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About  the  Speaker  

»  Aaron  Lebovic  is  a  third  genera3on  real  estate  investor.    He  graduated  from  the  

University  of  Denver  in  March  of  2002  with  a  BS  in  Business  Administra3on  and  a   Major  in  Finance  and  Marke3ng.  

»  Nego3ated,  managed,  and  coordinated  over  130  real  estate  transac3ons  in  4  states,  

totaling  over  $23  Million  in  value.  

»  Aaron  is  a  licensed  Colorado  Real  Estate  Broker,  holding  his  license  at  Your  Castle  Real  

Estate,  and  was  a  Director  at  the  Denver  Metro  Associa3on  of  Realtors  ‘10-­‐’12.  

»  Aaron  is  co-­‐owner  of  www.RENAV.com,  a  source  for  short  sale,  foreclosure,  and  REO  

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About  the  Speaker  (con3nued)  

»  Buy  &  Sell  as-­‐is  

»  Buy,  Fix,  &  Sell  

»  Buy  &  hold  

»  Hard  money  lender  

»  Mul3ple  forms  of  partnership  

Money  partner,  working  partner,  half/half  

 

Aaron  Lebovic  is  not  an  AZorney,  Mortgage  Broker,  or  CPA.    He  is  a  

broker  and    investor,  and  this  is  all  from  an  investor’s  perspec3ve.  No   legal  or  financial  advice  is  given  or  implied.  

 

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Talking  Points  

1.

Defini3ons  

2.

Timeline  

3.

Resources  

4.

Preparing  to  bid  

5.

Bidding  at  the  auc3on  

6.

Risks  of  buying  at  the  auc3on  

7.

Ways  to  protect  yourself  

8.

Sta3s3cs  

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Defini3ons  

No?ce  of  Elec?on  and  Demand  (NED):  

WriZen  no3ce  that  a  lender  is  elec3ng  to  foreclose  on  its  deed  of  trust   and  a  demand  that  the  public  trustee  sell  the  subject  property  at  public   sale.  The  lender  starts  the  foreclosure  process  by  filing  this  document   with  the  public  trustee  who  then  records  it  with  the  county  clerk  and   recorder.  

 

Bank  Bid:  

Opening  bid  amount  determined  by  the  Lender  as  a  minimum  amount  it   would  accept  at  sale  

   

Cer?ficate  of  Purchase:  

Recorded  with  the  county  clerk  and  recorder  within  5  business  days  aeer   the  sale  in  the  name  of  the  winning  bidder.  It  states  the  3me  and  date  of   the  sale,  the  name  of  the  purchaser,  and  the  purchase  price.  This  is  not  a   deed.  It  can  be  assigned.  

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Defini3ons  

Lien  Posi?on:  

First  in  3me  (recorded),  first  in  line.   Example:  

1st  =  January  ‘09  -­‐  $200,000  deed  of  trust  

2nd  =  April  ‘09  -­‐  $10,000  deed  of  trust  

3rd  =  May  ‘10  -­‐  $20,000  mechanics  lien  

 

Redemp?on:  

A  junior  lien  holder  can  protect  its  interest  in  the  property  by  paying   off  the  auc3on  buyer  and  then  owning  the  property  (or  paying  any   senior  junior  liens  who  redeemed).  

 

Note  –  for  junior  lien  holder  redemp3on  rights,  most  liens  must  be  valid  &  recorded   prior  to  the  NED  (there  are  some  excep3ons).    

 

This class only discusses the Colorado process and Public Trustee Foreclosures and NED’s filed AFTER 12/31/07

 

   

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Talking  Points  

1.

Defini3ons  

2.

Timeline  

3.

Resources  

4.

Preparing  to  bid  

5.

Bidding  at  the  auc3on  

6.

Risks  of  buying  at  the  auc3on  

7.

Ways  to  protect  yourself  

8.

Sta3s3cs  

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Foreclosure Timeline for NED’s Filed AFTER

12/31/2007

The image cannot be displayed. Your computer may not have enough memory to open the image, or the image may have been corrupted. Restart your computer, and then open the file again. If the red x still appears, you may have to delete the image and then insert it again.

Pre-NED Lienor Redemption Period 1st Junior Lien 2nd Junior Lien 3rd Juninor Lien Public Trustee Sale NED Pre  Foreclosure     Default   Public Trustee records NED

Notice of Intent to Cure Must be filed at least 15 days before Sale

Cure by noon day before sale

Certificate of Purchase issued w/in

5 days of sale

Lienor Intent to Redeem Must be filed within 8 business days after sale

Non-Agricultural Cure Period 110-125 days

Lender can expedite if abandoned

15-­‐19  business    days  

5  business  days  

5  business    days  

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Benefits:

•  Learn about upcoming events and deals. •  See interesting articles that matter to you!

•  Learn about new strategy videos and website enhancements.

Like  us  on  Facebook  

You  could  win  a  $100  gie  card  to    

Home  Depot  

 

(10)

Talking  Points  

1.

Defini3ons  

2.

Timeline  

3.

Resources  

4.

Preparing  to  bid  

5.

Bidding  at  the  auc3on  

6.

Risks  of  buying  at  the  auc3on  

7.

Ways  to  protect  yourself  

8.

Sta3s3cs  

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How  do  I  find  out  what  is  in  foreclosure,  

and  what  is  going  to  auc3on?  

»

New  NED  filings:  

»

County  Public  Trustee  Website  

»

Data  providers  like  Renav.com  and  Realtytrac  

»

Foreclosure  auc?on  BIDS:  

»

County  Public  Trustee  Website  

»

Renav.com  

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Talking  Points  

1.

Defini3ons  

2.

Timeline  

3.

Resources  

4.

Preparing  to  bid  

5.

Bidding  at  the  auc3on  

6.

Risks  of  buying  at  the  auc3on  

7.

Ways  to  protect  yourself  

8.

Sta3s3cs  

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Preparing  to  Bid  

»

Foreclosure  Auc3ons  are  held  weekly  

»

Lender  submits  bid  by  noon  two  business  days  before  auc3on  

»

Public  Trustee  posts  bids  online  around  3pm,  or  service  

providers  will  package  informa3on  in  an  easy  format  within  45  

minutes.  

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Talking  Points  

1.

Defini3ons  

2.

Timeline  

3.

Resources  

4.

Preparing  to  bid  

5.

Bidding  at  the  auc3on  

6.

Risks  of  buying  at  the  auc3on  

7.

Ways  to  protect  yourself  

8.

Sta3s3cs  

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Bidding  at  the  Foreclosure  Auc3on  

(Denver)  

»

Opening  bid  amount  can  be  what  is  owed  or  less.  

»

Lender  can  retract  a  bid  any3me  before  the  auc3on.  

»

Bring  cashiers  check  payable  to  Denver  County  Public  

Trustee  for  at  least  $1  more  than  opening  bid.  

»

Submit  to  Public  Trustee  a  Registra3on  to  Bid  by  9:30am  

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Bidding  at  the  Foreclosure  Auc3on  

(Con3nued)  

»

 Trustee  iden3fies  the  property  

»

 All  bidders  are  confirmed  to  be  present  

»

 The  first  bidder  called  opens  the  bidding  at  $1  over  the  

lenders  bid  

»

   All  registered  bidders  go  around  the  room  one  by  one  

bidding  each  other  up,  un3l  one  at  a  3me  they  drop  out.    

»

   The  highest  increment  that  can  be  bid  is  $2,500  above  the  

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Bidding  at  the  Foreclosure  Auc3on  

(Con3nued)  

»

Winning  Bidder  hands  over  check  immediately.  

 

»

If  winning  bidder  doesn’t  come  in  with  balance  of  overbid  

funds  by  2pm,  an  e-­‐mail  will  be  sent  to  all  other  bidders  by  

around  3pm  to  bring  in  100%  funds  of  their  highest  bid,  and  

highest  bidder  to  show  up  with  check  at  4:30pm  wins  the  

property.  

