Short Sale Notes

Silicon Valley REO Jason C. Lee 408 998 1300 www.svreo.com Jason@svreo.com

Months Of Inventory Oct. 2007 45.0 40.0

39.2 38.4

35.0 30.0 25.0 20.0 15.0 10.0 5.0 0.0

25.4 25.0

23.0 20.2 19.7 19.0 11.7 11.5 7.2 7.0 6.8 5.6 5.0 4.6 4.3 3.6 3.3

1.5

Months Of Inventory October 2008 20.0 18.0 16.0

17.3 15.9 15.4

14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0

10.4 8.4 8.2 8.1 7.9 7.8 7.5 7.4 7.1 6.6 6.1 6.0 5.8 5.2 4.5 4.4 4.3

Months Of Inventory Oct. 2009 12.0 10.0 8.0 6.0

9.7 6.9 5.3 5.2 4.3

4.0 2.0 0.0

3.8 3.8

3.2 3.1 3.1 3.0 3.0 3.0 2.6 2.5 2.5 2.4 2.4 2.4

1.6

7000

Mar-98 Jun-98 Sep-98 Dec-98 Mar-99 Jun-99 Sep-99 Dec-99 Mar-00 Jun-00 Sep-00 Dec-00 Mar-01 Jun-01 Sep-01 Dec-01 Mar-02 Jun-02 Sep-02 Dec-02 Mar-03 Jun-03 Sep-03 Dec-03 Mar-04 Jun-04 Sep-04 Dec-04 Mar-05 Jun-05 Sep-05 Dec-05 Mar-06 Jun-06 Sep-06 Dec-06 Mar-07 Jun-07 Sep-07 Dec-07 Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09

Santa Clara County Mar. 1998 - Oct. 2009 Current Inventory

6000

5000

4000

3000

2000

1000

0

7000

Mar-98 Jun-98 Sep-98 Dec-98 Mar-99 Jun-99 Sep-99 Dec-99 Mar-00 Jun-00 Sep-00 Dec-00 Mar-01 Jun-01 Sep-01 Dec-01 Mar-02 Jun-02 Sep-02 Dec-02 Mar-03 Jun-03 Sep-03 Dec-03 Mar-04 Jun-04 Sep-04 Dec-04 Mar-05 Jun-05 Sep-05 Dec-05 Mar-06 Jun-06 Sep-06 Dec-06 Mar-07 Jun-07 Sep-07 Dec-07 Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09

Santa Clara County Mar. 1998 - Oct. 2009 Closed Sales Current Inventory

6000

5000

4000

3000

2000

1000

0

7000

Mar-98 Jun-98 Sep-98 Dec-98 Mar-99 Jun-99 Sep-99 Dec-99 Mar-00 Jun-00 Sep-00 Dec-00 Mar-01 Jun-01 Sep-01 Dec-01 Mar-02 Jun-02 Sep-02 Dec-02 Mar-03 Jun-03 Sep-03 Dec-03 Mar-04 Jun-04 Sep-04 Dec-04 Mar-05 Jun-05 Sep-05 Dec-05 Mar-06 Jun-06 Sep-06 Dec-06 Mar-07 Jun-07 Sep-07 Dec-07 Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09

Santa Clara County Mar. 1998 - Oct. 2009 Closed Sales Current Inventory Average Sales Price

