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Good 2 Go Realtor Presentation
Good 2 Go Realtor Presentation
Good 2 Go Realtor Presentation
Good 2 Go Realtor Presentation
Good 2 Go Realtor Presentation
Good 2 Go Realtor Presentation
Good 2 Go Realtor Presentation
Good 2 Go Realtor Presentation
Good 2 Go Realtor Presentation
Good 2 Go Realtor Presentation
Good 2 Go Realtor Presentation
Good 2 Go Realtor Presentation
Good 2 Go Realtor Presentation
Good 2 Go Realtor Presentation
Good 2 Go Realtor Presentation
Good 2 Go Realtor Presentation
Good 2 Go Realtor Presentation
Good 2 Go Realtor Presentation
Good 2 Go Realtor Presentation
Good 2 Go Realtor Presentation
Good 2 Go Realtor Presentation
Good 2 Go Realtor Presentation
Good 2 Go Realtor Presentation
Good 2 Go Realtor Presentation
Good 2 Go Realtor Presentation
Good 2 Go Realtor Presentation
Good 2 Go Realtor Presentation
Good 2 Go Realtor Presentation
Good 2 Go Realtor Presentation
Good 2 Go Realtor Presentation
Good 2 Go Realtor Presentation
Good 2 Go Realtor Presentation
Good 2 Go Realtor Presentation
Good 2 Go Realtor Presentation
Good 2 Go Realtor Presentation
Good 2 Go Realtor Presentation
Good 2 Go Realtor Presentation
Good 2 Go Realtor Presentation
Good 2 Go Realtor Presentation
Good 2 Go Realtor Presentation
Good 2 Go Realtor Presentation
Good 2 Go Realtor Presentation
Good 2 Go Realtor Presentation
Good 2 Go Realtor Presentation
Good 2 Go Realtor Presentation
Good 2 Go Realtor Presentation
Good 2 Go Realtor Presentation
Good 2 Go Realtor Presentation
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Good 2 Go Realtor Presentation

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This presentation illustrates some of the things we do to help Realtors with Short Sales.

This presentation illustrates some of the things we do to help Realtors with Short Sales.

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  • Good morning/afternoon. I’d like to thank everyone for taking time out of your busy schedules to learn how to use short sales to increase your business. (Use one-on-one conversation style, and avoid commercials).
  • Transcript

    • 1. Selling Real Estate in Foreclosure Using “Short Sales”
      • Adam Teece
      • Good 2 Go Home Investors, Inc
      • www.good2gobuyshouses.com
      • March 2008
    • 2. Only Three Goals For Today
      • 1) Educate Agents on how to capitalize on the “pre-foreclosure” market & make additional commissions thru short sales.
      • 2) Educate Agents on how to help homeowners in foreclosure who are desperately looking for help by understanding their options.
      • 3) Show Agents additional marketing and revenue streams in pre-foreclosures.
    • 3. Important Information!
      • Who is Good 2 Go Home Investors, Inc?
      • A short sale OUTSOURCE business partner
      • A short sale negotiation & consulting service
      • A business that does NOT subscribe to Equity Skimming
      • Here to assist real estate agents with short sales.
      • Here to provide real solutions and answer questions.
      • Partnered with one the most successful full-time short sale negotiation teams in the U.S.
    • 4. What is a Short Sale?
      • Occurs when a lender accepts less than full payoff on the mortgage(s) to allow transfer of a property to a new buyer.
      • Only available on houses in pre-foreclosure.
      • Can be negotiated on all mortgages
      • plus junior liens.
      • Not available on bank owned houses (REO) after foreclosure auction.
    • 5. Typical Case - where we help
      • Payoffs are at or more than the house FMV
      • There is no equity in property when closing costs and commissions are factored in.
      • Homeowner is in foreclosure.
      • Homeowner wants to get out of situation.
      • Realtor wants to outsource the
      • extreme amount of work involved in negotiating the short sale with lenders.
    • 6. What if you could…….?
      • Outsource all your short sale negotiations to a full time team of experts.
      • Pay NO fees (Seller, Buyer or Agent).
      • Check your “case” status online 24/7.
