Cartus Asset Recovery Announces: SunTrust Short Sale Program. P r e s e n ter:

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1 Cartus Asset Recovery Announces: SunTrust Short Sale Program P r e s e n ter: Jeff Buckley, D irector C artus Broker Services

2 About SunTrust Leading financial services holding company with more than $170 billion in assets #8 Nationally mortgage servicing Heavy concentration in the southeastern states With branches located primarily in FL, GA, MD, NC, SC, TN, VA, WV and DC 2

3 Why Short Sales - Benefits to Financial Institutions Saves costs of: Foreclosing Selling a distressed property at a low price Extended property maintenance Removes a non-performing asset from its books Reduces reserve capital requirements Frees up funds for other investments 3

4 Why Short Sale - Benefits to the Customer Minimize adverse impact on his/her credit Alleviates a stressful financial situation Offers a means of transitioning to a more affordable, long term housing solution Faster transaction than awaiting foreclosure proceedings Provide a graceful exit for the customer 4

5 Why Short Sale - Benefits to the Broker New stream of referrals Commission is paid at reasonable and customary rate Enable a clear and transparent Short Sale process for Agents and sellers Cartus managing marketing and negotiation process with in lender guidelines Cartus facilitates short sale approval with lender 5

6 Agent Requirements Must be trained on SunTrust Short Sale and understand the process Must be a full time residential Real Estate Agent Must have strong influencing skills Must be able to provide an accurate and timely Broker Price Opinion (BPO) Must agree to follow the strict operating procedures and complete all reports in the required timeframes 6

7 Initiation Process Cartus will receive authorizations from SunTrust for Customers identified as potentially benefiting from the program. There are two ways a Customer is initiated into the program. Path One Cartus Initiates Contact Path Two Door Knock Services (Agent Initiates Contact) 7

8 Path One - Cartus Role in Initiation Process Explain program and gauge interest and initiate/welcome customer to program Review listing, marketing and short sale process Review independent Broker s Price Opinion Review document requirements Position Network Place referral Mail The SunTrust Short Sale Welcome Package 8

9 Path One Agent Role in Listing the Property Once the Cartus Asset Recovery Consultant (ARC) makes contact and obtains permission to proceed, they will place referral requesting agent assignment to list the property Assigned agent to make contact with customer to list the property Explain agents role Explain the BPO Process Complete BPO for marketing purposes Set next steps for listing the property 9

10 Path Two Door Knock Service Cartus consultant unable to make contact Door knock ordered by Cartus Search MLS to ensure not listed Door Knock - Three attempts to make face to face contact with the Customer to introduce the Short Sale program. 1. Introduce Cartus Asset Recovery, client and the Short Sale program 2. Provide the Customer with the sample The SunTrust Short Sale Welcome Package 3. Utilize the Door Knock Agent Scripting Highlight the benefits to the Customer of working with Cartus and your firm No cost to customer Goal: Customer to agree to move forward with program 10

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12 Door Knock Process 12

13 Door Knock What you will need Adobe Acrobat Reader (free) Door Knock Report from your relocation department Sample Welcome Introduction Package Recommended Door Knock Script 13

14 A picture is worth a thousand words! Please upload a date stamped digital photo of the front of the property. If the property is listed, do not attempt the door knock. Report listing information and submit template to the relocation department. Document if contact is made with anyone including the borrower, family members, tenants or neighbors using the Contact Made field and provide details of the interaction in the comments section. Right Party Contact with the borrower is the Goal! Document if Right Party Contact is made and provide details in comments. Right Party Contact is defined as contact with the borrower listed on the referral. Enter the date of the first, second and third attempts to reach the borrower Select the most appropriate status/result for the Door Knock Attempt from the drop down list Enter the Total Attempts you have made to contact the customer. Include as much detail as possible in the comments section including; date and time attempt made, details on contact made if any, alternative contact information for the customer if obtained, condition of the property, demeanor of the customer, etc. Select No if this is your final attempt. This will notify Cartus you have completed the assignment. For example, if you made one attempt and the property is clearly abandoned, you do not need to make a second attempt. Or, if for some reason you are making more than three attempts, notify us in the update that you will be revisiting the property. 14

15 New Functionality in Broker Center 15

16 Enter Listing Information 16

17 Enter Door Knock Update

18 The SunTrust Short Sale Welcome Package Cover letter Frequently Asked Questions STM Financial Form Request for Assistance (RFA) 4506T Form Acknowledgement and Notice Authorization to Release Information Broker Direction Clause Affidavits of Arms Length Transaction Federal Disclosure 18

19 Broker s Price Opinion (BPO) Goal: Obtain an objective, expert opinion of the value and condition of the property Utilize the Cartus BPO form Submit to AssetRecoveryBPO@cartus.com with in 3 days of appointment All sections of the form must be completely and accurately filled in Include 3 listing and 3 sale comparables Identify the marketing strategy and target buyer Present a list of recommended repairs Provide both As-Is and As Repaired values 19

20 Listing Agreement Utilize local listing agreement Executed between customer and broker Must execute Broker Direction Clause 20

21 Independent Broker Price Opinion (BPO) Establishes investor minimum net proceeds Critical influence on the process Critical in mitigating credit losses Critical in setting marketing strategy Critical in negotiating sales Critical in measuring Cartus and brokers performance 21

22 Marketing the Property Customer listed as seller Do not refer to property as bank owned, REO, foreclosure, or short sale in the comments Marketing Updates are due every 25 days from listing date You will work with the Asset Recovery Consultant (ARC) responsible for marketing the home 22

23 Offer Negotiating Utilize local real estate contract Buyer and seller negotiate terms Bring Cartus into the negotiation process when an offer is received Must include any required disclosures (i.e., state, lead paint) Seller signs contract Broker must submit a preliminary HUD when fully negotiated contract is presented to Cartus The sale must be made subject to review and approval of the investor and include the statutory language; This transaction is subject to the approval of all mortgage holders. If all mortgage holder s approval are not received, this contract shall be considered terminated and of no further force or effect and buyer s earnest money deposit shall be returned to the Buyer without interest or penalty. Notify Cartus who the closing agent/attorney will be 23

24 Sale Package Requirements for Offer Submission Fully Executed Listing Agreement Executed/signed purchase contract Estimated HUD Settlement statement Affidavits of arms length transaction Buyer, Seller, Buyer Agent, Seller Agent 24

25 Facilitate Release of Junior Liens Cartus will work with the borrower and agent to obtain release of junior liens Any re-negotiation of sale terms will require a revised preliminary HUD and investor approval Cartus obtains approval letters from secondary lien holders Releases are sent to the closer after closing when liens are paid 25

26 Sale Approval Delegated vs. non-delegated Issues sale approval letter including investor conditions Promissory Note, or Deficiency Waiver (if applicable) Seller Cash Contribution at closing Expiration (close by) date Secondary lien payoffs Approval letter sent to borrower, listing agent and closing agent 26

27 Closing Cartus Closing Team manages all closings Local customs dictates closing agent/title/attorney Cartus must review and approve the final HUD before closing Notify Cartus immediately upon closing Agent to notify relocation and provide copy of the signed HUD Relocation to update Broker Center with Final Sale information Remit referral fees to: Cartus Corporation Dept CH Palatine, IL