 

»

A  cer3ficate  of  purchase  is  recorded  in  the  winning  bidders  

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Bidding  at  the  Foreclosure  Auc3on  

(Con3nued)  

»

 

If  no  other  lien  holders  redeem,  the  Public  Trustee  issues  as  Confirma3on   Deed  aeer  the  redemp3on  periods  have  expired.  

»

 

Proceeds  from  sale  are  used  to  pay  the  foreclosing  lender,  junior  liens  and   the  homeowner.  

»   If  a  senior  lien  holder  forecloses  all  junior  lien  holders’  interests  (assuming  

there  is  no  overbid  and/or  no  intent  to  redeem  filed)  are  wiped  off  3tle.  

»   If  a  junior  lien  forecloses,  the  winning  bidder  gets  3tle  subject  to  the  senior  

lien  holder’s  interests.  

Example:  

1st  Lien:  $100,000  

2nd  Lien:  $50,000  

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Real  Estate  Brokers

 

»

Brokers  can  make  a  commission  by  represen3ng  

auc3on  buyers:  

»

Sec3on  7.2  of  Buyer  Agency  Agreement  requires  

purchaser  to  pay  a  “SUCCESS  FEE”  

»

Brokers  can  enter  into  an  agreement  and  invoice  

buyers  for  compensa3on,  just  like  a  doctor  or  

aZorney  would,  and  also  CYA.  

 

(28)

Talking  Points  

1.

Defini3ons  

2.

Timeline  

3.

Resources  

4.

Preparing  to  bid  

5.

Bidding  at  the  auc3on  

6.

Risks  of  buying  at  the  auc3on  

7.

Ways  to  protect  yourself  

8.

Sta3s3cs  

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Risks  of  Buying  at  the  Auc3on

 

»

Sales  are  final.  

»

Title  problems  

»

Evic3on  -­‐  Damage  by  occupants  

»

No  appraisal  or  any  kind  of  inspec3ons  

»

There  might  be  an  unpaid  water  bill,  property  taxes,  city  

viola3ons,  most  previous  6  months  of  HOA  bills,  and  other  local  

(district)  taxing  authori3es  which  are  statutory  and  super-­‐liens  

which  the  auc3on  buyer  MUST  PAY.  

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Risks  of  Buying  at  the  Auc3on  

(Con3nued)  

»  You  buy  in  “as-­‐is”  condi3on.  There  may  be  water  damage,  mold,  

asbestos,  meth  (or  other  bio-­‐hazard),  structural  damage,  broken  sewer   line,  house  may  have  been  guZed  down  to  studs  

»  You  may  overpay  

»  Another  lien  holder  may  redeem  you  out,  in  which  case  you  will  get  

paid  interest  at  the  note  rate,  and  expenses  

»  The  IRS  tax  lien  recorded  at  least  30  days  before  the  auc3on  has  a  

special  redemp3on  period  of  up  to  120  days  aeer  the  auc3on.    Other   Federal  Liens  have  a  One  Year  redemp3on  period.  

»  If  a  junior  lienholder  was  not  serviced  with  Foreclosure  no3ce,  they  

are  an  “omiZed  party”  and  have  special  redemp3on  rights  

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Talking  Points  

1.

Defini3ons  

2.

Timeline  

3.

Resources  

4.

Preparing  to  bid  

5.

Bidding  at  the  auc3on  

6.

Risks  of  buying  at  the  auc3on  

7.

Ways  to  protect  yourself  

8.

Sta3s3cs  

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Protect  Yourself

 

»   Check  the  water  bill,  unpaid  taxes,  HOA  balance,  city  liens  

»     Get  an  O&E  and  a  Title  Commitment  

»     Pull  comparables  from  a  trusted  source    

»     Always  drive  by!  

