F o r e c l o s u r e s & S h o r t S a l e s : d i l e m m a s a n d s o l u t i o n s

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Sheena Allen
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1 Introduction and Course Overview & Objectives Introduction of instructor Attendance Acquaint students with content and text Lecture (15 minutes) 0-15 Chapter 1 How Did We Get Here? Overview Pg. 1, PPT Contributors to the Real Estate Crisis Inflated Home Values Risky Loans Refinancing Yield Spread Premiums Fraud Lending Before the Bubble Burst Changes on Wall Street Underwriters Aftermath of Bubble Bursting Lending Appraisal Pg. 2-5, PPT 6-16 Pg. 5-7, PPT Pg. 7-10, PPT Some of the causes of the current real estate crisis What the lending industry was like before the bubble burst How the bubble burst has affected the lending industry Summary/Q&A Pg Quiz Pg. 11, PPT Chapter 2 Flipping Overview Pg. 13, PPT The Flipping Process Legitimate Flips Illegitimate Flips Flipping New Houses The FHA and Flipping Fraud Appraisers and Fraud Pressure Put on Appraisers USPAP as Fraud Prevention Common Fraud Scenarios Involving Appraisers Pg , PPT Pg , PPT What property flipping is, and what makes it legal or illegal How appraisers are affected by, or involved in, fraud How USPAP helps to prevent fraud Summary/Q&A Pg Quiz Pg. 22, PPT

2 Chapter 3 Fraud and Predatory Lending Overview Pg. 23, PPT Predatory Lending Main Street vs. Sub-Prime Lending Other Predatory Practices Fraud and Conspiracies Identity Theft One-Stop Shopping Pg , PPT Pg , PPT How lending varies depending on the lending institution, and how those differences lead to fraud opportunities Various fraud schemes Summary/Q&A Pg , PPT Quiz Pg. 34, PPT Break Chapter 4 Foreclosures and REO Listings Overview Pg. 35, PPT What is Foreclosure? Cash for Keys Physical Eviction The Trash Out Securing the Property Appraising and Otherwise Valuing the Property As-Is Value As Repaired Value Quick Sale Value Rapidly Changing Markets Competing Listings Fannie Mae s 1004MC Form REO, Foreclosure, and USPAP Pg , PPT Pg , PPT Pg , PPT An overview of the foreclosure process The real estate professional s role in the foreclosure process When to determine the as-is value, as repaired value, or quick sale value of a property Why the rapidly changing market requires special forms when performing an appraisal Summary/Q&A Pg Quiz Pg. 46, PPT

3 Chapter 5 Valuing Foreclosures (Case Study) Overview Pg. 47, PPT Lecture Your Assignment Pg. 48, PPT 116 How to look at market data Pg , Research and MLS data to help value PPT the subject property going Property Pg. 51, PPT 123 through foreclosure Inspection Time for Independent Independent Pg. 52, PPT Analysis Analysis Q & A PPT Group Discussion Lunch Break 60 minutes Chapter 6 As-Is vs. As Repaired Overview Pg. 53, PPT From One Extreme to Another Estates as Foreclosure Subjects Pre-Foreclosure Decisions The Totally Trashed Property The Neighborhood Condition Market Conditions Buyers: Owner/ Occupiers vs. Investors The Cost Expert The Lender s Decision Property A Property B Property C Cost of the Lender s Decision Pg , PPT 141 Pg , PPT Pg , PPT 151 That foreclosures and REO properties can be in many different conditions How the foreclosure timeline can affect a property s condition The factors to take into consideration when appraising a foreclosed or REO property How the lender makes its decision and that it may not always follow an appraisal s conclusions Summary/Q&A Pg Quiz Pg. 62, PPT

4 Chapter 7 The 1004MC Form (50 minutes) Overview Pg. 63, PPT About the 1004MC Form Requirements Why Did Fannie Mae Develop This Form? Analyzing a Market Issues and Problems The Pool Using the 1004MC Form Absorption Rate Meaningful Analysis Anomalies in the Market Covering Yourself: Reviews and AVMs The Bottom of the 1004MC Form More Disclaimers Pg , PPT Pg , PPT Pg , PPT Pg , PPT The purpose and intent of Fannie Mae s 1004MC Form The major issues and problems regarding the 1004MC Form How to use the 1004MC Form How to protect themselves and their appraisals by using adequate comments in their analysis Summary/Q&A Pg Quiz Pg. 74, PPT Break

5 Chapter 8 Future Challenges for Appraisers Overview Pg. 75, PPT HVCC Appraisers and Pressure The HVCC What Is it and What Is it Not? AMCs Pushback on the HVCC Fannie Mae and Freddie Mac Respond The Appraiser and the HVCC New Business AVMs and Other Products BPOs The Appraiser and AVMs and BPOs Changes to USPAP Changes to the Ethics Rule Changes to the Competency Rule Pg , PPT Pg , PPT 207 Pg , PPT Pg , PPT Pg , PPT What the Housing Valuation Code of Conduct (HVCC) is and its purpose How the HVCC affects the appraisal and real estate industry What opportunities are available for appraisers outside of traditional lending appraisals The changes to the USPAP and what it means for appraisers Summary/Q&A Pg Quiz Pg. 85, PPT Course Conclusion Wrap-up Distribute certificates (if applicable) Total Class Minutes 420 Total Class Hours 7

9. A loan on a non-existent property is known as

9. A loan on a non-existent property is known as C h a p t e r 1 Q u i z 1. A yield spread premium represents the a. difference in the interest rates at competing financial institutions. b. difference in the PMI premium paid by the borrower. c. profit,