Introduction to Short Sales

“A short sale occurs when the proceeds of a real estate sale fall short of the balance that is owed on the property”

• Lenders are in the business to loan money, not own real estate.

• If the lender forecloses, the valueof the loan contributes to their insolvency.

• The Short Sale offer is equal to orgreater than what a lender can expect to gain by foreclosing or selling the property.

• Property has been left in an “unsellable condition” by the seller.

Current Market

• How many Agents have Short Sales?

• How many Agents have Walked Awayfrom short sale listings?

• How many Agents have Successfully Negotiated and Closed a Short Sale?

Did You Know?

• Average Broker or Agent closes 10% of the Short Sales that they attempt.

• Foreclosures are at an all time High!

• 50% of all Homes sold will be sold as aShort Sale

• If you are not working with Short Sales,you are missing at least 50% of the market.

Who We Are

• We are a professional short sale management group that manages an exclusive team of short sale experts.

• Our Team has been negotiating Short Sales for over 4 years and have completed over 300 transactions.

• Our Goal is to Create a WIN-WIN-WIN • Homeowners avoid Foreclosure• Lender liquidates their non-performing assets.• You get paid your full commission without negotiating

the short sale helping the homeowners avoidforeclosure creating more referrals for you.

Properties that are priced properly will sell faster.

Seller avoids foreclosure on their credit.

Establishes you as the Solution Provider

Seller will refer other Clients to you.

You provide value to your buyers.

Generates income stream in a slow market.

Helps Stimulate the Economy

Turn them down becausethey won’t sell

List the house at a price that is too high to cover all payoffs and closing costs

List them as Short Sales and do the negotiations yourself wasting your time.

Outsource your Short Sale Negotiations to the Experts and create extra income without extra work.

How to get your short sale assigned to a mitigator immediately.

What a bank mitigator looks for in a short sale package and why they will put it on the bottom of his file if he doesn’t like what he sees.

How to negotiate with lenders depending on what type of loan the seller has.

How the 1099 and IRS Form 982 work together

How to negotiate Fannie Mae, Freddie Mac, FHA. VA, USDA and Conventional mortgages with Private Mortgage Insurance.

How to get Junior lenders and IRS liens released from the property.

How to get the deal done when a lender wants your seller to sign a promissory note or deficiency judgment

How to get the bank to approve every file by getting the BPO value on the property where they need to see it.

How to present the short sale package to the bank so they not only review it fast but approve it.

How to structure the deal when the lender says that all junior lien holders can only get $1000-$3000

If you don’t know this information, 90% of your deals will be declined and you will waste your time.

GUARANTEE your commissions on short sale transactions upon closing

Give you back the time you would spend working on short sales

Solve your clients’ current foreclosure issues which could enable you to work with them in the future

Provide a Safety Net so your short sale doesn’t hit any landmines during the process

Eliminate the costly and time consuming learning curve of negotiating short sales like the pros.

Actual Case Studies

Lien Amount Payoff

1st Mortgage $264,135.00 $130,000

HOA Lien 0 0

Contractors Liens 0 0

IRS Liens 0 0

Total 264,135.00 $130,000

Total Discount 134,135.00

Realtor Commission $7,800

Commission without us 0

Case Study

Lien Amount Payoff

1st Mortgage $2,133,370.52 $940,578.76

Total $2,133,370.52 $940,578376

Total Discount $1,192,791.76

Realtor Commission

$53,000

Commissionwithout us

0

Case Study

Part 3

Team Up with Us!

You provide The Heathrow Group introduction to seller/client

We meet with your seller and take care of all paperwork

We build the case for negotiation

We submit the offer(s) to the lender(s)

We negotiate a settlement with the lender(s)

We pay off lender(s) and close with the buyer

Title Company pays you Your Commission

A cordial introduction to the seller is essential to our success for you

When speaking with the seller, keep your conversation general

Answer the questions that you feel comfortable answering but defer the rest to us (this gives us a reason to meet with seller)

Highlight the fact that you have aligned yourself with a company that specializes in short sales

The initial conversation can take place on the phone or in person

We will discuss the entire process with the seller

We will verify that we have addressed all of their questions and concerns

They can seek separate legal counsel or we can provide them with ours.

We will collect all of the short sale paperwork from the sellers

Comparables

Inspection Report

Inspection Estimate

Sellers Hardship

Sexual Predators

Local Articles

Days on the market

Mortgages, HELOC, HOA, IRS, contractors

Request Full Satisfaction of Liens

Provide appropriate verbiage for the MLS

You get your Full Commission and our team does all the mitigation work

You avoid wasting your time negotiating with banks (This is not the best use of your time)

You get an immediate offer on the property allowing us to start the short sale process NOW

You can avoid all of the Short Sale Process Pitfalls because we know all of them.

You can Earn your Full Commissions +

Potential of up to 7% in Commissions:

◦ *3% for Initial Listing

◦ *1% for 2nd listing

◦ *3% as Buyers Agent

We get paid when the property is sold. Either to our investment group or to a market buyer.

You get paid when our investment group buys the property & when they resell the house.

If you have questions that you would like to discuss or a property that you would like to submit please contact me at:

Fred W. Price7575 Dr. Phillips BL Ste 270 Orlando, FL 32819Phone 407-628-1080fprice@theheathrowgroup.com