From: Default Research Info Date: 2/20/2007 9:06:10 PM To: newsletter@news.defaultresearch.com Subject: Default Research Newsletter   Default Research 'The Homestand' Feb. 20, 2007 Issue #1 You are receiving this email because you have purchased a product from Default Research or have joined our mailing list. To be removed from this list, please follow the directions at the bottom of this email. In This Issue: A MAKEOVER - DEFAULT RESEARCH STYLE | FORECLOSURE OUTLOOK FOR 2007 | FORECLOSURES FLUCTUATE AROUND THE COUNTRY, REPORTS DEFAULT RESEARCH | HELP FORECLOSURE VICTIMS KEEP THEIR HOME AND BUY MORE HOUSES A MAKEOVER - DEFAULT RESEARCH STYLE Based on our growth in the industry and our client base, nobody thought Default Research needed a “makeover.” Basically, we didn’t - but we “made over” parts of our web site and I couldn’t be happier! First, Default Research is pleased to add Market Values, Equity calculation and LTV ratios to our company. These are sure to provide our customers with the ultimate tools to succeed in the foreclosure industry. Next, it sounds simple, but Default Research has also upgraded our phone appending system to provide more accurate results. Most people involved in the foreclosure industry know that contacting the homeowner is one of the most difficult tasks. Default Research tried to streamline this task to ensure our client’s time is well spent. Thirdly, I am happy about our first newsletter. This communication tool will be an opportunity for Default Research to reach our customers each month to discuss foreclosure topics, spotlight successful clients and also host our "Internet Roundtable Discussion." Our “Internet Roundtable Discussion” will be a chance for our experts, clients and affiliates alike, to tackle questions facing people in the foreclosure industry. We are asking for any topic ideas you would like to see explored and are open to any articles you may have written that you would like to submit to publish in the newsletter. People will tell you what isn’t broken should not be fixed. We showed those people didn’t we? Welcome to the new and improved Default Research web site - 2007 is going to be a lucky year for us all! FORECLOSURE OUTLOOK FOR 2007 As the current foreclosure statistics for 2006 are released, one has to acknowledge the bleak outlook for the upcoming year of 2007. Many homeowners who experienced delinquency in the past two years turned to using their home’s equity and refinanced with a sub-prime loan. Most of these homeowners had to accept that they could only qualify for a sub-prime loan, which meant high interest rates, high monthly payments and unaffordable balloon payments down the road. Now as the terms of their adjustable mortgages are due to change they are at a greater risk of foreclosure this year. Nearly 25% of home loans are Sub-prime loans. Many homeowners that viewed their sub-prime loan as a rescue will now be facing foreclosure in 2007. The Center for Responsible Lending predicts, “One out of Five Sub-prime mortgages originated during the past two years will end in foreclosure”. Many homeowners have been talked into the popular loan option of an Adjustable Rate Mortgage (ARM). These ARM loans have an initial fixed rate and seem affordable and appealing. After the initial rate period the rate increases which results in an unaffordable house payment or even a large balloon payment. Once the homeowner starts falling behind they are left with no other alternative but to find something to bail them out of the unaffordable loan or the looming balloon payment. While they look for alternatives many will continue to create even more debt trying to afford the increased payment by turning to credit cards, payday loans and other sources to try and catch up. What homeowners think of as a quick fix quickly starts to trap them in a cycle. When looking at other factors pointing to another year of sky-rocketing foreclosures, one also has to take the decreasing housing prices into consideration. Homeowners have less equity to use when refinancing to avoid foreclosure. More and more homeowners are in over their heads with less equity to rely on, more debt than they can pay for and their alternatives at that point would only keep them trapped in a cycle of high interest rate loans and sub-prime options. Foreclosure Solutions, where homeowners turn to Program 10 for help, has a good perspective on what homeowners say is the reason for their foreclosure. Professionals there speak with thousands of homeowners in foreclosure each month. Many Program 10 users tell those at Foreclosure Solutions that they are lost and have been in that same cycle for years. Many of these homeowners are forced to face the fact that they will lose their homes in 2007 because of the cycle they started years ago. Foreclosure Solutions services homeowners facing foreclosure in seven different states. They have seen foreclosures increase drastically in their service areas of Ohio, Indiana, Illinois, Kentucky, Pennsylvania, New Jersey and New York. With Ohio topping the charts among their servicing states they look to assist even more homeowners in their area in 2007. www.program10.com FORECLOSURES FLUCTUATE AROUND THE COUNTRY, REPORTS DEFAULT RESEARCH The ‘7’ in 2007 has proven to be lucky for some states, while others still believe their fortunes from last year’s foreclosures statistics have not changed. Michigan, for example, had an