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									                                    An advocacy              
                                    Counseling agency
                                                                        (877) 600-CAFA

                                  CALIFORNIA FORECLOSURE ASSISTANCE INC.

About California Foreclosure Assistance, Inc.

California Foreclosure Assistance, Inc., known as CAFA, is a neighborhood counseling
organization dedicated to helping families facing or experiencing mortgage difficulties.

We are uniquely qualified to help families and homeowners understand their options and to
provide guidance on the best strategies to obtain a workable solution to their mortgage problems.
Our team has broad experience with all mortgage-related subjects, including but not limited to
Short Sale, Loan Modification, Deed In Lieu Of Foreclosure, Refinance, Sale and Purchase of all
types of properties.

CAFA'S campaigns, seminars, tutorials and discussion groups are designed to be in the forefront
of increasing the chances of families keeping their homes. CAFA's "Modification Workshops and
Tutorials" and seminars are uniquely structured to assist homeowners in understanding the
complex and convoluted modification process and the reasoning behind the denials or
approvals, thereby increasing the chance of a successful outcome.

    CAFA has received a "Certification of Registration" from the Office
    of the Attorney General, State of California Department of Justice,
     has a bond on file with the California Secretary of State, and is in
                    full compliance with Senate Bill 94.
                                         An advocacy                
                                         Counseling agency
                                                                               (877) 600-CAFA

                                      CALIFORNIA FORECLOSURE ASSISTANCE INC.


CAFA 's mission is to build strong healthy neighborhoods in our community
through wisdom, ingenuity, education, coaching and knowledge.

If you are facing foreclosure
If you are unsure about the modification options available to you by your lenders
If you are not sure whether you qualify for any modification programs
If your property has lost its value and you don't know what to do with it
If you are unclear about the modification process
If you want to increase your chances of a successful short sale
If you want to increase your chances of a successful Deed In Lieu Of Foreclosure process
If you want to increase your chances of a successful HAMP modification process
If you need guidance from professionals you need to call us immediately. We will help you make an
informed and educated decision regarding the course of action you could take with your property.
Please remember, our organization is a neutral party structured and designed to give you the answers to all
your questions honestly and truthfully, without giving you any false hopes or misleading information. Our
organization does not profit from Modifications, Short Sales, Deed In Lieu Of Foreclosures, etc. and thus,
does not have any conflict of interest during the analysis process. Our organization is designed to be a
safety net for all families and home owners looking for help and assistance to increase their chances of
receiving successful results with any decision they have made regarding their properties.
                                       An advocacy             
                                       Counseling agency
                                                                          (877) 600-CAFA

                                    CALIFORNIA FORECLOSURE ASSISTANCE INC.

Mortgage Modification:
Mortgage modification is a process where the terms of a mortgage are modified outside the
original terms of the contract agreed to by the lender and borrower (i.e. mortgagor and mortgagee).
In general, any loan can be modified.


In the normal progression of a mortgage, payments of interest and principal are made until the
mortgage is paid in full (or paid off). Typically, until the mortgage is paid, the lender holds a lien
on the property and if the borrower sells the property before the mortgage is paid-off, the unpaid
balance of the mortgage is remitted to the lender to release the lien. Generally speaking, any
change to the mortgage terms is a modification, but as the term is used it refers to a change in
terms based upon either the specific inability of the borrower to remain current on payments as
stated in the mortgage, or more generally government mandate to lenders. A loan modification will
typically result in the change to the loan's monthly payment, interest rate, term or outstanding

Types of modification

Mortgages are modified to the benefit of the borrower in one or more of the following ways:
  □ Reduction in interest rate, or a change from a floating to a fixed rate, or in how the floating
      rate is computed
  □ Reduction in principal
  □ Reduction in late fees or other penalties
  □ Lengthening of the loan term
  □ Capping the monthly payment to a percentage of household income
  □ Mortgage forbearance program
The borrower can be current, late, in default, in bankruptcy, or in foreclosure at the time the
application for modification is made. The programs available will vary accordingly.

Mortgage Modification      (Page 1 of 1)
                                          An advocacy             
                                          Counseling agency
                                                                             (877) 600-CAFA

                                         CALIFORNIA FORECLOSURE ASSISTANCE INC.

