Audio Conference
February 22, 2010
Understanding the New Rules of the Short Sale Game:
What Major Players Are Doing to Increase Activity
An Audio Conference from
2601 Klingle Rd., NW Washington DC 20008
(202) 363-2069 www.campbellsurveys.com
Copyright © 2010. All Rights Reserved.
1
Understanding the New Rules of the Short Sale Game – 2/22/10 Audio Conference
Copyright © 2010. Campbell Communications, Inc.
Monday, February 22, 2010 The "Understanding the New Rules of the Short Sale Game: What Major Players Are Doing to Increase Activity" audio conference will be held Monday, February 22, 2010 at 3:00 p.m. EASTERN DAYLIGHT TIME, 2:00 p.m. CDT, 1:00 p.m. MDT, and 12:00 p.m. PDT. The conference will last 90 minutes.
These Panelists Will Provide Critical Information and Insights:
• Kimberly Dawson, Vice President-Group Operations Manager, Foreclosure and Real Estate Management, Bank of America
• Diana Stauffer, Vice President, Short Sale Division, Wells Fargo Home Mortgage
• Gwen Oberg, Vice President, Loss Mitigation Liquidation Department for Wells Fargo Home Mortgage
• Robert E. Kimble. Senior Director, NPL Servicing & Pre-foreclosure Sale Liquidations, Freddie Mac
• Thomas Popik, Director, Mortgage Industry Research, Campbell Surveys • Guy Cecala, Publisher, Inside Mortgage Finance (moderator).
Thank you for participating in " Understanding the New Rules of the Short Sale Game: What Major Players Are Doing to Increase Activity ". This conference manual contains important information you will need to prepare for the audio conference. This conference manual contains: Dial-In Instructions for Accessing the Conference. Audio Conference Tips for Q&A Conference Agenda Thomas Popik: Biography and Contact Information Kimberly Dawson : Biography Diana Stauffer: Biography Gwen Oberg: Biography Robert E. Kimble: Biography Guy Cecala: Biography and Contact Information Presentations: Tom Popik – Nationwide Survey Data on Short Sales Kimberly Dawson – Short Sale Overview Diana Stauffer – Field Short Sale Program Robert E. Kimble – Short Sale Options
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Understanding the New Rules of the Short Sale Game – 2/22/10 Audio Conference
Copyright © 2010. Campbell Communications, Inc.
DIAL-IN INSTRUCTIONS FOR ACCESSING THE CONFERENCE 1) Call 1-866-764-2642 approximately 10 minutes prior to the conference start time. 2) Enter your unique four-digit PIN number, followed by #. Your unique PIN number can be found in your confirmation email. 3) You will hear hold music until the conference starts, or connect directly to the conference if it has already begun. Please Note: If for any reason you get disconnected, simply call in again using the same phone number and PIN. If you have trouble with your PIN, stay on the line and an operator will assist you. The above PIN can be used by only one registrant. Each registration entitles you to ONE phone line at ONE location where an unlimited number of listeners can participate using a speaker phone. Conference Details The "Understanding the New Rules of the Short Sale Game: What Major Players Are Doing to Increase Activity " audio conference will be held Monday, February 22, 2009 at 3:00 p.m. EASTERN DAYLIGHT TIME, 2:00 p.m. CDT, 1:00 p.m. MDT, and 12:00 p.m. PDT. The conference will last 90 minutes.
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Understanding the New Rules of the Short Sale Game – 2/22/10 Audio Conference
Copyright © 2010. Campbell Communications, Inc.
AUDIO CONFERENCE TIPS FOR Q&A Participants are on "listen only" mode unless they choose to participate in the live Q&A. If you are using a speakerphone, put the phone on MUTE for the best sound quality. However, if you choose to participate in the live Q&A:
• Be sure to UNMUTE your phone when it’s your turn to ask a question so there is not a pause in the conference, and so that the moderator does not pass you over for the next question.
