{ Short Sales Part 1- The Good, Bad and Ugly Taught by: Angela Tina

What will I learn? Part 1- Basic Info on Short Sales Difference between a short sale and foreclosure Types of Short Sales What programs to sign up for Part 2- The process of a Short Sale from Listing to Closing Putting a system in place Part 3- Navigating through Equator and DTS portal Part 4- Short Sale HUDs and Approval Letters Questions and Answers

{ Short Sale- A short sale is when the lender accepts a discount on a mortgage to avoid the property going to foreclosure.

{ Foreclosure The process of taking possession of a mortgaged property as a result of someone's failure to keep up mortgage payments.

Types of Short Sales Traditional 3-6 Months Agent will set listing price Financials required Negotiations will take place Prom Note, Cash Contribution, Waiver, Etc.

Large/Small banks Programs and packages Equator BofA Wells Nationstar ASC Homeward Residential Carrington Mortgage Traditional- (continued)

Types of Short Sales HAFA (Home Affordable Foreclosure Alternative) Two options- Short Sale or DIL (Deed in Lieu) About days Bank may set list price Includes Waiver of Deficiency Less negative affect on credit Relocation incentive

Some Eligibility Requirements Hardship Not purchased new home within 12 months 1 st Mortgage has to be less than $729,750 Mortgage was obtained before Jan. 1 st, 2009 RMA and RASS forms Short Sale agreement form with DTS HAFA (continued)

Types of Short Sales Coop or Streamline 120 marketing period – 30 day approval process Bank sets list price – pre-approved Price reductions every 21 days NO financial documents are required Waiver of Deficiency Relocation incentive $5K-30K DTS (Dignified Transition Solutions) and NDS (National Default Servicing) Some Eligibility Requirements BAI (Borrowers Acknowledgement of Interest) Form Balance less than $3 million Needs to be delinquent No Foreclosure date set

Other reasons to do a short sale vs. foreclosure Short Sale: -Seller can live in the property during the short sale process. -Plenty of time to make moving arrangements and relocation. -May be able to avoid BK. -May be able to re-purchase within months. Foreclosure: -Seller will have to wait for a sale date to be set then move out quickly. -Bank has right to file a deficiency judgment- 6 months -Credit can be affected between 250-over 300 points. -Typically cant re-purchase for 7-10 years.

Questions to ask Sellers 1.) Who is your lender? 2.) How many liens are on the property? Mechanic? HOA? 3.) Are you current? HOA? Sewer? Etc? 4.) Is the loan a Fannie or Freddie? 5.) What is your current balance? 6.) Have you attempted a loan mod? If so, what was the outcome? 7.) Is this your primary residence? 8.) What is your hardship? 9.) Are you aware of your other options?

Programs m

gracefully/Pages/hafa.aspx