eight percent decrease in foreclosures while it has been a very hard beginning to the New Year for Washington State, which recorded a 15 percent foreclosure increase, according to Default Research (www.defaultresearch.com), the rapidly growing real estate research company for foreclosure properties. “There are no sure bets now when it comes to which states experience an increase or decrease in foreclosure activity,” explained Serdar Bankaci, president and chief executive officer of Default Research, Inc. Bankaci pointed out that two states hit hard last year by foreclosures were Florida and California. This year the two states are polar opposites. In fact, Florida, one of the country’s most volatile states, had foreclosure rates continue to go up more than20 percent. California, on the other hand, only had a minor increase of four percent, mainly in the northern bay area. “Just last year, most areas of the country were suffering with foreclosure activity,” said Bankaci, whose company provides foreclosure data that arrive two to three weeks ahead of the competition. “Now, unfortunately, the country is in a national housing slump, which produces decreased home sales and reductions in home prices.” According to Bankaci, this recent dip in home sales combined with a leveling off and stabilizing of interest rates, provides an excellent opportunity to make money in the housing market now. Bankaci knows better than anybody in the business that it is a buyers’ market, especially in the pre-foreclosure market. “Frankly, with Default Research’s pre-foreclosure information, investors can find a home for below market value and they can really profit,” said Bankaci. “At the same time, these Investors with good credit and financing can help people get out of debt and avoid a distressing, life-altering situation.” Default Research is the national leader in real estate research: www.defaultresearch.com. HELP FORECLOSURE VICTIMS KEEP THEIR HOME AND BUY MORE HOUSES Are you helping homeowners facing foreclosure keep their home? If you aren’t, you are failing as an investor and could be walking away from a personally rewarding experience and long-term financial growth. How often do you contact preforeclosures and hear homeowners say, “I want to keep my home?” Most of the homeowners you meet have invested most of their hard earned money into purchasing and maintaining their home. Homeownership is the “American Dream.” As an investor, shouldn’t you also be helping homeowners maintain that dream? Based on years of research, SaveMeFromForeclosure.com has found that 8 out of 10 homeowners facing foreclosure just want to keep their home. So how can you help them? There are many ways you can help individuals save their home and their credit. First, you can speak to homeowners about the possibility of refinancing. Remember that they need ample time before the foreclosure date, and enough equity in their property to refinance. Credit scores are a large part of getting qualified for a loan, the more payments the homeowner has missed, the more difficult it will be for them to qualify for a loan. The homeowner will also have to come out of pocket to pay for an appraisal and a credit report, at a minimum, with no guarantee of the loan getting closed. If refinancing isn’t an option you could offer loss mitigation services. This is where you can negotiate with their existing lender to restructure their loan. During this process you will help the homeowner understand their expenses against their income. You will be able to tell the homeowner whether they can realistically afford to keep their home. Once you determine that the homeowner can afford to keep their home you, or a reputable outsourced company, can work to negotiate with their lender on their behalf. Finally, and as a last resort, you could help the homeowner find a bankruptcy attorney who could determine whether filing bankruptcy would allow the homeowner to stay in their home. You should remind the homeowner that a bankruptcy will be on their permanent financial record, and that you’re not an attorney and therefore can’t give any legal advice. After you have walked thru these options with homeowners you can determine which course of action could be most effective for keeping their homes. Oftentimes homeowners have reasons to want to get out of their home quickly and avoid a foreclosure with the least amount of work and risk. For these people selling to an investor may be their best option. But by now you have also provided the homeowner with real options for staying in their home. The last thing you want to be sure to offer the homeowner is advice on improving their credit and assistance in obtaining credit repair services. The number one thing you can do to help homeowners is to help them stop a foreclosure followed by assisting them in getting back on track financially. Poor credit can and will continue to haunt the preforeclosure homeowner until they do something proactively to correct the problem. As an investor you must provide this help in some way or another. Dreama Lee SaveMeFromForeclosure.com, LLC Ph: 360-306-5933 Toll Free: 1-888-899-1883 E-Mail: dreama@SaveMeFromForeclosure.com www.SaveMeFromForeclosure.com For more information please visit us at http://www.defaultresearch.com To unsubscribe please send a blank e-mail to newsletter-leave@news.defaultresearch.com

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