• Lift the handset while asking your question for best sound quality. • Be sure there are no loud background noises in the room while asking your
question. We encourage you to ask questions of our panelists. There are two ways to do so:
1. At any time before or during the conference send an email to [email protected].
2. There will be a live Q&A session after the speakers’ presentations.
The operator will give instructions to call in
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Understanding the New Rules of the Short Sale Game – 2/22/10 Audio Conference
Copyright © 2010. Campbell Communications, Inc.
Conference Agenda
Tuesday, December 8, 2009 (Eastern Daylight Time)
3:00-3:05 PM Guy D. Cecala, Publisher, Inside Mortgage Finance Publications,
Inc. Conference welcome and introduction.
3:05-3:20 PM Thomas Popik, Director, Mortgage Industry Research, Campbell Surveys
3:20-3:35 PM Kimberly Dawson, Vice President-Group Operations Manager, Foreclosure and Real Estate Management, Bank of America
3:35-3:50 PM Diana Stauffer, Vice President, Short Sale Division, Wells Fargo Home Mortgage
3:50-4:05 PM Robert E. Kimble. Senior Director, NPL Servicing & Pre-foreclosure Sale Liquidations, Freddie Mac
4:05-4:30 PM Question and Answer Session
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Understanding the New Rules of the Short Sale Game – 2/22/10 Audio Conference
Copyright © 2010. Campbell Communications, Inc.
Thomas Popik is a principal at Geosegment Systems, a market research firm specializing in the mortgage industry, based in Nashua, NH.
He also serves as director of mortgage industry research at Campbell Communications, a marketing and research company based in Washington, D.C. Campbell conducts continuing business-to-business syndicated research in real estate and financial markets. In the past year Tom and Campbell have conducted three national surveys of real estate agents on housing and mortgage issues.
Tom brings 18 years of experience and perspective on the mortgage industry and has written extensively on the topic of short sales and other distressed property issues. His recent national TV appearances include CNN, CBS News, and Fox Business News. Tom is often quoted in the national print media, including the New York Times, Wall Street Journal, and Washington Post.
CONTACT
Thomas Popik Principal Geosegment Systems Corporation 52 Millyard Technology Park Nashua NH 03060 Phone: (603) 595-4400x201 [email protected]
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Understanding the New Rules of the Short Sale Game – 2/22/10 Audio Conference
Copyright © 2010. Campbell Communications, Inc.
Kimberly Dawson is Vice President and Group Operations Manager for Bank of America. She manages the Short Sale and Foreclosure Bidding processes. Kimberly has twelve years of default experience in Foreclosure, Bankruptcy, REO and Short Sale. Kimberly holds a Bachelor of Arts from The University of Texas.
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Understanding the New Rules of the Short Sale Game – 2/22/10 Audio Conference
Copyright © 2010. Campbell Communications, Inc.
Diana Stauffer is a Vice President and nineteen year veteran with Wachovia, a Wells Fargo Company. She manages the Field Short Sale Group, an industry leading team that provides personalized and local assistance to Realtors and sellers on short sale transactions. Diana's geographic territory covers California, Arizona and Florida. Her previous experience includes management of Loan Origination, Underwriting and Appraisal organizations.
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Understanding the New Rules of the Short Sale Game – 2/22/10 Audio Conference
Copyright © 2010. Campbell Communications, Inc.
Gwen Oberg is the Vice President of the Loss Mitigation Liquidation Department for Wells Fargo Home Mortgage Service Portfolio located in Fort Mill, South Carolina. During her 19 year tenure she has worked in many different avenues of the mortgage business including fulfillment operations in prime, subprime, relocation, and reverse mortgages. She received her Masters Degree in Strategic Business in April 2008 and enjoys the challenging environment the mortgage industry is now faced with.
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Understanding the New Rules of the Short Sale Game – 2/22/10 Audio Conference
Copyright © 2010. Campbell Communications, Inc.
