Your SlideShare is downloading. ×
0
Short sale and reo webinar - August 8
Short sale and reo webinar - August 8
Short sale and reo webinar - August 8
Short sale and reo webinar - August 8
Short sale and reo webinar - August 8
Short sale and reo webinar - August 8
Short sale and reo webinar - August 8
Short sale and reo webinar - August 8
Short sale and reo webinar - August 8
Short sale and reo webinar - August 8
Short sale and reo webinar - August 8
Short sale and reo webinar - August 8
Short sale and reo webinar - August 8
Short sale and reo webinar - August 8
Short sale and reo webinar - August 8
Short sale and reo webinar - August 8
Short sale and reo webinar - August 8
Short sale and reo webinar - August 8
Short sale and reo webinar - August 8
Short sale and reo webinar - August 8
Short sale and reo webinar - August 8
Short sale and reo webinar - August 8
Short sale and reo webinar - August 8
Short sale and reo webinar - August 8
Short sale and reo webinar - August 8
Short sale and reo webinar - August 8
Short sale and reo webinar - August 8
Short sale and reo webinar - August 8
Short sale and reo webinar - August 8
Short sale and reo webinar - August 8
Short sale and reo webinar - August 8
Short sale and reo webinar - August 8
Short sale and reo webinar - August 8
Short sale and reo webinar - August 8
Short sale and reo webinar - August 8
Short sale and reo webinar - August 8
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Short sale and reo webinar - August 8

118

Published on

Published in: Economy & Finance, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
118
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
3
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
  • Realtytrac.comIs your area’s foreclosure rate as high as state and national averages?
  • Realtytrac.comWhat impact do interest rates have on foreclosure activity?
  • Realtytrac.comForeclosure Activity by MonthHow is each foreclosure stage trending?More info6 Month TrendFalling
  • BATNA – back up plan, have one to avoid feeling like you have no option except to take the offer
  • Research needed to understand the Auction process better
  • Chart:http://www.mortgagenewsdaily.com/mortgage_rates/charts.aspPrediction:http://www.bankrate.com/finance/mortgages/mortgage-rate-trend-index.aspx
  • Chart:http://www.mortgagenewsdaily.com/mortgage_rates/charts.aspPrediction:http://www.bankrate.com/finance/mortgages/mortgage-rate-trend-index.aspxWill rates rise or remain relatively unchanged? Experts and Bankrate analysts predict where mortgage rates are headed over the next week.This week (July 5-11), 31 percent of the panelists believe mortgage rates will rise over the next week or so; 38 percent think rates will fall; and 31 percent believe rates will remain relatively unchanged (plus or minus 2 basis points). Read more: Rate Trend Index - Mortgage Rate Trends - Bankrate.com http://www.bankrate.com/news/rate-trends/mortgage.aspx#ixzz2097YRlM8
  • Research needed to understand the Auction process better
  • Transcript

