Who are we? Who are we? Allyn C Goldstein Ronald N Sadaka • Your-Solutions Group LLC are committed professionals with over 65 years of combined real estate experience. • We are a team consisting of Richard Carey Attorney, and Allyn Goldstein and Ronald Sadaka, professionally active FL licensed real estate Brokers and active Investors. • Our driving force is in having everyone win. The seller, the realtor, the buyer, the community and our team of professionals. www.your-solutionsgroup.com “Returning Integrity & Dignity to Communities” Richard B. Carey
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Who are we?Who are we? Allyn C Goldstein Ronald N Sadaka
• Your-Solutions Group LLC are committed professionals with over 65 years of combined real estate experience.
• We are a team consisting of Richard Carey Attorney, and Allyn Goldstein and Ronald Sadaka, professionally active FL licensed real estate Brokers and active Investors.
• Our driving force is in having everyone win. The seller, the realtor, the buyer, the community and our team of professionals.
www.your-solutionsgroup.com
“Returning Integrity & Dignity to Communities”
Richard B. Carey
Why the-solutions Group?Why the-solutions Group?
• Work with professionals (over 65 years combined experience)
• Make Double Commissions• No hassle for Seller or Realtor• Everyone wins
WHY SHORT WHY SHORT SALE?SALE?
• 3.85 % OF ALL MORTGAGES ARE IN FORECLOSURE
• 8.22% ARE IN DEFAULT, NOT MAKING ANY PAYMENT
• COMBINED,12.07% OF ALL MORTGAGES NOT BEING PAID
• MORE THAN 1 IN 10 NOT MAKING A PAYMENT
Why Short Sale?Why Short Sale?
• NOW TAKE NATIONAL #’S ON PRIME MORTGAGES
• THE SAFEST AA MORTGAGE
• 2.49% IN FORECLOSURE
• 6.06% IN DEFAULT
• THE COMBINED TOTAL IS 8.55% OWNERS NOT MAKING A PAYMENT!
Sub Prime Mortgages?Sub Prime Mortgages?
• TAKE THE SUBPRIME MARKET• 40% OF ALL HOLDERS ARE IN
DEFAULT• 14.34% OF ALL IN FORECLOSURE• 24.95% IN DEFAULT• TOTAL 39.29% NOT BEING PAID• 4 OUT OF 10 NOT BEING PAID
Millions ComingMillions Coming Due! Due!
• OVER 8.76 MILLION HOMES IN DISTRESS
• 4.68 MILLION WILL SELL THIS YEAR
• ENTIRE MARKET IS UPSIDE DOWN
• INTERNATIONAL CRISIS OF 8.5 TRILLION DOLLARS… IMAGINE!
22NDND wave coming... wave coming...
• UNSECURED MORTGAGES• THE OPTION ARM RESETS ARE
COMING• 70% OF THESE PAY-OPTION
MORTGAGES ARE DELINQUENT PRIOR TO THEIR RECASTING ADJUSTMENT
An International Crisis...
• 4.68 MILLION WILL SELL THEIR HOME THIS YEAR.
• COMING UP IN THE YEAR 2011• 18 BILLION DOLLARS IN MORTGAGES
WILL BE RESETTING IN JUST ONE MONTH
• 7 OUT OF 10 HOMES THAT WENT INTO FORECLOSURE HAVE NEVER BEEN LISTED BY A REAL ESTATE AGENT
You Can Make the Difference!You Can Make the Difference!
• JOIN FORCES WITH THE-SOLUTIONS GROUP
• YOU COULD HAVE ONE OF YOUR BEST YEARS EVER
• DON’T HAVE TO CHANGE BROKERS
The Pathway to Everyone The Pathway to Everyone Winning...Winning...
• WE SUPPORT YOU IN DOING WHAT YOU DO BEST
• LISTING AND SELLING• WE DO ALL THE GRUNGE WORK• NO MORE STRESS ON YOUR END WITH
SHORT SALES• SUCCESS STEPS FOLLOW...
Step #1...Realtor Pre-qualifies the Step #1...Realtor Pre-qualifies the Seller…Seller…
• Once the Realtor has determined it is a deal that fits the criteria of The- Solutions Group, you email our assistant to prepare all paperwork which is returned to you, the Realtor.
• Realtor emails all paperwork to the seller and sets an appointment with the home owner for the next day to have paperwork completed.
www.your-solutionsgroup.com
Step #2... Realtor collects all Step #2... Realtor collects all paperwork from the seller...paperwork from the seller...
• Authorization to release• Option Contract• Notice of Option• 3 Day Notice• Affidavit of Understanding• Commission Agreement• No Brokerage Relationship Disclosure• Hardship Letter• 2 Months Bank Statements• 2 Months Pay Stubs• 2 Years Tax Returns• Mortgage Statement• Freddie Mac Form
property for sale….property for sale….• Realtor has Investor sign option contract, notice of option
contract and a listing agreement.
• Realtor delivers complete package to our assistant.
• Assistant inputs transaction into database and assigns a task to BPO agent to do BPO
• Assistant prepares HUD-1 and emails entire package to negotiator for offer of 50% of realtors list price.
