WHO QUALIFIES FOR FRESH  START™ HOUSING PROGRAM

Keep in mind that in order to qualify for FRESH  START™ there are some very

important guidelines, which must be followed.

Below is a brief list of the primary underwriting guidelines.

Homeowners must have verifiable income; all income will be verified to guidelines.

Temporary income such as Unemployment, Short Term Disability, etc. will not be allowed.

WHO QUALIFIES FOR FRESH  START™ HOUSING PROGRAM

The homeowner’s  income  must  have  a  Front End Ratio of no greater than 40%. This is  the  homeowner’s  gross  household  income versus the new rental payment.

Primary Residences only, no rental or income producing properties

allowed. 1--­‐4  unit  properties  are  permitted;  however  the owner must reside in at least one of the units.

Property must be in Marketable Condition. Marketable condition is

defined, as no deferred maintenance issues such as leaking roofs, missing sidings, etc. There are also no functional obsolesce of the subject property such as a missing or non--­‐working  A/C  units,  missing water heaters, sinks, tubs, toilets, counter tops, etc…

The client--­‐homeowner  homeowner  property  must  be  valued  at  

20% less than what is owed on the 1st mortgage. In example someone who has a home valued at $100,000.00 must have a mortgage owing on the 1st mortgage of at least $120,000.00.

WHO QUALIFIES FOR FRESH  START™

HOUSING PROGRAM

The home can be 2 or more payments past due OR on--­‐time  payments may qualify too. Under no circumstance should anyone

encourage a homeowner to skip or miss payments to their

mortgage(s). If a homeowner is capable of making their mortgage

payment(s) they should do.

FRESH    START™  does not provide services for stopping or delaying

Foreclosures or Trustee sales; should the client be in such position

the client--­‐  homeowner  should  seek  the  services  of  someone  skilled and licensed in these areas.

Bankruptcies:Homeowner may not be in active bankruptcy of any

type at application or during the rental period.

Homeowner’s  mortgage under Fannie Mae and Freddie Mac is not

application  as  of  this  time  to  qualify  for  FRESH    START™  

This program is under the US Treasury Department Housing Initiative

HAFA--­‐SD  1102.   You can view the details by clicking here.

WHO QUALIFIES FOR FRESH  START™ HOUSING PROGRAM

FRESH START™  Frequently  Asked  Questions  (FAQ’s)

Q: When does  FRESH    START™  begin negotiations with the homeowner’s  lender? A: FRESH  START™  will engage the lender in the effort to acquire the property within 30 days after they received the package from the homeowner.

Q: What type  of  home  is  FRESH    START™  intended to help? A: FRESH START™   was created to assist homeowners with their primary residence and usually does not accept investment or commercial properties into the program.

Q: What is  the  typical  physical  condition  of  FRESH    START™  home? A: The home must be in marketable condition and able to pass a standard home inspection as determined by an independent 3rd party appraiser. These appraisals are subject to both investor and secondary market review;  therefore  it  must  be  determined  to  be  in  “average  or  good”  condition by the independent appraiser. If an appraisal report comes in with questions, homeowner can ask for a second appraisal from a 3rd party appraiser ( homeowner will incur the cost of a secondary appraisal).

WHO QUALIFIES FOR FRESH  START™ HOUSING PROGRAM

Q: What type  of    customer  is  FRESH    START™  intended to help? A: FRESH    START™  is intended to help homeowners who are upside---­‐down  on  the  value  of  the  property.    It’s  UNDERWATER--­‐the  home  is  worth less than the principal value the homeowners still owes on the mortgage.

Q: Who are the lenders that FRESH START™  typical works with? A: FRESH STARTTM usually works with licensed conventional lenders, subprime and negative amortization and bank portfolio loans are acceptable for the FRESH START™  program.

Q:  Who  are  the  lenders  that  FRESH    START™  typically does not work with? A: Private lenders or hard money lenders are not acceptable for the FRESH    START™  program.

WHO QUALIFIES FOR FRESH  START™ HOUSING PROGRAM

Q: How accurate should individuals be when submitting financial figures? A: It is imperative that all financial information given to FRESH    START™   from the homeowners be complete and accurate.

Q: What home values are desirable for FRESH START™  ? A: The current market value of the home should be at least 20% lower than the balance of the first mortgage on the home. Originating first loan or mortgage must exceed $100,000 and must be below $729,750.00 .

Q: How is the current market value of the home determined? A: Recent sales of properties comparable to your home are analyzed to determine the initial current market value of your home. Your real estate agent may have provided some of these to you to assist in this process. The final determining factor will be the independent 3rd party Appraiser’s  evaluation  and  value.

