Learn How a Top Agent Closes Short Sales

ATC Financial Short Sale Presentation

Short Sales Simplified for Realtors

www.aroundtheclockshortsales.com

[email protected]

To list your home visit Nick Gioia with Re/Max Sails at:

BaltimoreRealEstateSales.com

http://www.atclegal.com

http://www.aroundtheclockshortsales.com

mailto:[email protected]


http://www.baltimorerealestatesales.com/

Short Sale Marketing Ideas

Social Media: Facebook, Twitter

Notice of Defaults (NOD List)

90-120 Days Late on Mortgage

Fail Loan Modifications, Pending Foreclosures

Wave Mailing

Mailers

http://www.printerbees.com/short-sale.html

Mailer Disclosure Statement

Loan Modification Leads

90% of all loan modifications end in failure

Great Short Sale Lead




Sample Mailer (Front)

MAY WE THROW YOU A LIFE LINE?

· IN A HARDSHIP SITUATION? · UNABLE TO MAKE YOUR MORTGAGE PAYMENTS? · FEARING FORECLOSURE AND SHORT ON EQUITY? · NEEDING TO SELL, BUT UNSURE OF YOUR

OPTIONS?

IS DOING A SHORT SALE YOUR BEST OPTION?

THEREISNOCOSTTOYOU,INCLUDINGCOMMISSIONFEES.WEARESHORTSALE

SPECIALISTSANDCANWORKWITHYOUANDYOURLENDERTOIDENTIFYYOURBEST

OPTIONS.MINIMIZEYOURCREDITDAMAGE.IN100%OFFORECLOSURESIN

MARYAND,THEBANKHASTHERIGHTTOPURSUEADEFICIENCYJUDGMENT.INA

SUCCESSFULSHORTSALE,ALENDERMAYWAIVETHEDEFICIENCYANDGIVEUPTHE

RIGHTTOPURSUEADEFICIENCYJUDGMENTAGAINSTTHEHOMEOWNER.

CALL TODAY. SIT BACK. RELAX. “WE GOT THIS”

Sample Mailer (Back)

2331 YORK ROAD, SUITE 304, TIMONIUM, MD 21093

SEAN M. DER

JAMES T. WEISKERGER

Loss Mitigation Specialists

OFFICE: 410-779-1000 CELL: 443-324-9475

[email protected] www.atclegal.com

ATC Legal is not associated with the government and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not change your loan.

To list your home visit Nick Gioia with Re/Max Sails at: BaltimoreRealEstateSales.com


Does Your Seller Qualify for a

Short Sale?

Sellers are behind on their mortgage and unable to pay their mortgage and keep up with their monthly household expenses. Hardships could be a result of loss or reduction of income, divorce, job relocation, etc…

Sellers are not behind on their mortgage but their monthly household expenses exceed their monthly income and they expect to fall behind in the near future.

Sellers are not behind on their mortgage but need to move due to a job relocation or other reasons such as retirement, health, disability, etc…



Who should negotiate your

short sale?

Third Party Company that…

Specifically focuses on all aspects of the short sale process.

Works with all banks not just selected banks

Has extensive short sale experience with all banks, liens, etc…

Clear understanding of the differences between foreclosures, loan modifications and short sales

Does NOT CHARGE ANY UPFRONT FEES to the seller

Has a strong support team of experienced case managers and client coordinators

Gathers all bank required documents PRIOR to contract

Submit Pre-Packages for preliminary approval

Experience in negotiating cash contributions, promissory notes and deficiency judgments along with other counter offer terms

Possess a Credit Service license from the State (DLLR)

Required in the State of Maryland when negotiating promissory notes and/or deficiency judgments.



What potential outcomes should I

expect from a Short Sale?

Every case is specific to the seller’s financial situation

Full Short Sale Lien Release

This release allows the short sale transaction to take place

Other Short Sale Approval Terms may apply based on the individuals financial position and the guidelines set forth by the bank/investor holding the loan

Cash Contribution may apply

Promissory Note

Deficiency Balance



What is a Cash Contribution?

The short sale lender and mortgage insurance company, if applicable, may require a cash contribution.

A cash contribution is when a lender requires the seller to bring funds to the table at closing in order to release the short sale.

WHY?

If the seller has sufficient assets or credit lines, banks may request it.

