A Complete Guide to Buying Foreclosures and Short Sales <ul><li>Presented by </li></ul><ul><li>Scott Schang </li></ul><ul>...
Buying Foreclosures and Short Sales <ul><li>Topics We Will Cover In This Class </li></ul><ul><li>A Complete Explanation of...
Buying Foreclosures and Short Sales <ul><li>The Purpose and Goals of this Class </li></ul><ul><li>To Create and Empower Ho...
Buying Foreclosures and Short Sales <ul><li>Questions and Answers </li></ul><ul><li>You may type questions in at any time ...
Buying Foreclosures and Short Sales <ul><li>The Basics about Short Sales </li></ul><ul><li>Seller is current home owner </...
Buying Foreclosures and Short Sales <ul><li>What to be aware of with Short Sales </li></ul><ul><li>Sales Price - What you ...
Buying Foreclosures and Short Sales <ul><li>What to be aware of with Short Sales </li></ul><ul><li>Seller’s agent has most...
Buying Foreclosures and Short Sales <ul><li>New short sale opportunity to watch for </li></ul><ul><li>Approved short sales...
Buying Foreclosures and Short Sales <ul><li>What you need to know if you want to buy a bank owned foreclosure </li></ul><u...
Buying Foreclosures and Short Sales <ul><li>What you need to know if you want to buy a bank owned foreclosure </li></ul><u...
Buying Foreclosures and Short Sales <ul><li>What you need to know if you want to buy a bank owned foreclosure </li></ul><u...
Buying Foreclosures and Short Sales <ul><li>Auctions are not for the unprepared </li></ul><ul><li>You are responsible for ...
Buying Foreclosures and Short Sales <ul><li>Getting Started – What’s the next step? </li></ul><ul><li>Very First Step – Ge...
Buying Foreclosures and Short Sales <ul><li>Wrap Up and Take Aways </li></ul><ul><li>We are a direct Lender that specializ...
Buying Foreclosures and Short Sales <ul><li>Wrap Up and Take Aways </li></ul><ul><li>You will receive a “Thank you” email ...
Upcoming Homebuyer Classes <ul><li>Hiring a Real Estate Agent and Finding the Best Deals </li></ul><ul><li>A Complete Guid...
Thank You for Attending If you enjoyed this class – Tell a friend   <ul><li>For more information </li></ul><ul><li>1-866-...
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A Guide To Buying Foreclosures and Short Sales

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A Guide To Buying Foreclosures and Short Sales

  1. 1. A Complete Guide to Buying Foreclosures and Short Sales <ul><li>Presented by </li></ul><ul><li>Scott Schang </li></ul><ul><li>Sponsored by </li></ul><ul><li>Broadview Mortgage Corporation </li></ul><ul><li>1-866-667-6724 </li></ul>
  2. 2. Buying Foreclosures and Short Sales <ul><li>Topics We Will Cover In This Class </li></ul><ul><li>A Complete Explanation of Short Sales </li></ul><ul><li>A Complete Explanation of Foreclosures </li></ul><ul><li>A Few Words about Auctions </li></ul><ul><li>What’s the next step? – Getting started </li></ul><ul><li>Wrap up and Take Aways – Upcoming classes </li></ul>
  3. 3. Buying Foreclosures and Short Sales <ul><li>The Purpose and Goals of this Class </li></ul><ul><li>To Create and Empower Home Owners </li></ul><ul><li>Educate you about the current California Real Estate market – Foreclosures and Short Sales </li></ul><ul><li>Empower you with the ability to make educated decisions in the home buying process </li></ul>
  4. 4. Buying Foreclosures and Short Sales <ul><li>Questions and Answers </li></ul><ul><li>You may type questions in at any time during the presentation – Questions Box on your screen </li></ul><ul><li>Home Buying experts are available to answer questions throughout presentation </li></ul><ul><li>This is an interactive learning environment. You will get the most value by having your specific questions answered </li></ul><ul><li>The only dumb question is the one you don’t ask </li></ul><ul><li>Write number down now in case you get disconnected </li></ul><ul><ul><li>1-866-667-6724 </li></ul></ul>
