1. The Secret The Real Money in Real Estate is Made ! ON THE FRONT END! Buy it Right, below the Actual Current Retail Market Value. Then Decide if you want to sell it for a profit, hold it as an investment to rent, or make it your own home.

2. Foreclosures Disclaimer The information contained within is provided as a general overview of foreclosures and is not guaranteed for accuracy. Any investor should do their own due diligence. An accountant or attorney should be contacted before making any investment decisions.

3. What is a Foreclosure? Foreclosure is the process for enforcing lender rights once the obligation secured by a deed of trust is in default. Who is involved? Simplistically, four people: Trustor – Borrower Beneficiary – Lender Trustee – Attorney, Escrow Agent to ensure the agreement between the Trustor & Beneficiary is correctly carried out Buyer of Foreclosed Properties Who is involved? Simplistically, four people: Trustor – Borrower Beneficiary – Lender Trustee – Attorney, Escrow Agent to ensure the agreement between the Trustor & Beneficiary is correctly carried out Buyer of Foreclosed Properties Foreclosures

4. The note, deed of trust and information on the default are forwarded to the trustee. The notice of default and other necessary documents are prepared. The notice of default is then recorded and the foreclosure time line begins. What is the Process? Foreclosures 1. Initial Steps

5. A Trustee Sale Guaranty (TSG) is ordered from a title company. The required 10 day and one month legal mailings are sent to the borrower and the junior lien holders. If the loan has not been reinstated or paid off within the three month default period, the lender then authorizes the next step in the foreclosure proceedings. Foreclosures 2. Default Period

6. The trustee will prepare, record and arrange to post the notice of trustees sale. The notice of trustee’s sale must be published once a week for three consecutive weeks in a newspaper of general circulation near the property location. The borrower or junior lien holder may reinstate the loan at any time up to five business days before the sale date. If the loan has not been reinstated prior to five business days before the sale, the beneficiary may demand that the entire unpaid obligation be paid in full during that five day period. 3. Publication Period Foreclosures

7. There are many reasons why a trustee’s sale may be postponed. As an example, a bankruptcy or other legal proceedings may prevent the trustee from conducting the sale on the scheduled date. The beneficiary is entitled to three separate postponements for their own reasons. The beneficiary and the property owner can agree on as many postponements as they wish. If there is a bankruptcy or legal proceeding, the sale can be postponed as many times an necessary to obtain a court order to allow the sale to take place. If a sale is postponed for any reason, an announcement must be made at the sale location as to the reason for the postponement as well as the next sale date. Foreclosures 4. Postponement

8. 5. The Trustee’s Sale The date of the trustees sale is established at the time of the Notice of Trustees Sale is prepared. The trustee’s sale is a public auction sale and is open to all qualified bidders. Bids are made orally and everyone who wants to bid must first qualify with the auctioneer by showing the amount and type of money intended to be used in the event of a successful bid. The Notice of Trustee’s Sales designates the type of funds required, usually cash, cashier's check, or bank check. The acceptance of the bid is not final until the total amount is paid to the auctioneer by the highest bidder. The beneficiary does not need any money to make the opening bid. However, if the lender plans to bid over the opening bid he must have enough money to pay the difference between the amount of his balance due in his final bid. The sale is complete when the highest bid is received and the auctioneer accepts and declares the property sold. Foreclosures

9. 6. Post Sale A Trustees Deed Upon Sale is prepared after the sale is completed. This deed transfers title to the successful bidder or beneficiary. The deed must be signed by the trustee, acknowledged by a notary public and recorded. After the deed has been recorded it is forwarded to the party who purchased the property at the Trustees Sale auction. There is no right of redemption after a trustee’s sale. The successful bidder is entitled to immediate possession of the property. The only exception is the right of the federal government (IRS) to redeem the property, if a federal tax lien has been recorded against the property and is subsequent (junior to) to the deed of trust being foreclosed. In this case, the government must reimburse the successful bidder, with a full payoff with of the amount the bidder paid at auction, plus interest calculated for the period of the bidders ownership. Note: a senior lien by the federal government must be satisfied like any other senior lien and does not become discharged by a trustee’s sale. The federal government (IRS) redemption rights elapse four months after the Trustees Sale. The state has no right of redemption. Foreclosures

10. 7. Foreclosure and Trustee’s Sale Timeline Day Number Day 1 Within 10 business days After 3 months 25 days before the sale date 20 days before the sale date 14 days before the sale date 7 days before the sale date 5 business days before the sale date Sale date Event Record Notice of Default Mail Notice of Default Set Sale Date Send notice of sale to IRS Publish, post, mail Notice of Sale Record Notice of Sale Trustee cannot sell for 7 days after expiration of court order Right of borrower to reinstate ends Sold at Trustee’s Sale Foreclosures

11. 8. Remodel The Property Foreclosures 9. List The Property 10. Sell The Property

12. The Foreclosure Problem! Foreclosures Here’s The Problem There are so many foreclosure opportunities, you will quickly become overwhelmed with data, records, and property information. Data services merely provide “raw” data. You need to analyze all of that information. Your eyes will quickly begin to gloss over from the reams of data you will have to read, sort, categorize, and finally, analyze and evaluate. The Natural barriers to foreclosure purchases are Knowledge – Time – Money The following is a breakdown of the activities involved in the foreclosures process

13. Foreclosures The following is a breakdown of the activities involved in the foreclosures process ActivityTotal Time %Hrs/Week Find & Research65%30 Evaluate – Bid – Buy11%24 Remodel15%40 (As Needed) Accounting2%2 Sale7%10

14. Foreclosures There are many investors out there who have investment capital and would love to buy a foreclosure property versus watching their nest egg dwindle away on Wall Street, or sit in a low interest bearing savings instrument. Foreclosure sales are not done on credit. All sales require liquid capital to match the purchase price. Once you have successfully identified a property, its risks, reward, and equity potential, you find it to be a real deal, then,to buy it, you must step up and pay cash. This is where the money comes in, and is a large barrier to entry for most.

15. Foreclosures Today There are many reasons for loan defaults and foreclosures. Certainly the current economic slowdown has stretched some leveraged owners. But much of the activity has been caused by the current trend of no money down loans, programs such as Nehemiah and Neighborhood Gold, inflated appraisal values and the increased use of 2 nd mortgages. Deaths and divorces are also common culprits as well as cash out re-fi’s.

16. Foreclosures The trick in buying foreclosures is to quickly identify and focus your time and energy on the real deals with real equity in them. Have you ever wondered how some people always seem to show up in the right places and make the right deals? Knowledge is Power. Remember, the real money in real estate is made on the front end. Buy it right, below the actual current retail market value. Then decide if you want to sell it for a profit, hold it for an investment to rent, or make it your own home!

17. Our Company Our company has people who specialize in the Research – Purchase – Remodel & Sale of foreclosed properties. We will be the horsepower, searching and sifting through the endless mountains of foreclosure data, lists, records, market analysis, becoming your crystal ball to quickly and easily identify properties which could yield potential equity. Properties that could make a nice profit. Properties Worth Buying.

18. Our Company Now you can buy or participate in the equity potential of foreclosure properties. Participate at significant discounts below their normal market values, without the countless hours of leg work, research, remodeling and sale efforts needed to track down and qualify the hundreds of foreclosure opportunities available. Welcome to Utah Foreclosure Data.com