1

Short Sales A tale of information,

institutionsand imagination

Florida Association of Realtors Global Solution Team

2

Florida foreclosure and delinquency rates are far above

national averages

In a crisis everything is correlated

Global Solution Team

3

Underwater homeowners already dominate many local markets

…So What?

Global Solution Team

4

Short Sales are essential, and will continue to be very painful.

Why?

Global Solution Team

5

“It’s not what you don’t know that get’s you. It’s what you think you know,

but it just ain’t so.”

Global Solution Team

6

The Information and institutional issues

impacting your transactions start at the top

Global Solution Team

7

We assume big banks have the capabilities to do simple

mortgage stuff

Global Solution Team

8

The reality is that the mortgage industryinfrastructure was a train wreck

before the crisis

Global Solution Team

9

Foreclosure & loan mod results reflect insufficient motivation and

inadequate means

Global Solution Team

10

Servicers are now dealing with robo-gate, MERS, dual track,

put backs, litigation, etc.

Global Solution Team

11

Reliance on Servicers for Short Salesis an already failed strategy

Global Solution Team

12

Realtors can reverse the polarityin the Short Sale process with

information

Global Solution Team

13Global Solution Team

Local Valuation Data + Treasury NPV + HAMP Last

Look = Pre Approved Price

14Global Solution Team

Break the Homeowner Information Barrier

15

It’s mostly math and motivation

Global Solution Team

Loan ID

Optimal Outcome

UPB Mod NPV

FC NPV

DIL NPV

Short Sale NPV

1318 Short Sale $196,874 $19,445 $40,528 $63,296 $73,177

1341 Deed In Lieu

$64,111 -$47,145 $63,832 $315,679 n$296,866

1336

Loan Mod $345,000 $208,244 $183,539 $139,753 $131,851

1302 Foreclosure $218,347 $132,953 $154,925 $119,938 $127,400

1309 Short Sale $135,800 $31,273 $58,014 n$60,938$21,445

16

Give us your underwater homeowners (bulk loan files)

yearning to move

Global Solution Team

17

Connecting to the systems necessary to stop foreclosures

Global Solution Team

18Global Solution Team

Dodd Frank, Move.com and PREO have already done the

heavy lifting

19Global Solution Team

A Realtor driven Short Sale process

means getting your ducks in a row

20

“Plug the Damn Hole”

with an existing Realtor friendly infrastructure

Global Solution Team