1. Manage My Short Sales  Prepared by: Tim Lockwood NJ Real Estate SolutionsRus, LLC & Marcus Celestin Home Free Solutions, LLC **REALTOR PRESENTATION**

2. Manage my Short Sales Your Short Sale Team Creating WIN-WIN Opportunities Solutions for your Short Sale Challenges

3. NJ Real Estate SolutionsRus, LLC & Home Free Solutions, LLC Your Short-Sale Specialist Creating WIN-WIN Opportunities for Brokers, Agents, Investors, Retail Buyers and Over Leveraged Sellers in this market. 888-696-6811 or 609-638-8855

4. The Real Estate Sky is Falling The “Sky is Falling” Haven’t you heard? * Mortgage Meltdown * Foreclosure Crisis * Fewer Qualified Buyers * Over-Leveraged Sellers What does this mean for you? You need profitability in this market. NJ Real Estate SolutionsRus, LLC & Home Free Solutions, LLC

5. Why Are We Here? WE WANT YOU to be PROFITABLE . WE WANT YOU to: * Increase your listings. * Simplify the Short-Sale process for you. * Increase your commissions. * Have smoother & easier Closings. * Add to your arsenal of sellini strategies. * More referrals and investor relations. NJ Real Estate SolutionsRus,LLc & Home Free Solutions, LLC

6. A Foreclosure Tidal Wave * The FDIC says that 1 in every 200 homes will foreclose at a rate of 250,000 every 3 months. * 1.2 trillion dollars in ARMs are scheduled to re-set in the months ahead - house payments will sky rocket. * There is NOT enough money in the federal Bailout. * Most homeowners will not qualify for federal aid. * It is a statistical fact that, of those that do qualify,over 60% will not meet the terms and fail. NJ Real Estate SolutionsRus,LLC & Home Free Solutions, LLC

7. Wall Street Journal “ Soon 20% of all real estate closings will involve short sales.” NJ Real Estate SolutionsRus, LLC & Home Free Solutions, LLC

8. Opportunity for Listings Homeowners are in distress. Who do they look to first? A REALTOR NJ Real Estate SolutionsRus, LLC & Home Free Solutions, LLC

9. Pre-Foreclosure Listings These homeowners need solutions from Realtors because you: *Will protect their interests. *Have Specialized Skills *Maintain high Ethical Standards and Integrity. *Know your Market *Offer WIN-WIN Solutions like Short Sales NJ Real Estate SolutionsRus, LLC & Home Free Solutions, LLC

10. NAR supports Short Sales November 9, 2008 “ Homeowners who are struggling to make their mortgage payments must have more options available to them to avoid foreclosure. Short sales can benefit not only the homeowner in question, but also buyers, lenders and the surrounding community. With their established lender relationships and insights into complicated real estate transactions, Realtors can add real value for both sellers and buyers interested in short sales.” -NAR, President, Richard Gaylord NJ Real Estate SolutionsRus, LLC & Home Free Solutions, LLC

11. NAR supports Short-Sales November 9, 2008 “ Short Sales give many families in financial difficulties the possibility of salvaging their credit and avoiding the embarrassment of a foreclosure. Realtors across the country stand ready to help, and NAR will work hard to ensure that short sales are a viable alternative to foreclosures whenever possible.” -NAR President Richard Gaylord NJ Real Estate SolutionsRus, LLC & Home Free Solutions, LLC

12. What is a SHORT-SALE? A short sale is when the bank or lender VOLUNTARILY agrees to accept a dollar amount less than the TOTAL debt owed. Total amount owed would include attorneys fees, accrued interest, court costs, association fee’s and other potential fees. Lenders will only agree to a discount when it makes financial sense. Their decision is based upon their own independent assessment of value. NJ Real Estate SolutionsRus, LLC & Home Free Solutions, LLC

13. Over-Leveraged Seller How many of your listing appointments are with homeowners that are not advertised for foreclosure sale or even in default, but are Over-Leveraged? In todays market, they cannot sell their home at a price that will cover what they owe, seller concessions, room to dicount if necessary, money for repairs, and YOUR COMMISSION. Nj Real Estate SolutionsRus, LLC & Home Free Solutions, LLC

14. Over-Leveraged often Leads to Default Many homeowners are stretching their family budget to pay their mortgage and other bills. Should anything happen to “Rock the Boat” they may be unable to continue paying their mortgage. If they cannot sell their home, they may end up in default. (Remember: 1 in 4 homeowners are over-leveraged) NJ Real Estate SolutionsRus, LLC & Home Free Solutions, LLC

15. Who Qualifies for a Short Sale? * A homeowner who is in default or whose financial situation points to imminent default * A homeowner that has a TYPE of LOAN and or lender with a defined short-sale process * When a lender can”NET” more by selling at a discount now versus selling as a REO. NJ Real Estate SolutionsRus, LLC & Home Free Solutions, LLC

