Explaination of the Short Sale Process, How do they effect Buyers and Sellers in this market.

1. REAL ESTATE RESCUE SEMINAR CENTURY 21 Beggins Enterprises Presents the:

2. There are NEW SIGNS in town. Is it a Crisis... ....or an Opportunity?

4. Today: SHORT SALE SELLING What is a Short Sale. Who qualifies as a SS Seller. What is needed. What some of the ramifications could be. SHORT SALES BUYING Why Buy a Short Sale. How to Buy a Short Sale. What to expect from the process. Advantages and Disadvantages.

5. Housing ALWAYS Appreciated The housing supply was low – Very Few Choices If you sold for less than you owed, you brought cash to closing Housing was so cheap you could rent it and profit Values kept going up and many could “flip” for profit Money was easy to Borrow: "Ninja" Loans! Interest Rates were at 30 year lows In Some Past Real Estate Markets

6. The Housing Supply is severely over saturated – Too Many Choices Housing Values actually Depreciated Money is harder to borrow = Smaller Pool of QUALIFIED Buyers now. Rates are still at 30 year lows If you sell for less than you owe, you may have options In TODAY'S Real Estate Market SHORT SALE SHORT SALE SHORT SALE SHORT SALE SHORT SALE

7. Tampa Area Real Estate Sales Results Active Listings 7,532 Sales Pending 1,344 SOLD IN 2008 5,994 Average # Selling per Month 499 # Months of Inventory Supply 15 Months Some Trends: 2005 15071 Closed Transactions 2006 11,239 Closed Transactions 2007 7,256 Closed Transactions Now the Trend is more clear but 500 a month are still selling! 33% of these Active Listings are Distressed Properties 57% of these Pending Sales are Distressed Properties 27% of the Sold Properties in 2008 were Distressed Distressed = Shown in MLS as SS, LP, Bank Owned or In Foreclosure

9. How a Short Sale May Effect Credit It Depends on a lot of circumstances: Late payments affect your credit rating The more late payments the more credit is affected Deed and Lieu and Foreclosures affect your credit 200 to 300 Points Short Sales Affect your Credit 80 to 100 Points – Shows up as a Negotiated Settlement This must all be negotiated and evaluated!

10. Greed versus Fear! "When the market is Greedy – Be Fearful When the Market is Fearful – Be Greedy" Warren Buffet

12. Short Term Future! Our Sales are up this month! √ Mortgage Rates will increase √ So even if prices drop – Payments will be higher √ Inventory will Decrease over time – √ Fewer Choices: CP If The Market is Fearful – Be Greedy! It’s going to take some time to see 2005 prices again ..You may as well live in a great house!

13. It can be a GREAT time to Buy. Example! You bought a house in 1998 for: $120,000 In 2005 it went up to: $250,000 Now in 2008 it is only worth: $180,000 That’s still a: + $60,000 profit Now you can buy a more suitable home that was $400,000 in 2005 for under $300,000 that will appreciate faster than the one you’re in and lock in at extremely low interest rates.

14. Last Boom

15. The Original Purchase Price $218,000 in 2005 Covington Park 1961 sq. ft. 3 Bedrooms 3 Baths

17. A Buyer just Paid….. Only $130,000 in August 2008 - 41% Off! $218,000 in 2005 X

18. The Original Asking Price $1,200,000 MiraBay 3833 sq. ft. 5 bedrooms Pavered Pool Waterfront Dock

20. A Buyer just paid….. Sold for Only $625,000 in August 2008 - 48% Off! Built for: $1,200,000 X

21. Let’s not be too selfish: Even if you’re not interested, Please share this info with your Friends and Family: Insurance companies are entering the market – Lower rates Taxes are dropping due to lower values Interest Rates are Extremely Low Banks are cutting Deals Foreclosures are becoming plentiful, but best ones go first First Time Homebuyer Incentives Tax Benefits

22. To handle all the Pit Falls of Selling or Buying Foreclosures: We’ve developed a System: Step 1: Proof of Hardship For a Short Sale to work, the Seller must demonstrate to their lenders that their hardship will result in default and that the Lender is better off accepting a short sale than going through the Foreclosure Process.

23. We’ve developed a System! Step 2: Price it to Sell Now Once convinced that a Short Sale is an option: Step 2: Price it to Sell Now: Get it sold F A S T ! In a declining market the faster the sale the higher the price.

24. SPA Step 2: Price it to Sell Now:

26. We’ve developed a System! Step 3: Do the Right Paperwork Once we get a sale: Step 3: Do the... RIGHT Paperwork ...and DO THE PAPERWORK...RIGHT!: Deliver a Complete Package to the Lender! This is the most critical part and the part that most fail to execute.

27. Step 4: Get a Professional Negotiator with Experience and Connections Loan Loss Mitigators are VERY overworked. They are usually located in other States and have hundreds of files to work. They usually do not take calls from buyers. To expedite YOUR Offer we employ a Team of Mitigators with the experience and connections to NEGOTIATE and help your offer through. Step 4: Get a Negotiator on your side

32. PLUS... NEW TAX PORTABILITY Has BIG Benefits!

34. In summary, here are the probabilities of your getting the short sale completed at the various offering percentages : In summary, here are the probabilities of your getting the short sale completed at the various offering percentages : We Provide You With Experienced Guidance On How To Make Winning Offers Lowest Offer Must be 92% Net of original loan amount 100% FNMA Lowest Offer Must be 92% Net of original loan amount 100% FDMC LOWEST Offer Must be 88% Net of VA Appraisal 100% VA Offer LOWEST Offer must be 82% Net of FHA Appraisal 100% FHA Offer Property must be torn down, this offer is for the land value less demolition costs. 25% Less Than 50% Property is structurally damaged and may have to be torn down, this offer is approaching land value 50% 50% Property must have very extensive condition issues, look very, very ugly, and only be suitable for an investor purchase. 60% 65% Property must have extensive condition issues, look very ugly, and have expectation of many DOM’s 75% 70% Property must have some minor issues, look very ugly, and have expectation of many DOM’s 80% 75% Property must have some minor condition issues, look ugly, and have expectation of many DOM’s 90% 80% Property must have some minor condition issues or have an expectation of many DOM’s 95% 85% Lender would be foolish to not accept this offer 98% 90% Comments Success Expectation % of BPO

36. • Short Sales • Inquiries •Foreclosure • Late Payments •Child Support • Collections •Judgments • Repossessions •Tax Liens • Bankruptcies •Student Loan www.creditrescueonline.com What about my Credit Rating? Can anything be removed?

37. REAL ESTATE RESCUE SEMINAR THE REAL ESTATE RESCUE SEMINAR Question and Answer Time! Contact 1 of our Agents for the Time and Date of our NEXT Seminar !