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W I T H J A C O B S W O D E C K

F O R C V A R E D U C A T I O N

THE FUTURE OF

SHORT SALES

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HIGHLIGHTS OFTODAYS TALK

Areshortsalesgoingawaysoon? Areshortsaleleasebackspossible/legal? IsHAFAover? Isittruethereisanewno-docshortsaleprocess? Arelender-directedshortsaleleadsanemergingconcept? Whataretheprosdoingtogetmoreshortsalelisngs? Shortsaleexpertpanel

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HOW LONG WILL SHORT SALES LAST?

2.3millionhomesrepresentedinShadowInventory(7-9monthsupply,$376B,down12%form2011)(CoreLogicasof

Oct2012)

Shadowinventoryrepresented85%percentofthe2.7millionproperesthatareseriouslydelinquent,inforeclosureorin

REO(CoreLogicasofOct2012)

2.4millionaddi$onalborrowersare3060dayslateandarenotincludedintheshadowinventorynumbers.(viaLPSMonthlyMonitorReportDec2012)

Est.440,000shortsalesin2012.1,000,000expectedin2013(DarenBlomquistofRelatyTrac)

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HOW LONG WILL SHORT SALES LAST?

Othervariablesadjusngloanmods,lackofinventoryandhighdemandpushupvaluestomakeupfornegaveequityinsome

markets,privateandpublicbulksales

Twenty-twopercentofallresidenalpropereswithamortgageorabout10.7millionhomeownerswereunderwaterbytheend

ofthefourthquarterfor2012,accordingtoCoreLogicdata.

FromSeptember2011toSeptember2012,1.4millionhomeownershadmovedfromnegaveequitytoposiveequity.

Howwillthisaffectconsumermindsetforborderlineequityhomeowners?

Isthisanactualrecoveryorisitfabricatedbythepowersthatbe?

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FANNIE AND FREDDIE MERGE THEIRSHORT SALE PROCESS

ServicerAlignmentIniave FannieandFreddiedropHAFADec31,2012 WentintoeffectNov.2012 NomoreseparateFannieorFreddieshortsaleprocess Muchmorestreamlinedasfarashardship,melines,anddocumentaonneeded

91+dayslate,lessthana620ficoscore=pre-approvedhardship Addedno-docprocessforsomeloans OversightbyFHFA(FederalHousingFinanceAgency)underEdDeMarco

Dirtylilesecret:EventuallyGSEswillbephasedout

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MANY BIG HAFA CHANGES FORNON-GSE LOANS

ViaSupplementalDirecve12-07 EffecveFeb.2013 Nohardshipdocsif91+dayslateandlessthan620FICOscore(bankpullingcreditearlyon)

LeasebackoponreaffirmedinnewHAFA NomoreTreasuryHAFAdocsrequired NewdocsincludeSSN(ShortSaleNoce),ARSS(AcknowledgmentofRequestofShortSale),andtheHAFAAffidavit

30daydecisionsregardlesshowHAFAwasiniated

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HAFA SHORT SALE LEASE BACKSFACT OR FICTION?

ViaSupplementalDirecve11-02and12-07 U.S.Treasuryallowsforalegi$matenon-profittobuyashortsalepropertyunderHAFAwiththeintenontoleasethe

homebacktothepriorowner NaonalShortSalescreatedtheShortSaleLeaseBack(SSLB)programandhasclosedafewnon-armslengthshortsales

withanunderstandingthatthepriorownerwillleasethe

homeback. Guidelineshavebeengiven(finally)fornon-profitandprogramqualificaons

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DEPT. OF JUSTICES $25B ATTORNEYGENERAL SETTLEMENT

Wentintoeffectmid2012(biggestconsumerproteconselementinhistory)

Mustbe:BofA,WellsFargo,CHASE,Ci,Ally/GMAC Mustnotbe:Fannie,Freddie,FHA,VA www.NaonalMortgageSelement.com $10BtowardsPrincipalWrite-downs $7Btowardsspecialprograms(i.e.Shortsales,military,etc.) $3BtowardsRefiprograms $5Btowardsselementpayoutstowrongfullyforeclosed 3yearprogram

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SHORT SALE LEAD GEN(THAT WORKS)

ExpandandcaptureyourS.O.I.(friendlynetwork) Makeyourfuture-pastclientsravingfans(whorefer) Beuniqueinyourapproach(SSLB,$25BSelement,VALeaseBack,etc.)

Establishyourselfasanexpert,readmore,blog,socialmediapresence,ulizevideo,hostconsumer-centricseminars

Poundthepavementknockondoors. CallNODsnotonDNCL

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LETS STAY IN TOUCH

ShortSaleCoachingwww.SSICCoaching.com

Facebook.com/jacob.swodeck

Twier-@JakesLadder

EmailJacobSwodeck@KW.com

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INDUSTRY PANEL

THE FUTURE OF

SHORT SALES

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SHORT SALE PANELISTS

AmeliaCastroWellsFargoShortSaleManager

BobIrishTop-producingBroker,founderofSSLBandNSS,subjectmaerexpert

BrianBeanTop-producingBroker,writer,shortsaleexpert