  5. 5. Buying Foreclosures and Short Sales <ul><li>The Basics about Short Sales </li></ul><ul><li>Seller is current home owner </li></ul><ul><li>Seller is usually behind on payments </li></ul><ul><li>Seller owes more than home is worth </li></ul><ul><li>Seller attempts to sell home to avoid foreclosure </li></ul><ul><li>Foreclosure process can be suspended or postponed if an offer has been submitted </li></ul><ul><li>Seller is not always motivated to sell </li></ul><ul><li>Motivation may be to stay in home as long as possible </li></ul>
  6. 6. Buying Foreclosures and Short Sales <ul><li>What to be aware of with Short Sales </li></ul><ul><li>Sales Price - What you see is NOT what you get </li></ul><ul><li>Once an offer is submitted –process starts </li></ul><ul><li>Lenders were not prepared for volume </li></ul><ul><ul><li>Approval process takes 3-6 months or more </li></ul></ul><ul><li>Lender will appraise and approve sales price </li></ul><ul><li>Low ball offers are not worth the effort </li></ul>
  7. 7. Buying Foreclosures and Short Sales <ul><li>What to be aware of with Short Sales </li></ul><ul><li>Seller’s agent has most influence in process </li></ul><ul><ul><li>Third party negotiators working on behalf of selling agent is optimal scenario </li></ul></ul><ul><li>Subordinate lenders can prevent short sale </li></ul><ul><ul><li>2 nd lien holder has to cooperate </li></ul></ul><ul><ul><li>Can “hold out” for more money </li></ul></ul><ul><li>Sellers are not usually willing or able to pay for repairs to property </li></ul>
  8. 8. Buying Foreclosures and Short Sales <ul><li>New short sale opportunity to watch for </li></ul><ul><li>Approved short sales </li></ul><ul><ul><li>Approval process complete </li></ul></ul><ul><ul><li>Original buyer long gone </li></ul></ul><ul><ul><li>Want to close FAST </li></ul></ul><ul><ul><li>Negotiators are accessible and ready to deal </li></ul></ul><ul><li>What to offer on a Short Sale </li></ul><ul><ul><li>Have your agent complete a market analysis </li></ul></ul><ul><ul><li>Offer approved short sale price for quick sale </li></ul></ul><ul><ul><li>The bank will not lend you more than it is worth </li></ul></ul>
  9. 9. Buying Foreclosures and Short Sales <ul><li>What you need to know if you want to buy a bank owned foreclosure </li></ul><ul><li>Foreclosure = REO (Real Estate Owned) </li></ul><ul><li>Burden of bank owned real estate is great </li></ul><ul><ul><li>Banks make money by lending money </li></ul></ul><ul><ul><li>Banks are responsible for property taxes </li></ul></ul><ul><ul><li>Banks may be responsible for upkeep </li></ul></ul><ul><li>Damage to property is very common </li></ul><ul><ul><li>Health and safety issues = No Financing </li></ul></ul><ul><ul><li>Most REO is sold in “as-is” condition </li></ul></ul><ul><ul><ul><li>No warranty or repairs </li></ul></ul></ul><ul><li>Not required to provide known defects disclosures </li></ul>
  10. 10. Buying Foreclosures and Short Sales <ul><li>What you need to know if you want to buy a bank owned foreclosure </li></ul><ul><li>Banks listing homes very low to stimulate activity </li></ul><ul><li>Multiple offers – 25 to 30 offers in first week </li></ul><ul><li>Some banks requiring homes on market for 7 days before looking at offers </li></ul><ul><li>Make your highest and best offer regardless of “listing price” – Eliminate the competition </li></ul><ul><li>Less down payment = more aggressive offers </li></ul><ul><li>Banks ARE paying closing costs </li></ul><ul><li>Banks MAY pay for some repairs </li></ul><ul><li>Be aware of your “Net” offer </li></ul>