     Loss Mitigation:
   Loss mitigation is used to describe a third party helping a homeowner, a division within a bank
   that mitigates the loss of the bank, or a firm that handles the process of negotiation between a
   homeowner and the homeowner's lender. Loss mitigation works to negotiate mortgage terms for
   the homeowner that will prevent         foreclosure. These new terms are typically obtained through
   loan modification, short sale negotiation, short refinance negotiation, deed-in-lieu of foreclosure,
   cash-for-keys negotiation, or a partial claim loan or other loan work-out. All of the options serve
   the same purpose, to stabilize the risk of loss the lender (investor) is in danger of realizing.

   Kinds of loss mitigation

Loan modification: This is a process whereby a homeowner's mortgage is modified and both lender
   and homeowner are bound by the new terms. The most common modifications are lowering the
   interest rate, reducing the principal balance, 'fixing' adjustable interest rates, increasing the loan
   term, forgiveness of payment defaults & Fees, or any combination of these.
Short sale: This is a process whereby a lender accepts a payoff that is less than the principal balance
   of a homeowner's mortgage, in order to permit the homeowner to sell the home for the actual
   market value of the home. This specifically applies to homeowners that owe more on their
   mortgage than the property is worth. Without such a principal reduction the homeowner would not
   be able to sell the home.
Short refinance: This is a process whereby a lender reduces the principal balance of a homeowner's
   mortgage in order to permit the homeowner to refinance with a new lender. The reduction in
   principal is designed to meet the loan-to-value guidelines of the new lender (which makes
   refinancing possible).
   Deed in lieu: A Deed in Lieu of foreclosure (DIL) is a disposition option in which a mortgagor
   deeds collateral property in exchange for a release from all obligations under the mortgage. A DIL
   of foreclosure may not be accepted from mortgagors who can financially make their mortgage

   Loss Mitigation       (Page 1 of 2)
Cash-for-keys negotiation: This is a variation of the deed in lieu of foreclosure. The      difference
   is that the lender will actually pay the homeowner to vacate the home in a timely           fashion
   without destroying the property. The lender does this to avoid incurring the additional expenses
   involved in evicting such homeowners.
Special Forbearance - This is where you will make no monthly payment or a reduced monthly
   payment. Sometimes, the lender will ask you to be put on a repayment plan when the forbearance
   has been finished to pay back what you missed, while other times they just modify your loan.
Partial Claim - Under the Partial Claim option, a mortgagee will advance funds on behalf of a
   mortgagor in an amount necessary to reinstate a delinquent loan (not to exceed the equivalent of 12
   months PITI). The mortgagor will execute a promissory note and subordinate mortgage payable to
   United States Department of Housing and Urban Development (HUD). Currently, these
   promissory or "Partial Claim" notes assess no        interest and are not due and payable until the
   mortgagor either pays off the first mortgage or no longer owns the property.


   The most common benefit to the homeowner is the prevention of foreclosure because loss
   mitigation works to either relieve the homeowner of the or create a mortgage resolution that is
   financially sustainable for the homeowner. Lenders benefit by mitigating the losses they would
   incur through foreclosing on the homeowner. Immediate foreclosure creates a tremendous
   financial burden on the lender.


      Loss Mitigation       (Page 2 of 2)
                                       An advocacy                  
                                       Counseling agency
                                                                               (877) 600-CAFA

                                     CALIFORNIA FORECLOSURE ASSISTANCE INC.


Our office is centrally located in Concord off of HWY 680.
Our convenient location and flexible office hours make us available to our clients at their convenience. Our
local focus allows us to provide the kind of personal attention our clients deserve rapidly making our
organization a community icon.
We are located at:
1001 Galaxy Way, Suite 107, Concord, CA 94520
Ph: 1-877-600-CAFA        Fax: 1-866-619-7687
                              Non-profit advocacy 
                              Counseling agency
                                                             (877) 600-CAFA


Dear clients, please bring as many items from the list below, as you possibly can.
These items are necessary for our analysis of your eligibility with your lenders.


  □ Mortgage Statement on the 1st loan.
  □ Mortgage statement on the 2nd loan.
  □ Know your account balances and monthly payments on all your
      other debts such as student loans and car loans.
  □   Your last 2 years of tax returns.
  □   Proof of income, W-2 and last 2 pay stubs. Proof of income
      from other sources.
  □   A hardship letter, describing any circumstances that caused your
      income to be reduced or expenses to be increased (job loss,
      divorce, illness, etc.)
  □   Last 2 months bank statements
  □   Profit and Loss statements for past 6 months (if self employed)
  □   Home Insurance Bill
  □   Property Tax Bill
  □   Completed “Financial Form” (provided by our organization)

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