14 Day Short Sale Program

Understanding the 14 Day Short Sale Program:

We pride ourselves in our uniquely and exclusively developed 14 Day Short Sale Program. In addition our relentless and vigorous loss mitigation strategies, mostly result in peace of mind for our happy and satisfied distressed sellers succeeding in selling their distressed and upside down property with dignity and the least possible negative impact on their vulnerable credit rating which; may have taken them years or even decades to establish.

We will apply this program to sell their property with the least amount of inconvenience to them and their household members, only when qualified short sellers are the perfect match for the program:

· If successful our short sellers will only be required to show the house for a max of 14 days, after which time there should be sufficient offers on the property to be submitted to their lender/servicer for approval.

· Keep in mind that closing escrow on the average and normal short sale transaction, takes 90 days however it can be extended up to 270 days or more, depending on many unfortunate circumstances, including but not limited to the negotiators competency, ability and motivation!!!

You probably don’t want to subject your household to the inconvenience (and the invasion of your privacy) for 90 or maybe 270 days or more: having to accommodate realtors and their clients who may actually really be interested in buying your property, but then there are also those with ulterior motives because their real motivation is actually to simply use your property as a comparable to other similar (or not similar) houses in the neighborhood, in which they may be interested or on which they may even have submitted an offer to purchase? Resulting not only in un called for inconvenience to you, but also a waste of your precious time.

Negotiating a short sale with a short sale lender/investor is a tedious, complicated and difficult process, generally because it is a daunting task finding a bank official who has the authority to accept a discount, the process is complicated as a result of various reasons:

· The negotiation only begins once you get in touch with the right person: one can expect the process to involve a lot of waiting, on hold and being bounced around an intricate maze of automated voice mail systems. - We know how to bypass most of these issues.

· More than likely, you can expect different lenders to have different names for their departments dealing with short sale mitigation, and most often they simply make it as hard as possible for the home owner because they just can’t be bothered to give you the time of day although it is more likely that they’re simply incompetent and don’t have the knowledge or the right answers.

· Lenders/investors are known by many names of which the most fitting may be “BANKSTERS”: their agents or attorneys will always fight until the very end to try and retain as much profit as possible in an attempt to cut their losses (nobody likes to lose money, especially the banking/financial industry). It therefore requires very specialized negotiating skills to convince them to accept a short sale.

· The lender will also ask for financial information about the borrower. This basically involves a loan application in reverse, since the borrower(s) must prove that they have a financial hardship and inability to afford the mortgage payments. The borrower(s) must show that they have no other source of income or assets to repay the loan. This process may involve as much, if not more paperwork as an original mortgage application!

· Each individual lender has their unique short sale package, and the documentation required can be very confusing while it can also be extremely complicated to complete (especially when there are more than one lender involved in the short sale transaction, resulting in you having to complete and submit two or more financial packages).

· The hardship avadavat has to be carefully drafted, since this very important letter is aimed at basically telling the lender why the homeowner(s) are not able to continue making their future mortgage payments as a result of either financial or personal hardship(s). The circumstances outlined, the facts, figures, and financial statements, must correspond and be supportive of the accompanying financial statements consisting mostly of:

Income Statements

Pay Stubs

Bank Statements.

Benefit Statements (including: disability, social security, alimony, child support, pension and 401k statement’s etc.).

· The distressed home owner(s) must be prepared to have all of the above together because if they don't, our negotiations may fail and the request for a short sale will definitely not be accepted.

· When there are two or more lenders involved and the lender in second or third position stand to lose all or most of their money, the chances of negotiating a short sale and getting your request approved by both lenders becomes more complicated. We have the ways and means to negotiate such complicated and intricate deals.

· We at the Short Sale Center belong to an extensive nationwide network with unlimited access to lender/investor contacts and services; enabling us to negotiate favorable sale terms on our short seller’s behalf and help them avoid bankruptcy and foreclosure. A properly negotiated short sale with a short close of escrow will obviously minimize the negative impact on your credit. Besides, our short sale services are completely free, and it comes with a guaranteed no obligation to the property owner.

• Last but not least we are Preferred Partners of a nationwide affiliation called the Short Sale Specialist Network, with more than 8000 members throughout the country. Since short sales and foreclosure prevention is such an uncertain concept with each lender/investor applying their own undocumented and unpublished guidelines and rules, this network for likeminded professionals aims to:

a) Create an outlet offering uniformed training and membership programs to all our members nationwide

b) More importantly providing a resource for licensed and experienced agents around the country to network and blog with each other and discuss tactics aimed at developing strategies in order to better work short sales for short sale sellers.

