Learn the basics of buying a foreclosure property, including how the foreclosure process works, the three foreclosure-buying opportunities and the five steps to buying a foreclosure.

1. FORECLOSURE BUYING 101
with RealtyTrac site demo

2. What we’ll cover today
• A brief introduction to RealtyTrac
• What is ‘Foreclosure?’
• The Three Foreclosure-Buying Opportunities
• The 5 steps to buying a foreclosure
• Site Demo: Using RealtyTrac to:
– Find foreclosure and bank-owned homes
– Contact lenders & homeowners in default
– Find community resources and support
©RealtyTrac Inc. 2012, Not for Distribution 2

3. A BRIEF INTRODUCTION TO REALTYTRAC

4. WHO RELIES ON REALTYTRAC DATA
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5. WHO RELIES ON REALTYTRAC DATA
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6. WHAT REALTYTRAC IS
• RealtyTrac publishes the country’s largest database of
foreclosure and bank-owned properties
– Data from over 2,200 counties, covering over 92% of U.S.
housing units
• #1 Foreclosure site – 1.5 million foreclosure and bank-owned
properties nationwide
– More coverage, more detailed information than any
other national provider
• Unmatched property evaluation and transactional tools
– HomeScore, Equity & Loan Info, Property Analyzer,
Online Offers, Foreclosure-MLS Match, and much more
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7. WHAT REALTYTRAC IS NOT
• The RealtyTrac foreclosure database is not an “MLS for
foreclosure records”
• Most of the properties in the RealtyTrac database are NOT
on the MLS anywhere
– Less than 20% of the homes in foreclosure are listed
– Only 15% of REOs are listed
– Many MLS organizations prohibit including any REO or
foreclosure information in the property listings
– RealtyTrac gives you advanced notice that it will likely be
‘For Sale’ in the near future.
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8. WHAT IS ‘FORECLOSURE?’

9. Foreclosure Overview
What is ‘Foreclosure?’
•Foreclosure is a process that allows a lender to recover the
amount owed on a defaulted loan by selling or taking ownership
(repossession) of the property securing the loan.
When does foreclosure begin?
•The foreclosure process begins when a borrower/owner
defaults on loan payments (usually mortgage payments) and the
lender files a public default notice, called a Notice of Default or
Lis Pendens.
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10. ARE FORECLOSURES WORTH IT?
• Save money!
– Bank-owned properties were discounted 37% in first quarter
– Short sales sold at a 26% discount
• Many properties in excellent condition, but not all
• Fewer buyers – Less competition!
• Motivated sellers
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11. THE FORECLOSURE PROCESS

12. FORECLOSURE PROCESS
Four Possible Outcomes
1) The borrower/owner reinstates the loan by
paying off the default amount during a grace
period determined by state law. This grace
period is also known as Pre-Foreclosure.
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13. FORECLOSURE PROCESS
2) The borrower/owner sells the property to a
third party during the pre-foreclosure period.
The sale allows the borrower/owner to pay off
the loan and avoid having a foreclosure on his
or her credit history.
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14. FORECLOSURE PROCESS
3) A third party buys the property at a public
auction at the end of the Pre-Foreclosure
period.
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15. FORECLOSURE PROCESS
REO
4) Properties repossessed by the lender are
also known as Bank-Owned or REO
properties (Real Estate Owned by the lender).
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16. THE 3 FORECLOSURE-BUYING OPPORTUNITIES

17. PRE-FORECLOSURE
• Contact the owner to make offer
• Purchase from “distressed” homeowner
• Often short sales (but not always)
• Average discounts of 26 percent in second quarter
• More than 500,000 on RealtyTrac
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18. FORECLOSURE AUCTION
• Purchase at public auction
• Contact trustee to verify auction dates
• Often requires full payment in cash
• High risk, high reward
• More than 300,000 on RealtyTrac
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19. BANK OWNED
• Work with listing agent if listed
• Contact bank to make offer
• Be persistent if not listed
• Submit offers online
• Average discount of 33% in first quarter
• More than 600,000 on RealtyTrac
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20. 5 STEPS TO BUYING A FORECLOSURE

21. BUYING A FORECLOSURE
1. Search RealtyTrac
for properties
2. Get financing
3. Contact an Agent
4. Contact owner
5. Make an offer
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22. REALTYTRAC SITE DEMO
a quick look at what you get

23. CONTACT INFORMATION
• Membership help
– (877) 888-8722
• support@realtytrac.com
• Thank you!
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