© 2010 All Rights Reserved - Scot Kenkel / Success Learning Institute 1-888-831-5945 Rick Smenner, Agent RE/MAX Preferred Properties, Inc.

© 2010 All Rights Reserved - Scot Kenkel / Success Learning Institute 1-888-831-5945 1. What happened to get you here? (make notes for hardship letter) 2. What solutions (foreclosure) have you sought to remedy situation? 3. How much did you PAY for the house? When? Worth now? 4. How much OWED? 1 st / 2 nd / Other Liens against property 5. How much are your payments? 1 st / 2 nd – include taxes/insurance? 6. How far behind are you on payments? Late fees/penalties? 7. What is the current condition of the house? Any problems? 8. What kind of work needs to be done to the house? 9. Are you behind on other bills – credit cards/utility/car payments? 10. What is you current monthly income? How stable is job? 11. Based on your income – how much can you afford to spend monthly? 12. How much CASH do you have available? In 30 Days? 13. Do you have any fall-back resources? (401K – Life Policies – Retirement Accounts – Annuities – Investments – Jewelry – Other Assets) 14. Would you prefer to STAY or VACATE? Why/Why Not? 15. If you were to VACATE where would you go? 16. WHAT TROUBLES YOU THE MOST ABOUT THIS SITUATION? Questions

© 2010 All Rights Reserved - Scot Kenkel / Success Learning Institute 1-888-831-5945 1. Any Letters/Documents received from the Lender 2. All Legal filings and Official notices 3. Materials (solicitations) received from others 4. Original house purchase documents 5. Recent appraisals – Major Improvements 6. Tax Returns / Pay Stubs / Bank Statements 7. Investment / Retirement / 401K / IRA Accounts 8. Paid up Life Insurance Policies / Annuities 9. List of Personal Assets - Financial Statement Review Documents The Property 1. Detailed ‘work to be done’ List - Major Mechanical Deficiencies 2. Possible Marketability Issues / Challenges

© 2010 All Rights Reserved - Scot Kenkel / Success Learning Institute 1-888-831-5945 THE RISK OF DOING NOTHING FUTURE Negative Impact: Family Housing Needs Auto/Health Insurance Rates Sky High Financing Rates Employment / Job Applications Investigative Background Checks College Grants and Scholarships THE RISK OF DOING NOTHING

© 2010 All Rights Reserved - Scot Kenkel / Success Learning Institute 1-888-831-5945 FORECLOSURE INFORMATION REMAINS PUBLIC!!  Embarrassing  Humiliating  Shameful  Don’t Let this Happen to Your Family… THE RISK OF DOING NOTHING

© 2010 All Rights Reserved - Scot Kenkel / Success Learning Institute 1-888-831-5945 DESIRE – do you really want to stay in the home? Key issues to be considered… MONEY – can you afford to stay in the house? FINANCIAL – does it make good fiscal sense to stay? TIME – do you have enough time to arrange to stay? COMMITMENT – are you willing to do whatever it takes? STAY or VACATE? PLAN TO STAY OR PLAN TO VACATE

© 2010 All Rights Reserved - Scot Kenkel / Success Learning Institute 1-888-831-5945 DESIRE – do you really want to stay in the home? Assign a POSITIVE (+) or NEGATIVE (-) to each of the following: MONEY – can you afford to stay in the house? FINANCIAL – does it make good fiscal sense to stay? TIME – do you have enough time to arrange to stay? COMMITMENT – are you willing to do whatever it takes? The Stay or Vacate Scoring: 4 or 5 Pluses = You Should Absolutely STAY!! 3 Pluses = It’s Rather Questionable 1 or 2 Pluses = You Should Plan to VACATE!! + - # of Pluses DECISION MAKING GRID

© 2010 All Rights Reserved - Scot Kenkel / Success Learning Institute 1-888-831-5945 STAY OPTIONS 1. Refinance or Payoff the Loan 3. Negotiate a Lender Workout 2. Pre-arranged Sale / Leaseback REINSTATEMENT =

