$300 Billion to Fund "Short-Refi's"

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mackpoise

214 Posts

Posted - 03/14/2008 : 12:11:32 PM

The lastest news....

House Financial Services Committee Chairman Barney Frank on Thursday announced new legislation that represents Capitol Hill’s latest attempt to stem a significant rise in mortgage foreclosures. Under the proposed plan, the Federal Housing Administration would receive $300 billion — $150 billion over each of the next two years — to insure and guarantee refinanced mortgages that have been significantly written down by mortgage holders and lenders.

The bill establishes terms for what it calls “homeownership retention mortgages,” otherwise called short-refis by most in the industry. Lenders and investors would be required to write off principal for first mortgages while second lienholders would likely be extinguished entirely under the terms of Frank’s plan.

The tentative bill outlines a very complex set of requirements surrounding who can get a “retention mortgage” and who can not.

In general, however, borrowers must be underwater enough that a write-down in principal to a first mortgage is required, and must also qualify for the FHA-insured short-refi under traditional circumstances — that is, at market rate, full doc, fixed-rate only, debt-to-income under 40 percent. Further, the monthly payment borrowers would receive under the “retention mortgage” would need to be less than their existing mortgage payment.

Borrowers obtaining a “retention mortgage” would also see the government put a soft second lien on the property, in order to establish a 3 percent “exit fee” if the borrower sells or refinances the home. Further, the second lien would establish a scaled “shared profits” model if the borrower manages to sell or refinance within five years.

Under the terms outlined by the bill, existing lenders would receive no more than 85 percent of a property’s currently-appraised value as payment in full for their existing lien position.

But it’s second liens that would appear to be the most pressing issue here, in spite of the fact that many lenders have begun reserving for losses on seconds at 100 percent. Tanta at the Calculated Risk blog opines:

The draft bill says that “The Secretary (of HUD) may take such actions as may be necessary and appropriate to facilitate coordination between the holders of the existing senior mortgage and any existing subordinate mortgage to comply with the requirements.” It doesn’t say what necessary actions might be needed to force second lien holders to roll over and die–threats? bullying? shunning at cocktail parties?–but that’s likely to be a sticking point given current second lien holder behavior.

Below is the link to the entire artcile....

http://www.housingwire.com/2008/03/14/frank-proposes-300-billion-to-fund-short-refis/?utm_source=HW03142008&utm_medium=MailChimp

mackpoise

214 Posts

Posted - 03/14/2008 : 12:16:50 PM

Hello BO,

We at short-refi.com have had an enormous response from you all. Many have already signed up either as an affiliate or as an agent and we thank you. Some folks here have been very skeptical, but all I can say is...stay tuned!! We still have some area available, please contact me ASAP!

Have a great weekend!

Jeff Blackledge
short@yahoo.com
www.short-refi.com
866-592-3055

mackpoise

214 Posts

Posted - 03/14/2008 : 12:17:41 PM

We offer two opportunities that may fit your needs. One, is becoming an Associate Agent with Wizard Lending LLC. As an Associate Agent, you will learn the art of negotiating a short-refi (along with short-sales and loan mods). You will become part of the Wizard Lending LLC team. As an Associate Agent, you will have exclusive territory with us, broken down by area code. We will supply you leads and clients at absolutely no additional costs (unlike some of the loss mit companies out there, that we've heard about). You will have the opportunity to make money by negotiating the client's short-refi and if the client also needs financing, that is all your too! From now until March 31st, 2008, you can become an Associate Agent with us for as little as $500.00. We ask for a small set-up fee to become an Associate Agent with us, because we are only looking for serious people that truly want to learn the business and help those in need. We are not looking for every Tom, **** and Harry that wants to jump on board, learn the ropes then jump off and go on your own. We are looking for people that want to be part of a team, that has potential to dominate the market and become a partner in an answer to today's housing market problems.

