Kenny Wagner

Kenny Wagner
Short Sale Specialist
Foreclosure Mitigation Specialist
The Foreclosure Mitigation Company

1-702-483-0890 Direct
1-206-971-5003 Fax

kenny@tfmcpartners.com

Top 5 RE Agent Obstacles to Short Sale Success

1. Commissions are discounted by lenders
2. Lenders don't want the package unless they have an offer
3. Execution & Accurate Valuation of the Interior BPO
4. Have a buyer but the short sale process takes too long so they buyer walks
5. Wasted time negotiating with the lenders when they should be promoting their properties and/or themselves.

This is How I (an Investor) Help RE Agents:

#1 Problem = Commissions are discounted by Lender

#1 Solutions

• Investor can guarantee a full commission on every deal that closes
• Agent markets the property to find the end buyer
• Listing Agent & Buyers Agent receive 3% commission each
• Agent who refers the property eligible for double commission - you make more money.

#2 Problem = Lenders don't want the package unless they have an offer

#2 Solutions

• Investor will make an offer on every short sale property the agent has listed as long as it meets our criteria
• Property must be in our "sweet spot":

1. -Market value of $350,000 minimum, no maximum (Vegas $300k+)
2. -$200,000 above Median House Values preferred
3. -Move-In Ready - no rehabs or fix-ups
4. -Multiple mortgages with a large 2nd mortgage.
5. -No Condos, Townhomes or marginal properties.
6. -Seller must be at least 30 days in arrears on the mortgage or about to be.
7. -Sellers must want to sell their home and move on.
8. -Sellers must be cooperative on the collection of the short sale information required.

• Investor offers immediately so it starts the short sale process
• Due to market - Better to start out low - we can always come up in price
• Once BPO is completed the investor will negotiate with the lenders and raise the offer price through negotiations

#3 Problem = Execution & Accurate Valuation of the Interior BPO

#3 Solutions

• Investor will perform BPO prior to lender BPO/Appraisal
• Investor will drive the price down to a "sellable" number
• Investor will follow-up with the BPO Agent to get the value

#4 Problem = Have a buyer but the short sale process takes too long so they buyer walks

#4 Solutions

• The Short Sale process is already started and BPO is completed
• Investor will coordinate with agent on when an offer can be accepted
• Investor will coordinate with the agent on the listing price depending on negotiations
• Once buyer makes an offer it can be accepted or countered immediately
• This ensures that when a buyer writes a qualified offer that is accepted the transaction can close in a timely fashion (30-45 days)
• Closing takes place in 15-45 days instead of 3-4 months because the package has already been submitted and the BPO already completed

#5 Problem = Wasted time negotiating with the lenders when they should be promoting their properties and/or themselves.

#5 Solutions

• Agent gathers paperwork from the Seller - that's it.
• Investor handles all the negotiations
• Investor will perform and complete the BPO with the Agent
• Investor will "sit on hold" all day if that's what it takes
• Agent will get twice weekly status updates via email
• Agent spends time doing what they do best - marketing and promoting themselves and their houses.
• Agents can continue to find more listing and buying opportunities
• Investor does what it does best which is BPO's and Negotiations

So let me explain how I might be able to help. Our business primarily consists of the acquisition, redevelopment and rebirth of homes throughout NV, CA & WA. We purchase multiple homes per month, and all of our work is in the pre-foreclosure market.

Whoever your lender(s) are, I can assure you that we are most likely an approved investor with them and have previously worked with them to facilitate a successful short sale transaction helping the bank avoid having to own another house - an REO (Real Estate Owned or Bank Owned) property...which is the last thing they want. This does not mean we are affiliated with them. It just means we that we can hopefully take advantage of the relationship we have with them. And it means that we do a great deal of work with them on an annual basis.

Believe it or not, lenders DO NOT want to own your house and foreclosing on a house is a losing proposition for everyone involved.

There are two ways we can help. First, we can bring some clarity and hopefully some closure regarding this situation. Second, by helping you avoid a foreclosure we are also helping you to save your credit. There's nothing worse on your credit report than a foreclosure.

Our process is simple. We approach the bank and tell them we are interested in purchasing the house, and that you're interested in selling the house to us, but that we need to agree on a price. You see, most banks are dealing with a tremendous amount of foreclosures, so they've set-up loss mitigation departments. These departments are responsible for handling short sales and pursuing any alternative to the trustee sale/sheriff's auction.

The preferred method by banks for selling a property in pre-foreclosure is called a short sale. This is when the lender agrees to accept less than what's owed on the property to release the lien, and they may consider the account closed.

Like I mentioned earlier, all of our work is in this niche, and we are experts in this field. Banks do not want to own real estate; they do not want to be in the real estate business. As a matter of fact, strict federal guidelines exist on how many bad loans a bank can have on its books at one time. And if a certain percentage of their outstanding loans are considered bad debt, they can be fined, sanctioned and federally mandated. So they are eager to get rid of the property before they actually have to take it to trustee sale/sheriff's sale. This is where we come in, as an approved investor we have a strong likelihood of getting the job done.

If the property does go to trustee sale/sheriff's sale the county is going to have a drive-by appraisal completed based on the exterior of the property; the opening bid will be 2/3rds of this amount most of the time.

What we do for our initial offer is to try and intelligently guess (using existing market data) what the appraised value might be, which is usually a little bit lower than the actual value of the property, and then we offer the bank around what we think the opening bid might be at auction. The initial offer is almost never accepted, and the bank will usually make multiple counter-offers back to us.

After we make our initial offer to the bank, the next step is for the bank to order an interior inspecition of the property. This is called the BPO (Brokers Price Opinion), and it's the estimate of the quick-sale value of the house in its current as-is condition. This is NOT an elevated appraisal of the property, but rather a strong indication of what the property is right now.

If the property is in tough shape, that can actually help us. Each bank is different, but every bank has a different formula that they use to determine what percentage of the BPO they will accept to pay the property off. Usually this number is 85-95% of the BPO.

As long as the BPO is favorable, we have a strong chance of being able to purchase the house.

Let me take a minute to explain what the bank is likely to say after they complete the BPO. One of three things is going to happen: PLAN A would be where we submit our offer to the bank. The bank completes the interior inspection (BPO), and notifies us that we can purchase the property at our initial offer price or slightly higher. However, there are times when a BPO does not come in at a low number, so we go to PLAN B. This where the bank does the BPO (Interior Inspection) and they agree to take a discount off the balance, but the discount is not large enough for us to take the risk of purchasing the property and then fixing it up to resell. So in this case we must find a buyer as fast as we can, in which, because of our strategy, we are very successful in doing so.

PLAN C occurs when the bank responds and refuses to do a short sale. This is unlikely. Thirty for forty percent of the time, PLAN A works. Another thirty percent of the time PLAN B works. We come up short on the rest, which is extremely low for our industry.

Here's Your Free Report...

Dear Homeowner,



That is the purpose of this report…. to quickly arm you with the most important information
so you can make the right decisions fast.

First of all, knowing that you are having some sort of financial trouble is an emotionally
charged event. Most owners in situations like yours have intense feelings of doubt, fear and
anxiety. Questions arise, such as: "My credit is bad…. can I refinance?" "My bank has already
started the foreclosure. Is it too late to refinance?" "I can't afford the payment I have now. Is
there any way to refinance and lower my payment?" "Can we really afford to do this?" "Is selling
my house at this point even an option?" "Are we doing the right thing?" "Is bankruptcy an
option?" "Are we sure about this?" And so on and so on.

Again, potentially losing your home is an emotionally charged event. And the owners
who let their emotions, instead of logic, invade their thoughts and decisions...make the
biggest mistakes!

When Faced With Foreclosure You Must Have A Plan!

All decisions regarding your home affect your financial picture! Your financial picture
affects all decisions regarding your home! And…most people don't plan to fail; they
simply fail to plan! Having a plan is critical to successfully dealing with your problem, yet
most people never get around to doing much, if any, planning first. So, let's try to make things as
easy as possible, and give you a suggested plan:

#1: Be Aware of Who's Really Helping You. Is anyone protecting you?
Are you getting the right advice? Just who is on your side anyway? One of the first lines of defense
you can take as a homeowner is to take a hard look at who's really helping you. Other than
friends, relatives and acquaintances, you need some good sound advice, right? So, whom do you
turn to? You’ll have to answer this question for yourself…

#2: Understand banks…! It's actually surprising how many homeowners
just grab the phone book...and off they go on their search for a new loan! Before spending
your valued time calling around in search of a new loan, call one of my associates or me at
877-289-9264. We know the people in town who can get the job done without wasting your
time.

