Foreclosure Agent2

The Next Housing Boom
Foreclosures | Short Sales | REO | Distressed Sellers

Realtor Rescue for a Distressed Market

Who moved the Cheese?

quot;If You Do Not Change, You Can Become Extinctquot;
ShortSaleSupport.com

Don’t get trapped
Become the expert on today’s market.

• Be a Resource
• Gatekeeper to deals
• Tell a memorable story
• Do what other won’t
• Navigate distress
• Solve problems you find


We were not trained for this.

• Tax liability
• Legal process
• Lender negotiations
• Financial analysis
• Credit counseling


Distress is way ahead and is
what’s ahead
March Real Estate Activity

Sold Back to Bank at Auction

Notice of Default

Notices of sale

Homes Sold
12,50050,000
0 25,000
37,500


Half Empty or Half Full?

Your perception
is your reality


Decisions at every turn
This is where we lose them


Travel in the Fast Lane of Real Estate


Hi Ho – Hi Ho
Back to the Bank they go
Foreclosure Outcome

Sold to 3rd party
Sold to Bank
Cancelled


Put on Your Pain Vision Goggles
Heat seeking solutions uncover market opportunites


You wouldn’t try to sell ice
cubes to Eskimos
• What do buyers want
• What do sellers need
• What don’t they know
• How can you change their lives
• What do you have to sell?


What can and cannot controlyou
control
• Can’t Control • Can Control
– Interest Rates – The flow of information
– Home Prices that helps people
navigate the
– The Economy
immoveable objects
– The Lenders • Their fears
– Decisions of people • The opportunities
outside your • The process
influences


What are your barriers
Brick Wall Partition Paper Wall Mindset

Real and immovable Real but movable. Looks impenetrable Not ‘real’ but really
However I need but can be easily difficult to
some assistance moved. remove.
to move this.

E.g. Processes, E.g. Attitudes and
E.g. Market condition E.g.Lack of
structure, stereotypical
and value, etc. information or
procedures etc views etc.
understanding.
Lack of time,
workload. Lack
of resources etc.


Real Estate Influences
• External • Internal
– Supply and Demand – Income
– Job Growth – Expenses
– Consumer Confidence – Personal Distress
– Interest Rates – Persona Decisions
– Foreclosures – Goals, Hopes, Dreams
– Government – Life changes
Regulations – Passing of time
– Current Events


Target your market

• Distress is a matter of public record
• Pressing need and a definite time frame.
• Deliver a message to meet that need
• Develop skills to meet that need


Where to start on the success cyscle


Real Estate Out of Alignment
• Foreclosure indicates breakdown
• Asset not connected to goals, hopes
dreams
• What opportunity does market create
• Life changes
• Asset does not fit present life


Stir the Pot
• The deals have settled on the bottom
• Seller wait and see and buyer
• Homeowners do not know what they do
not know
• If they did they would do something other
than what they have done
• Real Estate needs have been under-
serviced

Creative Real Estate Strategies

• Best Bidder Auctions
• Lease Options
• Foreclosure Agent
• Short Sales


Who is the most motivated


Guess who has to sell their home in 4 months?


Pinpoint distress. Find a deal


Property Meltdown History
From purchase, listing, foreclosure to sale
Listing
$850-1 mil Foreclosure
Purchase $750k
$883k

Sale
1000000 $600k

750000
Listing
500000
Sale
Loans

250000

0
Dec-06Jan-07Feb-07Mar-07Apr-07May-07Jun-07Jul-07Aug-07 Dec-07
Sept-07Oct-07Nov-07 Jan-08Feb-08Mar-08
Dec-05Jan-06Feb-06Mar-06Apr-06May-06Jun-06 Jul-06Aug-06
Nov-05 Sept-06Oct-06Nov-06


Auction would have made $154,900 more.

Min. Bid
Foreclosure Sold just 4 days
Sale $405k No after the sale
900000 bidders $54,900 over
auction

675000

450000

225000

0
Purchase Loans Foreclosure
2nd Ist Foreclosure back Listing
Taken REO

A Sample of Sales on March 19, 2008
Chula Vista, CA


Life History of a lien
Lender will discount at sale to avoid REO

$500k
$800,000 $375k Listing
Min bid

$640,000
Value
$500k
$480,000

$320,000

$160,000

$0
Purchase Reﬁnance Foreclosure Min Bid
Take back for lien on Markeket REO
Back


Real Estate Moving Parts


Standard of Care
• What should the consumer be able to
expect
• What do they really expect
• What do they get
• How are they being under-served
• How are they being harmed
• Why should we care


Cross Road Decisions
Advice from OZ: Use brains, courage and
heart to get home

• Realtors deal with people at significant
crossroads in their lives
• Foreclosure is one of the biggest, nastiest,
dangerous financial intersection of life.
• Know where you are leading them. It will
change their life


Foreclosure Agent2

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Editor's Notes