»     You  are  bidding  on  the  LEGAL  DESCRIPTION  IN  THE  DEED  OF  TRUST  

BEING  FORECLOSED,  not  the  commonly  known  address!  

»     Watch  out  for  divided  duplexes  and  mul3-­‐units  

»     Pay  for  your  Title  Insurance  and  Property  Insurance  IMMEDIATELY  

aeer  purchase  at  the  auc3on  

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Protect  Yourself

 

 

Built  1856  

 

3,106sf  Single  Family  Home  

 

Tax  value  $399,800  

 

Opening  Bid:  $285,000  

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Talking  Points  

1.

Defini3ons  

2.

Timeline  

3.

Resources  

4.

Preparing  to  bid  

5.

Bidding  at  the  auc3on  

6.

Risks  of  buying  at  the  auc3on  

7.

Ways  to  protect  yourself  

8.

Sta3s3cs  

(35)

Sta3s3cs  (Denver  County)

 

»  Scheduled  for  Denver  County  auc?on  in  2012:  

»  3,611  proper3es  were  scheduled  (4,370  in  ‘11)  

»  638  of  the  above  proper3es  sale  dates  were  pushed  from  ‘12  

into  ‘13  

»  1,494  proper3es  actually  went  to  sale  (2,171  in  ‘11)  

»  388  (26%)  were  sold  to  3rd  party  bidders  (74%  of  sales  went  

back  to  the  bank  in  Denver.  82%  in  all  19  coun3es)  

»  3rd  Party  Bids  

»  Of  the  388  proper3es  bought  by  3rd  par3es  in  ’12:  

»  $1-­‐100,000  =  129  bids   »  $100,001  –  200,000  =  190  bids   »  $200,001  -­‐  $300,000  =  46  bids   »  $300,001  -­‐  $400,000  =  14  bids   »  $400,001  -­‐  $500,000  =  5  bids   »  $500,001+  =  4  bids  

 

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How  do  I  get  in  on  these  deals?!?

 

Your  Source  of  SHORT  SALE,  FORECLOSURE,  and  REO  deals!    

Visit  

Renav.com/Promo  

 

Code:  ICOR  

 

10%  off  ANY  subscrip?on!  

Save  every  month  as  long  as  you  con?nue  to  

subscribe  (cancel  any?me)  

OR  prepay  for  6  months  (ADD’L  5%  off)  or  1  year  (ADD’L  10%  off)  for   MORE  SAVINGS!  

 

—  Daily  unlimited  leads  and  property  alerts  

—  Prospec?ng,  market  reports,  and  communica?ons  tools  

 

—  Auc?on  proper?es  that  recently  sold  that  YOU  SHOULD  BE  MAKING  OFFERS  ON!   —  Cancel  any?me!  

(39)

A;end  the  2  day  ICOR  seminar  on  March  23rd  and  March  24th:  

—  Specific  3mes  to  find  deals  before,  at,  and  ader  the  auc?on!  

—  step-­‐by-­‐step  property  qualifica3on  process  

—  specific  ways  to  minimize  risk  including  websites  and  phone  numbers  

—  ways  to  legally  get  inside  of  proper3es  before  auc3on  

—  Junior  Lien  holder  Redemp3on's  -­‐  what,  where,  who,  and  how  

—  borrow  money  and  make  your  lender  protected  the  en3re  3me,  including  lenders  

working  with  Auc3on  buyers.  

 

 

Cost:  

—  $300  for  one  person  

—  $200  per  person  for  a  group  of  2+  that  sign  up  together  

 

Upcoming  Classes  

March  24

TH

,  2013  

DETAILED  FORECLOSURE  CLASS!  

(40)

Benefits:

•  Learn about upcoming events and deals. •  See interesting articles that matter to you!

•  Learn about new strategy videos and website enhancements.

Like  us  on  Facebook

 

You  could  win  a  $100  gie  card  to    

Home  Depot  

 

(41)

Thank  You  for  AZending!  

   

 

 

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