16. Hardship Homeowners must have a hardship to qualify for a short-sale. Did you know? This could include any MUST SELL situation in which their home cannot be sold for what is owed. NJ Real Estate SolutionsRus, LLC & Home Free Solutions, LLC

17. Why do lenders want to discount? Foreclosures Hurt Lenders, not Help * Lenders make money by loaning money. * Lenders do not want to maintain, hold, and sell real estate. * Lenders are required by their investors to find ways to mitigate debt - OR minimize losses. * Lenders can NET MORE by selling in the preforeclosure phase instead of trying to sell as a REO. NJ Real Estate SolutionsRus, LLC & Home Free Solutions, LLC

18. So, Why A Short Sale? * Client WINS! (No foreclosure-House is SOLD) * Real Estate Agent WINS! (Commission PAID) * Bank WINS! (Bad debt off their books) * Neighborhood WINS! (NO REO negative effect on local property values) WIN-WIN-WIN NJ Real Estate SolutionsRus, LLC & Home Free Solutions, LLC

19. Do you handle SHORT-SALES or do Short-Sales handle you? * The banks want to take your commission. * The process is time-consuming and takes away from time you need to market your properties and generate more leads and listings. * The paperwork process is tedious, confusing and overwhelming. * Buyers are impatient about the lengthy short-sale process & “walk” * The bank will not consider a foreclosure postponement or review of the short-sale package without a purchase offer. * Loss Mitigation agents are impossible to reach. * Not all lien holders will discount or accept the buyers term. * The success Rate for closing short-sale is too low to take the risk! NJ Real Estate SolutionsRus, LLC & Home Free Solutions, LLC

20. WHAT IF YOU COULD…? * Have an edge over your competition * Have More Listings * Have EXPERTS handle the Short-Sale process for you * Receive real-time updates for you, the seller, and buyer * Have 24/7 on-line access to all documents used * Have your COMMISSION PROTECTED GET MORE SHORT SALES CLOSED? NJ Real Estate SolutionsRus, LLC & Home Free Solutions, LLC

21. With all Short-Sale Listings Getting Started * Evaluate homeowner’s needs * Establish Trust * Evauate Property NJ Real Estate SolutionsRus, LLC & Home Free Solutions, LLC

22. Understand Homeowner Options Be sure to first discuss… Other Home Owner Options * Reinstatement : Pay-off Delinquency; continue regular payments * Work-Out Program : Forebearance, Partial Claim, Loan Modification (must be able to qualify; they have to have income and the problem solved) * Bankruptcy : Over 80% fail out of BK within the 1st year and the property goes back into foreclosure * Refinance : Most have little success due to the fact they can’t qualify * Sell House : List with Realtor , FSBO, investor sale-requires equity * Do Nothing : Give property back to lender via deed-in-lieu or sale at auction NJ Real Estate SolutionsRus, LLC & Home Free Solutions, LLC

23. Short Sales Benefit Homeowners * The homeowner can sell for FMV without paying anything *The homeowner keeps “Foreclosure” off their credit report * The homeowner can relieve themselves of the burden and move on! NJ Real Estate SolutionsRus, LLC & Home Free Solutions, LLC

24. Steps in a Short-Sale Once Short-Sale is the chosen Option YOU HAVE A LOT TO DO: 1. Gather Documents Needed for the Short Sale Package 2. Call lender for short-sale requirements, type and ownership of loan, direct fax/phone and email, submit authorization 3. List & Market the Home at current FMV 4. Develop the Short-Sale proposal 5. Obtain an Offer & Set correct Buyer expectations 6. Submit the Short-Sale proposal with preliminary HUD-1 7. Meet the interior BPO agent with CMA and estimates 8. Negotiate the deal with ALL lien holders 9. Keep the buyer’s Along through the ride 10. Get it closed NJ Real Estate WSolutionsRus, LLC & Home Free Solutions, LLC

25. Steps in a Short-Sale The UGLY Parts of the Short-Sale Process: 1. Gather Documents: NOT SURE WHAT IS NEEDED 2. Call Lender: BE ON HOLD FOREVER 3. List & Market the Home at current FMV 4. Develop the Short-Sale Proposal: TIME-CONSUMING 5. Obtain an Offer: NEED ROAD-MAP FOR BUYERS 6. Submit offer & HUD-1: TIME CONSUMING & HOW? 7. Meet the BPO agent: TIME CONSUMING 8. Negotiate the deal with all lien holder: MORE TIME 9. Hope you close: END DRAMA & NO GUARANTEES! NJ Real Estate SolutionsRus, LLC & Home Free Solutions, LLC

26. Most Common Mistakes * Assuming that the short-sale process is easy and fast * Listing a property for an amount to cover full payoff * Not understanding that most lenders have a set minimum percentage of the BPO they will accept * Not preparing for the crucial interior BPO * Allowing the BPO to be done without being present * Sending incomplete short-sale packages * Not being patient and persistent with lenders * Not knowing how to NEGOTIATE NJ Real Estate SolutionsRus, LLC & Home Free Solutiuons, LLC

