2nd Chance Negotiation

Signing Up with 2nd Chance Negotiation
You are signing up as an affiliate branch of 2nd Chance Negotiation. This does not mean you are doing loans under this name. It just basically means you are being paid to gather upfront information for the attorneys at 2nd Chance Negotiations. Your normal business runs as usual for loan services. Your broker’s license or salesperson’s license # is only asked for as a reference to see if there are any previous issues. You will not be asked to move your license.

What an Affiliate Branch Gets

1. Highly Visible Website
2. Marketing Assistance
3. Competitive Fee Structure
4. 100% Money Back Guarantee for your clients
5. Use of 2nd Chance Negotiations brand name
6. Processor from a processor




Marketing
One of the benefits of signing on with 2nd Chance Negotiations is the use of marketing, logo, and website presence. You will be listed as an affiliate on the website (if you choose), and people inquiring about loan modifications will be able to search you out by area. We are also in the process of developing exclusive leads at a nominal cost.

Initial Contact with Client
So you are basically looking for a few key items.

First—Does the client want to stay in their home? This is important; as they may or may not get a principal reduction, but 90- 95% of the time we are going to get them a substantial decrease in payment.

Second—Have they experienced an economic hardship? This can include medical issues, temporarily loss of job, decrease in income, divorce, increase in mortgage payment, etc.

Third—Do they have the ability to repay on a modified loan? This can be a little more difficult to answer because we don’t know the exact terms of a new loan, but I will try and throw out some rough guidelines. A good rule of thumb is to keep the new dti under 60%.

Let’s say you have a $400,000 loan on a $300,000 home. If we took that loan down to $325,000 at 6% on a 30 year fixed, would they qualify? Maybe we are at 4.5% on a $350,000 loan and so forth. If we are in the ballpark, you should start that modification. Our attorneys will review the package and if it doesn’t look like it will go with their lender, we will inform you and your client right away. Keep in mind we are currently running between 90-95% success with loans that we start for modification.

You’ve Established The Need of a Modification
· You will then proceed to fill in a modification agreement. This process will usually take about 30 minutes or so of your time and about an hour of your clients time.
· The client will also need to provide most of the following: Current 1st Mortgage Statement, Current 2 Mortgage Statement, Last Two Months Pay Stubs, Federal Income Tax Returns- Last 2 Years, Bank Statements For Last Two Months, Note on 1st, Note on 2nd Mortgage (if applicable)
· I would also recommend aiding them in filling out the hardship letter. Guidelines for the letter are included in the modification package.
· Finally, a check or credit card is taken over the phone and the package is sent in to our local office.

After We Receive the Package
· We review the package for thoroughness and provide to attorneys. If the loan does not look like it will have a chance of being modified, the fees are fully refunded back to client
· You are contacted by 2nd Chance to go over application.
· A negotiator is then assigned to your client and client will receive a phone call within 3 days verifying the information in the package.
· A check is disbursed to you within 14 days for the difference of the fees charged to the client and the cost of our service ($1,695 for 1st mortgage, $2,045 for 1st/2nd combo with same lender, and $2,145 1st/2nd Combo with different lenders.) For example, if you charge $3,695 for a 1st mortgage modification, you would get paid $2,000.
· Then, the 30-90 day process of the modification begins. Through this process, your client will be updated once a week as to the status of their modification. At the end of the modification, a conference call will typically take place between the negotiator, your client, and their current lender.
· If the modification does not take place, the fees are fully refunded back to your client. 2nd Chance will need to collect fees back from Intake Affiliate as well in this event. An arrangement can typically be worked out that it is taken out of the next modification, if necessary.

We have really tried to make it as easy on you and the client as possible. After you provide your affiliate agreement, I will provide you with all the necessary forms to get started, and you are on your way. You could be submitting your first package tomorrow! Please let me know if you have any questions.