Robert Kimble is the Senior Director of Non Performing Loans Servicing – Pre-Foreclosure Sale Liquidations. He leads an area responsible for all foreclosure and bankruptcy functions, designated counsel, default reporting, short sales, damaged and distressed assets, servicer performance, fee and cost over-allowables, penalties and incentives. Kimble has been with Freddie Mac for 14 years, holding various positions of increasing responsibility in the company’s Default Asset Management and Operations Divisions. Prior to joining Freddie Mac, Bob was a Default Manager at ITT Residential in San Diego, CA. Bob graduated from the University of Maryland and holds a Bachelor of Science degree in Business Administration/Accounting
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Understanding the New Rules of the Short Sale Game – 2/22/10 Audio Conference
Copyright © 2010. Campbell Communications, Inc.
Guy D. Cecala is the CEO and publisher of Inside Mortgage Finance Publications, Inc., a Bethesda, MD-based company that he founded in 1984. The company produces 8 newsletters, numerous special reports and a large amount of original research and statistics related to mortgage finance.
The company’s oldest and largest circulation newsletter is Inside Mortgage Finance, a weekly publication devoted to all aspects of the residential mortgage business. Other newsletters include Inside MBS & ABS, Inside B&C Lending, Inside FHA Lending, Inside Regulatory Strategies, Inside Mortgage Profitability, Inside The GSEs, and Mortgage Market Update.
One of the company’s key products is the Inside Mortgage Finance MBS Database, a tracking system for all agency and publicly offered non-agency MBS securities. This as well as quarterly surveys of the* top 100 mortgage lenders in the country forms the basis for the company’s widely used national rankings of key players in the primary and secondary mortgage markets. The company’s mortgage market statastics are regulary used by financial regulators, including the Federal Reserve Board.
Guy is frequently quoted in the Wall Street Journal, the New York Times, the Washington Post, the Los Angeles Times, USA Today and other major newspapers as well as Bloomberg and Reuters. He also has appeared on the NBC Today Show, NBC Nightly News, CNBC, ABC News, CBS News, Fox Business News, PBS Nightly Business News, CNN, the BBC, CBS Radio and NPR as an expert on the U.S. mortgage market.
He is a recipient of the Newsletter and Electronic Publishers Association’s “best investigative reporting” award. Mr. Cecala earned a B.A. degree in English and political science from Boston College, where he graduated magna cum laude. He also holds a M.A. degree in journalism from the University of Maryland.
He also serves on the Specialized Information Publishers Association’s board of directors as an executive officer.
CONTACT
Guy D. Cecala Publisher Inside Mortgage Finance Publications, Inc. 7910 Woodmont Avenue, Suite 1000 Bethesda, MD 20814 301-951-1240 [email protected]
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Understanding the New Rules of the Short Sale Game – 2/22/10 Audio Conference
Copyright © 2010. Campbell Communications, Inc.
Presentation
Thomas Popik
Principal
Geosegment Systems Corporation
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1Copyright Campbell Communications.www.campbellsurveys.com
Campbell/Inside Mortgage Finance Monthly Survey of Real Estate Market Conditions
Trends in Short Sales
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© Copyright Campbell Communications.All Rights Reserved.
2
19.8% 18.1%
15.0%
12.8% 12.3% 12.4%13.4%
17.9% 16.0% 16.1%
14.5%12.6%
13.1%
13.8%12.5%
12.9%13.7%
15.1%
12.4%
13.7%
15.9%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10
Damaged REO
Move-In Ready REOShort Sale
Short Sales Become the Leading Distressed Property SegmentPe
rcen
tof B
uy-S
ide
Tran
sact
ions
14
Copyright Campbell Communications.www.campbellsurveys.com
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$290,101
$243,978
$221,561
$122,631
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
Non-Distressed Short Sale Move-In Ready REO Damaged REO
Aver
age
Sale
s Pr
ice
Average Sales Price—January 2010
15
© Copyright Campbell Communications.All Rights Reserved.
4
19.6
15.0
8.6
6.9
0.0
5.0
10.0
15.0
20.0
25.0
Short Sale Non-Distressed Damaged REO Move-In Ready REO
Tim
e on
Mar
ket i
n W
eeks
Average Time on Market—January 2010
16
© Copyright Campbell Communications.All Rights Reserved.
5
3.43.3
3.0
1.9
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
Damaged REO Short Sale Move-In Ready REO Non-Distressed
Num
ber o
f Offe
rsAverage Number of Offers—January 2010
17
© Copyright Campbell Communications.All Rights Reserved.
6
99.0%
95.9%
94.4%
91.3%
86.0%
88.0%
90.0%
92.0%
94.0%
96.0%
98.0%
100.0%
Move-In Ready REO Damaged REO Non-Distressed Short Sale
Aver
age
Sale
s to
Lis
ting
Pric
e
Average Sales to Listing Price—January 2010
18
© Copyright Campbell Communications.All Rights Reserved.
7
2.80%
2.85%
2.69%
2.79%
2.58%
2.66%
2.80% 2.81%
2.40%
2.45%
2.50%
2.55%
2.60%
2.65%
2.70%
2.75%
2.80%
2.85%
2.90%
Damaged REO Move-In Ready REO Short Sale Non-Distressed
Average Commissions—January 2010
Buy-Side
Listing-Side
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Copyright Campbell Communications. www.campbellsurveys.com
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14.6%25.9%
53.9%
31.3%
31.8%
58.9%
35.8%
44.5%
53.6%
15.2% 10.2%
24.2%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Damaged REO Move-In Ready REO
Non-Distressed Short Sale
Perc
ent o
f Tot
alWho Is Buying Properties in January 2010?
InvestorFirst-Time HomebuyerCurrent Homeowner
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Short Sale Comments “[T]he short sales are increasing as the A-paper people are now realizing just how bad this
economy is and the damage to the value of their property. Even if they haven't lost their job(s) and can afford to keep it, some homeowners are now CHOOSING to short sale rather than pay a couple hundred thousand in mortgage, more than the property is worth.”
“Lower-priced properties such as foreclosed homes and some short sales are receiving most of the attention, and multiple offers are common on the best-priced properties. It is actually difficult to win the deal when you represent a buyer seeking the most attractive deal for a specific type of home in a specific region of town. For those low-priced homes, it is like a seller's market. At the same time, there seems to be almost a separate market for the traditional sales and higher-priced short sales. In this ‘parallel’ market, the time on market is long and is not yet decreasing. It is a buyer's market with small number of buyers. In the same neighborhood, one similar home may receive multiple offers while the other one is not even being shown. Buyers are almost without exception seeking great deals.”
Copyright Campbell Communications. www.campbellsurveys.com
921
Survey Question on Managing Short Sale Listings
“Some homeowners attempting a short sale are not motivated to perform necessary actions such as making accurate financial disclosures, writing a hardship letter, keeping the house in presentable condition for showings, contributing to closing expenses, and/or signing deficiency notes. In some cases these individuals exit the short sale process and decide to wait for foreclosure. In your experience as a real estate agent, is there any way to identify these unmotivated individuals upfront before investing several months of time in listing a short sale property?”
Copyright Campbell Communications. www.campbellsurveys.com
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Insights Regarding Homeowner Financial Disclosures
“As a listing agent is it definitely possible to identity these individuals up front. The financials including hardship letter need to be done at the outset. If not, forget it.”
“If they do not get you the required documents within the first week, I will withdraw the listing. They are already not cooperating and it won't get better as the process moves forward.”
“I will not list (actually put on the MLS) a short sale property until the sellers have completed ALL the financial disclosures, hardship letter and other necessary info for their lender.”
“It would be a face to face meeting with all the forms and information that they need to complete. If they are not willing to attempt to complete this within 5 days, I would say they are not going to complete the process.”
“When the Seller does not respond IMMEDIATELY by providing necessary paperwork, let them go.”