· The Short Sale Specialist Network also present its members with the unique opportunity to cross refer nationwide to proficient experienced and licensed agents who have the same high ethical values and standards when representing their clients whether it’s in a purchase or sales transaction. As a result we can effectively represent our buyers or sellers not only in the counties where we reside and specialize, but in fact we’re able to service them on a nationwide basis through our more than 8000 affiliates throughout the country.

Basics of the 14 Day Short Sale Program:

Basically this unique program aims to obtain sufficient qualified offers in the shortest period of time in order to meet certain deadlines set by the lender or the seller. One such deadline may be the postponement of a looming trustee sale date.

Another most important objective may be to trigger a response from the short sale lender/investor, by providing them with a qualified purchase offer which expedites the underwriting and approval process of the short sale.

The trade secrets of this program resulting in the high success, approval and closure ratio of our qualified short sale transactions can obviously not be revealed. However we are happy to disclose some of the pertinent information:

· We have a secret method to list the short sale at a price which will attract multiple offers in the shortest possible time (normally 14 days).

· Our comprehensive Suggested Offer Instructions are generally aimed at informing buyers agents regarding:

a) The unique lender/investor requirements pertaining to this particular short sale transaction.

b) The status of this as-is sale, including the pricing structure.

c) Possible excluded items and appliances from the short sale.

d) Expectations regarding the possible timelines pertaining to underwriting and lender approval.

e) The danger of potential escrow shortages resulting from extended underwriting and approval time frames, and

f) The possible presence of a junior lien holder(s) and the fact that the buyer may have to come up with additional cash to satisfy the possible demand(s) of junior lien holders.

These detailed and informative instructions are mostly well received and appreciated by buyers agents who are able to share the contents with their potential buyers with the purpose of guiding and preparing them in presenting an offer with substance which may ultimately be accepted by the lender/investor in favor of all the other multiple offers received.

· The program contains clear and concise timelines which definitely help all parties concerned to be prepared for what can be expected and/or not expected. Informed buyers agents and their clients are less likely to walk away from the transaction if they know more or less what to expect and when to expect it.

· With the consent of our client (short sale seller), the program may allow for a second round of bidding after the highest offer obtained during the first round, are disclosed to the participants.

· The second round of bidding in a way, may result in a feeding frenzy causing the potential pool of buyers to offer more than their initial offer, however the program does not allow for a third round of bidding, which eliminates the possibility of an open auction or even a bidding war.

· Since our instructions in this regard clearly request buyers agents to do their own due diligence in performing a CMA (Comparative Market Analysis) on their clients behalf: they in avertedly help their potential buyers in preparing and presenting their highest and best offer, since there is no third round of bidding. All parties concerned clearly benefit from this since:

a) The short seller ultimately gets the highest possible price (reducing their liability of a potential deficiency judgment if applicable).

b) The short sale lender/investor also benefit since they can clearly determine that all efforts was made to attract the highest possible offer (which may result in the possibility of an expedited approval).

c) The buyer(s) benefit since they have been prepared and presented with expert opinions and market analysis: allowing them to submit their highest and best offer.

d) Both listing and buyers agents benefit from the expedited close of escrow resulting in saving time and money, and they can both move on to the next transaction.

· By obtaining multiple offers from qualified buyers who can close escrow in the shortest possible time frame, it clearly succeeds in the ultimate goal of saving the home owner from more humiliation, inconvenience and the least amount of potential deficiencies (where applicable).

Although it may appear to create a lot more effort and time from both the listing agent and all the buyer’s agents involved: this unique tested and proven program ultimately benefits both parties, since the buyer’s agent is able to eliminate unqualified and unmotivated buyers, whose only there to waste everybody’s time. The listing agent is able to attract multiple qualified offers, enabling him/her to help the short seller obtain the highest possible offer, resulting in an expedited and approved short sale, limiting the unavoidable negative effect on their credit rating and saving them from further humiliation, while allowing them to move on to the next chapter in their disrupted lives.

Our Pledge to You:

LeonardScott Real Estate Group has achieved remarkable success with its unique 14 Day Short Sale Program specifically developed to assist distressed home owners short selling their homes and thereby avoid foreclosure: in the shortest possible time and at the highest possible price.

