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"Pocket Tall Profits from Short Sales!"

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8/1/08 Interview with Roger Butcher

Roger Butcher Training
2851 Gold Tailings Court
Rancho Cordova, CA 95670

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Opportunity from Mortgage Foreclosures

  1. In the next two to three years, there could be another seven million foreclosures; real estate agents who understand the foreclosure process are needed to counsel threatened homeowners on their options—probably more than a million foreclosures a year could be avoided.
  2. Foreclosure prevention and loss mitigation are the keys to helping homeowners and stemming the tide of foreclosures; REALTORS® should be the ones providing these services, but too few are; the obvious short sale solution is not always the best option for homeowners.
  3. Butcher has designed a single-page application form that agents can use as an interviewing guide in working with distressed homeowners; about one in ten who qualify for loss mitigation may be able to stay in their homes; the other nine will be short sale candidates.
  4. Agents should know what the foreclosure timeline (the time from notice of default to the actual sales date) is for their state; there is a period of months when homeowners are allowed to remain in their homes rent free; being able to tell alarmed homeowners this fact can quell their immediate panic.
Basics of Short Sales

  1. In a short sale, a lender accepts less than market value for a property in order to dispose of it quickly instead of taking it back through foreclosure as an REO (real-estate-owned by the bank) property and then having to dispose of it.
  2. Mortgage lenders save thousands of dollars with short sales because they avoid the costly foreclosure process.
  3. The typical complication for agents doing short sales is the processing—getting the short sale approved is often painful and time-consuming, and often approval is not obtained.
  4. The percentage of short sale listings that sell and close is low; some buyers and their agents are reluctant to make offers on foreclosure properties because of the infrequency with which short-sale offers are accepted.
  5. Consequently about 85% of short-sale properties slide into foreclosure; a foreclosure, which plummets a credit score 150–300 points, remains on a homeowner’s credit report for seven to ten years.
How Agents Can Help Distressed Homeowners

  1. Banks file a notice of default after homeowners have fallen behind on their loan schedule by three or four payments; Butcher’s application form asks questions to clarify the homeowners’ status so that an agent can determine if it is possible to get them reestablished with the lender.
  2. Government and non-government programs—such as Fanny Mae and Freddie Mac— are available to help homeowners who qualify; homeowners need to be able to pay the arrearages over time.
  3. A strategy to improve closings for short sales is for agents to use professional mitigation—a third-party company that specializes in short sales; Butcher’s Short Sales Express concentrates on this area of business.
Short Sales Express Services

  1. Short Sales Express has a team of mitigators that contact banks around the country to get short-sale packages approved for agents; the team has a record of improving the length of time and rate of approvals—a 94% success rate.
  2. The Short Sales Express packages are clean and specific; each package goes through two screenings to make sure the packages are accurate before being submitted to the lenders.
  3. If the short-sale deal closes, the fee for using Short Sales Express is the first 1% commission, with the agent getting the remaining commission; negotiations with banks start at a 9% commission (the maximum that lenders are authorized to pay).
  4. Commissions tend to be generous for full-price offers; commissions are lower and approval takes longer for lower offers.
  5. Short Sales Express offers a broker-agent training program, and the company supplies a broker agreement, homeowner time-saver package and short-sale commission package.
  6. There is no charge for basic short-sale training and commission forms; agents who take the certification classes to become a Certified Foreclosure Prevention Consultant pay about $150.
The Process

  1. Agents meet with homeowners for an interview; if the option is to be a short sale, agents employ a homeowners’ package that lays out the documentation needed from the homeowners (e.g., hardship letter, financial statement); what the homeowners provide streamlines what agents need to do; specific lenders’ forms can be downloaded as part of the system.
  2. Short Sales Express has inside contacts with more than 200 banks across the country.
  3. To look into the process, call 800-422-1462; the free e-book How to Earn $300,000 a Year Doing Short Sales can be downloaded from
  4. The current short-sale market offers agents opportunities at a time when other sales are depressed; to take advantage of short sales, agents need to be streamlined and understand the process of helping homeowners avoid foreclosure.
Web Favorites

  1. RealtyTrac is a good resource for agents to get maps showing foreclosures in their area.
  2. Default Research provides access to notice of default leads in the larger states; generally the leads are posted about three days after being recorded with counties.
  3. is another other good short-sale resource.
Contact Information for Roger Butcher:

(v) 916-852-9124 ext 123
(f) 916-852-9567

Real Estate Sites & Tools in this Briefing:

Breakthrough Performance:
Short Sales Express:
How to Earn $300,000 a Year Doing Short Sales: or call l 800-422-1462
Default Research: