Loan Mod TV | Hardships and Questions
Recorded Live: Jan 28, 10
Here is the transcription of this class. Enjoy!
Ryan Rockwood: Hello everyone and welcome. You know, I really want to start out by saying unfortunately we’re really behind in our correspondence to people. If you’re watching tonight and you’re thinking gosh, I just haven’t got an email back. I bet I’m five days behind and I’m very sorry about that. Hopefully, I’m going to catch up this weekend. So anyway, let’s start off on that note. Welcome to the members of the Loan Modification Teleseminar. I’m a little sick so pardon my voice, but I’m here with my father and business partner, Mike Rockwood and of course we do these calls to — and actually we have a third class now each week for out Credit Card Cure and that’s to help you eliminate your own credit card debt. So really we’re on three days a week now. This is a form where if you have some questions, you can go ahead and jump on that chat. You can send your questions to questions@60minuteloanmodification.com or you can use the telephone number, the e-mail, actually call in and we’ll see if we can take some questions tonight. Hopefully that will work out. Okay, so welcome to the show tonight. We’re going to talk about hardship letters and we’re going to take your questions and you know even though it’s hard to know if this is interesting to members or I mean because certainly we’ve got over a million times but a lot of people are maybe new to the call and might be wondering about it. So if you’re wondering why we’re covering it again.
Mike Rockwood: Well, the main reason I wanted to get, we need to get to tap into the audio guys. The main reason that I push to have another session on hardship was because twice in the last week, I’ve had the experience that I related to you guys in the past and that is where you’ll — I was talking with a client about a short sale and happen to talk a little bit about loan modification and they made the statement that well, you know, we really don’t have any hardship. You have to really have a hardship and have it, and then just pushing a little bit on and probing a little bit, came to realize that they had very significant hardships. So I think — I asked Ryan that I think it’s time that we remember that we have to keep going back to basics all the time because a lot of people have misconceptions about a lot of the basics about loan modification. So let’s talk about hardship and what qualifies as a hardship, what qualifies you for a loan modification.
But first of all before we get too far along, we want to be sure that you understand that we provide this information as a service to our clients and that we are not attorneys and that the advice that we provide is just really reporting about what we see and what we hear in the business of doing loan modifications. We are not tax advisers. We are not CPAs. So anything that we say with regards to taxes really is just repeating what we have been told from clients or had experienced on our own. You should consult a lawyer or a CPA with any specific questions about the legalities or about the tax consequences of your situation.
Now, Ryan and I are realtors in Southern California and we are also fulltime foreclosure experts. We do seminars and we produce products and we work on loan modifications and we help people with deed in lieu applications. We do just about every type of foreclosure workout there is. So we kind of follow the market into really being foreclosure experts here in Southern California and if you’re here with us tonight, it’s because you’ve purchased some product from us so we kind of cut to the chase a little bit and get right into questions and get right into our topic of the evening, okay.
So we’re talking about hardship and what qualifies as a hardship. First of all, the hardship letter itself used to be really a significant part of the application process and we would go to great lengths to craft nicely worded hardship letters and we would always recommend that clients hand write their hardship letters. Now we still do, but in the acceleration of things, as things have gotten so crazy busy in the last year with sometimes as many as 10,000 applications in a single day for loan modifications. All of the lenders have really streamlined the process and they have most of them settled on either a brief explanation — asking for a brief explanation of your hardship and they’re really looking for keywords or they actually give you a checklist and ask you to sign an affidavit that this is indeed your hardship. So I mean they reveal to you what the 10 acceptable hardships are and they are the things that you would expect, a death in the family, divorce, a reduction in income, lost of hours at work, no more overtime, no bonuses this year, illness, time off work et cetera, et cetera. So anything that impairs your ability has impaired your ability to make your mortgage payment is a legitimate hardship.