Offer number two, is to become an Affiliate Broker with Wizard Lending LLC. There is absolutely no cost to be an Affiliate Broker with us. Our Affiliate Broker program is designed for brokers that have clients that are in need of a short-refi. This is for brokers that have clients that are behind on payments and cannot be refinanced due to high LTV and low FICO's. Clients that are upside down on their mortgage, due to a deteriorating housing market and now finding themselves unable to get refinanced. Clients that are close to 100% LTV or higher and have an ARM getting ready to adjust, skyrocketing their payment beyond reach. A short-refi can help all of these clients. Basically, as an Affiliate Broker, you send us your client, we negotiate a short-refi for them, then once the short-refi is completed, we give the client back to you to complete the loan. As an Associate Broker, with Wizard Lending LLC, you are doing nothing more than having your client hire us as a negotiator for the short-refi. Once the negotiation is complete the customer is given back to you, to complete the loan. In this situation, we have nothing to do with the loan process. That is all up to you. Our charge to negotiate a short-refi is $900 + .75% of the negotiated payoff amount. The only out of pocket expense to the client is $400.00. The remaining $500.00 + .75% is paid to us on the HUD-1 as a third-party fee, in one lump sum. As an Associate Broker, it is a WIN-WIN situation. You bring us a client and we give you back a fundable deal. We work with you throughout the entire process.
In the attached documents, please read the Short-Refi.comDoc first. This will give you a complete overview of what to expect as a Short-Refi Negotiator. I have also attached the CompleteAssociateAgentPacket, which contains our Associate Agent contract and gives you complete and in depth details on becoming an Associate Agent. The Agent packet also gives you full details on how to sign up as an Associate Agent.
If you wish to become an Affiliate Broker and send us clients in need of our services, I have attached our Affiliate Broker sign-up sheet. This is a one page sheet that gives us your basic information, so we know who is send us the clients and who we are dealing with that is obtaining the loan.
Since we do offer exclusive territory, this will be on a first come first serve basis. If you are interested in becoming an Associate Agent, please contact me as soon as possible with the area code(s) you are interested in. If it is available and you plan to sign up, please e-mail me back with the area code(s) you want and I will put a 24 hour hold on it, to allow you time to fulfill the contract, fax it back and pay the set-up fee. If this is not completed within the 24 hour hold time, the area code(s) will immediately be released to the next broker that wishes to sign-up.
Whether you wish to become an Associate Agent or an Affiliate Broker, please fill out the appropriate forms and fax them back to us at 1-866-244-6108. Then mail us the originals at the address shown on the documents.

From now until March 31st, 2008 we are offering our Associate Agent set-up fee as low as $500!*

We do offer a 100% MONEY BACK GUARANTEE!*

Also, Associate Agents signing up by March 31st, 2008, will be able to take advantage of our $900 BONUS PROGRAM!*

Jeff Blackledge

shortrefi@yahoo.com

velecico

3999 Posts

Posted - 03/14/2008 : 5:29:53 PM

Who is the " Wizzard " behind Wizzard , what are his/her credentials ?

jordanb

370 Posts

Posted - 03/19/2008 : 8:44:29 PM

Hello Jeff,

I have a good friend who's in a difficult spot. Let me know if he's a good candidate for your Short-Refi Program Details:

Value: $545K
Balance: $615K (1st and 2nd Combined)
Current Loan: Option ARM (1st mtg) AND HELOC (2nd mtg)
Current Rate: 8.25% (Fully Indexed)
Primary Residence /Owner OCC/SFR
0x30 (Primary)
Income: $17K+- monthly
FULL DOC
FICO: 580 TO 610
STATE: LAS VEGAS, NV (DECLINING MARKET)

**HAS (3) OTHER PROPERTIES--- (1X30) ON ONE OF HIS NON OWNER OCC.**

*BORROWER IS CONSIDERING WALKING AWAY FROM HIS HOMES*

Let me know if this is a viable deal as I'd like to help this guy!

Thanks,
Jordan

mackpoise

214 Posts

Posted - 03/20/2008 : 10:31:35 AM

Hi Jordan,

It does sound like a likely candidate. What is the size of the 2nd mortgage? I would really like to talk about this one, our niche is all about scenarios like the one above. Good income, declining market and they have a 2nd...my number is 866-592-3055.

Thank you Jordan!

jordanb

370 Posts

Posted - 03/20/2008 : 1:59:17 PM

-Hey Jeff

The 2nd is for roughly $60K to $70K. Hope that helps.