If the seller is not behind on the mortgage or their credit is excellent, banks may request it.

If the loan has mortgage insurance, the mortgage insurance carrier may demand a cash contribution, since the bank has filed a claim to the insurance company for past due payments.

This may be negotiated



What is a Promissory Note?

The short sale lender and mortgage insurance company, if applicable, may require a promissory note. A promissory note is when a lender requires the seller to sign

an agreement to make payments on a new note in order to release the short sale

WHY?



If the loan has mortgage insurance, the mortgage insurance carrier may demand a promissory note, since the bank has filed a claim to the insurance company for past due payments.

Typical terms of a promissory note is 20%-40% of the outstanding balance payable over 10 years, 0% interest.

This may be negotiated To list your home visit Nick Gioia with Re/Max Sails at: BaltimoreRealEstateSales.com


What is a Deficiency Judgment?

The short sale lender and mortgage insurance company, if applicable, may issue a Deficiency Judgment.

A Deficiency Judgment is allowed by state law whereas the bank reserves the right to collect the unpaid balance of that is owed and what has been collected as a result of the short sale.

WHY?



If the loan has mortgage insurance, the mortgage insurance carrier may demand a deficiency judgment, since the bank has filed a claim to the insurance company for past due payments.

This may be negotiated To list your home visit Nick Gioia with Re/Max Sails at: BaltimoreRealEstateSales.com


Who determines the terms of the short

sale, cash contributions, promissory

notes and deficiency judgments?

Most Short Sale Bank Negotiators follow guidelines in order to determine the terms of the short sale…

Real Estate Commissions

Settlement, Title, Legal and Process Fees

Appraisal Evaluation versus Buyer’s Offering Price

Required Minimum Net Value from the Short Sale needed by the bank/investor

Investors, Mortgage Insurance Carriers and Junior lien holders determine… Cash Contributions, Promissory Notes, Deficiency Judgments

This is usually performed after the Negotiator has approved the file base on the bank’s guidelines



What can be Negotiated?

EVERYTHING can be negotiated.

It is based on a variety of factors.

Seller’s level of Financial Hardship

Current Assets and Income

Seller’s credit score

Seller’s is behind or on-time with their payments

Bank’s level of urgency

Large banks tend to be more negotiable

Small banks, credit unions, hired-attorneys tend to be less

negotiable



Differences between Foreclosure and a

Short Sale

With a Short Sale…

Deficiency Judgment in many times may be waived

May affect your credit score by 50-80 points

May qualify to buy a new home within 3 years

Make sure you consult your tax advisor and credit specialist for details of the affects of a short sale

With a Foreclosure

Deficiency Judgment is automatic

May affect your credit score by 200-300 points

May not qualify to purchase a new home for 7-8 years

Make sure you consult your tax advisor and credit specialist for the details of the affects of a foreclosure



Why ATC? No Upfront Fees or charges to the Seller or Realtor

Fully Credit Service Licensed by the State of Maryland

Separation of Liability

Work with 20+ approved title companies to pull Owner’s Title Search / Prelim HUDs within 10 days of contract date.

Experience and Growth

We have over 300+ active short sales in negotiations and 250+ short sale listings

Growing 100+ new short sale listings and contracts every month

Gather all bank required documents. Every document faxed to the bank is VERIFIED 48 hours later by our client coordinators.

For many lenders, we submit the short sale pre-package BEFORE you even get a contract to obtain preliminary approval, BPO ordered, and negotiator assigned.

Negotiate all terms of the counter offers on behalf of the seller

Short Sale Lien Release

Minimize or eliminate Cash Contributions, Promissory Notes, and waive Deficiency Judgments (95% success rate subject to sellers’ and investors’ financial condition and guidelines respectively.

Typical counter offers obtain within 65 days from when short sale package has been submitted.

Weekly updates to listing agents, buyers agents and sellers if requested

Online Short Sale Database program to track all activity. Guest login access to Realtors

Short Sale Commander

Lenders that we have experienced

We have experience in negotiating 1-3 liens on a single

property

Bank of America, Countrywide

Wells Fargo, Wachovia

Citibank, CitiMortgage

Chase, GMAC, Suntrust

AHSMI, M&T, PNC, LBPS, GreenTree, Flagstar, BBT,

Credit Unions, EMC, MetLife, IndyMac, Ocwen,

NationStar, Saxon, HSBC, Aurora, Bogman, PHH, First

Horizon, Midland, Hamilton, Carrollton, ASC, Capital One,

Litton Loan, Huntington, BB&T, PNC



How do I get started?