  11. 11. Buying Foreclosures and Short Sales <ul><li>What you need to know if you want to buy a bank owned foreclosure </li></ul><ul><li>Many banks will require that you be pre-approved with their bank or select lender </li></ul><ul><ul><li>If we have you approved already – we can send them your information for approval </li></ul></ul><ul><ul><li>Many times you will need to speak to them directly </li></ul></ul><ul><ul><li>Good opportunity for comparison of lenders </li></ul></ul><ul><li>No bank requires you to use their lender </li></ul>
  12. 12. Buying Foreclosures and Short Sales <ul><li>Auctions are not for the unprepared </li></ul><ul><li>You are responsible for inspecting property prior to auction </li></ul><ul><li>Auction homes are always sold “As-is” </li></ul><ul><li>YOU pay the selling agent / auction commission, not the seller as is typical in all other sales </li></ul><ul><ul><li>Can either be a flat fee or % of sales price </li></ul></ul><ul><li>Winning bid requires a non refundable deposit </li></ul><ul><li>Auction environment IS bidding war – it’s very easy to pay top dollar at an auction </li></ul><ul><li>You MUST be completely approved for your loan! </li></ul><ul><li>All warnings aside - Smart and patient home buyers can find great deals </li></ul>
  13. 13. Buying Foreclosures and Short Sales <ul><li>Getting Started – What’s the next step? </li></ul><ul><li>Very First Step – Get pre-approved for financing </li></ul><ul><li>Get pre-approved for the maximum you can qualify for – Be prepared for competition </li></ul><ul><li>Work with a buyer’s agent – Fiduciary duties require that your best interests are represented </li></ul><ul><li>Work with a Real Estate Agent that is familiar with making competitive offers on short sales and foreclosures </li></ul>
  14. 14. Buying Foreclosures and Short Sales <ul><li>Wrap Up and Take Aways </li></ul><ul><li>We are a direct Lender that specializes in CalSTRS, CalPERS, CalHFA, FHA, VA, USDA and Community based down payment assistance programs </li></ul><ul><li>We can Refer you to a qualified Real Estate Agent in your area that shares our values and expertise </li></ul><ul><li>We are more than happy to be your “second opinion” if you are already working with someone </li></ul><ul><li>We are committed to educating and empowering homeowners - Please join us for other classes </li></ul>
  15. 15. Buying Foreclosures and Short Sales <ul><li>Wrap Up and Take Aways </li></ul><ul><li>You will receive a “Thank you” email with links to the information we’ve talked about here today including </li></ul><ul><ul><li>Copy of power point presentation </li></ul></ul><ul><ul><li>Secure on-line loan application </li></ul></ul><ul><ul><li>Links to all the topics we discussed in class </li></ul></ul><ul><ul><li>Dream Home Finder request </li></ul></ul><ul><ul><li>Link to more information about Tax Credit </li></ul></ul><ul><ul><li>A schedule of all upcoming classes </li></ul></ul>
  16. 16. Upcoming Homebuyer Classes <ul><li>Hiring a Real Estate Agent and Finding the Best Deals </li></ul><ul><li>A Complete Guide to Closing Costs and the Good Faith Estimate </li></ul><ul><li>A Complete Guide to Buying Foreclosures and Short Sales </li></ul><ul><li>A Complete Guide to FHA Purchase Loans </li></ul><ul><li>A Complete Guide to the CalPERS Home Loan Program </li></ul><ul><li>Five 100% Financing Loans You Should Know About </li></ul><ul><li>Working to record and archive all classes for viewing anytime – I will keep you updated </li></ul><ul><li>Check back often for upcoming classes </li></ul>
  17. 17. Thank You for Attending If you enjoyed this class – Tell a friend  <ul><li>For more information </li></ul><ul><li>1-866-667-6724 </li></ul><ul><li>Presented by </li></ul><ul><li>Scott Schang </li></ul><ul><li>Sponsored by </li></ul><ul><li>Broadview Mortgage Corporation </li></ul>

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