1. South Florida Short Sales 1-866-412-5269 www.ShortSaleMyMortgage.com Presented by: Russ Irizarry Short Sale Training Video 4 “What is a Short Sale and Why Lenders Consider Them”

2. South Florida Short Sales 1-866-412-5269 www.ShortSaleMyMortgage.com Disclaimer The content in this presentation is based upon our research, knowledge and experience. In no way is any information contained herein to be interpreted as legal or tax advice. To be assured of sound legal advice with regards to foreclosure, real estate, bankruptcy or agency laws, please employ the use of a competent legal or tax professional and/or your real estate broker. Please consult your broker, accountant and attorney, as appropriate, for advice specific to your situation. Although every effort is made to keep this presentation current and relevant, it is your responsibility to seek guidance from qualified professionals in order to keep up with rapidly changing market conditions and periodic changes to the law.

3. South Florida Short Sales 1-866-412-5269 www.ShortSaleMyMortgage.com What is a Short Sale? A Short Sale occurs when the proceeds of a real estate sale fall short of the mortgage balance owed on the property. Example:Home Sold Price:$300,000 Mortgage Balance:$450,000 Short:($150,000) There are clear advantages to a Short Sale versus a Foreclosure for both the homeowner and Bank in virtually all situations.

4. South Florida Short Sales 1-866-412-5269 www.ShortSaleMyMortgage.com What is a Short Sale? In 2008, Short Sales accounted for about 11% of U.S. homes sales. In Miami-Dade county, Short Sales make up about 36%* of all homes on the market. In Miami-Dade county over 3,244 Short Sales have closed successfully from Jan 1 – Dec 31 2009, representing 15% of all closed units.* Those homeowners successfully avoided foreclosure. * source: Southeast Florida MLS

5. South Florida Short Sales 1-866-412-5269 www.ShortSaleMyMortgage.com Two conditions must exist for the lender to consider a Short Sale: 1. There must be little or no equity in the property. 2. Homeowner must prove a legitimate hardship. What is a Short Sale?

6. South Florida Short Sales 1-866-412-5269 www.ShortSaleMyMortgage.com Why do Lenders Consider Short Sales? Lenders are in the business of making loans, not owning real estate. If the lender forecloses, the value of the loan increases their liabilities, reduces their ability to make loans, and contributes to their insolvency. Foreclosures cost lenders time and money. It costs a lender an estimated $60,000+ cost to foreclose.

7. South Florida Short Sales 1-866-412-5269 www.ShortSaleMyMortgage.com The Short Sale offer is equal to or less than what a lender can expect to lose by foreclosing and selling the property (especially in a market where prices are depreciating) Property is in less “sellable condition” at time of foreclosure Lenders created the Short Sale option as an alternative to foreclosure Why do Lenders Consider Short Sales?

8. South Florida Short Sales 1-866-412-5269 www.ShortSaleMyMortgage.com Look out for our next 5 minute video presentation, Short Sale Training Video 5 – “Documents required for a Short Sale”

9. South Florida Short Sales 1-866-412-5269 www.ShortSaleMyMortgage.com South Florida Short Sales 1-866-412-5269 www.ShortSaleMyMortgage.com For more information on the Foreclosure Process, your options and Short Sales go to: www.ShortSaleMyMortgage.com Download my free report: “How to Stop Foreclosure With a Short Sale.” Thank you for watching this video.