2011 Short Sale Information package

HOMEOWNER SHORT SALE INFORMATION PACKAGE

309 Richard Jackson Blvd Suite 200 Panama City Beach, FL 32407

850-392-1770 Fax 888-753-0010

KnowPayneKnowGain.com

The Payne Group at Keller Williams Success Realty


850-392-1770 Fax 888-753-0010

This is your Short Sale package ready for completion. I know it seems overwhelming and hard to

imagine that all this paperwork needs to be completed for a Short Sale. However, all requested documents are quite necessary in order for me to negotiate with the bank. I will need as much information as possible to accurately convey to them your unfortunate situation. The banks are receiving hundreds of Short Sale requests daily; therefore, the more information we can provide the bank with the better our odds are of receiving and approval to proceed with the Short Sale. The following documents are enclosed in this package: To Be Completed and/or Executed: MARS disclosure Authorization to release information Advice to seek council Foreclosure disclaimer General client information sheet Do not contact by phone sheet Short sale document checklist Hardship letter guideline Lack of evidence disclosure Informational

The foreclosure process Alternative to foreclosure What is a “Short Sale” Short Sale Expectations and Timeline

Please return this package via fax, email, or 1st Class Mail Delivery within 7 days (to the above address), so we may start the Short Sale process and list your property immediately. Time is of the essence, and the sooner we list your property on the Multiple Listing Service, the better our chances. Please don’t hesitate to call with any questions my may have, and there are no bad questions. We are here to help you every step of the way and make this as easy as possible and move on past this current challenge you are facing.



850-392-1770 Fax 888-753-0010

Jeff Payne

Realtor P. 850-392-1770 [email protected]

Melonie Payne

Administration P. 850-392-1770

[email protected]

MARS Disclosure for General Commercial Communications IMPORTANT NOTICE: The Payne Group at Keller Williams and Jeff Payne are not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage, you could lose your home and damage your credit.

MARS-1 02/2011 © 2011 Florida Realtors® All Rights Reserved



850-392-1770 Fax 888-753-0010

Jeff Payne


Melonie Payne


[email protected]

MARS DISCLOSURE FOR CONSUMER SPECIFIC COMMERCIAL COMMUNICATION The disclosure below is required by 16 C.F.R. § 322.4(b). It is to be provided to Seller where the Broker below negotiates a short sale with a lender on behalf of Seller or arranges for a MARS (Mortgage Assistance Relief Services) provider to conduct short sale negotiations on behalf of Seller. The disclosure below must be provided to Seller prior to any negotiations with the lender. IMPORTANT NOTICE: You may stop doing business with us at any time. You may accept or reject the offer of mortgage assistance we obtain from your lender (or servicer). If you reject the offer, you do not have to pay us. If you accept the offer, you will have to pay us accordingto the exclusive right of sale listing agreement terms. The Payne Group at Keller Williams Success Realty and Jeff Payne are not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage, you could lose your home and damage your credit rating. _________________________________________ Property Address Keller Williams Success Realty Date:__________________________ Brokerage Name Ellie Stafford Date: __________________________ _________________________________________ __________________________ Seller Date _________________________________________ __________________________ Seller Date MARS-2 02/2011 © 2011 Florida Realtors® All Rights Reserved



850-392-1770 Fax 888-753-0010

Jeff Payne


Melonie Payne


[email protected]

Authorization for the following Mortgage Company(s) to release Information To the listed Real Estate Agents/Brokers(s)/Financial Consultants