© 2010 All Rights Reserved - Scot Kenkel / Success Learning Institute 1-888-831-5945 STAY OPTIONS 1. Refinance or Payoff the Loan 3. Negotiate a Lender Workout 2. Pre-arranged Sale / Leaseback FOREBEARANCE =

© 2010 All Rights Reserved - Scot Kenkel / Success Learning Institute 1-888-831-5945 STAY OPTIONS 1. Refinance or Payoff the Loan 3. Negotiate a Lender Workout 2. Pre-arranged Sale / Leaseback LOAN MODIFICATION =

© 2010 All Rights Reserved - Scot Kenkel / Success Learning Institute 1-888-831-5945 LOAN MODIFICATION When does it really make cents? … DO YOU MAKE TOO MUCH / TOO LITTLE? … IS THERE A SUSTAINABLE INCOME? … IS THE LENDER JUST TEASING YOU? (Have they provided you with a written Loan Modification Benefits Analysis yet? – If not they probably aren’t going to do so.) … DOES IT REALLY MAKE GOOD FISCAL SENSE? 1. Property Taxes per month: $_____________ (this won’t change) 2. Property Insurance per month: $ _____________ (this won’t change) 3. Hopeful Principal Payment at ____ % = $ _________ (this may change) SIMPLIFIED (+ HOPEFUL) MODIFIED PAYMENT CALCULATOR –

© 2010 All Rights Reserved - Scot Kenkel / Success Learning Institute 1-888-831-5945 STAY OPTIONS 1. Refinance or Payoff the Loan 4. File for Bankruptcy?? 2. Pre-arranged Sale / Leaseback 3. Negotiate a Lender Workout

© 2010 All Rights Reserved - Scot Kenkel / Success Learning Institute 1-888-831-5945 STAY OPTIONS 1. Refinance or Payoff the Loan 3. Negotiate a Lender Workout 4. File for Bankruptcy?? 2. Pre-arranged Sale / Leaseback … ONLY DELAYS THE FORECLOSURE – NO STOPPING IT … BETTER TO FILE BK AFTER FORECLOSURE – NOT PRIOR … CAN SOMETIMES COST YOU MUCH MORE $$$$

© 2010 All Rights Reserved - Scot Kenkel / Success Learning Institute 1-888-831-5945 STAY OPTIONS 1. Refinance or Payoff the Loan 4. File for Bankruptcy?? 2. Pre-arranged Sale / Leaseback 3. Negotiate a Lender Workout

© 2010 All Rights Reserved - Scot Kenkel / Success Learning Institute 1-888-831-5945 VACATE OPTIONS 1. Abandon the Property 2. Offer Lender a Deed-in-Lieu … YOU GIVE UP ALL OF YOUR RIGHTS … THEY MAY NOT WANT IT OR TAKE IT … LENDER MAY STILL FORECLOSE … THERE ARE NO GUARANTEES

© 2010 All Rights Reserved - Scot Kenkel / Success Learning Institute 1-888-831-5945 VACATE OPTIONS 1. Abandon the Property 2. Offer Lender a Deed-in-Lieu 3. Rent Property to a Tenant … TAKES TIME AND $$$ TO GET RENTED … ONE PROBLEM TRADED FOR ANOTHER … LENDER MAY STILL FORECLOSE … THERE ARE NO GUARANTEES

© 2010 All Rights Reserved - Scot Kenkel / Success Learning Institute 1-888-831-5945 VACATE OPTIONS 1. Abandon the Property 2. Offer Lender a Deed-in-Lieu 3. Rent Property to a Tenant 4. File for Bankruptcy??

