Transcript of "Seattle short sale and reo webinar 4.24.13"
Slide 1 of 32Short Sale and REO WebinarApril 24, 2013Jayson Haile, Redfin Seattle
Slide 2 of 32Geographical Comparison – King County
Slide 3 of 32Types of Distressed Homes● Short Sales►AKA: Pre-foreclosure►Potential vs. Approved Short Sale● Foreclosures (Post-County Foreclosure)►AKA: Bank-owned, REO, lender owned►Fannie, Freddie, Ginnie & HUD● Auctions● Estate Sales
Slide 4 of 32Short Sales● How does a short sale work?● Parties involved (see chart)● Qualifying the short sale● Short sale approval process (see chart)● Timelines (Contingencies and Closing)● False contracts● Approval notice
Slide 5 of 32The Life of a Short Sale● Searching for short sales● Market statistics● Negotiations and research● Sit and wait, finally explained● Getting a loan● Home inspections and warranties● Getting a clean title
Slide 6 of 32Foreclosure Activity and 30-Year Interest Rate – King County
Slide 7 of 32Foreclosure Activity by Month – King County
Slide 8 of 32Short Sale Tid Bits● The rumor mill (old market)● Types of loans and liens►Get the Prelim! (and read the fine print)● 15% Redfin Rebate on Short Sales● Questions to ask before writing an offer
Slide 9 of 32Picking Your Team● Qualifying Your Realtor►Experience, education, designations►What does it mean to you?● Qualifying Your Lender►Rates are just the beginning►New lender pay compensation● Partner Lenders►A hidden value
Slide 10 of 32Moving Forward…● Writing the Offer► Tips, tricks, pointers► Low and Low Method● Youre Under Contract, Now What?► Sit and wait… and wait… and wait…► Do an Early Home Inspection► Revisit the home, occasionally● Approval Process► What’s involved?► Approval Letters and Transferability● What If…► House gets trashed► Critical items are missing to qualify for the loan► What leverage do you have?
Slide 11 of 32Sit and Wait, Finally Explained!● The short sale approval process (chart)● Parties involved (chart)● Types of liens● Getting updates►Frequency and quality● Approval Notice
Slide 12 of 32Short Sale PartiesShort SaleTitleEscrowOfficerEscrowAssistantSellersAttorneyBuyersHomeInspectorsAppraiserBuyer’sLenderUnderwriterInvestorGuidelinesBank #1CustomerCare CenterShort SaleDepartmentBPOAppraiserNegotiatorLitigationMortgageInsurerMortgageInvestor #1MortgageInvestor #2ClosingDepartmentBank #2CustomerCare CenterShort SaleDepartmentBPOAppraiserNegotiatorLitigationMortgageInsurerMortgageInvestor #1MortgageInvestor #2ClosingDepartment
Slide 14 of 32Bank Owned Homes● Contracts● Addendums● Timelines● Home condition● Listing agents● Tenants
Slide 15 of 32Why Buy a Bank Owned?● Best price● Not afraid of a remodel● Comfortable with contracts● Financially strong with liquid capital
Slide 16 of 32Buying 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-bid
Slide 20 of 32Negotiation Strategies - SS● Recognize pricing strategy● Ask lots of questions● New listing● Old listing● Pre-approved short sale● Team up with listing agent● Meet the sellers● Be realistic
Slide 21 of 32Negotiation Strategies - REO● Round 1►New listing►30 days old►Price Reductions►Keep it clean● Round 2►RepairsHealth and safetyLender Required Repairs
Slide 22 of 32Title and Closing● Title Search►Chain of title►Last minute liens►Title insuranceLender’s PolicyOwner’s Policy● Closing Paperwork● Possession and keys
Slide 29 of 32Home 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 defects
Slide 30 of 32Home Inspections● Most common concerns►Roof►Structural►Plumbing►Electrical►HVAC►Deferred Maintenance►Termites►Mold►Cosmetic
Slide 31 of 32Home 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 coverage
Slide 32 of 32Thanks for Listening!Please fill out the survey that will be sent to you along with thedeck! We appreciate the feedback!Check out our upcoming classes and events athttp://www.redfin.com/buy-a-home/classes-and-eventsPlease feel free to email me at email@example.com if youhave any questions or comments.
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