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SHORT SALE PROGRAM AND ROLL-OUT PROPOSAL

SHORT SALE PROGRAM AND ROLL-OUT PROPOSAL. Why Eureka?. E F P is a buyer - not a mitigator - who purchases and re-sells the property which is a clear benefit to the sellers Operating under Full Disclosure, including public records

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SHORT SALE PROGRAM AND ROLL-OUT PROPOSAL

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  1. SHORT SALE PROGRAM AND ROLL-OUT PROPOSAL

  2. Why Eureka? • EFP is a buyer - not a mitigator - who purchases and re-sells the property which is a clear benefit to the sellers • Operating under Full Disclosure, including public records • Guarantees full commission to agent and takes away the burden of dealing with banks • EFP’s sister company (Tour Estates) is an international real estate company with potential clients for the Naples market • EFP’s business goal to grow to an Asset Management company. The growth through short sales are mutual benefits for both the brokerage and Eureka.

  3. Eureka Realty NetworkRevitalizing the distressed real estate market one property at a time • Recognizes the important role that the private investors not bounded by lending and banking regulations can play in the imploding US housing market. • Operates short sale business in Austin, Dallas, Houston, Las Vegas, Naples, Palm Springs, San Antonio and San Francisco in he San Francisco Bay area • One of its key task is to establish programs with brokerages to improve the efficiency of traditional short sales • First program is rolling out in at Keller Williams’ Austin office. Additional beta and roll out plan being discussed with Realty Executives in Nevada • Eureka Funding Partners (EFP) is the operating entity managing the program

  4. ADDED VALUES by EFP For the SELLERS Gets seller out of the property; greatly reduces the risk of foreclosure For the AGENTS Eliminates the burden of negotiating with banks, 3-7% commission* For the BANKS Taking the property (non-performing asset) off the books For the END BUYERS Discounted price; reduces the waiting/approval time FOR ALL INVOLVED PARTIES Significantly improved marketability  NOT MARKETED AS SHORT SALE * With EFP closing the transaction

  5. Full Disclosure • To the Seller “The sales agreement also states that I am giving the Buyer the rights to immediately list for sale, market, negotiate and enter into a contract to sell the property immediately to a third party and that all documentation in connection to the sale will be made available at the request of all Lenders and Buyers involved in the transactions.” • To the short selling lender and TO THE PUBLIC “SELLER hereby grants the Buyer and/or their representatives all of the necessary rights to list for sale, market, negotiate and enter into a contract to sell or lease the property to a third party. It is the intention of the buyer to procure a third party purchaser at a price greater than this purchase price as a condition precedent to exercising this option since Buyer intends to promptly resell the property for a profit.” • To the buyer “This property is in pre-foreclosure and liens on title are being negotiated by a 3rd Party. This contract is contingent on a 3rd party clearing title and must close to the seller's satisfaction. Buyer/Seller understands that the amount of time necessary to negotiate a reduction in payoff amounts from each secured lien holder is unknown, that the closing and title transfer dates stated in the offer to purchase may require an extension of time.”

  6. Eureka FundingPartners (EFP)Responsibilities • Manage 100% of the short sale process including but not limited to: • Submitting Short Sale package • Negotiating Short Sale • Value Justification • Coordinating Closing • Funding transaction with short selling lender • To Seller • Collect all paperwork to complete short sale package • Minimize the deficiency and unsecured debt responsibility • Full disclosure • To Realtor • Set up account, access to software to generate repair report • Provide Contract package to Seller • Response to offers within 24hrs • To Short Selling Lender • Submit Short Sale package • Negotiate Short Sale • Cash funding at closing

  7. Implementation Test phase – 1st and 2nd Month Asset manager BPO agent Negotiator Processor 2-3 listing agent interested to work in the program and skilled in short sale Roll-out – 3rd to 6th Month Training is required to participate in the program Live and written training material to be provided Local processor* * Timing to be defined

  8. Step 1 - Qualification and Opening File I Listing Agent Qualifies Homeowner (Confirms Investor Short Sale is Best Option) 1 – 3 Days Listing Agent Submits Property www.napleshortsalecenter.com/realtors 1 – 3 Days Listing Agent Contacts Team BPO Agent to Start BPO 1 – 3 Days Team BPO Agent Analysis Property BPO to Listing Agent & Eureka Asset Manager Pictures/Virtual Tour Repair List (Software Provided) 3 – 4 Days

  9. Step 1 - Qualification and Opening File II Eureka Sends Purchase Offer To Listing Agent 5 – 6 Days Y/N response within 48hrs (See qualification guideline) Realtor Goes To Listing Appointment Within 24 Hrs And Has All Paperwork Signed With Completed Diligence and Marketing Plan Realtor Emails/Faxes Package to Processor And puts ALL Originals(See Agent Check List) In OVERNIGHT package to: Sara Havelka c/o Karla Jordan 101 E. Old Settlers Blvd. #190 Round Rock , TX 78664

  10. Step 2 – BPO Meeting(ordered by Lender) Team BPO Agent to meet Bank’s BPO Agent/Appraiser Before BPO access to property through combination key box Give Copies of the Documents to Bank’s BPO Agent/Appraiser Offer letter Comparables Repairs BPO

  11. Step 3 – Identify Buyer & CLOSE “Coming Soon” Typically before BPO, not listed on MLS yet Communicate traffic to EFP Asset Manager Response to offers within 24 hrs Listing on MLS Property will go on MLS after lender has approved short sale or at EFP Asset Manager Discretion Attend Closing Collect Check! * Negotiation is done by the Mosaic Loss Mitigation, the mitigation department of EFP

  12. Short Sale Qualification Guidelines • SELLER • Is the main objective for the seller to sell the property without expecting proceeds from transaction? (Lenders will not allow seller to receive money from the sale) • Does the seller have NO other alternatives to foreclosure (e.g. no 401K accounts)? • Is the seller cooperative, willing to move? • PROPERTY • - Is the house overleveraged? • - Is foreclosure more than 10 days away? • Does the house have more than one mortgage on it? • Is it a single family or commercial building?* • Is the house “pretty” and can it be sold within 30 days if the price is dropped by 20% ? • Is the house unconventional, obsolete, uniquely located (highway, cemetery etc.) or plain “Ugly”? • * Will consider condo with over $150K second lien

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