4000

3000 1,050,000

6000 950,000

5000 850,000

750,000

650,000

2000 550,000

1000 450,000

0 350,000

Santa Clara County Jan. 7th, 2009 3500 3151 3000 2500 2000

1818

1500 1156 1000

760

797

858

847 489

500

201

0 Active Pending Sold last 60 Days Bank Owned

Active Pending Sold last 60 Days Short Sales

Active Pending Sold last 60 Days Regular

Santa Clara County November 16, 2009 3000 2622

2583 2500 2000

1739 1500

1270

1000 741 503

500

659

546

224 0 Active Pending Sold last 60 Days Bank Owned

Active Pending Sold last 60 Days Short Sales

Active Pending Sold last 60 Days Regular

Santa Clara County Jan. 7th, 2009 4000

3151

3000 2000

1818 1156

1000

760

858

797

489

201

847

0 Active Pending Sold last 60 Days

Active Pending Sold last 60 Days

Bank Owned

Active Pending Sold last 60 Days

Short Sales

Regular

Santa Clara County November 16, 2009 3000 2500 2000 1500 1000 500 0

2622

2583

1739 1270 224

503

741

Active Pending Sold last 60 Days Bank Owned

659

546

Active Pending Sold last 60 Days Short Sales

Active Pending Sold last 60 Days Regular

4/19/2007 5/10/2007 5/31/2007 6/21/2007 7/12/2007 8/2/2007 8/23/2007 9/13/2007 10/4/2007 10/25/2007 11/15/2007 12/6/2007 12/27/2007 1/17/2008 2/7/2008 2/28/2008 3/20/2008 4/10/2008 5/1/2008 5/22/2008 6/12/2008 7/3/2008 7/24/2008 8/14/2008 9/4/2008 9/25/2008 10/16/2008 11/6/2008 11/27/2008 12/18/2008 1/8/2009 1/29/2009 2/19/2009 3/12/2009 4/2/2009 4/23/2009 5/14/2009 6/4/2009 6/25/2009 7/16/2009 8/6/2009 8/27/2009 9/17/2009 10/8/2009 10/29/2009

Santa Clara County Apr. 5, 2007 – Nov. 12, 2009

REO NOD

450

400

350

300

250

200

150

100

50

0

12-Nov-2009 Notices New of Trustee Default: Sales:

REOs

SOLD

173

158

69

23

Year to date:

11750

10156

2507

478

2008 YTD:

10518

6990

6415

265

This Week:

Mar-98 May-98 Jul-98 Sep-98 Nov-98 Jan-99 Mar-99 May-99 Jul-99 Sep-99 Nov-99 Jan-00 Mar-00 May-00 Jul-00 Sep-00 Nov-00 Jan-01 Mar-01 May-01 Jul-01 Sep-01 Nov-01 Jan-02 Mar-02 May-02 Jul-02 Sep-02 Nov-02 Jan-03 Mar-03 May-03 Jul-03 Sep-03 Nov-03 Jan-04 Mar-04 May-04 Jul-04 Sep-04 Nov-04 Jan-05 Mar-05 May-05 Jul-05 Sep-05 Nov-05 Jan-06 Mar-06 May-06 Jul-06 Sep-06 Nov-06 Jan-07 Mar-07 May-07 Jul-07 Sep-07 Nov-07 Jan-08 Mar-08 May-08 Jul-08 Sep-08 Nov-08 Jan-09 Mar-09 May-09 Jul-09 Sep-09

Santa Clara County Mar. 1998 - Oct. 2009 30 Years Rate Average Sales Price

8.7 1,050,000

8.2 950,000

7.7 850,000

7.2 750,000

6.7 650,000

6.2

5.7 550,000

5.2 450,000

4.7 350,000

Santa Clara County Jan. 7th, 2009 4000

3151

3000 2000

1818 1156

1000

760

858

797

489

201

847

0 Active Pending Sold last 60 Days

Active Pending Sold last 60 Days

Bank Owned

Active Pending Sold last 60 Days

Short Sales

Regular

Santa Clara County November 16, 2009 3000 2500 2000 1500 1000 500 0

2622

2583

1739 1270 224

503

741

Active Pending Sold last 60 Days Bank Owned

659

546

Active Pending Sold last 60 Days Short Sales

Active Pending Sold last 60 Days Regular

California Civil Code Sections 1695 The property is residential one-to-four units, and The owner currently resides in at least one of those units, and An NOD (Notice of Default) has been recorded against the property, and The buyer does not intend to live in the property (i.e., the buyer is an investor).

Short Sale Practice •Realtor Short Sale Vs. Investor Short Sale •HUD-1 Vs. Netsheet •Success Rate •What Short Sale Is and What It Is Not •At the lenders discretion •Not an entitlement •Short Sale Documents

Short Sale Practice •Short Sale Process •Common Short Sale Mistakes •Top 10 List •Listing agents and Negotiators •Home owners •Buyers and Investors •Changes in Short Sale Processing •Government Mandate •Lenders and their investors