“I rarely get a homeowner that gets through the process without my just sitting down with them & doing it all step by step, especially the hardship letter. I have to ask them questions about their situation and then ask them how they could write that.”
Copyright Campbell Communications. www.campbellsurveys.com
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Summary
Short Sales Are Growing Dramatically! Short Sales Have Become the No. 1 Distressed Property
Segment High Short Sale Prices Mitigate Lower Commissions Expect 4-5 Months to Sell a Short Sale Expect 3 Offers for Every Completed Short Sale Most Short Sales Are Bought By First-Time
Homebuyers Using FHA Financing If You Are Listing a Short Sale, Make Sure To Get The
Financial Disclosures Up Front
Copyright Campbell Communications. www.campbellsurveys.com
1224
For More Information
Contact John Campbell:– [email protected]– (202) 363-2069
Website:– www.campbellsurveys.com
Copyright Campbell Communications.www.campbellsurveys.com
1325
Understanding the New Rules of the Short Sale Game – 2/22/10 Audio Conference
Copyright © 2010. Campbell Communications, Inc.
Presentation
Kimberly Dawson
Vice President-Group Operations Manager, Foreclosure and Real Estate Management
Bank of America
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Short Sales
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Today’s presentation will cover
• The role short sales play• Complexities, common obstacles to a short sale• New initiatives• Technology and concepts in development
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3 Bank of America: Proprietary
Advantages and Disadvantages
• Bank of America’s first goal is to determine if a homeownership retention solution is available.
• A short sale may provide advantages as a last resort to foreclosure
• Possible disadvantages include:– Potential tax liability– Seller may be asked to sign a promissory note or contribute to
the loss – Time-consuming process
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The Current Environment
• We are in a very high volume situation today• Doubling the number of short sale offers each year• We have taken several steps to meet the demand• Nevertheless, process can take 3 months+
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Why is the short sale process so lengthy?
• Traditionally, the process doesn’t begin until an offer is received
• An appraisal must be done• The offer must reasonably meet the current market value• The buyer must qualify• Must be an arm-length transaction• The mortgage investor must approve each offer• Third-party approvals (mortgage insurance and/or second
liens)
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60-70% Fallout after Approval
• Low-ball offers• Fake offers• “Shopping around”• The complex, time-consuming process
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Steps already taken to improve the process
• Increased staffing and updated training• Dedicated short sale call center – 866.880.1232• Establish a value review
33
Cooperative Short Sales
• Proactive outreach to customers• Offering a pre-approved short sale solicitation• After offer is submitted, approval within two weeks• Similar in approach to HAFA, but wider in scope
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REOTrans/Equator
• Streamlines process• Upload documents• Improves communications• Tracks short sale process
35
Once you create an account, you will receive a password.
You must login with email and password.
36
The Due/Completed Date is color coded for easy status recognition.
Green – task is on timeYellow – task is almost overdue
Red – task is overdue
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This page displays detailed information about the property.It also lists all tasks for this property. The color coding in the Due/Completed Date field show the status of the task. Gray tasks mean they have been completed.
38
There is a message link in the upper-right corner of the page. Click this link to review and send messages to the negotiator.
39
The OFFERS link takes you to the offer site if the negotiator responds with any changes you submit. The fields are color-coded for quick view.
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15 Bank of America: Proprietary
Using REOTrans as a Borrower
The Borrower uses REOTrans to:• Provide the initial offer• Identify an Agent• Provide contact information• Provide financial information• View status of the loan
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16 Bank of America: Proprietary
Ways to Minimize Processing Time
There are factors that you can be aware of to help minimize process time, ensure
1. Contact with the servicer as early as possible2. Customer Financials are in PDF format3. Documents are accurate and completed as early as
possible4. Purchase Offer is a legitimate offer and fully executed5. Purchase Offer is the best possible at fair market value to
mitigate loss for lender to an REO sale6. Purchase Offer has listing information and comparables to
support price.