Keep in mind that banks are in the business of loaning money, in order to make lots of
money. Ironically, most banks lend money to people who really don't need it. Banks are mainly
in the risk-avoidance business. I advise you to work with mortgage specialists or brokers who
tend to be very motivated and work hard to help you. But, you have to be careful. Not all mortgage
companies are on the up and up. Make sure you carefully read all the paperwork before
the closing!

#3: Understand Financing...! Decisions about interest rates, down payments,
the length of the loan, escrow, points, and so on, need careful analysis BEFORE you consider
refinancing your home. And, when it comes to making these choices, you need to first be aware
of all the alternatives and options...so you avoid making financial mistakes and falling even
deeper into any hidden financial traps!

#4: Be Aware of Questions You'll Be Asked! Why are you behind in
your payments? What can you do differently in the future to assure us that you will not get into
the same situation again? Your income? Number of years employed? Self-employed? Funds
available for down payment? Other credit problems? How much do you want to spend per
month? How much can you afford to spend each month? What are your means of repaying the
new loan? Will you be financing for 15 years or 30 years? How much will you be putting
down? Do you want a fixed or adjustable rate? Do you want a higher rate with fewer points, or
do you want a lower rate with higher points? (And this is only the beginning.)

I've found that many homeowners are not prepared for all the financing questions asked
at their loan meeting. Nor will they have the paperwork necessary for a complete loan application.
These are just some of the many questions you'll be facing...and you'll have to have done
your homework first, in order to make the appropriate decisions.

#5: Determine What Will Be the Least Expensive Financing
in the Short...And the Long Run? That's what you want, right? Don't you
want the loan to cost you the least? Sure...but it's also important to know HOW to make the
right choices and calculations so that you DO pay the least amount possible, for both your
short and long term financial standing!

Just like a doctor, each person's options need to be thoroughly diagnosed before prescribing
any medication. So don't go into the refinancing arena without first examining your present
financial situation and the long-term affects that refinancing can have versus other alternatives
such as selling outright! You see, you must evaluate where you will be in both the long term and
the short term. The worst decision I see being made is where someone refinances, only to find
they are right back in the same situation within the year. At this point, they typically lose it all:
home, credit and self-esteem.

#6: Understand Creative Financing Options! Sometimes, conventional/normal-refinancing channels
(banks, credit unions, mortgage brokers) just won't work out for some reason or other. We're now
going to quickly take you through some various "creative financing" options. Take note of the different
alternatives available to save your home!
As usual, make sure you get all the information you need to make the right decisions, before
you take any action! There's a bunch of ways to generate the money you need to refinance a
home!

#7: Protect Yourself Legally From Every Angle! Throughout the
foreclosure process, from the first notice of non-payment, all the way to receiving that dreaded
letter from the lender's law firm, I can't stress enough the importance of getting professional help.
You’ll need:
An Attorney: You should have an attorney review the foreclosure filing.
A Financial Planner: Getting financial planning advice before you even consider refinancing is
the best way to go! You want to profitably position yourself for both your short and long term
financial picture. This can't be done without a financial review, and an investigation into creative
options!
A Mortgage Lender: Your mortgage lender should also be motivated and willing to help you
with alternative and creative financing options available.
An Insurance Agent: Don't forget to have the right insurance coverage.

To summarize, success in stopping a foreclosure requires:
Without preparing a "STOP THE FORECLOSURE!" plan, in my opinion, you'll have
a very small chance of ever getting what you want! Or, you may find yourself settling for less
because you didn't know of, or thoroughly understand all the options that are available to you.
As you can tell, curing a foreclosure requires a plan...and a team. A team of professionals who
work FOR you, who can help you set up, and implement your coordinated plan!

Curing Foreclosure & Saving Credit Errors!

You should now understand that there are many, many critical factors in determining the
fate of your home ownership. There are also critical errors being made everyday, such as:

• Not understanding creative financing
• Not being aware of hidden costs
• Not asking the right questions
• Paying too much interest over the life of the loan
• Listening to the wrong people and misleading suggestions on what you should do
• Seeing only short term financial options...instead of long term too
• Not having proper professional help!

I hope you have realized all the different elements involved in refinancing your home during
this time of crisis. Most of all, I hope you will now know how to avoid these costly mistakes,
and save yourself thousands of dollars!

As much as I would have liked to tell you that curing a foreclosure is a simple experience and
takes no skill or knowledge, I simply can't do that to you! You must be observant, open to ideas,
and plan the best moves to save your credit and your home from the inevitable!