© 2010 All Rights Reserved - Scot Kenkel / Success Learning Institute 1-888-831-5945 VACATE OPTIONS 1. Abandon the Property 2. Offer Lender a Deed-in-Lieu 3. Rent Property to a Tenant 4. File for Bankruptcy?? … ONLY DELAYS THE FORECLOSURE – NO STOPPING IT … BETTER TO FILE BK AFTER FORECLOSURE – NOT PRIOR … CAN SOMETIMES COST YOU MUCH MORE $$$$

© 2010 All Rights Reserved - Scot Kenkel / Success Learning Institute 1-888-831-5945 VACATE OPTIONS 1. Abandon the Property 2. Offer Lender a Deed-in-Lieu 3. Rent Property to a Tenant 4. File for Bankruptcy?? 5. SELL THE PROPERTY!!

© 2010 All Rights Reserved - Scot Kenkel / Success Learning Institute 1-888-831-5945 SPRUCE UP THE PROPERTY MAKE ALL THE NEEDED REPAIRS + = Should Sell for the Highest Price - = Will Take the Longest Time to Sell - = Need $$ and Time for Repairs - = Proceeds May Not Satisfy all Liens TRADITIONAL RETAIL SALE SELLING OPTION 1

© 2010 All Rights Reserved - Scot Kenkel / Success Learning Institute 1-888-831-5945 SPRUCE UP THE PROPERTY MAKE ALL THE NEEDED REPAIRS + = May Sell for a Higher Price - = May Take the Less Time to Sell - = Need $$ and Time for Repairs - = Proceeds May Not Satisfy all Liens - = Increased RISK for both Parties SELL WITH CREATIVE FINANCING SELLING OPTION 2

© 2010 All Rights Reserved - Scot Kenkel / Success Learning Institute 1-888-831-5945 SPRUCE UP THE PROPERTY MAKE ALL THE NEEDED REPAIRS + = Will Sell for the Much Less $$ - = Will Take the SHORTEST Time to Sell - = Need $$ and Time for Repairs - = Proceeds May Not Satisfy all Liens SELL IN “AS-IS” CONDITION SELLING OPTION 3

© 2010 All Rights Reserved - Scot Kenkel / Success Learning Institute 1-888-831-5945 WHAT HAPPENS… IF WE OWE MORE THAN IT SELLS FOR?? “AS-IS” VALUE = $ 150K TOTAL OWED = $ 190K $ 40,000 IN NEGATIVE EQUITY!!

© 2010 All Rights Reserved - Scot Kenkel / Success Learning Institute 1-888-831-5945 WHAT HAPPENS… IF WE OWE MORE THAN IT SELLS FOR?? “AS-IS” VALUE = $ 150K TOTAL OWED = $ 190K $ 40,000 IN NEGATIVE EQUITY!! OPTION 1 = BRING $$ TO THE CLOSING TABLE

© 2010 All Rights Reserved - Scot Kenkel / Success Learning Institute 1-888-831-5945 WHAT HAPPENS… IF WE OWE MORE THAN IT SELLS FOR?? “AS-IS” VALUE = $ 150K TOTAL OWED = $ 190K $ 40,000 IN NEGATIVE EQUITY!! OPTION 2 = NEGOTIATE A REDUCED PAYOFF

© 2010 All Rights Reserved - Scot Kenkel / Success Learning Institute 1-888-831-5945 Negotiating a Reduced Payoff AKA = Negotiating a “SHORT SALE” Contact the LENDER to determine Short Sale requirements 1

© 2010 All Rights Reserved - Scot Kenkel / Success Learning Institute 1-888-831-5945 Negotiating a Reduced Payoff AKA = Negotiating a “SHORT SALE” Contact the LENDER to determine Short Sale requirements Retrieve and Assemble ALL of the required documents 1 2

© 2010 All Rights Reserved - Scot Kenkel / Success Learning Institute 1-888-831-5945 Negotiating a Reduced Payoff AKA = Negotiating a “SHORT SALE” Contact the LENDER to determine Short Sale requirements PREPARE a Comprehensive SHORT SALE PACKET Retrieve and Assemble ALL of the required documents 1 23