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17 Bank of America: Proprietary
Factors that Delay Processing Time
Some factors that can maximize the process time include:1. Change of Buyer of Agent at anytime in the process may
cause it to revert to an earlier step. Please notify Bank of America as soon as there is a change.
2. Investor/Mortgage Insurance Approval is needed if Bank of America is not fully delegated to approve the short sale.
3. Lack of Release on Outside Second Lien must be received prior to issuing an approval letter.
4. Customer has filed bankruptcy; therefore the trustee must provide a court document that approves the sale of the short sale.
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18 Bank of America: Proprietary44
19 Bank of America: Proprietary45
Understanding the New Rules of the Short Sale Game – 2/22/10 Audio Conference
Copyright © 2010. Campbell Communications, Inc.
Presentation
Diana Stauffer
Vice President, Short Sale Division
Wells Fargo Home Mortgage
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Field Short Sale ProgramDiana Stauffer
Short Sale Division,Wells Fargo Home Mortgage
47
Short Sale Field Rep Program Objective
Wells Fargo Home Mortgage desires to provide local real estate agents with personalized service and information related to its short sale process.
2
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Importance of localized Wells Fargo Home Mortgage short sale teams To create a front line for Wells Fargo’s current short sale
campaign to help provide information to potentially troubled homeowners and their Realtors
The local Short Sale Team reviews the benefits of a Short Sale with homeowners which may be a better option to foreclosure when modification efforts have been exhausted
Explain Short Sale option to homeowners facing a negative equity scenario
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49
Importance of localized short sale teams
Local Short Sale Managers are in your area to develop relationships with local REALTORS® to improve the customer experience and the results
Available local contact for REALTORS and borrowers to review strategy, submit offers and close the transaction
On-site property and seller interviews by Short Sale Manager
Responses in 7-10 business days
Average closing from start to finish 37 business days
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Wells Fargo Home Mortgage’s short sale campaign Series of mailers sent to customers experiencing payment
difficulties
Outbound call campaigns for customers who have been denied for a loan modification request
Short Sale Marketing Letter – in most instances, the estimated minimum net is provided up front
$5,000 Seller incentive for a Short Sale*
Campaign references working with a REALTOR to assist seller with the sale
* For a limited time only, please consult your local short sale field rep on availability
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What does this mean to you?
Professional local contact available to help facilitate the short sale review and closing of the sale
Efficient turn time for approval
A Short Sale transaction that will close in the same time frame as a regular purchase
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52
Benefits of a short sale
Potential Borrower benefits Avoid a lengthy and stressful foreclosure process
Provides the seller with some control
Seller incentive (if qualified and available)*
Short Payoff (SPO) can help preserve neighborhood market values and reputation
Future borrower benefits Based on Fannie Mae guidelines (dated 6/25/08), seller can apply for a
mortgage with a Short Payoff (SPO) in 2 years, vs. 5-7 years for a Foreclosure
Avoid the stigma of Foreclosure
Customers can move forward with their lives
* For a limited time only, please consult your local short sale field rep on availability
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You’ve listed the property — what’s next?
1. Contact a Field Short Sale Manager
2. Once notified of the listing, the Field Short Sale Manager will order an Appraisal
3. Field Short Sale Manager sets up appointment to evaluate the seller’s eligibility for a Short Sale by completing an in-person interview
4. You move forward with marketing the property
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Next steps
Contact Field Short Sale Manager – email contract and estimated HUD
Short Sale Manager to provide SPO demand to Realtor and Homeowner with “minimum net” within 48 hours of receipt of appraisal1
SPO demand valid for 45 days in most cases.
1Demand will be sent once contract has been sent to Wells Fargo Home Mortgage. The 48 hour time frame indicated above assumes the contract has been returned allowing the demand to be sent to realtor and homeowner.
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Considerations for the listing REALTOR®
Buyer scrutiny
Actively market property
Work with Jr. Lien Holder
Look for surprises — back taxes, delinquent HOA fees, liens, etc.