BTW....how much of a role does the Fico score play into the equation?...

Thanks buddie,
Jordan

mackpoise

214 Posts

Posted - 03/20/2008 : 6:19:45 PM

Yes, it does...please give me a call at 866-592-3055.

Rampart

792 Posts

Posted - 03/22/2008 : 10:46:01 PM

Keep asking questions Nick.

mackpoise

214 Posts

Posted - 03/24/2008 : 08:16:42 AM

Who's Nick?

Rampart

792 Posts

Posted - 03/24/2008 : 5:15:52 PM

Nick is velecico. You answered my questions in another thread, thanks Jeff.

mackpoise

214 Posts

Posted - 03/24/2008 : 9:40:54 PM

Oh, gotcha!

jordanb

370 Posts

Posted - 03/25/2008 : 9:53:02 PM

-Jeff

I will contact you about the scenario I listed on 3/19. At any rate, I have a few questions:

1.) What is the difference b/n a Loan Modification AND a Short-Refi?

2.) After reading your other post, are you suggesting that you have pre-established realtionships w/ Hard Money Lenders & Private Investors that will provide financing at about 70% to75% LTV? So is the borrower then obligated to fund his or her loan with this "new" Lender or Investor?

3.) What is the average range of interest rates on these loans?

4.) Are these Private Investor/Hard Money Lenders charging addtional Discount Points on the HUD?

5.) If a borrower DOES in fact meet the criteria of your program, what is the turnaround time?

Please advise, thanks!

Jordan

mackpoise

214 Posts

Posted - 03/26/2008 : 12:30:33 PM

Hi Jordan,

I am sending you an email and, yes, please contact me regarding the scenario from the 19th. Thank you for the questions and have a HUGE day!

jordanb

370 Posts

Posted - 03/26/2008 : 3:48:13 PM

-Hey Jeff

I just gave you a call at the office. Guess I just missed you! Any I didn't receive your email. Can you plz resend to: jordanb79@hotmail.com

Thanks,
Jordan

Keeysturn

323 Posts

Posted - 03/28/2008 : 10:05:09 PM

quote:
Originally posted by jordanb

-Jeff

I will contact you about the scenario I listed on 3/19. At any rate, I have a few questions:

1.) What is the difference b/n a Loan Modification AND a Short-Refi?

2.) After reading your other post, are you suggesting that you have pre-established realtionships w/ Hard Money Lenders & Private Investors that will provide financing at about 70% to75% LTV? So is the borrower then obligated to fund his or her loan with this "new" Lender or Investor?

3.) What is the average range of interest rates on these loans?

4.) Are these Private Investor/Hard Money Lenders charging addtional Discount Points on the HUD?

5.) If a borrower DOES in fact meet the criteria of your program, what is the turnaround time?

Please advise, thanks!

Jordan

Jeff, can you post the answers in this thread to these questions?

mackpoise

214 Posts

Posted - 03/29/2008 : 08:55:10 AM

Hello Jordan and Rosalind,

Thank you for your questions and I will answer them in order below:

1.) Difference between a loan modification and a short refinance. Typically, Loan modifications deal with negotiating a new interest rate, or taking any past due payments/fees and re-amoritizing the loan - if they were behind $10,000 and had 312 months remaining on the term, add the $10K to the back and they would have 317 motnhs remaining. In a short refinance, we work with lenders to get a reduction in the payoff.

2) I am absolutely suggesting that we have already established relationships with lenders, yes. They do include private investors, BUT it also includes FHA. FHA has a program that will accept short refinaces. The answer to the second part of question #2 is that the borrower is NEVER obligated but, yes, they have to be able to new financing and the options are usually limited. Lenders will only consider a short refinace, or a mortagge reduction if they are getting PAID OFF.

3) The average interest rate? FHA is about 6.5% fixed. For homeowners deep in foreclosure, then it the private investors adn the rates range around 9%. It case by case guys and depends on homeowners income, credit, housing market property is in etc. Just like you taking an application for a loan, you can't quote rate until you do your job first.

4) Private Investors do charge points obviously.

5) Turn around time can be 4 weeks to 3 months.