      • Title and Escrow with a proven expert team
      • EARN FULL COMMISSIONS
      • when properties transfer.
    • 7. What We Will Cover
      • Case Study
      • The Foreclosure Crisis
      • Market Size
      • Working the Foreclosure Market
      • Short Sales: What, When and Why
      • Steps in a Short Sale – Flow Charts
      • How Short Sales Can Benefit You
    • 8. 3384 Faulkner – Case Study
    • 9. 3384 Faulkner – Case Study
      • Dated Submitted: May 11, 2007
      • Date of BPO: May 23, 2007
      • Date Closed: October 8, 2007
      • Total Payoff: $ 163,976.00
      • Re-Sale price: $ 149,000.00
      • Commission : $ 8,940.00
      • NOTE: Realtor listed at $169,900 for 4 months - no offers
      • NOTE: BPO completed and lender made counter offer.
      • Carpet and paint added.
              • List price dropped to $159,000.
              • *** 2 offers in 6 days ***
    • 10. The Foreclosure Crisis
      • Prime loans drop from 66% to 45% of the market from 2002-2006.
        • Sub-prime, Alt-A, piggybacks (80/20’s), ARM’s, interest only and other “exotic” mortgages take over the majority of market (51%) for 1 st time ever in 2006.
            • Credit Suisse Mortgage Report 2007
    • 11. The Foreclosure Crisis
      • Increase in the number of ARMs
      • and rising interest rates:
      • Nearly 25% of all mortgages - 10 million carry adjustable interest rates.
      • Source: Mortgage Bankers Association
      • 1 in 8 households with ARMs that originated in 2004 and 2005
      • will default on those loans.
        • Source: Moody’s Economy. com
    • 12. The Foreclosure Crisis
      • 1/8 of all mortgages are considered
      • SUB PRIME
      • BUT
        • 60% of all new foreclosures are
              • SUB PRIME LOANS
          • Source: Center for Responsible Lending
    • 13. Sub-prime Mortgage Statistics
      • 3 rd Qtr 2007 -16.68% of all Sub-prime loans were delinquent
      • 3 rd Qtr 2007 – only 3.25% of Prime loans were delinquent
      • 3 rd Qtr 2007 – 5.87% of All loans
      • were delinquent
      • 4 th Qtr 2007 stats not out yet but are projected to be much worse than 3 rd Qtr
    • 14. The Foreclosure Crisis
      • The crisis isn’t limited to conventional,
      • sub-prime loans:
        • 12% of FHA loans are either in foreclosure
        • or delinquent.
        • Source: Mortgage Banking Association
      • As one advocate put it –
      • “ This is the worst time of foreclosures, basically, since the Great Depression."
    • 15. The Foreclosure Crisis
      • "The biggest growth department
      • in all of the mortgage-lending servicing departments over the last year has been the loss-mitigation department .
        • That is the department dedicated to finding solutions to defaulted loans
      • other than foreclosure” .
      • Source: Bruce Juenger, President of the Association of Real Estate Owned
              • Managers in Los Angeles
    • 16. Chicago Federal Reserve Study
      • Lenders lost about $50k per foreclosure in 2003
      • Lenders re-coup an average of only 59% of the original loan amount per foreclosure
    • 17. Fox News
      • Lenders lost about $80k
      • per foreclosure in 2006
    • 18. Center for Economic and Policy Research
      • "At this point we're seeing a quick meltdown in the housing market.“
      • "People still haven't caught up with the fact that this is a larger issue for the mortgage market as a whole rather than just sub-prime.” - CEPR Co–Director Dean Baker
    • 19. National Association of Realtors
      • The NAR was far more optimistic than many other economists.
      • The NAR expected only a 1 percent drop in the pace of existing home sales, and a 1 percent gain in median prices.
      • 2007 ended with a 12.5 percent plunge in the pace of sales, and nearly a 2 percent drop in prices
      • The first such decline on record (ever).
    • 20. Federal Reserve
      • Lowered their forecast for economic growth in 2008
      • Weaker consumer spending
      • Deeper housing recession
      • -Minutes of their Dec. 11 meeting
    • 21. Market Size - Nationally
      • Nationally 5.87% of all homes were delinquent – at least 30 days behind
      • Nationally 1.69% of all homes were in the foreclosure process in varying stages.