WHO QUALIFIES FOR FRESH  START™ HOUSING PROGRAM

Q: How far behind is the typical homeowner entering FRESH START™?   A: Homeowners entering FRESH START™  do not have to be late on their mortgage payment. Homeowners wishing to participate in FRESH START™  must be able to meet the requirements of setting aside the FRESH START™  “estimated  monthly  lease”  determined  by  FRESH  START™  lease calculator for a period equal to 3 monthly lease payment. FRESH START™  and its employees/referral partners CANNOT and NEVER advise anyone to miss a mortgage payment for any reason. FRESH START™  is designed to help homeowners that have already fallen behind on their mortgage payments due to a financial hardship and cannot currently afford the mortgage payment on their home.

Q: What type of income is desired to enter FRESH START™  ? A: The homeowners entering FRESH START™  can any documentable source of income that demonstrates they are capable of making the monthly FRESH START™  payment. Our Internal Underwriters will determine the validity and acceptability of all income documentation provided.

WHO QUALIFIES FOR FRESH  START™ HOUSING PROGRAM

Q: How is the FRESH START™  monthly payment calculated? A: FRESH  START™    bases the payment on the net present value of the home. Your representative will help you to determine the new FRESH START™  payment and if you verified income is sufficient for the FRESH START™.

Q: What is the upfront fee for FRESH START™  ? A: NO UPFRONT FEES are charged for FRESH START™.

Q: When will the details of FRESH START™  are provided up front and in advance of signing any documents? A: After receipt of the FRESH START™  Homeowner Application, your package will be underwritten for admission to FRESH START™. Each homeowner can review the terms of the proposal and accept or decline at their discretion.

WHO QUALIFIES FOR FRESH  START™ HOUSING PROGRAM

Q: When should I discuss FRESH START™  with an attorney? A: We advise our potential clients to consult independent legal counsel for any questions they have about their personal circumstances in relation to FRESH START™.

Q: How flexible are the terms of FRESH START™  ? A: The homeowner must be willing to cooperate with FRESH START™  and all terms of the agreements to insure that negotiation with the lender is handled correctly. It is important not to interfere with the negotiation process.

Q: What happens upon acceptance into FRESH START™  ? A: The client will receive a copy of the appraisal report and the lease agreement with the Acceptance Package. The appraisal report will reflect the market value of the home based on comparable sales in the area. In addition you will receive an Acceptance Letter into the program; you must sign and return these forms as instructed..

WHO QUALIFIES FOR FRESH  START™ HOUSING PROGRAM

Q: When should I discuss FRESH START™  with an attorney? A: We advise our potential clients to consult independent legal counsel for any questions they have about their personal circumstances in relation to FRESH START™.

Q: How flexible are the terms of FRESH START™  ? A: The homeowner must be willing to cooperate with FRESH START™  and all terms of the agreements to insure that negotiation with the lender is handled correctly. It is important not to interfere with the negotiation process.

Q: What happens upon acceptance into FRESH START™  ? A: The client will receive a copy of the appraisal report and the lease agreement with the Acceptance Package. The appraisal report will reflect the market value of the home based on comparable sales in the area. In addition you will receive an Acceptance Letter into the program; you must sign and return these forms as instructed..

WHO QUALIFIES FOR FRESH  START™ HOUSING PROGRAM

Q: When does a homeowner begin making monthly rental payments? A: Monthly payments for the actual Lease begin at Close of Escrow (COE) and are due on the 1st of the month. If escrow closes after mid month  then  the  1st  lease  payment  is  prorated  and  the  following  month’s  lease payment is also due at the close of escrow, your SPA account should have enough to cover these amounts. The client will make payments to the Special Purpose Account 15 days after acceptance into the program to prove the ability to afford the home at current market value; this allows a payment history to be established which must be proven to the investor. Payments to your SPA are typically due the 1st of each month.

Q: What are the funds in the Homeowners Personal Savings Account used for? A: As stated the funds in the Homeowners Personal Savings Account are used for 3 purposes;

1st they  prove  to  the  investor  that  the  customer  will  not  have  “payment  shock”  and  they  are  willing  and  able  to  make  the  lease  payments.

Next, keep in mind that lease payment are due at the time lease starts which is to say the 1st lease payment is due immediately upon close of escrow.

Finally, the funds in the SPA account equal 2 payments will be used as security deposit on lease.

WHO QUALIFIES FOR FRESH  START™

HOUSING PROGRAM

Contact:

Mega Team Realtors

Fresh Start Certified Listing

Agents

www.MegaTeamRealtors.com

email:

info@megateamrealtors.com

Contact Persons:

Bernadette Santos -

650.455.6025

Ross Sit - 650.302.1268

Crispin Ang - 650.773.3620