Your SlideShare is downloading. ×
San Gabriel Valley Foreclosure Class - July 26, 2012
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×

Introducing the official SlideShare app

Stunning, full-screen experience for iPhone and Android

Text the download link to your phone

Standard text messaging rates apply

San Gabriel Valley Foreclosure Class - July 26, 2012

72
views

Published on

Published in: Business, Economy & Finance

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
72
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
1
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. ForeclosuresJuly 26, 2012 Hacienda HeightsFollow: @RedfinLosAngelesLike: http://www.facebook.com/RedfinLosAngelesSlide 1 of 39
  • 2. Geographical Comparison – Los AngelesSlide 2 of 39
  • 3. Types of Distressed Homes ● Short Sales ► AKA: Pre-foreclosure ► Potential vs. Approved Short Sale ● Foreclosures ► AKA: Bank-owned, REO, lender owned ► Fannie, Freddie, Ginnie & HUD ● Auctions ● Estate SalesSlide 3 of 39
  • 4. Agenda ● How does a REO sale work? ● Parties involved (see chart) ● Qualifying the REO ● REO approval process (see chart) ● Timelines (Contingencies and Closing) ● False contracts ● Approval noticeSlide 4 of 39
  • 5. Bank Owned HomesSlide 5 of 39
  • 6. What is a Bank-Owned Property? ● A foreclosed home owned by a bank or lender ● Standard sale but: ► Verbal negotiations ► Long response times ► Repairs unlikely ► Legal addenda may require an attorney ► Limited or no disclosures ► Banks demand use of their own contracts ► Bank can back out any time until they’ve signed ► Contract often requires early release of earnest moneySlide 6 of 39
  • 7. Foreclosure TimelineSlide 7 of 39
  • 8. Why Buy a Bank Owned? ● Best price ● Not afraid of a remodel ● Comfortable with contracts ● Financially strong with liquid capitalSlide 8 of 39
  • 9. Foreclosure Activity and 30-Year Interest Rate – Los Angeles Slide 9 of 39
  • 10. Foreclosure Activity by Month – Los AngelesSlide 10 of 39
  • 11. Buying at Auction● County Auctions (steps)● Organized Auctions● Who buys homes at auction?● What types of homes are at auction?● What are the prices like?● What is involved with buying at auction?● What is an absolute auction?● Due Diligence prior to auction● Tip - Write down your Max-bidSlide 11 of 39
  • 12. Finding Distressed Homes● Redfin ► Shadow Inventory ► Foreclosures (bank owned) ► Short Sales● Government Sites ► Homepath.com and Homesteps.com ► Hudhomestore.com ► IRS● Look down the streetSlide 12 of 39
  • 13. The Offer & The DealSlide 13 of 39
  • 14. Negotiation Strategies - REO● Round 1 ► New listing ► 30 days old ► Price Reductions ► Keep it clean● Round 2 ► Repairs Health and safety Stolen goods Lender Required RepairsSlide 14 of 39
  • 15. Title and Closing● Title Search ► Chain of title ► Last minute liens ► Title insurance Lender’s Policy Owner’s Policy● Closing Paperwork● Possession and keysSlide 15 of 39
  • 16. FinancingSlide 16 of 39
  • 17. Financing Options● Conventional loans ► 30 year, 15 year, 5/1 ARM, etc● FHA ► FHA health and safety requirements ► Flipping guidelines● Rehab loans (203k)● Homepath loansSlide 17 of 39
  • 18. Financing Steps● Preapproval● Select property ► What is condition of property? ► Flipping guidelines● When to lock in the rate ► Short sale ► Bank owned● Mortgage processSlide 18 of 39
  • 19. Current Average Rates Type of Loan July 12, 2012 July 19, 2012 30-Year Fixed 3.56% 3.53% 15-Year Fixed 2.86% 2.83% 5/1 ARM 2.74% 2.69% 1-Year ARM 2.69% 2.69%Slide 19 of 39
  • 20. Where Are Rates Headed?Slide 20 of 39
  • 21. Home InspectionsSlide 21 of 39
  • 22. Home Inspections● What to look for yourself● Missing components ► Big ticket items (AC, cabinets, appliances) ► Deliberate damage & safety (electrical)● Severe neglect● What an inspector won’t find and won’t test ► Hidden defects ► Untested system defectsSlide 22 of 39
  • 23. Home Inspections● Most common concerns ► Roof ► Structural ► Plumbing ► Electrical ► HVAC ► Deferred Maintenance ► Termites ► Mold ► CosmeticSlide 23 of 39
  • 24. Home Warranties● What is a home warranty?● What is covered?● What is excluded from coverage?● Benefits of a home warranty● Managing the risk of unexpected repairs● As-is, what can be covered?● Pre-existing conditions ► Known ► Unknown● Home inspections and warranty coverageSlide 24 of 39
  • 25. Title and Closing● Getting a clean title ► Last minute liens ► Title insurance● Mortgage Electronic Registration System● Recording Process● Keys!Slide 25 of 39
  • 26. Check out our local pages!Slide 26 of 39
  • 27. Thanks for Coming!Please fill out the survey that was handed out at the beginning ofclass. We appreciate the feedback!Check out our upcoming classes and events at http://www.redfin.com/buy-a-home/classes-and-eventsSlide 27 of 39