      • Sub-prime and FHA had highest %
    • 22. www.ml-implode.com
      • More than 210 Lenders and Banks
      • have imploded and filed for
      • Bankruptcy since late 2006
      • due directly to the mortgage crisis.
    • 23. Market Size - FLORIDA
      • Second worst state for number of Foreclosures as of Nov. 2007
      • Over 200% increase in the number of Foreclosures since Nov. 2006
      • 29,238 FL filings in Nov. 2007 alone
            • Realtytrac
    • 24. Lee County, Florida
      • Nearly 9,000 foreclosures filed
      • in the last year
      • 1,463 Foreclosure Auctions over
      • the past 12 months
      • 275 Foreclosures in September of 2006
      • 1,433 Foreclosures in September of 2007
      • Over 8,000 people currently unemployed and growing due to the downturn in the economy
    • 25. Local Real Estate Market
      • More and more foreclosures every day
      • Most foreclosures have no equity
      • Most homeowners are leveraged 100% or more of value
      • Tougher and tougher to find listing opportunities with any equity
      • Enormous opportunity
      • in pre-foreclosures and short sales
    • 26. Working the Foreclosure Market
      • Working with People in Foreclosure
        • Homeowner reliance on advice imposes an obligation on Agents to maintain highest standards of technical competence and integrity.
        • Always place the best interests of the homeowner above all else, and disclose fully the facts representing the true costs, benefits and limitations of any option or recommendation.
    • 27. Working the Pre-foreclosure Market
      • Stages of the Foreclosure Process
        • Collections – 1 st 90 days delinquent
        • Pre-foreclosure – 90 days - 12 months
            • Short Sale Potential in this stage!!!!
        • Foreclosure Sale – Sheriff’s auction
        • Redemption Period – 30 days or less
        • REO Department – until liquidated
    • 28. Working the Pre-foreclosure Market
      • Options for Homeowners
      • in Foreclosure – www.hud.gov
        • Refinance
        • Loan Modification
        • Forbearance / Repayment Plan
        • Partial Claim (FHA Insurance)
        • Bankruptcy
        • Deed in Lieu (voluntary foreclosure)
        • Sell the House
    • 29. Working the Pre-foreclosure Market
      • Options for Lenders with loans
      • in Foreclosure
        • Workout Plan / Repayment plan
        • Deed In Lieu (voluntary foreclosure)
        • Short Sale
        • Sheriff’s Sale / Auction
        • REO
    • 30. When Will a Lender Consider a Short Sale?
      • Only on loans in default, or where
      • default is imminent.
      • When a Lender receives an offer
      • that is higher than what it expects
      • to get by foreclosing.
      • When the type of loan, status of the foreclosure and Lender are conducive.
    • 31. Why Would a Lender Consider a Short Sale?
      • Lenders are in the business of loaning
      • money, not managing and selling
      • real estate.
      • Non-performing loans reduce what can be
      • loaned by 2-8X the amount of bad debt.
      • Lenders have Loss Mitigation Departments
      • responsible for mitigating , or
      • minimizing , losses from defaulted
      • mortgage loans.
    • 32. Steps In a Short Sale
      • Agent refers an Owner in foreclosure, or
      • expects to be, who is both interested
      • in selling and participating.
      • We determine the likelihood of success
      • based on the ability to negotiate a
      • discount and the ability to resell the
      • property (not all will qualify).
      • We confer with the Sellers and Listing
      • Agent to explain the process and
      • coordinate required documents.
    • 33. Steps In a Short Sale
      • We prepare, submit and negotiate the
      • short sale package, driving the entire
      • process for all lien holders.
      • We prepare a repair estimate.
      • We make an investor offer to start the
      • process.
      • We request the Lender to postpone auction
      • (if needed).
      • We follow up on offer & request an interior
      • BPO (Broker Price Opinion).
    • 34. Steps In a Short Sale
      • A BPO is ordered by the Lender to obtain
      • the “as is” value, which is used to
      • determine if the loan can be discounted
      • and by how much.
      • If our offer is accepted by the Lender we
      • will buy it with a quick cash close.
      • If our offer is declined the Agent lists or
      • re-lists at a conservative CMA price,
      • subject to Lender approval, and reduces
      • the price as necessary until sold.
    • 35. Steps In a Short Sale
      • Once an offer from an End Buyer is accepted we will negotiate a small spread from the Lender and sell it to the End Buyer through the Agents involved.
      • Our negotiated settlement will stipulate the Lender is to pay all Seller closing costs, including real estate commissions.
      • Proven expert team with experience handles Title and Escrow
    • 36. The Interior BPO
      • The most critical point of the entire short sale process.
      • Opportunity to validate the offer.
      • Whatever the BPO comes in at, the Lender views that # as the FMV.
      • Lenders want approximately
      • 85-100% of new BPO.
    • 37. Risks for Agents
      • Waste time and energy on listings when an acceptable discount could not be negotiated.
      • Upset Agents and Brokers when they lose a Buyer because the process took too long or the commission was reduced by the Lender.
      • Unable to find a Buyer in time.
      • Negotiate a discount and then have the Buyer not close.
    • 38. Risks for Sellers
      • The lender may choose to either:
        • Seek a deficiency judgment against the seller for the shortfall (HSBC)
        • Send a 1099C for the shortfall, creating a tax liability for the seller.
        • IRS Pub 523
        • Internal Revenue Code Form 982 Sec 121
    • 39. 1099’s
      • Mortgage Debt Forgiveness Act
        • HR 3648
      • Debt Forgiven will not be income to defaulted borrower
      • Primary residence only
      • Short sales, refinances, repayment plans
    • 40. 1099’s
        • Debt Forgiveness Income
        • IRS Pub 523
        • Internal Revenue Code Form 982 Sec 121
        • Insolvency
    • 41. Deficiency Judgments
      • HSBC
      • Wilshire
      • Irwin
      • Regional Banks
      • Credit Unions
      • Potential when PMI does not cover the loss
    • 42. Real Estate Agent Mistakes
      • Send P&S agreement to Lender with no hardship package
      • Short Sale / Hardship package incomplete
      • Approach short sale Lenders with no Buyer
      • Do not understand the importance and purpose of Short Sale Interior BPO’s
    • 43. Real Estate Agent Mistakes
      • Think process completed overnight
      • Waiting for Hardship Package from Lender
      • Listing property above market value to cover full payoff
    • 44. Rewards to Agents
      • Allows properties with no equity to be sold at attractive prices in a short time .
      • There is less competition among Agents for properties that have little or no equity.
      • Allows you to earn full commissions on sales that would have been lost
      • without a short sale.
      • Provides a way to help people in financial difficulty who couldn’t otherwise be helped.
    • 45. Rewards to Agents
      • Easy to demonstrate benefits to Sellers in need.
      • Creates new opportunity in a growing market with little competition.
      • You set the price where it will sell quickly , since it is a forced sale, earning commissions on sales you would
      • not otherwise make.
      • Receive strong testimonials and referrals from people who couldn’t be helped
      • by anyone else.
    • 46. How Short Sales Benefit Homeowners
      • Homeowners don’t pay for anything .
      • Sellers avoid a foreclosure on their
      • credit report .
      • Most Lenders will waive their right to a deficiency judgment as part of settlement.
      • Short sales minimize the loss , and there-fore any shortfall reflected on a 1099C.
      • Homeowners can often avoid paying income tax on the shortfall when professionally advised.
      • Allows Sellers to get on with their lives !
    • 47. Key Points Covered
      • The Foreclosure Crisis
      • Market Size
      • Working the Foreclosure Market
      • Short Sales: What, When and Why
      • Steps in a Short Sale
      • How Short Sales Benefit You
    • 48. Questions?
      • To get help with your short sale opportunities, please contact:
      • Adam Teece
      • Good 2 Go Home Investors, Inc.
      • www.good2gobuyshouses.com
      • Office: (239) 243-0630
      • Fax: (239) 243-0580
      • Cell: (239) 247-5624
      • 24 Hr: (866) 857-3918
      • Message Line

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