I want to go over some of the more kind of — the ones that are kind of on the fringe because I want to jog your thinking a little bit and help you realize where some of the hardships can come from. Sometimes I encourage people to think through whether or not their child care expenses have increased or their elder care expenses have increased. Just last week I had a client. I have been working for them for quite a while telling me that he forgot to relate to me earlier that he and his wife were spending two weekends a month driving all the way to San Francisco to care for her mother and that all the kids were kind of chipping in and this was their portion of the support. Well that’s a significant expense just being away from home and traveling as well as the time spent caring for their mother. You know they really could hire out and pay probably you know $1,500 a weekend for.
So think about whether or not expenses have gone up, whether or not your mortgage has adjusted and gone up, your adjustable rate mortgage whether you’ve had some reduction in your income and that could from a reduction in hours or the loss of one of your jobs. I can’t believe how many of our clients have two and three jobs. It’s really amazing how hard all of us are working just to keep up with all these debt loads that we’re caring. But at any rate, what we want to emphasize to you is that hardship is a real broad category that has become really just a gating factor for a loan modification. Sometimes indeed after really pushing and pushing and pushing, we just can’t find a hardship. A person doesn’t have a hardship and in fact you are SOL, you’re out of luck. You can’t get a loan modification without a hardship but 9 out of 10 times when we interview clients, we can find that hardship because usually what brings people to us is they’re having difficulty paying their mortgage so you kind of peel back the onion ask question after question as to exactly why is that high credit card debt is reduction in your hours at work or just what is it that’s causing you to have trouble making that payment.
So more and more, we’re encouraging people to use those affidavits, and we’re encouraging people when they are asked to craft a hardship letter to be just that brief and just use those keywords. So Ryan really coaches people on just using, my hardship has to do with income reduction, job loss, reduction in hours, increase expenses. So just be very, very clear and then we always like to hang a very specific number on it. So if your income has decline by 20%, we’d like to say that or if an expense had — you’re now encouraging — incurring about a $1,000 month in elder care than say $1,000 or say what a percent that is of your income so that they have some sense of the magnitude. But realistically, here’s what happens. When your file shows up, it gets passed to a number of people that are screeners and these are administrative people that really are trained in looking just for one thing. When it gets to the hardship person, he takes your file and he has a good understanding of this hardship checklist and he will read through your hardship letter to find those keywords and when he finds them, he will check them. He will take that checklist and include it in your file and pass it outside of his department. So it’s really that simple. They’re just looking for keywords and they’re looking for you to attest to the fact that that is true, all right. All right, I got questions right away. Do you want me to take mine or have you got some coming in on my email?
Ryan Rockwood: I do have a few in my e-mail. Up to you which ever one.
Mike Rockwood: Right.
Ryan Rockwood: I want to try to cut tonight a little bit short because I’m a little bit sick but…
Mike Rockwood: Hey, I don’t know if we told you but send in your questions to questions@60minuteloanmodification.com. All right, Neil wrote in to just about half hour ago. “How can I get my second mortgage lender to just settle with me? If I sell the home short, they will only get about half of what they are owed, so this is the second mortgage. Why not just settle with me for that much?” Neil, I think you know you’re applying logic to the whole thing and that’s always dangerous, number one. Number two, what you’re saying makes a ton of sense and I think if times were different, you might be able to get that kind of a settlement and maybe in a year or so you will when principal reduction and settlements like that are more common. But right now there are still great deals of resistance to principal reductions. I know there’s a lot of talk very recently about how principal reductions would help all of us to stay in our homes long term rather than just the short term interest rate reductions. There’s some movement to spend some of the bailout money doing that but so much more bailout money would be needed if we’re going to really take our program like that. So here’s — I can’t really say why you, I don’t think you’ll be successful in getting that settlement unless of course your second mortgage is just 10 or $20,000 but if it’s like most of our seconds and it’s $100,000 or $300,000 it’s just not likely to happen because then the bank has to accept that loss and currently what they’re doing is they have it on their books as a full asset for the full asset value and because you’re making monthly payments, they carry it on their books. So it’s a really big deal for them to write off that much money. So I just don’t think you’ll be successful.
Tom says, “The fact that this home is now over $100,000 underwater and that this loan is interest only, those are my two hardships. Nothing has really changed in my finances but I’m just so stressed out about paying so much for something that is now worth so little. Will Aurora,” his lender, “consider a loan mod in my case?” Okay so here’s the situation Tom is making a point to us that because his home has declined so much in value and he’s only paying interest only so he’s not even buying the bad asset. So number one, it’s a bad asset. Number two, he’s not even buying it. He’s just basically renting the money that he overpaid on it so he stressed about that and he wonders if that qualifies as a hardship. Nice try Tom but no, it actually doesn’t. If nothing has changed in your finances, really the value of your home is really irrelevant in the loan modification application so as much as that seems right, a loan mod is not for you if really, if nothing has changed. If you’re $100,000 underwater and that’s a significant amount of the home’s value which it’s got to be unless it’s — if it’s a $2 million home then that’s not so bad but if it’s a $300,000 or $400,000 homes like a lot of those in Southern California that are $100,000 underwater, it’s not going to recover during the time that you own it, you’re not going to recover that value so you really should investigate a short sale. Remember we would love — Tom, remember we would love to do the short sale for you especially if it’s in Southern California, but really in any state that you’re in.
Ryan says, “How can I know if my lender will sue me for the amount left after my short sale? If they will not then, it seems like a good option. We owe much more than the home is worth.” Well, that’s good, clear thinking. You do have to get clarity on that before you decide on your workout option. There really are — those two things are absolutely imperative that you did clarity on. One is are you vulnerable, liable for deficiency judgment and the second is what are your tax liabilities if the bank forgives a major part of your debt? The beauty of those, both are that you can get absolute clarity, 100% clarity by visiting with an attorney. Now, I’ll give you just a little bit of my own advice but the absolute — the way to absolutely nail it in your instance is just to dial a local attorney and have him look at your loan papers for you. Here’s the situation. You can be held personally liable for debt even if the collateral, the house, even if that has declined in value, you can be held accountable for the shortfall in some states under some circumstances. Now many, many states, I think it is 33 or 34, are non-recourse states. So if the loan you’re talking about is the home that you’re living in, then you very likely are not going to be held personally liable. There are some exceptions on second mortgages particularly if you refinanced a number of times which so many of us have done, use the home like a piggy bank in order to finance other ventures. So you can really only nail that answer by getting a specific answer from your attorney on your situation. So that’s what I recommend.
Okay. Then Jill asks, “Is it always best to say just a little about your hardship? The book says to be brief and all of the examples are very brief.” Yes Jill, brevity is best here, number one because they are cranking through so many files. They’re just looking for keywords. You might as well just cut to the chase and just use those keywords. Actually two or three sentences is plenty but most people don’t feel comfortable with that. They want to give a good explanation of the hardship. So yes, keep it very brief. It’s always best. Honestly in general, in dealing with negotiations, brevity is best because when you’re talking and when you’re giving away information, you’re doing just that. You’re giving away information and then in negotiation information is power, right? So in general you want to just apply information that you’re asked for and in every conversation and in every way, be as brief as you can. Less said is always better when you’re in the negotiations and you are. Believe me right from the start. Don’t believe any of the propaganda that you believe about — they’re not trying to make your home affordable one bit. They’re really trying to mitigate their losses, all right. I’m going to keep rolling or are you answering on email instead of sharing with our friends?
Ryan Rockwood: Well, actually I do have a question that I’d like to share.
Mike Rockwood: All right, go ahead.
Ryan Rockwood: Teresa wants to know how she can schedule an appointment and the way to do that is to schedule an appointment to talk and in case you don’t know, every kit that we sell comes with a free 20–minute call. Even if you haven’t done that or purchase the kit or if you want to talk more, you can always go to 60minuteloanmodfication.com/schedule and there’s a drop down arrow at the top left of the screen there. Actually, it takes a minute to load so be patient. There’s a drop down thing there on the left and you can select the product whether it’s a free consult or it’s a paid time or something like that. What will happen there is that it will allow you to select the time and then it will come to us and we’ll either approve it or deny it based on what else we have going on. Okay, so…
Mike Rockwood: That’s usually — that’s really a value. People really like that. I mean, because you pay a little bit so you don’t feel like you’re asking for more than you bought from us and we don’t feel abused either, and you get to tap in to all of our experience with loan modifications or any foreclosure-related question, whatsoever. It’s really a pretty darn good value. I mean, where else can you, for that little bit of money, get — I mean you get professional help but what’s nice about our help is that it is so current and so up-to-date. I mean, we will literally be turning away from a loan mod application to talk to you. I mean that’s what we do is the loan modifications all day long. Okay, here’s a good one.