Sign a short sale listing agreement with your Realtor

Upon receipt of the Short Sale listing, ATC will send out a Short Sale Seller’s Package to be completed. Our client coordinator will be in contact immediately to begin

gathering all the bank required documents to prepare for submission.

While we are collecting documents and processing preliminary approval, if applicable, your Realtor will be marketing your property to find a qualified buyer.

ATC case managers are here to answer any questions that you might have concerning the potential outcomes of the short sale.



ATC Fee Disclosure Schedule

PROPERTY:

SELLER(s) NAME:

Our short sale negotiation service fees are subject to 3rd

party approval and each bank approve fees

differently. ATC may receive partial, all, or none of the fees listed below as a result of executing the

short sale on behalf of the seller.

THERE ARE NO FEES CHARGED TO THE SELLER.

A. Fees to be paid By Short Sale Lender(s) subject to 3rd

party approval. Banks may approval all,

some, or none of these fees. We may reserve the right to rename any of these fees as banks may have

specific items that have to be labeled a certain way as each of them have different policies.

1. Credit Service Fee and/or Attorney Fee: 1% - 1.98% of sales price of short sale property

2. Settlement Fee: $1000.00 - $2,000.00

3. Title Services: $1000.00 - $1500.00

4. Document Preparation: $350.00 - $500.00 (Depending on the number of liens)

5. Lien Review: $250.00 - $350.00

6. Mortgage Payoff Procurement: $350.00

7. Negotiation Fee: $500.00 - $995.00

8. Notary, Overnights, misc: $75.00-$150.00

*In the event, there no cash contributions, promissory notes and/or deficiency judgments, ATC total fee

collected may exceed the amounts listed above or if approved by the seller.

First, we perform our best efforts to obtain a short sale approval. Second, if there are any terms such as seller

cash contributions, bank requested promissory notes, and deficiency judgments, ATC will negotiate these

terms to the best of our ability. The Seller has the right to refuse the terms of the short sale at any time.

DEFICIENCY JUDGMENT DISCLOSURE STATEMENT REGARDING FEES.

Deficiency Judgments are applicable by State Law. In a deficiency State, we are not always able to have this

deficiency waived due to circumstances beyond our control.

Seller acknowledges and approves that ATC may be compensated by the short sale lender and other parties

according to the Service Agreement an amount equal to five thousand ($5,000) in credit service fees

associated with the transaction even if a deficiency judgment is not waived for the short sale. The Seller

fully releases ATC of any liability as a result of this particular compensation and outcome.

SIGNED___________________________________DATE_____________________

SIGNED___________________________________DATE_____________________

When a Buyer submits a contract, the short sale clock starts ticking, therefore,

an approved title company must work in conjunction with ATC, seamlessly.

TitleCompanyAddendum

Thetitlecompanyplaysanimportantroleduringthebeginningandsettlementstagesoftheshortsaleprocess.Propertyreports,liensearches,andprelimHUDsmustbeaccuratelypreparedanddeliveredtotheshortsalelenderwithin24-48hours.Toensureatimelyclosing,ATCFinancialcanrecommendatitlecompanythatunderstandsourpoliciesandrequirementsfromourapprovedlistoftitlecompanies.AnybuyerselectedtitlecompanymustbeapprovedwithATCFinancialbeforeashortsalepackageissubmitted.

_________:Option1(Pleaseinitial):TheBuyerhasagreedtoallowATCLegalandFinancialtoselectthetitlecompanyforthepurposeoffacilitatingtheshortsaletransaction.

________:Option2(Pleaseinitial)TheBuyerhasselected___________________________________________asthetitlecompanyforthepurposeoffacilitatingtheshortsaletransaction.