We are certified and successful licensed REALTOR® listing agents with a proven record in the listing, negotiating and closing aspect of short sales. Our success can not only be attributed as a result of our 14 Day Short Sale Program but also our honesty, integrity and tenacity in the execution thereof.

At the Short Sale center of LeonardScott Real Estate Group our first and foremost fiduciary obligation to you (our short sale seller) is to protect your, and only your, best interest at all times! This may neither be the most convenient to …., nor most profitable solution for …., third parties:

· We never get tired of waiting, patience is one of the most important virtues of the short sale process, especially when negotiating with incompetent, untrained and careless negotiators (who are often understaffed, underpaid and over worked.

· We pride ourselves in always trying to keep our promises to you.

· We have the experience and the knowledge to get to the bottom of each unique foreclosure situation.

· Most importantly we will continue, as in the past, to go directly to the lender’s highest executive office to get answers and solutions. Lender/investor negotiators are often overwhelmed and inundated with short sale applications, they may even have certain hidden agenda’s (unknown to the rest of the world), which may result in the property not been approved for the short sale: when this happens then the only alternative is to go to the absolute highest hierarchy in their organization. Unfortunately the executive office of the CEO is mostly well protected and out of reach for the banks clients, employees and short sale negotiators and listing agents alike, and that is where we differentiate ourselves from the rest, since we have been fortunate enough to have established those contacts through our experience over time.

· We will relentlessly pursue all options on your behalf, often to the dismay of interested third parties.

· To serve you better, we constantly attend continuing education and other certification programs offered by NAR (National Association of Realtors), CAR (California Association of Realtors), Short Sale Specialist Network and other leaders in the real estate industry, to keep us informed and abreast of the latest developments in the short sale industry.

· It is also common knowledge that listing and buyers agents each have their unique challenges and skill levels when transacting real estate deals and therefore most successful realtors will either specialize in one or the other. However when a short sale listing agent has to advise the distressed seller regarding the acceptance of the highest and best purchase offer, it requires exceptional knowledge and experience from the listing agent unlike normal real estate transactions.

We simply make sure that the accepted offer is qualified, able and willing to walk the walk with us, since one of the main reasons why short sale often fall out of escrow: is as a result of buyers walking just before either short sale lender approval or before close of escrow!

· Our short sale systems, addendums and disclosures have been developed through trial and error over a period of four years, since short sales actually started becoming part of real estate vocabulary and our instructions to buyer’s agents regarding the submission of purchase offers on behalf of their prospective buyers are clear, to the point and of the most comprehensive in the industry. No wonder we get endless compliments from our peers who often use it to explain and convince their prospective buyers about the many pitfalls, long waiting periods and do’s and don’ts of buying a short sale property. Eliminating surprises and the unknown greatly prevent uninformed prospective buyers from walking away from the short sale transaction.

Our motto is to identify and qualify potential buyers who will be able to close escrow with us, but more importantly to also identify those who can’t or won’t whereby we rather encourage them to walk before they present an offer and waste everyone’s time and money, but more importantly potentially jeopardizing the short sale, resulting in foreclosure for the undeserving and distressed home owner!

· One of the main reasons why short sale transactions often fall through the cracks is due to the lack of knowledge and experience of the short sale listing and/or buyer’s agent’s in regards to satisfying the demand from a possible junior lien holder. A lender in second or third position can and will ruin the short sale transaction unless their demands are fully satisfied.

We are proud of the fact that we know how to satisfy this crucial aspect of the short sale transaction, that is exactly why we have a legal binding addendum for the prospective buyer(s) to sign in order to make sure that they are qualified willing and able to pay off any possible demands from a junior lien holder. Keep in mind that the distressed seller often cannot and/or simply will not be willing to pay any money into the transaction!