Ryan Rockwood: And someone just did it. So we’ve got a 10:00 am tomorrow.
Mike Rockwood: Okay.
Ryan Rockwood: Okay.
Mike Rockwood: Dan says, “My lender just approved our short payoff application without any cash from us and my brother is trying to get his short sale approval.” Yes, this is a Florida deal. This is an interesting one. Dan and his brother bought homes right next to each other from the builder before they were done and before the builder finish the homes, the builder went bankrupt and stops development. So Dan says, “My lender just approved our short payoff application without any cash from us.” Congratulations, Dan. “But my brother is trying to get his short sale approved right next door same floor plan, same issue but the lender wants him to accept a $50,000 promissory note.” Now for — and he says why is this and what can he do? Well that might be shocking to some of you but some of the values in Florida — I mean I know this one was originally like about $650,000 gorgeous home that is now selling for about $145,000. So I mean this is like an extreme example of the decline in values. So sometimes when the lender, and sometimes when there’s a private mortgage insurer involved, the negotiations get pretty heated and the lender or the insurer will turn the screws on the owner to accept some portion of the shortfall.
Now, in this case I think it would be about, they’re asking for 50. I think it’s like 250 so it’s like 20% or so of the shortfall and that’s not unusual at all for them to be asking for 20%. A lot of times the promissory notes are extended over a 15-year period and there’s no interest so the payments are pretty minimal. Honestly, Dan, it doesn’t sound so extraordinary and the reason that it happened was because your brother has some assets that you don’t have. Either he has a high paying job or he has a lot of assets that are not protected by a trust fund or social security or pension funds. He has some assets and the lender or the private mortgage insurance company can see it. They have amazing information technology capabilities to find out information about you and so they have decided that they want to, rather than just let the deal go through like yours was allowed to go through, they want to turn the screws on and get some of the money out of him. They’re probably pretty much prepared. Very likely, they’re prepared to let the deal fall through because they sort of feel like, “Hey, if we get this deal now, we can get another one in a month or two.” They’re probably right. So he might just be stuck.
Honestly, a lot of folks are actually accepting those kinds of deals that and a lot of our Florida short sales come along with the buyer either bringing some money to the close — or the seller bringing some money to the closing or accepting a promissory note. Remember then that becomes an unsecured note. It becomes an unsecured loan just like a credit card. So I got to be honest with you. Some of our clients are accepting those knowing full well that that’s not collectible, like some of our clients have absolutely no assets that are not protected by a pension, no assets that are not protected by social security or a trust fund. So they’re really not afraid of an unsecured promissory note and the ability of that bank to be able to collect that from them.
All right, Bob says, “How do I know how to price my home for a short sale if the lender won’t let me know how low they will go?” We’re getting a lot of short sale questions on our loan modification evening. Well Bob, you don’t know and the lender will not tell you. In fact, they usually don’t even want to talk to you in the short sale department until you have an offer. They don’t know because they don’t know. They won’t tell you because they don’t know. They honestly don’t know until you have an offer, a current offer that they can send a local agent out to do a broker price opinion and figure out if that offer is reasonable, and then they begin to run the numbers on whether the implications of accepting it. So there’s one thing about whether or not it’s reasonable and here’s — maybe this gets to the heart of your question is what’s reasonable. I always say that any offer that’s within 10% market value is reasonable in a short sale.
So here’s what you do. Ask your realtor to do a broker price opinion themselves or what they might call a CMA, Current Market Analysis, and price the home 10% below that. If that doesn’t get you an offer within two weeks, then drop it another full 10% because remember the key is to get that offer from a good qualified buyer. Even if it’s an investor who’s just looking for a great deal, the bank may be very interested in doing a deal and may just approve it and after all you don’t care because it’s a short sale after all. The only one who cares is the bank. Okay. Am I going to keep going?
Ryan Rockwood: Let me jump in with a couple of -
Mike Rockwood: Okay.
Ryan Rockwood: – questions. Let’s see. Maria B. has a question. “Six rental properties, I bought three of them as a primary home not an investment.”
Mike Rockwood: Yes.
Ryan Rockwood: “How will the mortgage company know if I don’t live there anymore and how like [Indiscernible] [0:25:29] is it what they want proof?” It’s a likely scenario. “I am a member and would like to watch previous Thursday night recordings. Can I do that online?” Yes, you know where you can get the recordings right now is go to 60minuteloanmodification.com and in the very top in the menu bar is something that says something like Articles. You click on that and unfortunately you just actually have to go back and go through them. They are organized.
Mike Rockwood: It’s in the Articles file?
Ryan Rockwood: Yes.
Mike Rockwood: Is it?
Ryan Rockwood: Yes, everything goes there. Every blog post, everything. So it’s like reverse chronological order. So you can get that there and just when you get down to the bottom of the page, it will be something like view last or view next or something like that. So go ahead and check that out. The transcripts are there more and more as well. So enjoy that. She needs to schedule of real estate owned. You know, you can find that in your black belt CD.
Mike Rockwood: Yes.
Ryan Rockwood: While we’re talking here, I’ll see if I can just find it on my computer that I have right here and e-mail it to you. I maybe lost the CD or something. Then, but the major question is here’s what they want to going to know. The question here is can you get away with — I think what you’re asking is can I get away with doing multiple primary homes as the investment property thing? The answer is I’m really not sure. I don’t know. Here’s what they’re going to want though. They’re going to run a utility bill in your name, okay, and you either going to want to sign legal affidavit from you saying that it is your primary home. So to be honest, it’s totally believable to me that you could get two primary or three primary property HAMP loans even from the same bank and it’s totally believable to me that you can get them from separate banks. But -
Mike Rockwood: But that’s going to be your call.
Ryan Rockwood: Yes. But I just don’t know.
Mike Rockwood: Yes.
Ryan Rockwood: Yes. Okay, she also asked, “She gave us a formula that we can calculate what you expect from a loan mod. Take the loan amount multiply it by 0.055 divided by 12, et cetera but my loan is an interest-owned. How do I calculate that?”
Mike Rockwood: Yes.
Ryan Rockwood: “I have six properties. Three have arm that are interest only rates are 3.25, 3.65 and 5.125. They adjust annually which I asked for how much of relief should I ask for?”
Mike Rockwood: Yes. That’s a good question. Hey, you know the key though is you’re not going to get significant month-to-month relief, but how much of a relief would it be to have fix mortgages on all of those because we’re coming up on — there is no way that we’re not going to have higher interest rates in the next five years and probably for the next 10 years. There’s just no way that can ever happen, so try as the government might to suppress that. It is absolutely coming our way so we’re going to see 10% and 12% mortgages again within five years. So walking in those adjustable rates is a beautiful thing even if you don’t get any — you don’t get much relief Maria. So I’d be all about that if I were you.
Ryan Rockwood: Okay. So the answer to your question Maria, how can you calculate it? The truth is that, I mean these are really good rates and these are industrial properties. So I mean your chance, frankly, aren’t looking too good. If you — now that’s not just saying don’t try, but I think that the very best you could hope for would be 30–year fully amortized payments around that amount.
Mike Rockwood: Yes, around 4.7 or 4.8.
Ryan Rockwood: Yes.
Mike Rockwood: But you know, I think you’ll accomplish your goal. If you just have realistic expectations, it will be plenty of work and you will only get a modification to a fixed rate but that’s worth it. That’s worth doing.
Ryan Rockwood: Okay. Now, I’m going to send her something, so why don’t you do it.
Mike Rockwood: Okay. Joan says, “We have been waiting for weeks to hear about our mod. Now, Saxon says they won’t even offer a mod after all this time because the home is rented. Is there any way around that?” Yes Joan, there is. Saxon is one of about three or four lenders that really tries not to do any other than the Making Homes Affordable Loans but they do have an in-house staff. It’s actually quite considerable and I have personal experience getting around it. So what I did is I just kept pushing and pushing and asking for an in-house modification expert negotiator. You might have to escalate it to a supervisor or you might have, I hope that you have gone late on your mortgage because if you haven’t, there’s no way in heck you’re going to get their attention. But what I did on my own property, I just went late until they would talk to me and late until they would talk to me about modifying a rental property. So yes, there is a way around it but it’s harder at Saxon. It’s harder now at IndyMac and it’s harder at AmTrust and a couple of others.
All right, Sheldon says, “How can I get a Deed in Lieu? From what I’ve read that seems to be the best solution for me and for Wells Fargo.” Well Sheldon, it is a great solution, a Deed in Lieu of Foreclosure is when you just turn the property over to the lender and they don’t have to take it through the foreclosure process. You don’t get a foreclosure on credit. They get the home a lot faster and they save a lot of money. So it’s faster. It’s cheaper. It’s better for your credit. But it doesn’t work very often for a number of reasons. Number one is a lot of people have second mortgages or other leans on the property. If they take it without foreclosure, those leans don’t get stripped away. So that’s one issue. Another issue is through the foreclosure process and the real estate owned process, they have all kinds of safeguards in place. There’s an agent involved and he’s got an insurance policy, and there is an inspector involved and he’s got an insurance policy, there’s an appraiser involved and he’s got an insurance policy so there’s a lot of insurance for them that the property is taken correctly. They don’t have that infrastructure in place to take property directly from you, so it’s not as safe for them to do so. So I think that’s another reason Deed in Lieu is not being used very often. Then the last one of course is that values have fallen so dramatically that the property is usually worth considerably less than it’s owed. Very often the bank would just assume go through the short sale process to get good appraisals, inspections, et cetera. Okay?
Then Mel says, “Why do the few percent of loan mod applications that are getting approved,” there’s been a lot of press about that lately, “why do they get approved? Are there tricks?” I would say to Mel, you should have listened to us on Tuesday night. Go back in the archives. Tuesday night will be posted, right. Go back and watch Tuesday night. We talked about eight specific good, good, good tricks, great ones that I recommend for why I think it is that my loan modifications, 96% of mine that I’m working on are getting approved, although I did get just get turned down today, but 96% are getting approved as opposed to 96% getting denied. So there are tricks and I’ve divulged all of them on Tuesday. You know what? I think I posted that too. So you’ll both be able to see it if you want to or you can just download it and read it. I posted it as a blog post and I’m sure it was something like something having to do with 96%. Yes. Why are 96% — no, it’s about Loan Mod Mercenary and it was posted on Tuesday night after the show. All right, Mel.
Ryan Rockwood: All right. We’ve got a question here from Lizette who says that the lender is not allowing her to — they say no to the loan mod and the reason is because they have not paid in 12 months. Have you heard of that?
Mike Rockwood: No. That’s a phony answer. There’s another reason why. They’re just giving you a hard time about not having paid for 12 months, but there’s another reason why you’re not qualified. If you live in the home and you qualified for the making homes affordable program, I think you can argue your way back out of that one point. There are some other reasons why they’re rejecting.
Ryan Rockwood: Yes. I mean here’s the thing. You want to make sure that you didn’t just get a collection call from the bank.
Mike Rockwood: Yes.
Ryan Rockwood: I mean, they might have just said it. No, no, this isn’t the load mod.
Mike Rockwood: Yes.
Ryan Rockwood: To tell you, you don’t qualify because you haven’t paid, perhaps, a month. Now, there was something about not being over three months late.
Mike Rockwood: Yes.
Ryan Rockwood: Do you remember that?
Mike Rockwood: Yes. But honestly, I’ve heard that, read that, but it hasn’t been my experience so -
Ryan Rockwood: Yes.
Mike Rockwood: – I just have to discount it.
Ryan Rockwood: Okay.
Mike Rockwood: We get plenty of people who — I’ve got several that are almost a year without making a payment and they get a modification.