© 2010 All Rights Reserved - Scot Kenkel / Success Learning Institute 1-888-831-5945 Negotiating a Reduced Payoff AKA = Negotiating a “SHORT SALE” Contact the LENDER to determine Short Sale requirements PREPARE a Comprehensive SHORT SALE PACKET Retrieve and Assemble ALL of the required documents SUBMIT the PACKET and VERIFY that the LENDER received it 1 23 4

© 2010 All Rights Reserved - Scot Kenkel / Success Learning Institute 1-888-831-5945 Negotiating a Reduced Payoff AKA = Negotiating a “SHORT SALE” Contact the LENDER to determine Short Sale requirements PREPARE a Comprehensive SHORT SALE PACKET Retrieve and Assemble ALL of the required documents SUBMIT the PACKET and VERIFY that the LENDER received it Continue to MONITOR PROGRESS with the LENDER 1 23 4 5

© 2010 All Rights Reserved - Scot Kenkel / Success Learning Institute 1-888-831-5945 Negotiating a Reduced Payoff AKA = Negotiating a “SHORT SALE” Contact the LENDER to determine Short Sale requirements PREPARE a Comprehensive SHORT SALE PACKET Retrieve and Assemble ALL of the required documents SUBMIT the PACKET and VERIFY that the LENDER received it Continue to MONITOR PROGRESS with the LENDER Regularly UPDATE all of the Parties Involved in the Sale of the Property 1 23 4 5 6

© 2010 All Rights Reserved - Scot Kenkel / Success Learning Institute 1-888-831-5945 Negotiating a Reduced Payoff AKA = Negotiating a “SHORT SALE” Contact the LENDER to determine Short Sale requirements PREPARE a Comprehensive SHORT SALE PACKET Retrieve and Assemble ALL of the required documents SUBMIT the PACKET and VERIFY that the LENDER received it Continue to MONITOR PROGRESS with the LENDER Regularly UPDATE all of the Parties Involved in the Sale of the Property Be Available to retrieve missing and updated docs for the Lender 1 23 4 5 6 7

© 2010 All Rights Reserved - Scot Kenkel / Success Learning Institute 1-888-831-5945 Negotiating a Reduced Payoff AKA = Negotiating a “SHORT SALE” Contact the LENDER to determine Short Sale requirements PREPARE a Comprehensive SHORT SALE PACKET Retrieve and Assemble ALL of the required documents SUBMIT the PACKET and VERIFY that the LENDER received it Continue to MONITOR PROGRESS with the LENDER Regularly UPDATE all of the Parties Involved in the Sale of the Property Be Available to retrieve missing and updated docs for the Lender 1 23 4 5 6 7 Review the TERMS and Conditions of the Reduced Payoff 8

© 2010 All Rights Reserved - Scot Kenkel / Success Learning Institute 1-888-831-5945 Negotiating a Reduced Payoff AKA = Negotiating a “SHORT SALE” Contact the LENDER to determine Short Sale requirements PREPARE a Comprehensive SHORT SALE PACKET Retrieve and Assemble ALL of the required documents SUBMIT the PACKET and VERIFY that the LENDER received it Continue to MONITOR PROGRESS with the LENDER Regularly UPDATE all of the Parties Involved in the Sale of the Property Be Available to retrieve missing and updated docs for the Lender 1 23 4 5 6 7 Review the TERMS and Conditions of the Reduced Payoff 8 Coordinate and TROUBLESHOOT In order to GET THE SALE CLOSED 9

© 2010 All Rights Reserved - Scot Kenkel / Success Learning Institute 1-888-831-5945 Rick Smenner, Agent RE/MAX Preferred Properties, Inc.

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© 2010 All Rights Reserved - Scot Kenkel / Success Learning Institute 1-888-831-5945 Rick Smenner, Agent RE/MAX Preferred Properties, Inc.

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Presentation on theme: "© 2010 All Rights Reserved - Scot Kenkel / Success Learning Institute 1-888-831-5945 Rick Smenner, Agent RE/MAX Preferred Properties, Inc."— Presentation transcript:

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