Where are you now? versus Where you want to be?

1. Where are you now? versus Where you want to be? Current Situation Future Ideal

2. Foreclosure Process Notice of Default Comes anytime after you are 30 days delinquent. Notice of Trustee Sale NOD+30 Days establishes the Trustee Sale Date Auction Date is set for 90 Days after Notice of Trustee Sale Borrower has up to 11 days before the Sale Date to bring loan current. Auction Date – initial bid set at 2/3 of appraised value No buyer? House becomes Bank Owned. Bank hires a Real Estate Broker to sell it. Sheriff Evicts. Investor buys the property for Cash at Auction

3. Foreclosure Avoidance Activities Select which Freedom Team Members will help you avoid Foreclosure Notice of Default Notice of Trustee Sale NOD+30 Days establishes the Trustee Sale Date Immediate Offer – Attorney Foreclosure Consultation / SS Negotiation Mediate to Modify or Negotiate – 60 Day Delay Foreclosure Defense 6-10 months or 1+ Year Delay Bankruptcy – temporary delay. Avoid BK + Foreclosure Cure arrears Short Sale Approval and Closing – Chapter Closed, begin Credit Repair Auction Eviction Eviction

4. 9 Options in Foreclosure • Do Nothing • Pay Arrears • Bankruptcy • Deed in Lieu • Refinance • Loan Modification / Repayment Plan • Sell with a Real Estate Agent • Sell on your own • Customize your Freedom Plan and Team

5. Freedom Obstacles • Bank Forecloses before Short Sale is Approved • Buyers walk away because Banks are slow or unrealistic in approval price • Deficiency Judgment • Pursuit of remaining loan balance after Foreclosure or Short Sale • Tax Consequences • Debt Forgiveness = Income • Credit Consequences • What will my employer / insurance carrier think? • What will my future landlord think? • Foreclosure / Deed in Lieu of foreclosure vs. Short Sale • Other Credit Obstacles • Are there other debts that need to be addressed prior to judgment? • Should I Modify my Loan or Legally Challenge the Foreclosure? • Value today vs. Loan Amount • Can I just buy some more time to save some money?

6. The Freedom Team • Foreclosure Avoidance • Immediate negotiation to settle liens with deficiency waiver – Lien Settlement Process • Trust to shield potential judgment liens • Deficiency Judgment • Attorney negotiation & interpretation of the approval letter. • Tax Consequences • Certified Public Accountant to review your tax consequences • Credit Consequences • Credit “police” to verify debt, challenge and remove • Other Credit Obstacles • Bankruptcy Consultation – Avoid the credit double “whammy” • Mediate / Modify or Litigate • Additional time in the home without payment • Use Mediation Statute to evaluate Modification • Foreclosure Defense • Likely the maximizes the amount of time in the home.

7. Traditional Short Sale Agent Market for Buyer 60-90 Days Buyer #1 Negotiate 60-90 Days List Home for Sale Buyer #1 Terminates Due to slow response Buyer #2 (Lower offer) Negotiate 60-90 Days Buyer #2 Terminates Due to slow response Buyer # 3 60-90 Days Too Late….. Foreclosure Timeline

8. Lien Settlement Process Immediate Action Step – Collect Multiple Offers – Protect home against new liens • Attorney Creates Trust • You are Trustee = 100% control • You are 100% owner • You can revoke at any time • You place the house in the trust Your rights to live in property are protected. (You can revoke) Broker (hired by successor) is constantly marketing for Buyers. Admin burden shifts to successor trustee. You sell your interest in trust to investment company. Successor trustee appointed to deal with house. Immediate Action Steps – Begin Short Sale Negotiation – Obtain Waiver of Deficiency Foreclosure Timeline

9. Lien Settlement Process Immediate Action Step – Collect Multiple Offers – Protect home against new liens • Attorney Creates Trust • You are Trustee = 100% control • You are 100% owner • You can revoke at any time • You place the house in the trust Your rights to live in property are protected. (You can revoke) Broker (hired by successor) is constantly marketing for Buyers. Admin burden shifts to successor trustee. You sell your interest in trust to investment company. Successor trustee appointed to deal with house. Immediate Action Steps – Begin Short Sale Negotiation – Obtain Waiver of Deficiency 1) Investment Company pays off existing liens according to approval letter. 2) Investment Company purchase of trust perfects 3) New Lien is established 4) Investment company decides their ownership and exit strategy. (Hold, Rehab, Sell etc.) • Investment Company • Increases offer as necessary to obtain acceptable approval with full release and waiver of deficiency • Pays additional funds as necessary 2nd lenders to obtain full release and waiver of deficiency Bank is forced to identify 1) Price they will accept 2) Approval Letter Language Approval Letter must be acceptable to you. Attorney reviews approval with you You immediately sell beneficial interest in the trust to investment company Short Sale Negotiation begins Foreclosure Timeline

10. Design your Freedom Team

11. Design your Freedom Team

12. Next Steps • Gather Documentation • Provide Personal & Property Information on the Short Sale Submission Form (next slide) • Gather Personal Docs & Financials listed on the Short Sale Submission Form • Schedule an appointment for File Review • Files are only accepted if the team feels confident in odds for a successful outcome • No guarantee of performance however, we also won’t recommend payment to the attorney unless we are confident! • You can come to the office or the NMS Representative can bring the file in for review • Real Estate Professional Takes Photos • Prepare to market the property immediately • Prepare for Showings and make the home available for prospective Buyers • Average Timeline is 4-6 Months • We have had approvals in 3 weeks (close in 60 days) and 1 year • It depends on your lender(s)