1 / 7

Saving Homes, Saving Cities Solving the Mortgage Crisis Locally Processes and Cash Flows

Saving Homes, Saving Cities Solving the Mortgage Crisis Locally Processes and Cash Flows. Key Steps To The MRP Process.

kaiya
Download Presentation

Saving Homes, Saving Cities Solving the Mortgage Crisis Locally Processes and Cash Flows

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Saving Homes, Saving Cities • Solving the Mortgage Crisis Locally • Processes and Cash Flows

  2. Key Steps To The MRP Process The City hires MRP at no cost per the terms of the MRP Advisory Agreement as modified by the City and agreed to by MRP. At each step in the process the City has the option to terminate the Agreement and must approve the next step before it is taken. The City does not pay any costs of the program. Nothing in the Agreement obligates the City to file an eminent domain motion. The City pre approves all communications with the homeowners and the community. Before or after the City files an eminent domain motion the Homeowner may opt out of the program and their mortgage will be dropped from the motion before it is purchased. Qualified homeowners who opt into the program may elect to refinance for less than the current value of their home. Qualified homeowners who opt into the program may elect to sell their home in full satisfaction of their mortgage and lease back their home with an option to purchase it in the future. Homeowners who opt into the program, but do not qualify for a refinance or a lease will be dropped from the eminent domain motion before their mortgage is purchased.

  3. Step 1. City Controls The Process PLS Trustee MRP City Start: Hires MRP, Signs Advisory Agreement Receives offer to purchase loan Identifies Possible Homeowners Proceed to prepackaged eminent domain settlement Appoints Staff yes Appoints Counsel RON Approved? Accept offer? Proceed? Proceed? Proceed? no no Prepares offer to purchase loans Stop yes Makes offer to purchase loans no Stop Builds community consensus to proceed with Eminent Domain motion. Drops homeowners that opt out. yes no Stop Prepare Resolution of Necessity Material yes no Stop yes File Eminent Domain Motion

  4. Step 2. Home Owner May Opt Out City MRP Home Owner Start: City Files Eminent Domain Motion Dropped From Motion no Presents program to homeowners Qualifies For Lease? Qualifies for refi? Interested? yes City approves presentation materials yes To Refinance Option no yes To Lease Option no Dropped From Motion

  5. Step 3: Refinance Option Home Owner PLS Trustee Funder City FHA Lender Start: Home Owner Opts to Refinance Obtains Order For Possession of Mortgage Pays $160,000 Loan Acquisition Price Receives $160,000 Gets a new $190,000 FHA Mortgage @ no cost = 95% of home value Records the new $190,000 FHA Mortgage Delivers Underwater PLS Mortgage Receives Underwater PLS Mortgage Sends $190,000 to Funder to payoff PLS mortgage Receives $190,000 Old Mortgage Paid Off Sends reduced monthly mortgage payments to new FHA Lender Invests $9,500 to stabilize local housing Receives monthly mortgage payments from Home Owner Sends $9,500 to community Pays MRP $4,500 Pays $3,260 of other expenses Avoids another foreclosure

  6. Step 3: Lease/Purchase Option Home Owner PLS Trustee Funder City Home Buyer Start: Home Owner Opts For Lease/Purchase Files Motion, Possession Granted Pays $160,000 Loan Acquisition Price Receives $160,000 Signs a market rate lease with an option to purchase. Sells home to buyer. Delivers Underwater PLS Mortgage Receives Underwater PLS Mortgage Signs Lease, Buys Home Sends $190,000 to Funder Receives $190,000 Old Mortgage Paid Off Invests $9,500 to stabilize local housing Credits a portion of rent to tenant’s purchase account Sends $9,500 to community Pays rent Pays MRP $4,500 Pays $3,260 of other expenses Avoids another vacant home Buys home or continues to rent

  7. Follow the Money

More Related