Executive Private Investment Funding Co., LLC

HELPFUL INFORMATION TO ASSIST IN YOUR SUCCESS

Pending Foreclosure Principal Communications

The most critical question to ask anyone who finds themselves in a pending foreclosure (aka Trust Deed Sale) scenario is:

DO THEY WANT TO STAY; or

DO THEY WANT TO MOVE

The most critical data you must FIRST determine is ... are the people you communicate with honest, sincere, well informed, educated enough to understand your message and questions, prepared to perform the simple data gathering tasks you will ask of them, and ... willing to give you a full commitment of time, energy, and spirit to seeing whatever solution, as presented to them, they deem is in their best interest through to the finish line: through to closing.

Let everyone you talk to know, without exception, that you time is valuable, that you deem their time as being valuable and that you wish to provide assistance for them in their time of need. Furthermore, as you communicate with all of your principals, continually pause and ask them if they understand everything that you had discussed with them, and ask them if they have any questions. They will appreciate your patience and sincerity. And they will more quickly learn those things you attempt to bring to light.

Property Owner Desires to Stay:

If they want to stay in their property (e.g., do they desire to retain title and or an equitable interest in the property; and in most instances retain possession), they must be prepared to answer the following questions:

1. Are they prepared and committed financially and emotionally to once again make monthly payments;
   1. If they are not truly committed and or financially capable of making payments going forward, then you may consider engaging in communication with them to inform them as to their other option ... which is to prepare to move ... and the benefits they can realize in cooperating in a sale of the property;
2. Can they afford to make no less than the payments they had been obligated to make in their current defaulted mortgage;
3. Have they stabilized their professional work status;
4. What have they done with their monthly income since they stopped paying their mortgage;
5. Do they have any cash reserves as a result of not having made their payments these past months;
6. How many mortgages and or liens do they have secured against their respective property:
   1. That would include 1st, 2nd, or more mortgage liens;
   2. That would include any Lines of Credit secured by their respective property;
7. Do any of their existing mortgages or liens have “Prepayment Penalties”;
   1. If the answer is yes, then when does the penalty period expire (a copy of their note is critical);
8. Are any of the existing mortgages or liens “Adjustable Rate Encumbrances”;
   1. If the answer is yes, then when do they adjust (a copy of their note will be critical);
9. Had their property taxes and or insurance been impounded by their mortgage lender or Servicer;
   1. If their property taxes were not impounded, are they behind or current in their property taxes;
   2. If their property insurance was not impounded, are they behind or current in their coverage;
10. Does the property need any deferred maintenance (e.g., repairs, electrical, plumbing, structural, etc.);
11. Do they have any other monthly debts (e.g., auto loans, credit cards, etc.);
12. Are they in a pending bankruptcy? Furthermore, have they considered filing bankruptcy*;
13. Do they have any State or Federal Tax Liens against them;
14. Do they have any Judgments recorded against them;

The above questions are the more critical ones to secure from the property owner. More often than not, property owners will share a vision of desiring to stay, but not a plan ... and they will ultimately demonstrate wanting to be able to stay at the property ... WITHOUT HAVING TO PAY FOR IT! Do not let yourself get caught up spending time on individuals who fit into any one of the following categories:

• They want to stay ... but do not want to pay;
• They will not provide you with answers to the questions defined above;
• They make promises to provide information ... then never produce the data;
• They claim the pending foreclosure against them is a “mistake”;
• They claim they “have [it] handled” (if they did, why did they let their mortgage go into foreclosure?);
• The answers you receive prove to be predominantly false;
• They invite you to maintain communication with them ... then never answer your calls, return your voice mail messages, or return your e mail correspondence;
• They claim to have accepted other services but refuse to disclose what type or who is providing the service;
• They display any other behavior that indicates they are not otherwise sincere or credible;

You will want to inquire from the property owner if they have an estimate of the value of property. THIS IS CRITICAL. Take note that more often than not a property owner’s “estimate” of property value will almost always be much greater than its TRUE MARKET VALUE ... often times by as much as 20% or more! The following table is designed as a tool you can use to determine the funding options a property owner can expect from EPI Fund based on their equity position in their property at the time of their application:

Property Owner Desires to Move:

If they do NOT want to stay in their property (e.g., they are planning on vacating, it’s just a matter of when), then you will not only need the answers to the hereinabove critical questions pertaining to the property and their existing encumbrances, but more importantly, in the beginning of your establishing a relationship with them, is:

1. What are their plans? When were they intending on moving;
2. Did they originally secure their financing as an owner occupant or for investment;
3. Are they moving because they feel they can not afford to live there any longer;
4. Would they stay and pay rent if their payment was lower;
5. If the property is over encumbered, would they cooperate in a short sale procedure;
6. Are they the sole title holder to the property or are there others on title with them;
7. Do they have any State or Federal Tax Liens against them;
8. Do they have any Judgments recorded against them;
9. Is there any information about the property they feel would affect its value or marketability;

Often times individuals, once in a pending foreclosure, who have made the election to move, want closure as quickly as possible. It will be incumbent upon you to determine the economic particulars of such a property as quickly as possible. You want to gather as much data on the property as you can, and then ask the property title holder what their objective is. You will then want to quickly determine if their objective is realistic and achievable.

It will be incumbent on you to then act on that objective as a principal or as a referral. EPI Fund looks forward to providing you with the economic resources you may need to see these objectives to fruition.

Summary: Do the Right Thing!

Alert! You will want to introduce yourself to each pending foreclosure principal in as short a period of time from the date their data is posted as possible. This is because they will all be besieged by mailings within days of their posting. Such marketing will confuse and overwhelm them ... often times into a state of numbness. And then they likely will not be able to absorb your professionalism, kindness, and straight forward approach as being honest or beneficial.

Be patient: listen to their words. Hear their story. Determine the legitimacy of each principal. Demand excellence from them ... as they will most assuredly demand it from you. Let them know you care and WILL follow up with them throughout their processing. Invite them to call you with questions, and tell them who you are going to refer them to. Remind them that there will likely not be any quick or easy fixes, but that their being proactive in the remedy to their status will be as beneficial to them as procrastinating or simply doing nothing will be detrimental.

At the end of the day ... show pride and professionalism. Not all of the people you introduce to will acknowledge your efforts, but those that do will appreciate and remember you for years to come.

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