Jordan and Rosalind,

What we at Short-Refi.com are trying to catch homeowners before they fall into a foreclosure. We obviously try to help homeowners in foreclosures but it does get more difficult. Both of you please call me, my number is at the end of this post, they is HUGE opportunity. Please read the information below, as it provides with our ideal scenarios:

SHORT REFINANCE EXPLANATION

SITUATION
If you are reading this, your situation can be described as follows. Your mortgage now is an ARM( adjustable rate mortgage ) that had a “fixed” monthly payment for the first two or three years and your monthly mortgage payments have sharply increased because the payment is now based on a higher adjustable rate. You are employed, have a reasonable household income and your credit has always been good but the new mortgage payment is now too much and you are behind on the mortgage payments. You have tried to sell your home but discovered that your home’s value has fallen under your mortgage balance and can’t sell. You are stuck and it looks like the only option is foreclosure.

SCENARIO OF WHEN WE CAN HELP USING FHA
Let’s say you have a mortgage of ~$400K with a home market value of $335K and that you would qualify for a better mortgage rate at ~6.625%-7.875% ( rates are subject to change ) if your mortgage balance was once again less than your home’s value, which is $335K in this example. We may be able to negotiate a reduction of your mortgage to below your home value of $335K, making you eligible to refinance and then apply on your behalf. Below is a comparison of the previous mortgage, rate, payment to what it would be in a successful transaction.

*Example

Mortgage Rate Pymt Principle Pymt? Fixed?

Present
Scenario $400K ~8+% $2700+(I.T.I) No No

Scenario
if successful
(reduced by ~$325K ~6.75% $2100(P.I.) YES YES
negotiation)

BENEFIT SUMMARY

Avoid foreclosure

Keep your home and Secure an affordable mortgage with a FIXED rate/payment including principle

Have a substantially reduced mortgage balance

DO I QUALIFY?
Allowable

Mortgage Delinquency and Foreclosure AFTER payment increase
No Reserves or Savings
Single and Multi-Family Homes
Extremely Low FICO Scores
Co-Borrowers that do not live in your residence

Not-Allowable

NOT A NEGATIVE AMORTIZATION (OPTION ARM) LOAN
Bankruptcy within 2 years
Investment Property
Mortgage Lates within 6 months of mortgage payment increase

Program Requirements

Monthly payments MUST HAVE ALREADY INCREASED
THE PROPERTY MUST BE A PRIMARY RESIDENCE
Your current mortgage must be an ARM (adjustable rate mortgage) that has already increased in payment.

You must have been out of bankruptcy for 2 years with re-established credit with the exception of the ARM mortgage if it has increased in payment.
Your income must be documented and pass a debt to income ratio of 50%. (This can be explained to you in detail during an appointment)
For example, if we negotiate your mortgage down to $300,000, the DOCUMENTED GROSS income between ALL BORROWERS and rental income should be at least $7,000 per month to have a reasonable chance for approval. Please note, co-borrowers not occupying your residence are permitted.

BASIC LIST OF REQUIRED DOCUMENTS TO HAVE AT APPOINTMENT

Original 1st and 2nd mortgage note ( what you signed at closing )
Current 1st and 2nd mortgage statement
2006 - 2007 W-2s for all applicants
1 month recent pay-stubs for all applicants
2 months of recent checking account statement
4th quarter statement of retirement assets or other financial assets
Driver’s License for all applicants
Social Security Card if permanent resident alien
Letter describing your current hardship

WHAT IS THE PROCESS AFTER APPLICATION?

After signing your application and disclosures and collecting documentation, allow us to take over communication with you lenders and start negotiating your mortgage reduction. If your lender is willing to reduce your mortgage enough to make you eligible to refinance with the agreed upon compensation to us, we will then order an appraisal to submit with your application for the government mortgage program. If your lender is NOT willing to reduce your mortgage enough to make you eligible to refinance at the agreed upon compensation to us, we cannot be of further assistance.

WHAT TO DO DURING THE PROCESS?

Continue keeping all your pay- stubs, bank statements and asset statements and inform us of any anticipated changes in employment, income, credit or any other factors which you think may affect your loan.