27. Like Doing Short-Sales? Yes? Great, you are our best testmonial. How many of your short-sale deals have been as smooth as a normal retail transaction? WHAT IF WE COULD TALE MUCH OF THE WORK OUT OF YOUR SHORT-SALE LISTINGS? NJ Real Estate SolutionsRus, LLC & Home Free Solutions, LLC

28. EASY STREET Short-Sale Processing The steps… 1. Gather Basic Information 2. Get Proprty Listed 3. Register with our team 4. Get Lender specific documents 5. Meet the BPO agent 6. Obtain Offer 7. Close the transaction-GET PAID …… Much Easier NJ Real Estate SolutionsRus, LLC & Home Free Solutions, LLC

29. EASY STREET Short-Sale Processing What we will DO FOR YOU? * Provide Lender Specific Requirements * Create Short-Sale Pachages for you * Handle ALL Lien Holder NEGOTIATIONS * Assist with Buyer Expectation - Unique to each deal * HUD-1 Settlement statements * Referrals, Selling Strategies, investor network … ..to SAVE YOU TIME AND FRUSTRATION NJ Real Estate SolutionsRus, LLC & Home Free Solutions, LLC

30. What do you do BEST? LIST AND SELL PROPERTY We want you to have time to concentrate on what you do best even with over-leveraged Sellers. MORE LISTINGS & MORE COMMISSION NJ Real Estate SolutionsRus, LLC & Home Free Solutions, LLC

31. What do we do BEST? We Negotiate Debt * Local Team * Experts in our Market * Hundreds of Short-Sales Accepted * Of files accepted, a 90% completion rate * Investor & Retail Selling Strategies NJ Real Estate SolutionsRus, LLC & Home Free Solutions, LLC

32. THE COMPETITIVE EDGE When We Work Together In your Listing Presentation, you can offer your potential client *SPECIALIZED SKILLS * A whole TEAM protecting their interests NJ Real Estate SolutionsRus, LLC & Home Free Solutions, LLC

33. Time to TAKE ACTION * Start Profiting in this market - It hasn’t turned on you! * Market to Pre-Foreclosure or Default Lists * Practice asking, “Are you current?” * Prospect to FSBOs * Generate Referrals from agents who won’t do short-sales * Remember: Everywhere you go are potential clients NJ Real Estate SolutionsRus, LLC & Home Free Solutions, LLC

34. How Do We Get Paid * By the Bank at closing * By Buyer or Seller if fitting the transaction * By Referrals Any referral fees are negotiated at the start of file submission. NJ Real Estate SolutionsRus, LLC & Home Free Solutions, LLC

35. No Guarantees As with any real estate transaction, there are No Guarantees. * Stopping Foreclosure * Lien Holder Cooperation * Seller & Buyer Cooperation NJ Real Estate SolutionsRus, LLC & Home Free Solutions, LLC

36. OUR PROMISE TO YOU * We only get paid if we do our job! * We will give each file our upmost attention. * We only operate by full disclosure. * We operate by only the most ethical, moral and legal standards. * We will treat your clients with integrity. NJ Real Estate SolutionsRus, LLC & Home Free Solutions, LLC

37. ManageMyShortSale The most comprehensive and time-saving solution for short-sale management. NJ Real Estate SolutionsRus, LLC & Home Free Solutions, LLC

38. ManageMyShortSale * Real-Time updates sent to your email and all other parties principal to the transaction. NJ Real Estate SolutionsRus, LLC & Home Free Solutions, LLC

39. ManageMyShortSale * You will know what we are doing in the office without even having to call. * Better yet, your client will too! NJ Real Estate SolutionsRus, LLC & Home Free Solutions, LLC

40. WHAT ELSE ? Making the Most of this Market Means Continuing Education NJ Real Estate SolutionsRus, LLC & Home Free Solutions, LLC

41. GET FROM US IDEAS & POSSIBILITES: * Investor Strategies * Listing Strategies * Lead Generation Tools Any suggestion given or forms or information supplied by or purchased from us are used by you at your own risk. You should always have your broker’s approval. NJ Real Estate SolutionsRus, LLC & Home Free Solutions, LLC

42. EASY STREET Short-Sale Processing Ready to Start? NJ Real Estate SolutionsRus, LLC & Home Free Solutions, LLC

43. NJ Real Estate SolutionsRus, LLC & Home Free Solutions, LLC Your Short Sale Specialist Creating WIN-WIN Opportunities for Brokers, Agents Investors, Retail Buyers and Over-Leveraged Sellers in this market. Tim Lockwood Marcus Celestin NJ Real Estate SolutionsRus, LLC Home Free Solutions, LLC 888-696-6811 Phone 609-638-8855 Phone 888-232-1944 Fax 866-525-1216 Fax 609-743-8854 Cell www.homefreesolution.com www.avoidsheriffsales.com [email_address] [email_address]