Date: I/We , The undersigned, am/are the owner(s) of that certain real property commonly known as (Property address) I(We) am(are) the Borrower(s) on the loans listed below and have previously requested and authorized said lender(s) to provide all relevant information pertaining to such loan(s) to The Payne Group at Keller Williams Success Realty. , , (Name of 1st mortgage lender) (Loan number) , , (Name of additional mortgage lender) (Loan number) I (We) authorize and instruct the above mentioned Lenders to promptly deliver ANY and ALL information requested by my (our) Real Estate Broker(s)/Agent(s), Financial Counselor(s) and/or authorized representative(s) as follows: Name: Jeff Payne, Melonie Payne, Ellie Stafford, Maureen Richardson, George Brannon Jr, Sherril Richardson Company Name: The Payne Group at Keller Williams Success Realty Address: 309 Richard Jackson Blvd Suite 200, Panama City Beach, FL 32407 Ph. No: Office: (850)-392-1770 Fax N0: (888)-753-0010 E-Mail: [email protected] I(We) understand and agree that this Authorization is made for the purpose of exploring the possibility of completing a Short Sale of the above referenced property, and that I(We) and my(our) representative(s) designated above will be solely responsible for negotiating a Short Sale transaction with the lenders. I (We) further understand and agree that Jeff Payne, The Payne Group and Keller Williams Success Realty, is acting merely as the coordinator for communication and the exchange of information, that it makes no representations on the advisability of a short sale, and that I(We) have been advised to seek counsel from a qualified professional (tax attorney or certified public accountant) for the determination of any tax consequences related to a Short Sale transaction. X / ______________ / ______________ / ______________ Borrower (Sign & Print) Date: D.O.B. Last (4) off SS# X / _ / ______________ / _______________ Co-Borrower (Sign & Print) Date: D.O.B. Last (4) of SS#



850-392-1770 Fax 888-753-0010

Jeff Payne


Melonie Payne


[email protected]

Advice to Seek Counsel The undersigned parties hereby acknowledge that they have been advised to seek counsel and have been given ample time and opportunity to review their tax status, present and future with their attorney or accountant of choice for review of approval and determination of adequacy for the protection of their interests. No representation has been made by Jeff Payne, The Payne Group or Keller Williams Success Realty, its agents, brokers, Title Company and their Escrow Officers as to legal sufficiency or effect or tax consequences of their Short Sale transaction. Furthermore, all parties indemnify and hold Jeff Payne, The Payne Group or Keller Williams Success Realty, its agents, brokers, Title Company and their Escrow Officers harmless as to any responsibility or liability in connection with herein. X / ______________ Borrower (Sign & Print) Date: X / _ Co-Borrower (Sign & Print) Date:



850-392-1770 Fax 888-753-0010

Jeff Payne


Melonie Payne


[email protected]

Foreclosure Disclaimer

I, the undersigned, acknowledge that it has been disclosed to me that every attempt will be made to successfully market my property in order to save my home from foreclosure. In the event of a short sale on my property, I understand there is no guarantee that the lender beneficiary on my property will approve a payment for less than the full amount due on the loan. Furthermore, I understand that I am unlikely to receive any cash compensation from this transaction. I further have been advised that there may be tax ramifications associated with saving my home from foreclosure auction, including but not limited to, the issuance of an IRS tax form 1099 for any shortfall of the mortgage debt. Jeff Payne, The Payne Group of Keller Williams Success Realty is a licensed real estate brokerage, specializing in mitigating foreclosure losses. We disclose that we are not attorneys or certified public accountants and I understand that I have been advised to consult with any of these professionals with regard to any specific questions I may have relative to these areas of expertise. And, although every effort will be made to obtain full release/payoff status of my loan, the listing agent cannot guarantee that there will be no possibility of lender-instigated judgment against me for any loan deficiency. I also understand that the listing agent and/or their associates may be a bidder in the eventuality that my property does go to foreclosure sale and, if successful, may ultimately resell the property for a profit. I further understand that the listing agent and/or their associates may become the listing agent for the beneficiary/investor or other new owner, if the property goes to foreclosure sale and is sold. ____________________________________________________ _________________ Name (Signature & Print) Date ____________________________________________________ _________________ Name (Signature & Print) Date



850-392-1770 Fax 888-753-0010

Jeff Payne


Melonie Payne


[email protected]

General Client Information Date: ________________________ Borrower: ____________________________Co-Borrower: ________________________________ Borrower SS #:________________________________ D.O.B.: ___________________ Co-Borrower SS#:____________________________ D.O.B.: ____________________ Subject Property Address: ____________________________________________________________________________________________ Mailing Address: _____________________________________________________________________________________________ Home: ___________________ Cell: ___________________ Email: ____________________________________ Best Method and Time to reach you? _____________________________________________________________ Are Prop. Taxes Paid Current? YES NO Is HOA Paid Current Yes No Not Applicable Name of HOA: ___________________________________ Phone No.: _____________________________________ 1ST Lender:______________________________________ Loan # :________________________________________ Phone No.:________________________________________ Fax No.:___________________________________________ # of Late Payments: ______ NOD Filed?: YES Date:_________ NO Notice of Trustee Sale?: YES NO 2nd Lender:______________________________________ Loan # :________________________________________ Phone No.:________________________________________ Fax No.:___________________________________________ # of Late Payments: ______ NOD Filed?: YES Date:_________ NO Notice of Trustee Sale?: YES NO Any Other Liens?: ____________________________________________________________________________________ Are you currently living in property? Yes No Is Property Vacant? Yes No If you currently live in property, when are you able to move? ___________________________



850-392-1770 Fax 888-753-0010

Jeff Payne


Melonie Payne


[email protected]

Please Do Not Contact Me by Phone First Loan #: ______________________ Second Loan #: ______________________ First Lender: ______________________ Second Lender: ______________________ Property Address: __________________________________________________________________ According to the Truth In Lending law, I have the right to request that you, my lender, not contact me by phone regarding my loan being in default. I do not wish to speak to any collection agents about this account. Please make any future communication with me in writing or if you must speak to someone regarding this account, please talk to my Real Estate Agent: Jeff Payne The Payne Group Keller Williams Success Realty 309 Richard Jackson Blvd Suite 200, Panama City Beach, FL 32407 Ph. No. (850)392-1770 Fax No.: (888)-753-0010 Email: [email protected] Of whom are assisting me in selling my home. The information obtained by my agent is to be used for the purpose of facilitating the resolution of my foreclosure and or Short Sale. ________________________________ Borrower ________________________________ _________________ Printed Name Date Last (4) of SS#: ______________________________ D.O.B. : _____________________ ________________________________ Co-Borrower ________________________________ _________________ Printed Name Date Last (4) of SS#: ______________________________ D.O.B. : _____________________



850-392-1770 Fax 888-753-0010

Jeff Payne


Melonie Payne


[email protected]

Required Short Sale Documentation:

Please gather all the critical documents listed below PRIOR to our Listing Appointment

o Client and Property Information o Hardship Letter (Examples Enclosed)

o Financial Statement , lender specific

o Most recent Mortgage Statement(s) o Copies of last 2 months Pay Stubs or letter of explanation o Copies of last 2 months Bank Statement or letter of explanation o Copies of last 2 Year Tax Returns or letter of explanation

o Copies of last 2 HOA Statements (if applicable)

** If you should have any questions or are missing any of the above mentioned documents, please give us a call, so we may further assist you in preparing for our Listing Appt.



850-392-1770 Fax 888-753-0010

Jeff Payne


Melonie Payne


[email protected]

Hardship Letter Guidelines

Remember to state the following in your HANDWRITTEN Hardship letter: 1. Hardships – What are your hardships (current and past). Such as: unemployment, car accident, medical problems (personal or family related), Divorce, Death Etc. Go into a little detail about each hardship. The following are the most important messages to convey to the Lender:

A. Why you will not be able bring yourself current again on your loan. B. You do not have enough income to make these payments any longer. C. You are leaving the property.

2. Your Assets – Explain that you have no assets with which to continue paying. 3. Any Signed Exemptions of Documents – If you do not have bank statements, pay stubs or tax returns, you will need to explain the reason in more detail in your letter as to “why” you can not provide these documents (i.e. “I’ve been unemployed for 6 months and have not been able to find work”) Note- realize that if you don’t have tax returns, then the bank will ask for Extension Filings. So, if you don’t have Extension Filings either, explain why in this letter (i.e. “I haven’t filed my tax returns for the past 2 years and I failed to file extensions as well) In addition to the letters you will need to complete the “Lack of Evidence” Document enclosed in appendix of this package. 4. Bankruptcy – You could also mention “I don’t want to have to file bankruptcy.”

Please see the following page for Hardship Letter Examples



850-392-1770 Fax 888-753-0010

Jeff Payne


Melonie Payne


[email protected]

Sample #1 Hardship Letter

*{Remember, YOU must handwrite your own Hardship Letter to the Lender (s)}* **{ A letter for Each Lender MUST be written}**

12/12/99

<Lender Name> <Loan Number> To Whom It May Concern: I have been unable to make my payments on my house, and I am now facing foreclosure. My inability to keep u with the monthly payments is the result of <Loss of Job, Illness, Accident, Death or Disability of Wage Earner – Describe in detail what your hardship is> In spite of my current financial difficulties, I expect that it will only get <better / worse>. However, I am not in a position to continue making my mortgage payments. This was not at all what I intended but I have come to the conclusion that this is my only option. Your help and consideration in this matter are very much appreciated. Sincerely,

John Doe (actual signature) John Doe (printed name)



850-392-1770 Fax 888-753-0010

Jeff Payne


Melonie Payne


[email protected]

Sample #2 Hardship Letter

*{Remember, YOU must handwrite your own Hardship Letter to the Lender (s)}*

**{ A letter for Each Lender MUST be written}** 12/12/1999 <Lender Name> <Loan Number>

Dear Sir or Madam,

I am writing to ask for your help. Circumstances beyond my control recently caused my life to change. A year ago when I bought my dream home, my kids and I were happy to be living in <Where you lived> and everything was going well. A couple of months ago ….[Give them a story of what happened…lost job…somebody became ill, mom deeded you in another state, business failed, kids having problems in school, needed help…the more details the better, just tell your story how it is.]

The bottom line is I cannot continue to make the payment on my house any longer. I have tried many different things to sell my house and pay off the money I borrowed from you. I talked to some real estate agents, but they said since I owed more than what the house is worth that they would not list it for me. I called some investors that told me they couldn’t buy the home because there was no equity in it and it required work. [Or rather, you can say:] The house has been listed for <time period> months and all the offers received were much below the payoff amount of my loan.

I was on my way to file bankruptcy when fortunately this buyer suggested that you, my lender, may consider a “Short Sale” or reduced payoff. Please, please, please work with this buyer. They/he/she is the only person who has given me any hope and any reason not to file bankruptcy. I am a responsible person who has always paid my bills and I am afraid of what will happen if this does not work. Your consideration is GREATLY appreciated!

Sincerely,

Jane Doe [signature]



850-392-1770 Fax 888-753-0010

Jeff Payne


Melonie Payne


[email protected]

Lack of Evidence Disclosure

Copies of last (2) Pay Stubs

(I am / We are ) Unemployed and have no Pay Stubs to Provide.

_________________________________________ Borrower _________________________________________ Co-Borrower

Copies of last (2) Months Bank Statements

(I / We) No longer have a checking account, so (I / We) are unable to provide Bank

Statements.


Copies of last (2) Years Tax Returns

(I / We) No have not done (my/our) taxes for the past 2 years, and (I/we) have failed

to file any extensions.




850-392-1770 Fax 888-753-0010

Jeff Payne


Melonie Payne


[email protected]

The Foreclosure Process

-------------------------------------------------------------------------------------

5 Months

What is Foreclosure?

Foreclosure is a process that allows a lender to recover the amount owed on a defaulted loan by selling or taking ownership (repossession) of the property securing the loan. The foreclosure process begins when a borrower/owner defaults on loan payments (usually mortgage payments) and the lender files a public default notice, called a Notice of Default or Lis Pendens. The foreclosure process can end one of four ways:

1. The borrower/owner reinstates the loan by paying off the default amount during a grace period determined by state law. This grace period is also known as pre-foreclosure.

2. The borrower/owner sells the property to a third party during the pre-foreclosure period. The sale allows the borrower/owner to pay off the loan and avoid having a foreclosure on his or her credit history.

3. A third party buys the property at a public auction at the end of the pre-foreclosure period. 4. The lender takes ownership of the property, usually with the intent to re-sell it on the open market. The lender can take

ownership either through an agreement with the borrower/owner during pre-foreclosure, via a deed in lieu of foreclosure or by buying back the property at the public auction. Properties repossessed by the lender are also known as bank-owned or REO properties (Real Estate Owned by the lender).

5. The lender agrees to sell the property through a short sale in which the lender agrees to release the lien on the home for less than the amount owed.


Jeff Payne Realtor P. 850-392-1770 [email protected]

So, your house is in foreclosure….now what?? Try to look at the situation without attaching your emotions. If viewing the situation from a strictly business viewpoint, you can more successfully analyze which option might best suit your needs and desires and move you towards resolving you financial difficulty. One very important thing to remember: essence, so sit and take serious thought of your situation and take a quick action in order to allow yourself enough time to complete the chosen process.

9 Options when facing Foreclosure:

1. Do Nothing: If a homeowner does nothing, they most likely will lose their home at a foreclosure auction. Loan applications generally ask if the applicant has ever been foreclosed upon. Credit reports also diinformation. Therefore, doing nothing is not the best option.

2. Payoff/Refinance: Completely paying off the entire loan amount plus any default amount and fees. Usually, this is accomplished through a refinance of the debt. New debtprepayment penalty because of the recent default. With this option, you will want to make sure there is equity in the home.

3. Reinstatement: Completely paying the entire default amount plus interest, atpayments and fees.

4. Loan Modification: Utilizing the existing mortgage company to refinance the debt or extend the terms of the loan. This may allow the homeowner to catch up at a more affordable level. To qualify, yofixed the problems that caused the late payment.

5. Forbearance: Lender may be able to arrange a repayment plan based on the homeowners financial situation. The lender may even be able to provide a temporary payment reductrequired from the lender to show that you are able to meet the new payment plan requirements.

6. Partial Claims: A loan from the lender for a 27. Deed in Lieu of Foreclosure: Give the property back to the bank instead of the bank foreclosing. Banks generally

require the home to be well maintained, all mortgage payments and taxes must be current. Most loan applications ask if this has ever happened.

8. Bankruptcy: This option can liquidate debt and/or allow more time. I can refer you to a qualified bankruptcy attorney. Chapter 7 (Liquidation) Tom completely settle personal debt Chapter 13 (Wage Earner Plan) Payments are made toward a plan to pay off debts in 3 Chapter 11 (Business Reorganization) A business debt solution

9. Sale: If the property has equity (money left over after all loans and monetary encumbrances are paid). The homeowner may sell the home without lender approval through a conventional home sale. In this case, the homeowner will get cash from the sale. On the other hand, a Short Sale (also known as a prenegotiated with your lender by the Re


2110 W 23rd St Suite A Panama City, FL 32405

850-392-1770 Fax 888-753-0010

So, your house is in foreclosure….now what?? Try to look at the situation without attaching your emotions. If viewing the situation from a strictly business viewpoint, you can more successfully analyze which option might best suit your needs and

nd move you towards resolving you financial difficulty. One very important thing to remember: , so sit and take serious thought of your situation and take a quick action in order to allow yourself enough time to

9 Options when facing Foreclosure:

: If a homeowner does nothing, they most likely will lose their home at a foreclosure auction. Loan applications generally ask if the applicant has ever been foreclosed upon. Credit reports also diinformation. Therefore, doing nothing is not the best option.