Again, please contact me anytime and have a HUGE day!

Regards,

Jeff Blackledge
www.short-refi.com
shortrefi@yahoo.com
866-592-3055

mackpoise

214 Posts

Posted - 03/29/2008 : 08:59:20 AM

Gang, sorry for not spell checking in my last post above.

mackpoise

214 Posts

Posted - 03/29/2008 : 09:00:20 AM

bump

jordanb

370 Posts

Posted - 03/29/2008 : 10:35:02 PM

-Jeff

Thanks for taking the time to answer my questions. Much appreciated! I would still like to talk with you on Mon or Tues.

BTW...I have a buddie who has (23+) properties and is losing about $40K a month. He owns an entertainment company and a property investment company. He's looking to do a short-refi on a large portion of his properties. He has a 725 fico, $400K in liquid assets, NO Deliquencies, No Credit Card Debt and Obviously he would need to state his income. Would have be a candidate for your program?

*He would be looking to do a package deal with Countrywide b/c he has (10+) properties with them*

Let me know buddie. Thanks!

-Jordan

mackpoise

214 Posts

Posted - 03/29/2008 : 10:43:59 PM

Give me a call.

Keeysturn

323 Posts

Posted - 03/30/2008 : 05:06:07 AM

Jeff, thank you for the very detailed response. I guess my question is, if the borrower, in the above scenario is showing several lates since the reset, what lender will refi under 11%? I live in NC, and we have very stringent PLLs, which includes rate spread restrictions, 5% cap on all fees to borrower. So on a loan amount under 100K, we stand to make nothing.

Let me know your thoughts on this.

Thanx!

mackpoise

214 Posts

Posted - 03/30/2008 : 05:59:30 AM

Hi Rosalind,

The FHA Secure program will allow mortgage lates....as long as the mortgage lates were "after" a homeowners rate re-set. They can't have any mortgage lates within the 6 months prior to their rate re-set. This FHA program offers rates under 7%.

Does your scenario still fit this?

mackpoise

214 Posts

Posted - 04/09/2008 : 2:37:27 PM

BO Members,

I wish to thank everyone for their posts, questions and insight. So many of you understand what we're doing, and many of you have already parntered up with us.

However, some members are having a harder time grasping what it is we are doing. We are not here to give seminars, we are here to offer you and your clients an alternative. To those of you that are uncertain, I have two solutions below:

1) Visit our forum, or "think-tank" specific to short-pays at www.short-refi.org. We have not officially rolled out this forum yet - but it is ready and is being used. You can post questions, scenarios and get answers - sometimes faster than here at BO. All of our agents and affiliates across the country view your posts and respond.

2) Sign up! The "Affiliate" program is free. You want to know more about what we do? Find a client that could use our service. Visit our web-site at www.short-refi.com. Complete the on-line "affiliate" form and one of our independent agents in your area will contact you within 24 hours. They will have your client complete a borrower questionnaire, financial statement and have you submit the 1003. The agent will get you started. It FREE - and it's easier for you to see exactly what we do and how.

We do have an "Associate Agent" relationship that does have a set-up fee BUT that is not the only way to benefit from our service.

Those of you still unclear, please give it try - it's too difficult to completely train someone and give all of our proprietary information over these posts.

Please keep posting and asking questions, this specific post is for those that are still unclear. Have a HUGE day, again, THANK YOU BROKER OUTPOST and it's MEMBERS!! Especially those of you already onboard...

Keeysturn

323 Posts

Posted - 04/11/2008 : 11:46:15 AM

quote:
Originally posted by mackpoise

Hi Rosalind,

The FHA Secure program will allow mortgage lates....as long as the mortgage lates were "after" a homeowners rate re-set. They can't have any mortgage lates within the 6 months prior to their rate re-set. This FHA program offers rates under 7%.

Does your scenario still fit this?

Jeff,

Thank you for your time. I am now with a new broker shop here in NC and am interested in the affiliate program. Will get in touch with you next week.

mackpoise

214 Posts

Posted - 04/11/2008 : 12:04:01 PM

Hi Rosalind,

I hope your new shop is highly "conducive" for you! I look forward to talking to you next week - have a great weekend!

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