, the Principal.

Witness my hand and official seal. __________________________

Notary Public

My commission expires: