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32 SMART REAL ESTATE BROKERS HAVE NOTICED THAT REAL ESTATE-OWNED (REO) INVENTORY HAS DROPPED YEAR-OVER-YEAR SINCE 2010. Why? Banks have worked diligently with their borrowers (homeowners) to prevent foreclosures, turning to alternate disposition methods that make sense. Indeed, short sales, settlements, proprietary modifications and/or selling off notes can be much more cost effective. In addition, more stringent compliance and reporting requirements have motivated banks to identify foreclosure alternatives that re-enfranchise delinquent homeowners. As a result of these solutions -- and more graceful exit strategies -- REO inventory has declined dramatically. Selling real estate through the Bankruptcy courts, however, remains a largely untouched emerging segment of the industry that can continue this positive trend in 2015 and beyond. Participating brokers can earn full commissions, too. While consumers file bankruptcy for a variety of reasons, including delaying foreclosure of their real estate property, the bankruptcy process provides eligible consumers with a fresh start and the ability to get back on their feet after experiencing serious financial hardships. In a Chapter 7 bankruptcy, a Trustee will take title to a property when the case is filed and assess how the sale of a particular asset might bring value to the estate. Based upon his or her findings, the Trustee may proceed with listing and selling the property or may choose to exclude it from the bankruptcy. e primary factor in this decision is whether or not the property has equity, which can be used to pay the unsecured creditors in the bankruptcy estate. Far too often, Trustees will have no choice but to "abandon" properties because they are upside-down and are too difficult to liquidate. Even though when properly analyzed, many of these properties do, in fact, have the ability to be sold and provide a "best case" scenario. Short sales alone have proven over time that selling over-encumbered properties is a "win- win" solution for all involved parties. Now, real estate involved in Chapter 7 bankruptcy cases is the logical, proactive evolution of continued – and responsible – distressed asset disposition. BK Global (www.bkginc.com) streamlines this process through state-of-the-art technology that helps Trustees sell real estate assets on behalf of bankruptcy estates. Its dynamic team of partners and real estate agents ensure Trustees make quick, actionable decisions to sell properties, hire brokers through the court proceedings and work with servicers and their attorneys to sell properties before they enter the foreclosure funnel. e firm manages and oversees every aspect of the transaction, including assisting Trustees with drafting court proceedings and working with servicers and their attorneys to sell these properties. And it all starts with a proprietary BK Score™. Each asset is run through a sophisticated algorithm that assesses critical data points to determine a salability score. Once a BK Score™ is computed, BK Global shares the detailed report with the Trustee, as well as recommends brokers who are experienced in bankruptcy sales. In fact, BK Global has enlisted the services of the National Bankruptcy Broker Network (www.nationalbbn.org) to leverage its membership and provides brokers with an open registration to participate in this rapidly- growing, virtually un-tapped market. BK Global also offers brokers in-depth training through its BK Global Institute. As soon as a decision is made to list and sell the bankruptcy-related property based on the BK Score™, among other factors, BK Global will showcase them as a "Consented Sale" on its online marketplace, www.bankruptcylistings.com, which also features an offer management component. e platform creates transparency and confidence for buyer's agents knowing that the Trustee assigned to the case reviews every offer. e best offer is selected based upon value to the estate and approval by the bank/servicer. It's a clean, simple alternative disposition method that creates a win-win-win proposition for all stake- holders including the debtor, lender and the estate. e U.S. Bankruptcy Court system has 93 divisions with about 1,500 independent Trustees. In 2014, there were almost 1 million bankruptcies filed. e opportunity for more meaningful "win- win" change is ripe. If you would like to learn more about BK Global, including its one-of-a-kind automated platform, team of partners, nationwide real estate agent and bankruptcy Trustees network, please visit www.bkginc.com. Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q4 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q4 2015 300,000 250,000 200,000 150,000 100,000 50,000 0 END OF QUARTER REO INVENTORY FANNIE FREDDIE REO INVENTORY: FANNY AND FREDDIE THROUGH Q1 2015 WWW.CALCULATEDRISKBLOG.COM SPONSORED STORY

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