Financial Foundations

We offer the consumer three major services:

1. Loan Modification

2. Deed in lieu of Foreclosure

3. Short Sale Negotiations

1. Loan Modification

With the increase of interest rates on home loans, many homeowners with adjustable rate loans are faced with mortgage payments they can no longer afford.

Our job is to convince the current lender that it is better to lower the homeowner’s payment by lowering the interest rate or payment rate by creating a payment plan the borrower can afford, rather than to take the home with a foreclosure sale and lose money on the re-sale. Keep in mind, lenders lose money on bank owned properties as it will sell for less than market value, and they must pay a commission to a Realtor; and closing costs plus the cost of holding the property while they wait for a sale in a market that is depreciating.

We need to prove to the lender what the maximum payment is that borrower can afford by constructing a financial plan for the homeowner that the lender will approve.

Also, as the homeowner is often late with their payments and in foreclosure or soon to be in foreclosure, we need to ask the lender to take the delinquent payments and either forgive them entirely or place them on the back of the loan.

A rate reduction in most cases is the only possibility for a homeowner to retain their home –our fee is a risk that each homeowner must weight. Note: Our success rate on a workout program with a rate reduction is 98%.

Note: If we can prove you owe more that the value of the property and there is a second loan, we can convince that second lender to take a major reduction –of 50% to 80% — off the balance of the loan.

2. Deed in Lieu of Foreclosure

Under many conditions lenders will accept the property back from the borrower as full payment in order to save the time and expense of going through the foreclosure process.

Our job is to convince the lender it’s in their best interest to accept the property as payment in full.

This is not a simple plan as we must provide the lender with a complex detailed analysis of current value of the property –and future value. Then we must prove that the borrower cannot afford to make payment or sell the home any time soon or at all.

Note: a deed in lieu will also prevent the lender from filing a 1099 on their loss which is regular income to the borrower.

3. Short Sale Negotiations

We realize there is a large demand for this service and doesn’t seem to be very many companies that know what a Short Sale is, much less how to work with lenders to negotiate a Short Sale. Here is what we know:

· There is a right way to put together a Short Sale offer so a lender can justify settling for your offer. But most offers are badly done and leave a lot of cash on the lender’s table.

· While most Short Sales are on residential properties, they can be, and are, completed on commercial properties that are also in troubled areas.

Why would a lender allow the property to be sold and accept a loan payoff that is far less than the amount of the home loan and not come after the homeowner for the losses? Simple: to save time and money.

Here is what we do –we ask the investor to complete a very detailed list of information on the property and area, we review that information with the investor and create a plan to purchase.

We make a proposal to the lender using what we call the poison pill approach,

“Keep in mind it’s a lot less work and risk for the lender to take our offer.” The Department Manager of the lender will use our proposal to justify the sale price and protect his job.

For more information, visit www.AForeclosurePro.com

Good credit is important in America today because so many of the things that we want
to buy must be financed or purchased on credit.

And once you have had a bad credit rating it is almost impossible to avoid detection.
A network of credit reporting agencies keeps track of every person who buys on credit.
Each time you apply for credit, the prospective lender will check your credit with at least one of these agencies.

But Did You Know…both Employers and Insurance companies also make
determinations about you based on your credit score? That means that you could be paying higher insurance rates, or be passed over for that better job or promotion because your credit score is too low. We estimate the average person with below excellent credit scores could be penalized $12,924.00 or more each year for low credit scores! (See our report “Keeping Bad Credit Costs More Than Repairing It “ for more info)

It is easy to see how low credit scores have the ability to hold a family down, and keep
you from getting ahead.

How Do Credit Scores Work? (The Basics)
A Credit Score is a number assigned to a consumer that, based on 5 principal
determining factors, statistically determines the probability that you will become 90 days late or more on any loan obligation over the next 2 years.

- The FICO score is the most widely used scoring system, and is what most mortgage
lenders use.
- There are three (3) major credit bureaus in the U.S. who have business relationships
with thousands of creditors across the country, and that is why you may have three
"scores" that are being reviewed. Those creditors will "report" the information they have
about you to these credit bureaus at various times. They do not have to report their
information to the bureaus, and some creditors only report to one or two of the bureaus.

Therefore, it is very hard to increase your credit score if you don’t know to whom
your creditors are reporting.

- A credit score is calculated by taking all of the various information about your credit
profile and running that data through a computer model, where points are added and
subtracted based on a "perfect" credit model. (This "model" is proprietary information to the FICO organization) Once the calculation is complete, out pops a credit score for
that bureaus’ credit file on you.
- When we are referring to your credit score in the mortgage business, we are talking
about the middle score out of the three (not an average, but the actual score that is not
the highest or lowest).
- Credit scores are affected by almost everything about your credit data, ranging from
the length of time you have had an account, to the ratio of the balance available vs. the
balance owed. And of course there is the obvious negative impact of any derogatory
history.

The Good News – Rebuilding Your Credit

Millions of dollars are spent to convince you that nothing can be done about your bad credit. But it’s Not True!

If you are one of the millions of Americans who have had credit problems, do not despair. Even with negative items in your credit file, such as collections, late payments, liens, bankruptcies, or foreclosures, we can help! There is no kind of negative item that we do not regularly see removed from our members credit reports.

First Financial Freedom Foundation offers credit repair services through an affiliated attorney network. Everyone knows that under the law, if you are accused of anything, the burden of proof lies with your accuser. In other words, if the credit bureaus are going to promote and sell information about you that can cause you economic hardship, they must back it up to the full letter of the law. An Attorney enforces your consumer rights.

Congress has provided consumers the right to challenge information that is deemed to be inaccurate or information that is not properly validated under the law must be removed regardless as to whether it is accurate or not. Regardless of the accuracy, credit bureaus are often unwilling to invest the resources necessary or unable to get the credit grantor to invest the resources necessary to properly verify the disputed item.
Oftentimes, it becomes a matter of economics. If the case is presented properly, it is
often more difficult and expensive for the credit bureaus to substantiate the item
than to simply remove it.

The law requires more than a form letter to verify that an item is accurate. If the credit
bureau confirms an item on your report, the assigned attorney will “ratchet up” the
intensity of our challenge and represent it. This forces the bureau to invest additional
time and expense to conduct the new investigation.

For more information, visit our website at www.CreditRestorePros.com

Fooled into satisfaction by the fact that they can make a larger down payment on a new home with funds received from the sale of their “old”, some sellers fail to address negatives on their credit reports and thereby suffer such consequences as higher interest rates and additional costs associated with obtaining their new home loan.

Simply put, Home Sellers should repair their credit before selling a home and buying a home. It’s easy to get out of focus when you concentrate on your current home’s selling price. Points, prepayment penalties and higher interest charges on your new home can easily erase all the profits you gained in the sale.”

There is a difference between strong credit and the credit needed to obtain a mortgage. Indeed, you can buy real estate with poor credit but you’ll pay higher, non-prime interest rates. Consider: a mortgage loan of $150,000, 30-year, fixed rate mortgage, interest rate of about 5.72% will cost approximately $870 monthly. With poor credit, the interest rate could easily exceed 9% costing over $1,200 in monthly mortgage payments. That means that, over the course of the mortgage, you could pay the price of a second home in mortgage payments simply because you didn’t take the time to repair your credit.

To review your credit rating, check www.annualcreditreport.com

To repair or improve your credit rating, visit www.CreditRestorePros.com

When buying a home or selling a home good credit can be a big difference in mortgage payments which could help you buy the home of your dreams or purchase an additional property, so do what you can to have the bets possible credit rating.