Short Sales and Foreclosures:

What Real Estate Professionals Need to Know

A program by the Real Estate Buyer’s Councilof the National Association of REALTORS®

• Short sales and foreclosures—not new trends

• Current economic conditions, rising unemployment, and depressed home values point to continued increases

About This Course

I-1

Consider the following:

• Mortgage defaults and loans in foreclosure for Q1 2009 = 12.07%

• 1.9 million+ foreclosure filings from Jan–June 2009

• Short sales and foreclosed properties = 1/3 of transactions in July 2009

I-2

About This Course

Challenges for agents:

I-3

About This Course

Short Sales Foreclosure

• Long timelines • Disrepair of properties

• Substantial documentation

• Not enough inventory in some markets

• Multiple approvals

• Specifically designed to show how real estate practitioner can serve as a resource for sellers and buyers in brokerage of distressed properties

I-4

About This Course

1. Homeowners in Jeopardy

> Define foreclosure> Discuss impacts of foreclosure> Understand steps in process of

foreclosure> Explain roles of agent in helping

distressed homeowners

I-5

What You Will Learn

2. Options for Distressed Homeowners

> Examine options available to distressed homeowners

I-6

What You Will Learn

3. Anatomy of a Short Sale

> Understand how to qualify sellers> Respond to sellers’ FAQs> Discuss commission concerns> Explain how to counsel buyer

clients

I-7

What You Will Learn

4. The Short-Sale Package

> Identify components of an effective short-sale package> Understand why short sales fail

I-8

What You Will Learn

5. Foreclosed and Real Estate Owned (REO) Properties

> Differentiate between types of foreclosure> Understand process of sheriffs' sales> Explain steps in listing REO properties> Understand how to counsel buyers> Identify negotiation and contract issues for REO properties

I-9

What You Will Learn

6. Finding Distressed Property Opportunities

> Discuss how to attract buyers> Explain how to find short-sale listings> Understand considerations in listing REO properties

I-10

What You Will Learn

Today’s class is qualifying education for SFR certification from NAR:

I-11

NAR’s SFR Certification

How to Earn SFR:

I-12

NAR’s SFR Certification

Note:

•Final exam = 30 multiple-choice questions•Webinars available for free at www.RealtorSFR.org•Download application from www.RealtorSFR.org•Annual dues not required

I-13

NAR’s SFR Certification

I-14

What You Will Learn

Benefits:

•Electronic toolkit•Free Webinars•Access to logo and marketing materials•Differentiation as SFR at www.Realtor.com and www.Realtor.org•Online networking

I-15

NAR’s SFR Certification

Bonus!

•Today’s class is approved elective for Accredited Buyer’s Representative (ABR®) designation•Visit www.REBAC.net for more information