• Realtor lists house for price they believe it will sell for in 60 days.
www.your-solutionsroup.com
Step #4... BPO agent does BPO and Step #4... BPO agent does BPO and prepares estimate of repairs…prepares estimate of repairs…
• BPO agent takes pictures to document any damages of the property, puts together repair estimate and a “30 day quick sale value” BPO, and emails BPO to the negotiator and the realtor.
• BPO agent gives Realtor her opinion of a 60-90 day value and Realtor adjusts list price accordingly.
• While this is happening, the negotiator has already faxed in the authorization to release and is now authorized to speak to bank.
• Negotiator adds the BPO to the short sale package and submits to loss mitigation department.
Step #5... Negotiator is working to have the Step #5... Negotiator is working to have the BPO ordered and the Realtor is showing BPO ordered and the Realtor is showing
property..property..
• It is VERY important that the house is listed for what we can REALLY sell the house for to a cash (or 20% down) buyer by the time the interior BPO is ordered.
• If house is not showing…. LOWER LISTING!
• Realtor does not have to ask Investor permission to lower listing.
• Negotiator tells bank that they will be the contact for the bank. When bank’s agent or appraiser calls them to do the BPO, negotiator tells them that BPO agent will call them soon for access instructions.
Step #6... BPO Completed by bank’s Step #6... BPO Completed by bank’s agent…agent…
• Our BPO agent tells bank’s BPO agent “we got this offer for 100k, we are trying to sell it for more, but we have it listed for 150k and haven’t had a single showing”
• Use the Jedi Mind Strategy!!
• Our BPO agent calls the bank’s BPO agent a few days later and says “Hey, we are trying to get a higher offer but I will have to lower the listing to do so. What did the BPO come in at so I can adjust accordingly?”….. “If I lower it to 135k is that too high?”
• Our BPO agent emails Realtor and negotiator where she thinks it came in.
Step #7... Final NegotiationsStep #7... Final Negotiations……
• Bank tells negotiator “Your offer of 100k is way to low, and we are only paying 5% commission, and we are not paying the 1% negotiation fee. We need an offer of 135k to move forward…”
• Negotiator communicates with Realtor to see what they think it will sell for. Realtor adjusts list price to 149k and places in Realtor Remarks “SHORT SALE APPROVED, Listing agent has received verbal short sale acceptance and just needs full price offer to move forward with everything.
• Negotiator raises offer to 125k and reduces commission and throws out negotiation fee, but keeps 6% concession on HUD (net offer of around 113k).
Step #8... Acceptance letter and Step #8... Acceptance letter and contract…contract…
• Once negotiator comes to final terms with bank, negotiator tells bank we need 30 days to close.
• At the same time, Realtor is negotiating with buyer and tells buyer they need to close in 21 calendar days from the date of written acceptance.
• At this point, if we know we are pretty much getting the acceptance letter, realtor will tell the buyer (or buyers’ agent) to go ahead and order appraisal and inspections even if we haven’t received written acceptance. If anything falls apart on our end, Investor will reimburse buyer for appraisal and inspection (we will even put this in writing).
• Realtor has Investor Sign Contract.
Step #9 Closing the “A to B” and the “B to C” Step #9 Closing the “A to B” and the “B to C” the SAME daythe SAME day….….
• Negotiator emails the acceptance letter and preliminary HUD that was sent earlier to the bank’s (make sure the numbers match) Closing Agent at Title Company.
• Closing agent is communicating with buyer and their banker or broker to determine date of closing.
• Closing agent puts together final “A to B” HUD, and sends to loss mitigation department for approval a few days before the anticipated closing.
• HUD gets approved for “A to B”. Package from lender, gets sent to title company for “B to C”. Closing agent closes both transactions with investor and buyer.
Results...Results...
• Seller has been relieved of foreclosure• New owner has purchased a priced-right
property• Community has a home that is occupied• Realtor received fair commissions. (Double
What if the buyer makes an offer from the very What if the buyer makes an offer from the very beginning?beginning?
• If it’s a lowball offer that is not realistic, you tell the buyer “My Investor will not be able to make that number work”.
• At the beginning of the process, they must give a deposit and wait 120 days.
• As we get closer to acceptance, the less time the buyer
must wait and the easier it is to sell.
• “This contract is contingent upon seller receiving satisfactory written short sale acceptance within (30,60,90 or 120 days) from effective date.”
www.your-solutionsgroup.com
Wording of MLS listing…Wording of MLS listing…
• All offers subject to a 3rd party approval. Listing agent is in the process of negotiating a short sale. Please call for details. All non-cash offers must prequalify through Seller’s mortgage company. No FHA offers please.
• SHORT SALE APPROVED! Listing agent has received verbal short sale acceptance and just needs full price offer to move forward with everything. Please call for details. All non cash offers must prequalify through sellers mortgage company. No FHA offers please.
561-228-8889www.the-solutionsgroup.com
Wording of B to C Contract…Wording of B to C Contract…• This contract is contingent upon seller receiving
satisfactory written short sale acceptance within (30,60,90 or 120 days) from effective date.
• Closing shall take place 21 calendar days from date of written acceptance.
• Buyer must prequalify through ABC Mortgage Company within 10 days from effective date.
• Buyer understands that Seller has never occupied property and is therefore exempt from providing a Sellers’ Disclosure