· Another reason of short sale transactions failing is as a result of escrow shortages, which may arise as a result of the as a result of the extended time frame to close escrow. We disclose to all participants that;

a) The short sale investor/lender will only pay for certain costs at close of escrow, while the distressed seller does not have the financial resources to pay for any shortfall on the final HUD: therefore any expense not included and paid for by the short sale investor/lender, must be paid for by the buyer.

b) The seller in this short sale transaction stands nothing to gain out of this transaction, they do not have the financial resources, and therefore they cannot and will not contribute towards any escrow shortages!

c) Even though the intention will always be not to have a shortage at the final close of escrow, it should be remembered that the initial HUD reflects a snapshot of estimated closing figures at the time of the initial submission of the offer to the lender. These figures are obviously subject to change over the period it takes to close escrow. Since the eventual short-sale approval leaves absolutely no wiggle-room, buyers will be responsible for such or any other shortfall. Please let it be clear in no uncertain terms that neither our distressed short sale seller nor the listing agent will be contributing towards any escrow or other shortages in this transaction.

d) We disclose that the prospective buyer(s) will have to sign an addendum to this effect upon their offer being accepted by our distressed short sale seller. We also make sure that the eventually accepted buyer(s) sign the applicable addendum disclosing this extremely important fact. (This is particularly important when dealing with FHA, VA, USDA and other down payment assistance programs, since most of these programs will not allow any shortages to be funded through the transaction whatsoever)

e) We also seek confirmation and proof from the buyer’s agent that their buyer(s) are financially able, qualified and willing to come up with the potential shortfall if and when necessary. (They must be able to proof that they do have the reserves in order to satisfy this condition.

· Finally our unique and secret method of pricing and listing the short sale property is virtually a guaranteed method to attract multiple offers, which enables us to get the complete short sale package submitted in a timely manner for the lender/investor to underwrite and approve the short sale before the looming TS sale date, and if not at least to postpone the TS sale date, in order for the negotiator of the investor/lender to buy enough time to underwrite and approve the short sale.

It is important to keep in mind that the successful completion of a short sale transaction requires in-depth knowledge, experience as well as an exorbitant amount of time invested into the transaction by your short sale listing agent. All these efforts may be in vain if the short sale transaction either falls apart, or gets cancelled. This is one of the major reasons why there are so few truly dedicated short sale listing agents prepared to risk their time and efforts for this very noble and needed real estate service.

Also keep in mind that short sale listing agents who negotiate, structure, list and sell your property don’t get paid unless they are successful in getting the transaction approved by the short sale lender/investor, find a qualified, willing and able buyer, succeed in postponing the TS (Trustee Sale) date, for as many times as it may take to get the buyer approved during the tedious negotiation process in order to successfully close escrow before the lender/investor forecloses on the property.

Unfortunately it’s quite common for agents to abandon ship, since they either can’t afford or they are not able or willing to invest their time and energy into a complicated, risky and often fruitless real estate transaction which may take 2, 3 or 9 months to come to fruition and sometimes never even closes escrow as a result of all the many aspects which may go wrong.

All participants to the transaction are fully informed & benefit from the 14 Day Short Sale Program:

All participants to the transaction are on the same page since they are fully informed about the lender/investor guidelines and expectations regarding this specific short sale transaction, aimed at eliminating confusion and possible falls expectations:

· The distressed home owners benefit as the time period their families are inconvenienced by the buying agents and their clients viewing the property: is shortened to a couple of weeks instead of months.

· The program successfully attracts multiple offers which prevent a lengthy short sale process.

· The bidding process of this program creates excitement and momentum amongst buyers and their agents.

· The ultimate result of the program is a higher final offer, which reduces the possible amount of deficiency where applicable.

· The confused and distressed home owners have a clear understanding regarding the timelines and procedures pertaining to their short sale transaction.

· The buyer’s agent and their prospective clients are fully informed about the possible extended time frames and most importantly they are less likely to walk away from the transaction. This is made possible as a result of our clear and concise instructions: which provides them with the guidelines aimed at helping their prospective buyer(s) being successful with their purchase offer. Comprehensive guidelines and straight talk to either eliminate those buyers with possible false expectations and/or ulterior motives or help those who are serious about getting their offer accepted by the lender/investor.

The lender benefits because of the shortest possible escrow timeframes, multiple offers, the best possible qualified buyer, as well as a higher final purchase offer as a result of the biding process.

Detailed suggested instructions to all prospective buyer’s agents on how to structure their client’s anticipated offers, which eliminate confusion and misunderstandings regarding the applicable transaction.

Our motto is straight forward:

· Fast Efficient, Courteous, Professional Service.

· Prevent one foreclosure at a time.

· Finding the best solution for every unique mortgage deficiency need.

· Providing a wide range of solutions to accommodate all needs and budgets.

· Prompt Response by Phone, Fax or Email all through the process.

· Straight Answers – No Double Talk.