    • 1. Short Sale and REO Webinar August 8, 2012 Jayson Haile, Redfin’s Peninsula TeamSlide 1 of 36
    • 2. Geographical Comparison – Orange CountySlide 2 of 36
    • 3. Types 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 SalesSlide 3 of 36
    • 4. Short 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 noticeSlide 4 of 36
    • 5. The Life of a Short Sale● How to grow a short sale● Getting a short sale listed● Picking your team● Searching for short sales● Market statistics● Negotiations and research● Sit and wait, finally explained● Getting a loan● Home inspections and warranties● Getting a clean titleSlide 5 of 36
    • 6. How to Grow a Short Sale● Supply vs. Demand● 80/20 Loans● HELOCS (disappearing money) ► Recourse in a Non-recourse state● Market crash ► 50% drop in home values● Making the decision to short sale ► Loan modifications ► Bankruptcy ► Credit ImpactSlide 6 of 36
    • 7. Foreclosure Activity and 30-Year Interest Rate – San Mateo Slide 7 of 36
    • 8. Foreclosure Activity by Month – San MateoSlide 8 of 36
    • 9. Getting a Short Sale Listed● Seller’s mindset ► Home maintenance ► HOA dues● Bank’s attitude● Listing agent’s struggle● Pricing strategies ► Some things are too good to be true● Approval Notice complications● Trustee’s sale dateSlide 9 of 36
    • 10. Short Sale Tid Bits● The rumor mill (old market)● Types of loans and liens ► Get the Prelim! (and read the fine print)● 90 day non-refundable earnest● 15% Redfin Rebate on Short Sales● Questions to ask before writing an offerSlide 10 of 36
    • 11. Picking 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 valueSlide 11 of 36
    • 12. Searching for Short Sales● Active, AWC and Pending ► What do they really mean?● Accurate and reliable websites● AWC, Pending and Sold stats● Pre-foreclosure lists ► What are they?Slide 12 of 36
    • 13. Moving 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 13 of 36
    • 14. Sit and Wait, Finally Explained!● The short sale approval process (chart)● Parties involved (chart)● Types of liens● Getting updates ► Frequency and quality● Approval NoticeSlide 14 of 36
    • 15. Short Sale Parties Short Sale Bank #1 Title Customer Short Sale Litigation Care Center Department Escrow Officer BPO Mortgage Appraiser Insurer Escrow Assistant Mortgage Negotiator Investor #1 Sellers Bank #2 Mortgage Investor #2 Customer Short Sale Attorney Litigation Care Center Department Closing Buyers Department BPO Mortgage Home Buyer’s Appraiser Insurer Appraiser Inspectors Lender Mortgage Negotiator Investor #1 Underwriter Mortgage Investor Investor #2 Guidelines Closing DepartmentSlide 15 of 36
    • 16. Short Sale Approval ProcessSlide 16 of 36
    • 17. Bank Owned Homes ● Contracts ● Addendums ● Timelines ● Home condition ● Listing agents ● TenantsSlide 17 of 36
    • 18. Why Buy a Bank Owned?● Best price● Not afraid of a remodel● Comfortable with contracts● Financially strong with liquid capitalSlide 18 of 36
    • 19. 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 19 of 36
    • 20. Searching for Distressed HomesSlide 20 of 36
    • 21. 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 21 of 36
    • 22. The Offer & The DealSlide 22 of 36
    • 23. Negotiation 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 realisticSlide 23 of 36
    • 24. 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 24 of 36
    • 25. Attorneys, Title and Closing● Attorney represents buyer’s lender*● Deeds – Warranty Deed vs. Special Warranty Deed● Title Search ► Chain of title ► Last minute liens ► Title insurance  Lender’s Policy  Owner’s Policy● Closing Paperwork● Possession and keysSlide 25 of 36
    • 26. FinancingSlide 26 of 36
    • 27. 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 27 of 36
    • 28. Financing Steps● Preapproval● Select property ► What is condition of property? ► Flipping guidelines● When to lock in the rate ► Short sale ► Bank owned● Mortgage processSlide 28 of 36
    • 29. Where Are Rates Headed? Type of Loan July 26, 2012 August 2, 2012 30-Year Fixed 3.49% 3.55% 15-Year Fixed 2.80% 2.83% 5/1 ARM 2.74% 2.75% 1-Year ARM 2.71% 2.70%Slide 29 of 36
    • 30. Where Are Rates Headed?Slide 30 of 36
    • 31. Home InspectionsSlide 31 of 36
    • 32. 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 32 of 36
    • 33. Home Inspections● Most common concerns ► Roof ► Structural ► Plumbing ► Electrical ► HVAC ► Deferred Maintenance ► Termites ► Mold ► CosmeticSlide 33 of 36
    • 34. 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 34 of 36
    • 35. Title and Closing● Getting a clean title ► Last minute liens ► Title insurance● Mortgage Electronic Registration System● Recording Process● Keys!Slide 35 of 36
    • 36. Thanks 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-eventsSlide 36 of 36

    ×