Where homeownership education takes flight!

A Complete Guide to Buying Foreclosures and Short Sales

Thank you for attending

We will begin in a momentClass Scheduled to begin at 10:00pm

Presented by

Scott SchangSponsored by

Broadview Mortgage Corporation

1-866-667-6724

Where homeownership education takes flight!

Buying Foreclosures and Short Sales

The Purpose and Goals of this Class

• Purpose: To Create and Empower Home Owners

• Goal: Educate you about what challenges and opportunities Foreclosures and Short Sales present in this market

• Goal: Provide homebuyers with the tools and resources necessary to understand all of the options available to you

• Goal: Empower you with the ability to make informed decisions in the home shopping process

Where homeownership education takes flight!

Buying Foreclosures and Short Sales

What is a “Real Estate blueBird”?

• Consumer advocacy project created to inform, educate and empower homeowners

• Real, honest insider information about buying your home and choosing a loan – removing the mystery from homeownership

• Because you don’t “pay” for their time, many homebuyers “end up” with a mortgage or real estate professional - obligation through reciprocation

• Armed with an education you will be empowered to make informed decisions throughout the entire home purchase process

Where homeownership education takes flight!

Buying Foreclosures and Short Sales

Questions and Answers

• You may type questions in at any time during the presentation – Questions Box on your screen

• Home Buying experts are available to answer questions throughout presentation

• This is an interactive learning environment. You will get the most value by having your specific questions answered

• The only dumb question is the one you don’t ask

Write number down now in case you get disconnected

1-866-667-6724

Where homeownership education takes flight!

Buying Foreclosures and Short Sales

Topics We Will Cover In This Class

• A Complete Explanation of Short Sales

• A Complete Explanation of Foreclosures

• Auctions are not for the unprepared

• The Value of an Experienced Agent

• Wrap up and Take Aways – Upcoming classes

Where homeownership education takes flight!

Buying Foreclosures and Short Sales

The Basics about Short Sales

• Seller is current home owner

• Seller is usually behind on payments

• Seller owes more than home is worth

• Seller attempts to sell home to avoid foreclosure

• Foreclosure process can be suspended or postponed if an offer has been submitted

• Seller is not always motivated to sell

• Motivation may be to stay in home as long as possible

Where homeownership education takes flight!

Buying Foreclosures and Short Sales

What to be aware of with Short Sales

• Sales Price - What you see is NOT what you get

• Once an offer is submitted –process starts

• Lenders were not prepared for volume– Approval process takes 3-6 months or more

• Lender will appraise and approve sales price

• Low ball offers are not worth the effort

Where homeownership education takes flight!

Buying Foreclosures and Short Sales

What to be aware of with Short Sales

• Seller’s agent has most influence in process– Third party negotiators working on behalf of

selling agent is optimal scenario

• Subordinate lenders can prevent short sale– 2nd lien holder has to cooperate– Can “hold out” for more money

• Sellers are not usually willing or able to pay for repairs to property

Where homeownership education takes flight!

Buying Foreclosures and Short Sales

New short sale opportunities

• Approval process complete• Original buyer long gone• Want to close FAST• Negotiators are accessible and ready to deal

• What to offer on a Short Sale– Have your agent complete a market analysis– Offer approved short sale price for quick sale– The bank will not lend you more than it is worth

Where homeownership education takes flight!

Buying Foreclosures and Short Sales

What you need to know if you want to buy a bank owned foreclosure

• Foreclosure = REO (Real Estate Owned)• Burden of bank owned real estate is great

– Banks make money by lending money– Banks are responsible for property taxes– Banks may be responsible for upkeep

• Damage to property is very common– Health and safety issues = No Financing– Most REO is sold in “as-is” condition

• No warranty or repairs• Not required to provide known defects disclosures

Where homeownership education takes flight!

Buying Foreclosures and Short Sales

What you need to know if you want to buy a bank owned foreclosure

• Banks listing homes very low to stimulate activity• Multiple offers – 25 to 30 offers in first week• Some banks requiring homes on market for 7 days

before looking at offers• Make your highest and best offer regardless of

“listing price” – Eliminate the competition• Less down payment = more aggressive offers• Banks ARE paying closing costs• Banks MAY pay for some repairs• Be aware of your “Net” offer

Where homeownership education takes flight!

Buying Foreclosures and Short Sales

What you need to know if you want to buy a bank owned foreclosure

• Many banks will require that you be pre-approved with their bank or select lender– If we have you approved already – we can send

them your information for approval– Many times you will need to speak to them

directly– Good opportunity for comparison of lenders

• No bank requires you to use their lender

Where homeownership education takes flight!

Buying Foreclosures and Short Sales

Auctions are not for the unprepared

• You are responsible for inspecting property prior to auction

• Auction homes are always sold “As-is”• YOU pay the selling agent / auction commission, not

the seller as is typical in all other sales– Can either be a flat fee or % of sales price

• Winning bid requires a non refundable deposit• Auction environment IS bidding war – it’s very easy

to pay top dollar at an auction• You MUST be completely approved for your loan!• All warnings aside - Smart and patient home buyers

can find great deals

Where homeownership education takes flight!

Buying Foreclosures and Short Sales

The Value of an Experienced Agent

• Work with a buyer’s agent – Fiduciary duties require that your best interests are represented

• Work with a Real Estate Agent that is familiar with making competitive offers on short sales and foreclosures

• Experienced Agents know how to negotiate effectively on your behalf to improve your chances of having your offer accepted– Inexperienced agents throw offers out there and

hope one sticks

Where homeownership education takes flight!

Buying Foreclosures and Short Sales

Wrap Up and Take Aways

• We are a direct Lender that specializes in CalSTRS, CalPERS, CalHFA, FHA, VA, USDA and Community based down payment assistance programs

• We can Refer you to a qualified Real Estate Agent in your area that shares our values and expertise

• We are more than happy to be your “second opinion” if you are already working with someone

• We are committed to educating and empowering homeowners - Please join us for other classes

Where homeownership education takes flight!

Buying Foreclosures and Short Sales

Follow Up Email

• You will receive a “Thank you” email with links to the information we’ve talked about here today including

– Copy of power point presentation– Secure on-line loan application– Links to all the topics we discussed in class– Dream Home Finder request– Link to more information about Tax Credit– A schedule of all upcoming classes

Where homeownership education takes flight!

Upcoming Homebuyer Classes

• Monday 5:30pm: A Complete Guide to Credit, Qualifying and Completing a loan Application

• Thursday 5:30pm A Complete Guide to Understanding Closing Costs and the Good Faith Estimate

• Saturday 10am: Hiring a Real Estate Agent and Finding the Best Deals

• Working to record and archive all classes for viewing anytime – I will keep you updated

Check back often for upcoming classes

Where homeownership education takes flight!

Thank You for AttendingIf you enjoyed this class – Tell a friend

Your input is ValuablePlease complete 2 question survey when you log off

For more information

1-866-667-6724Presented by

Scott SchangSponsored by

Broadview Mortgage Corporation