RealtyTrac Vice President Daren Blomquist walks through the basics of foreclosure, from how the process works to the three foreclosure-buying opportunities and the five steps to buying a foreclosure. He also goes through a live demo of the RealtyTrac subscription website, showing off some of the powerful functionality and tools available to RealtyTrac members.

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 – over 2 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
– Less than 30% 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 33% in first quarter
– Short sales sold at a 21% discount
• Many properties in excellent condition
• 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 21 percent in first quarter
• More than 400,000 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 315,000 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
• 634,000 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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