Ryan Rockwood: Then, I have had some clients who paid up to get under the three-period or three months and they got denied again.
Mike Rockwood: Yes. So Lizette I would just say keep pushing, pushing, pushing. That answer isn’t good enough, call back. I always recommend you call back five times, talk to five different operators and just say, “This doesn’t make sense to me.”
Ryan Rockwood: Yes.
Mike Rockwood: “I don’t understand it. Please can you help me?” Then if that doesn’t work, ask for a supervisor to call you back. If that doesn’t work, send a Qualified Written Request and then, of course, you have to kind of check your own sanity and think about if you haven’t paid for in a year, you’re playing a high stakes game there. So I hope you either fully intend to lose this house, or if you fully intend to keep it then what do you care if you are required to because imagine if they refused you for a loan mod, they offer repayment program. So if you plan to keep the house and you think you’re going to keep the house then you don’t care about, a repayment plan is okay to get you back on track, right. So if, on the other hand, you are just getting out from underneath this loan and you’ve already gotten a year’s worth of free living, boy, you should count yourself really lucky and start laying plans for a new place to live.
Ryan Rockwood: Yes. I mean maybe it’s time for a short sale.
Mike Rockwood: Yes.
Ryan Rockwood: And hopefully, yes, you’ve got some money saved up.
Mike Rockwood: So -
Ryan Rockwood: Well, let’s wrap it up because I’m melting.
Mike Rockwood: Okay, you’re dying.
Ryan Rockwood: Yes, let’s see if we’ve got anyone on the phone here.
Mike Rockwood: Good.
Ryan Rockwood: That has a question before we go. Hi there.
Male Speaker: Yes.
Ryan Rockwood: Yes, go ahead.
Male Speaker: [Indiscernible] [0:37:19].
Ryan Rockwood: Tell me like if we perform that service for people. Well, I’ve never actually heard that term.
Mike Rockwood: Well, you’re using it like a proper noun, like it really is something. Tell us more.
Ryan Rockwood: Have you write into it?
[Audio gap]
Ryan Rockwood: No.
Mike Rockwood: Who is it?
Ryan Rockwood: Home rescue.
[Audio gap]
Ryan Rockwood: Well you know -
Mike Rockwood: Really?
Ryan Rockwood: Someone else on the call thinks there are scam home rescue.
Mike Rockwood: But accelerated -
Ryan Rockwood: Most people actually — it’s a funny thing to call it because maybe they just branded their process or something. But most people, when they’re doing short sale, I mean you can do a short sale fast or slow.
Mike Rockwood: No, he said about loan mod.
Ryan Rockwood: No, he said short sale. Did he?
Mike Rockwood: Oh.
Ryan Rockwood: Did you say short sale?
Mike Rockwood: Yes, sorry.
Ryan Rockwood: Most people don’t want a fast short sale. What do you think that would benefit you, like less damage on your credit? Is that your main motivation?
[Audio gap]
Ryan Rockwood: Sure. Yes.
Mike Rockwood: Yes. When we have a client who tells us that they want the short sale to happen fast, it’s pretty easy to make it happen fast because you know you just accelerate everything. You just take action right away. You advertise it right away. You lower the price dramatically maybe even each day and usually it’s pretty easy to get an offer within a week or two if you’re really aggressive about pricing and advertising.
Male Speaker: [Indiscernible] [0:39:33].
Mike Rockwood: Do you get it out?
Male Speaker: [Indiscernible] [0:39:39]
Mike Rockwood: Yes.
Male Speaker: [Indiscernible] [0:39:50] have your heard of them?
Mike Rockwood: No, we haven’t heard of them but an accelerated short sale is something that you can do. Here’s the deal. You can move as fast and get an offer and get your packet submitted as fast as you want but it’s pretty hard to get any lender to approve them in less than 30 days these days. There is a — now, what was the program we just read about, Ryan about — that’s pre-approved. That’s something that National Association of Realtors is working on so that’s a waste off. But see, we have trouble like even if we slam an offer in the same day that we list it, we have a hard time getting it in front of a negotiator for two weeks, and then the negotiator always gets 20 days, 20 working days, before his company demands that he take action before the file turns into a pumpkin or whatever. So it seems to always take at least a month before we get that settlement offer so -
Ryan Rockwood: But I guess it really depends on what someone by accelerated, right?