A FREE Review

For everyone who requests this Free Report, I also offer a FREE, no obligation review of
your situation. I will ask you some questions about how you feel about your current situation,
and where you'd like to go, and see if there's anything I can do to help you. We can look at the
various refinancing options available in your situation, as well as alternatives to refinancing that
may be more advantageous in your circumstances. If you have decided that you don't want to
refinance and are ready to move on, I, or my investment group, may be interested in buying your
home. We have been buying, selling, and leasing homes in North Central Florida for many
years. Our group and affiliates have bought, sold and leased literally hundreds of homes. With
your property, I'll probably be able to structure several options, and let you choose the one that
best suits your needs.

I will NOT try to "sell" you anything! As you can probably tell from this report, that's
not my purpose. All I do is see if I can offer help and advice, and you decide where to go from
there. If there is nothing I can do, I will tell you so, and that will be that. If I think you're in fine
shape, I'll tell you that. If I think you're heading into one of the biggest disasters I've ever seen
and need immediate attention, I'll tell you that as well.

You see, with all the people I assist, I only want to work with those people I can really
help and that really want to be helped. I'm never interested in taking new clients if they aren't
exactly right for me...and if I'm not exactly right for them.

In all honesty, I have been able to overcome just about every obstacle for success, both
for my clients, and myself except one: PROCRASTINATION...an enemy that is sure to kill you
financially faster than anything else! As they say, "nothing will ever happen, unless you make it
happen yourself!"

It Will Only Take 30 Minutes….

All it takes is simply a half hour or so for us to meet, to listen to what you want to accomplish,
and to weigh your options! Then, whenever you are ready, you'll know that you have
a set plan to follow. You will not fall into the "not planning to fail...failing to plan" syndrome
after your situation has been diagnosed!

If you want to take me up on a free consultation, then please take a moment to give me a
call. If you're not interested in doing so, then I hope you've learned enough about the refinancing
process to know to make the right decisions.

If you want to come in for the FREE review, then contact my office and we will schedule
a convenient time. After all, a phone call can't hurt, especially if you discover one, if not many
ways to fix what I must assume is a tremendous burden on you and your family.

Just do yourself one favor, and don't let procrastination, or skepticism, or anything else
keep you from finding out the most possibilities before you possibly lose your home! The more
information you have, the better you can make the best decision!

Whenever you're ready, just pick up the phone and call the office at 877-289-9264
and ask for Kenny. All I ask is that you prepare yourself to learn all there is to
know before giving up!  That's it.  Pretty simple request, isn't it?  At that point, you'll be well
prepared to make a decision.

All I can do is take a good hard look at your current situation, and help you in finding the
best paths possible to getting what you want! I can't help you if I don't hear from you, so call
for your FREE review today! Thanks, and I look forward to talking with you!

Sincerely,

Kenny Wagner

P.S. Whether you decide to refinance or not, be sure to call for your FREE review and consultation.
In order to make the right decisions, make sure you get the right information before making
any moves!

P.P.S. Think about this: If you only use one method from over the dozen of ways to save money
when refinancing your home, wouldn't a half hour of your time for a thorough review be worth
it? The return on your time invested is enormous! If you only use one technique, the one that
saves you tens of thousand of dollars on your mortgage, think about the money to be saved with
two, four, twelve or more of the money-saving strategies I will be glad to share with you!

Whether you are looking at a Seattle Short Sale, Bellevue Short Sale, Las Vegas Short Sale, San Diego Short Sale or Los Angeles Short Sale...a short sale is a short sale is a short sale.

A Short Sale is when a lender accepts less than what the balance of a loan is. This is usually done to avoid having to foreclose on a home and incur further losses. A short sale is only completed and approved when it benefits the lender financially. They have come to the conclusion through their own due diligence that they would get most of their money they loaned out by accepting a short sale offer vs. selling at auction and/or taking the risk of having to own it as an REO - Real Estate Owned property which means them having to resell it a tremendous loss which is averaging about $60,000 nationally.

This blog is meant to enlighten homeowners, Real Estate Agents, Mortgage Brokers and Investors about short sales. The in & outs, pros & cons and how to ultimately navigate through the intracacies of a short sale so it's a win win win win for all parties involved.

Here's to providing accurate information and better understanding for all with the hopes of ultimately helping the homeowner who is dealing with a short sale.

Best,

Kenny Wagner

Short Sale Specialist / Investor