1. Weathering the Storm of Home Foreclosure Session II.12: Pre and Post- Investment Strategies for Homeownership: Foreclosure Prevention

2. Foreclosure Statistics: Top Twenty Most Populous Counties County No. foreclosures filed 1998 No. Foreclosures filed 2005 % +/- from '98 to '05 Mecklenburg16466429290.6% Wake9663511263.5% Guilford10472766164.2% Forsyth5661785215.4% Cumberland158116574.8% Durham5181445179.0%.Buncombe County275653137.5% Gaston3841288235.4% New Hanover County300605101.7% Onslow County35535825.4% Davidson County168659292.3% Union226942316.8% Catawba County194754288.7% Cabarrus180919410.6% Johnston County227904298.2% Pitt County262544107.6% Alamance County162669313.0% Iredell County220833278.6% Randolph County165597261.8% Rowan County163761366.9% North Carolina1528242835180.3% (Source: Number of foreclosure filings taken from statistics provided by North Carolina Administrative Office of the Courts)

3. Threats to Homeownership: High Cost Mortgage Too Much Home Track Homes Offered by One Builder High Maintenance Homes Home Equity Theft Un-educated Home Buyer Job/Income Loss & Poor Health

4. High Cost Mortgage: Adjustable/Variable Rates Less Than 30 Years High Interest Rates Discount Points Junk Fees High Debt to Income Ratios Pre-Payment Penalties Insurance Packing Unsigned Good Faith Statements Place Restrictions on the 1 st Mortgage Product !

5. Soft-Second to Make Home More Affordable NOT to Buy More Expensive Home Know Your Supply & Demand Too Much Home

6. Problems with the Large Tract National and Regional Builders The Builder Controls all the Players Realtor Lender Attorney Non-Sustainable Financing Great Expectations Bait & Switch Early Homebuyers at Great Risk Foreclosures Lead to Depressed Values Renters Displace Homeowners No or Weak Homeowners Association

7. Presents the Newest Mega Neighborhood “Large Tract Village” Homes Starting at $99,999 Prices, terms, and offer are subject to change without notice and valid on select home sites with financing by Lotsof$ Mortgage Company only. See on site sales consultant for details builder paid closing cost. Designer kitchen appliance upgrade available for a limited time only, subject to change without notice. Actual appliances may vary from photos. * Must use LotsofLaw real estate Attorneys, must qualify for lowest rate and the 2.5% rate is for the 1 st year, the second year it is 4.5% and caps at 6.5% the third year. The APR is 7.75% Must also use LotsofRealty Real Estate Company. No outside Realtors welcome. Be sure to visit our award winning Home Design Studio

8. Prices, terms, and offer are subject to change without notice and valid on select home sites with financing by Lotsof$ Mortgage Company only. See on site sales consultant for details builder paid closing cost. Designer kitchen appliance upgrade available for a limited time only, subject to change without notice. Actual appliances may vary from photos. * Must use LotsofLaw real estate Attorneys, must qualify for lowest rate and the 2.5% rate is for the 1st year, the second year it is 4.5% and caps at 6.5% the third year. The APR is 7.75% Must also use LotsofRealty Real Estate Company. No outside Realtors welcome.

9. Beware of the Fixer Upper Avoid High Maintenance Homes Professional Home Inspections Lead Awareness (Pre 1978) Beyond Minimum Standards Home Warranties Mold/Radon/Asbestos New vs. Existing Energy Efficient

10. The Home Equity Thief Protection Through Long Term Soft Second Mortgages Grants Provide No Protection Loans Requires Loan Subordination Or Loan Payoff

11. Educating the Homebuyer The Role of Realtors & Lenders Seriousness of Offers to Purchase What I Qualify For, I Cannot Afford Why they call it a “Good Faith Estimate” Understanding the Closing Documents How to operate items in the home The Basics of Home Maintenance Who to call when You can’t make the Monthly Payment Pre Homeownership Training Post Homeownership Training

12. Post Homeownership Escrow Incentive Program $300 Escrow Account at Closing from Buyer Meet with Counselor 6-12 Months after Purchase Pull and Review Credit Report Inspect Home for Maintenance Issues If Homeowner participates in one on one session with Counselor and Home Maintenance is Acceptable the Homeowner receives $250 of $300 back. The balance of $50 is retained by Center for Home Ownership. Homeowner has up to 18 months to come into compliance If compliance is not met within 18 month period the entire $300 is kept by the Center for Homeownership

13. The Foreclosure Tornado:

14. Obstacles to Helping Homebuyers: Psychological Factors: –Denial –Fear –Shame Re-Active as Opposed to Pro-Active Scam Mortgage/We Buy Homes/Companies No Early Warning System

15. Loss Mitigation NCHFA Pilot Home Foreclosure Protection Program NCHFA Mortgage Assistance Program under MRB Program FHA Programs