Mike Rockwood: Yes.
Ryan Rockwood: It is like accelerated less to 8 months. If you want to -
Mike Rockwood: Yes, we can do them in less than 60 days if you tell us to.
Ryan Rockwood: Would you like us to, like we’d like to schedule a time to talk about what your specific situation and see if we got any advice for you.
Male Speaker: [Indiscernible] [0:41:17]
Ryan Rockwood: Would you like to schedule a time to talk privately to see if we might have some advice for you?
Male Speaker: [Indiscernible] [0:41:23].
Mike Rockwood: Yes, okay.
Male Speaker: [Indiscernible] [0:41:36]. Have you heard of them or anything?
Ryan Rockwood: No.
Male Speaker: It doesn’t matter if you heard [Indiscernible] [0:41:41].
Ryan Rockwood: Okay.
Male Speaker: A part of, Barack Obama, what have you done for us? Nothing.
Ryan Rockwood: Okay. Hold on one sec. Hold on one sec.
Mike Rockwood: Hey, wait a minute.
Ryan Rockwood: Okay. Sorry about that. It’s hard to hear the callers and also repeat a little bit of it, but this guy is asking have you heard a particular company that has done something that they called accelerated short sale. We don’t actually get that too often where someone wants to know or wants a short sale done fast. I can tell you that.
Mike Rockwood: Yes, more often.
Ryan Rockwood: Yes. More often they say, “Hey, I need some time to figure out where the heck I’m going to go from here.” So that maybe just clever marketing on their perspective or whatever, but you going to do shop around. What we do is concentrate in getting the short sales done right. The key thing there is that you have to make sure that the second lean is taken care of and the vast majority of people don’t know what they’re doing. So they may get that second to release the lean on the home or the first or whatever. However, they haven’t tied up the end. So what’s going to happen is these guys could come to you, even in California, and they’ll probably end up selling it to someone else, a collector who will eventually sue you. So I would prepare for that. You can talk to — it doesn’t sound like you’re ready to talk now — but if you are ready to talk, you can always send us an e-mail. My name is ryan@60minuteloanmodification.com and we do short sales nationwide. Yes, we can do it as quick or as slow as you need. Of course, we prefer quick because then it’s over. But -
Mike Rockwood: Running faster is always better.
Ryan Rockwood: Yes. But also short sales don’t cost you anything. A typical question we get on short sales is, “Should I make that my next tax payment? Should I make my next HOA payment? All I can say on that category is we have a lot of success getting the bank to pay those things along with know all costs associated with the sale like realtor and stuff like that. So anyway, when you’re ready to reach out and talk, we’ll be happy to talk with you.
Okay, so I just want to wrap it up and thank everyone so much for joining us. Thank you so much for — and congratulations on getting a week closer to getting your loan modified. Also, be sure to check out our new credit card program, it’s the same thing do-it-yourself. We’re teaching people how to do-it-yourself settle your credit card debt instead of paying some guy 5,000 bucks and sending him all your credit card payments for the next couple of years. How about if you just take a couple of months and do it yourself and you’d be done with it? That’s a pretty cool program. It costs 20 bucks a month. So you should check it out.
Right now, you can go to 60minuteloanmodificaiton.com/credit and join that program. You should definitely do that. We had one member this week settled $28,000 with Bank of America for $9,000 and this is a client that was in extremely for negotiating situation in regards to who could not get a judgment for personal reasons, could not file bankruptcy.
Mike Rockwood: What he means is he couldn’t tolerate the judgment so he couldn’t let the creditor take him to court.
Ryan Rockwood: Yes.
Mike Rockwood: So he wasn’t in a strong negotiating position and he had high income and he had some assets.
Ryan Rockwood: Yes.
Mike Rockwood: That they could see.
Ryan Rockwood: So anyway, that’s going well, but I invite you all to that. All right, thank you so much everyone. Have a great week.
Mike Rockwood: All right, good night.
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