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What we do
for the Trust Deed Purchaser?
We help “Keep Families in
Homes” by funding private 1st TDs to a 65% loan to value and/or 2nd TDs to a 65%
combined loan to value. Our goal is to a.) Determine that the customer is in a
market area where the values have not decreased or where the market is staying
strong, and b.) Determine and select which borrower is simply having a
“hiccup” in their life and needs assistance, versus the borrower that reflects
the habitual nature of a credit abuser. By so doing we are able to give a
family a much needed second chance. Often when the credit is not worthy of
a second chance, or appears questionable, we will require the customer to make
advance payments from their loan to the Trust Deed Purchaser (TDP) to guarantee
“x number” of payments. We will also insist the customer pay off as much
debt as possible and we have them pay a 3rd party credit repair
company to work on their credit so they can be out of this note in usually 9 to
18 months. Some other services include:
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Monitoring of payments
on 1st TD - We file a form with your recorded deed which allows
you to receive notice in the event of a default on the 1st TD. Giving
you plenty of time to work out the situation with the borrower.
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Servicing (Billing & Customer Contact)
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Monthly calls to TD
customer to determine issues of non payment
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Setup a potential
buyout of your TD (Only with your Approval)
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Foreclosure Process
including
the Notice of Default and Notice of Sale
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Property Value
Determination if thinking you want to sell property
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Sales Assistance
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We determine that a customer has the ability to pay, combined with our
ability to determine the true value of the collateral (customer’s home).
We don’t just look at previous sales within their neighborhood and we
definitely don’t just accept the value of the appraisal that the broker
submits to us. Most every appraisal that we receive from the broker
representing the client shows only the other home sales that will
substantiate the value they are trying to convince us of. We always
get a 2nd value check by doing a desk review with a 3rd
party appraiser. This desk review is VERY important. This
appraiser is determining values from the side of the Investor/TDP. We
look at all existing market data such as how long homes have been staying on
the market in their area, how many foreclosures have occurred in their
neighborhood, and is this property likely to sell quickly in the event that
we have to do a foreclosure.
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How do we work with Trust Deed Purchasers?
What
we do is supply TDP with a TDP Pre-Purchase Disclosure form (which gives you
all the client criteria along with total underwriting determination), a 1003
form, 1008 form, credit, appraisal, secondary opinion of value from our own
appraiser, a letter of explanation as to how the borrower came to be in
their situation, and plan of action to get them out of their situation using
their new loan showing allocation of funds if needed. They are our
bread and butter. Our goal is to give you the information so they can
jump on Trust Deeds the minute we get them.
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Explanation of
the Foreclosure Process.
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Again, all servicing
is handled by Foreclosure Consultants, Inc. (FCI) They are a local
company located in Anaheim Hills, CA. The servicing fee is $20.00 per
month, and includes invoicing, collections and direct deposit of funds
to your account. They will also file a Notice of Default in the event
that a client is 42 days past due on their lien that FCI is servicing
for you.
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Foreclosure process
begins when the Notice of Default is recorded with the county recorder of
deeds. Borrowers have 90 days to cure the default. If they do not cure it
within the 90 day period, a Notice of Trustee's Sale filed is published in a
news paper circulating in the city where the property is located. (FCI
handles) Only at the time of filing of the Notice of Sale does FCI require
any payment for services. They will need a credit card for the cost of the
foreclosure (around $2000.00 to $3000.00)
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The Notice of Trustee's
Sale must be published one time per week for three weeks before the
foreclosure sale, which may occur as soon as 21 days after date that the
Notice of Trustee's Sale was first published in the newspaper. (FCI handles)
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At
the foreclosure auction the property is sold to the highest bidder for cash.
You will set the price at the sale. If no one bids at the Trustee
Sale, the property reverts to you. California also does not have a
redemption period, meaning that after the foreclosure sale, the property
title can not be regained by the foreclosed owner just by paying the
foreclosure purchaser's price. Once the sale is done, you are
transferred the title deed to the property, and you will then have all
equity left in the property. It is your decision to allow them to stay and
lease the property from you or to sell the property. We also offer flat fee
services to sell your new home.
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