Make the property saleable — rehab/property/staging
Make it easier on the seller — moving package; provide rental information; schools, etc.
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56
Still focusing on REO?
Short Sale adds to your customer database
Helping to preserve the neighborhoods you specialize in
Future referrals — customers may be eligible to purchase another home in two years instead of seven with a foreclosure1
Full commission paid for market or above market offers2
1 Based on Fannie Mae guidelines (dated 6/25/08), seller can apply for a mortgage with a Short Payoff (SPO) in 2 years, vs. 5- 7 years for a Foreclosure
2 Pending any borrower-paid or lender-paid Private Mortgage Insurance (PMI), or junior liens. If loan has either, the PMI company and/or junior lien holder must also approve the short sale contract and sales price. In addition, a bankruptcy filing makes the short sale subject to approval by the applicable bankruptcy court/trustee.
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57
Wells Fargo Home Mortgage is a division of Wells Fargo Bank, N.A. © 2010 Wells Fargo Bank. All rights reserved.
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58
Understanding the New Rules of the Short Sale Game – 2/22/10 Audio Conference
Copyright © 2010. Campbell Communications, Inc.
Presentation
Robert E. Kimble
Senior Director, NPL Servicing & Pre-foreclosure Sale Liquidations Freddie Mac
59
Short Sale Options for Freddie Mac LoansRobert Kimble, Senior Director of Liquidations
60
In This Market, Short Sales Are A Growing Part of Our Foreclosure Avoidance Toolkit
Campbell Communications Short Sale Audio Conference
Single-Family Alternatives to Foreclosure
Short sales have grown more than 600% over the last two years
0
50,000
100,000
150,000
200,000
2007 2008 YTD Sept. 2009 2009 HAMPResults
Pre-Sales Forbearance Repay Plans Loan ModsTrials Completed
Source: Freddie MacHAMP Results as of 11/30/2009
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The Administration’s HAFA Program Gives Us Additional Tools to Help Struggling Borrowers
Campbell Communications Short Sale Audio Conference
Overview of Treasury’s HAFA Program
Begins April 5, 2009
To qualify, borrowers must:
Have been considered for other foreclosure prevention options
Meet HAMP eligibility
Be either delinquent or current
Servicer will set monthly mortgage payment during marketing period – not to exceed 31% of the borrowers gross monthly income
Servicers receive $1,000 incentive for short sales and deed-in-lieu
Borrowers receive $1,5000 relocation assistance
Borrowers are released from first mortgage lien within 10 business days from the date the servicer receives sale proceeds
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We Will Continue to Offer Our Classic Short Sale and DIL Programs
Freddie Mac Classic Short Sale & DIL
Eligibility Criteria Borrowers who are delinquent or in danger of imminent default
No need to be HAMP eligible
Borrower Contribution Maximum possible contribution toward any deficiency from the sale in cash and/or promissory note
Documentation Non-uniform documents industry-wide
Property Valuation Servicer orders an interior BPO using the 90-day “as is” marketing value
Price is based on a market sales comparison using the as-is value
Minimum Marketing Period 90-days after listing property with real estate agent
Campbell Communications Short Sale Audio Conference
63
Ensure that the property is accurately listed and marketed effectively
Work to obtain an offer that is at or near the Fair Market Value
Work with a borrower to make contact with the Mortgage Servicer
Help the borrower in submitting all needed documentation
Assist in negotiating the deal with subordinate lien holders, borrowers, and others involved in the transaction
Ensure that sale is an arms length transaction
Work to facilitate and accelerate the closing process
How to Get a Freddie Mac Short Sale or DIL
Campbell Communications Short Sale Audio Conference
64
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Understanding the New Rules of the Short Sale Game – 2/22/10 Audio Conference
Copyright © 2010. Campbell Communications, Inc.
Understanding the New Rules of the Short Sale Game:
What Major Players Are Doing to Increase Activity
Copyright © 2010. All Rights Reserved
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