PropertyAddress:___________________________________________________________________________________

________________________________________________ ________________________________________________Buyer1(Signature) Buyer2(Signature)

TitleCompanyName________________________________________________________________________________Phone:__________________________________________Email:_________________________________________________

IfthebuyerselectsadifferenttitlecompanythatisnotonATCFinancial’sapprovedlist,thenewtitlecompanywillabidebythefollowingtheguidelineslistedbelow.Failuretocomplymayresultinadelayoftheshortsaleprocess.

o ProvideanestimatedpreliminaryHUD1basedontheinformationprovidedinthecontracttobesubmittedwithourshortsalepackagetothebankwithin5businessdaysorless.

o ProvideaCurrentOwnerPropertyReportwithin5businessdaysorless.TheReportwillindicateaFeeSimple,orLeaseholdProperty,includeCurrentOwner,Mortgages,Liens,LocalCitations,Judgments,FrontFootBenefitsandpropertytaxstatus

o ProvideaninsurableCurrentOwnerTitleSearchwithin5businessdayso Nofeesincludingtitle,escrow,attorney,documentpreparation,wire,courier,etc..willbe

chargetothesellerfromthetitlecompanyunlessapprovedbythesellerandshortsalelender.

o ThetitlecompanyhasagreedtocommunicatedirectlyandimmediatelytoATCFinancialonanyandalldiscoveriesorchangesthatmayaffecttheshortsaletransaction.

o SettlementAgentorClosingAttorneywillaccommodateallpartiesandconductsettlementatthedate,timeandlocationselectedbytheSeller(s)

o UponShortSaleApproval,thetitlecompanywillcoordinatewiththebuyerstoprovideaFinalHUDbeforeclosingtoATCFinancialbaseduponthetimelineindicatedintheclosinginstructionssetforthintheShortSaleApprovalLender________________________________________________ _____________________ TitleCompanyPrincipal(Signature) Date

Sample General Addendum

All parties agree that this addendum supersedes all other addendums. Wherever this addendum and the general body of the contract conflict, this addendum will control. All other terms and conditions of the above referenced Contract of Sale remain as originally agreed:

Home Inspection shall be completed within 7 days of

contract ratification, NOT bank approval

Short Sale contingency period must be a minimum of 90

days for bank approval

Buyer and Seller agree that settlement will take place at ATC

Financial’s recommended title company due to the complex

nature of the short sale transaction

Preliminary HUD

Approved HUD

IF YOU ARE THE BUYER’S AGENT FOR A SHORT SALE If you are ever the buyer's agent and want to purchase a short sale listing, make sure you protect your buyer's by asking the following questions. This will give you a better idea of the level of expertise and where the file stands in terms of how long and if a short sale transaction is viable.

1. Who is negotiating the short sale? Do they have a credit service license? 2. Ask them for a blank standard copy of their short sale agreement to make sure its in compliance with the DLLR, FTC MARS ruling 3. Is the Seller FHA? (If so, have they already been declined for a loan modification and approved to proceed with the short sale. Without knowing this, you may be delayed for an additional 60-90 days before the short sale even gets reviewed). If the seller is FHA and if you Buyer's NEED closing cost help (seller concession), your buyer's need to be FHA as well to qualify for 1% closing help. Otherwise, its 0% help according to FHA. Look for sellers with conventional loans if you need closing help higher than 1%. 4. Is there Mortgage Insurance on the property? If so, this could kill the deal since Mortgage Insurance Companies are typically in first position and prefer a foreclosure unless the seller is willing to provide a cash contribution or accept a promissory note. What experience does the negotiator have in dealing with Mortgage Insurance? 5. Has a pre-package already been submitted? Many banks nowadays will accept prepackages. If your negotiator is experienced, they should know which banks accept prepackages, therefore, you will know if all they have all the seller docs have been sent for preliminary approval. 6. If a third-party company is doing the negotiation (attorney, title company, or independent), how are they paid. Do you charge the sellers or real estate agents any fees? And what type of updates would I expect to receive during the process? These are very important questions that need to be address if you want your buyer's to be aware of the level of difficulty, time and success of the short sale transaction. ATC generates pre-packages for all their sellers, if applicable. ATC will provide weekly status updates for both agents on the progress of the short sale ATC has a Maryland Credit Service License which is required to negotiate deficiency judgments and promissory notes associated with short sales

Our ATC Management Team

410-779-1000

Sean M. Der, Co-Founder, Director of Operations [email protected] James T. Weiskerger, Co-Founder, Director of Marketing [email protected] Diana Grueva Khan, Executive Vice President of Operations, Senior Case Manager [email protected] Kendall Manges, Senior Case Manager [email protected]








Documents

Learn How a Top Agent Closes Short Sales