Completely paying off the entire loan amount plus any default amount and fees. Usually, this is accomplished through a refinance of the debt. New debt is a normally higher interest rate and there may be a prepayment penalty because of the recent default. With this option, you will want to make sure there is equity in the

Completely paying the entire default amount plus interest, attorney fees, late fees, taxes, missed

Utilizing the existing mortgage company to refinance the debt or extend the terms of the loan. This may allow the homeowner to catch up at a more affordable level. To qualify, you must prove to the lender you have fixed the problems that caused the late payment.

Lender may be able to arrange a repayment plan based on the homeowners financial situation. The lender may even be able to provide a temporary payment reduction or suspension of payments. Information will be required from the lender to show that you are able to meet the new payment plan requirements.

A loan from the lender for a 2nd loan t include back payments, costs and fees.Give the property back to the bank instead of the bank foreclosing. Banks generally

require the home to be well maintained, all mortgage payments and taxes must be current. Most loan applications ask

This option can liquidate debt and/or allow more time. I can refer you to a qualified bankruptcy attorney.(Liquidation) Tom completely settle personal debt

(Wage Earner Plan) Payments are made toward a plan to pay off debts in 3(Business Reorganization) A business debt solution

If the property has equity (money left over after all loans and monetary encumbrances are paid). The owner may sell the home without lender approval through a conventional home sale. In this case, the

homeowner will get cash from the sale. On the other hand, a Short Sale (also known as a prenegotiated with your lender by the Real Estate Professional if what is owed is MORE than the properties value.

Melonie Payne Administration

P. 850-392-1770 [email protected]

So, your house is in foreclosure….now what?? Try to look at the situation without attaching your emotions. If viewing the situation from a strictly business viewpoint, you can more successfully analyze which option might best suit your needs and

nd move you towards resolving you financial difficulty. One very important thing to remember: Time is of the , so sit and take serious thought of your situation and take a quick action in order to allow yourself enough time to

: If a homeowner does nothing, they most likely will lose their home at a foreclosure auction. Loan applications generally ask if the applicant has ever been foreclosed upon. Credit reports also disclose this damaging

Completely paying off the entire loan amount plus any default amount and fees. Usually, this is is a normally higher interest rate and there may be a

prepayment penalty because of the recent default. With this option, you will want to make sure there is equity in the

torney fees, late fees, taxes, missed

Utilizing the existing mortgage company to refinance the debt or extend the terms of the loan. This u must prove to the lender you have

Lender may be able to arrange a repayment plan based on the homeowners financial situation. The ion or suspension of payments. Information will be

required from the lender to show that you are able to meet the new payment plan requirements. loan t include back payments, costs and fees.

Give the property back to the bank instead of the bank foreclosing. Banks generally require the home to be well maintained, all mortgage payments and taxes must be current. Most loan applications ask

This option can liquidate debt and/or allow more time. I can refer you to a qualified bankruptcy attorney.

(Wage Earner Plan) Payments are made toward a plan to pay off debts in 3-5 years.

If the property has equity (money left over after all loans and monetary encumbrances are paid). The owner may sell the home without lender approval through a conventional home sale. In this case, the

homeowner will get cash from the sale. On the other hand, a Short Sale (also known as a pre-foreclosure sale) can be al Estate Professional if what is owed is MORE than the properties value.

3



850-392-1770 Fax 888-753-0010

Jeff Payne


Melonie Payne


[email protected]

What is a “Short Sale”?

WHAT IS A SHORT SALE? A “Short Sale” (Also referred to as: “Negotiated Settlement”, “Short Pay” or “Pre-Foreclosure”) occurs when a Lender agrees to accept less than the amount owed on the original note or total payoff, as an alternative to foreclosure. If the property is worth less than the amount owed on the loan, than even if the Lender forecloses and takes back the property, they know they are going to take a loss. We can often convince a Lender that they will “do better” if they take less than what is owed now rather than taking the property back by foreclosure and trying to re-sell it.

HOW LONG WILL IT TAKE? The Short Sale negotiation process can be rather lengthy. It may take several weeks to several months for an approval. Many Lenders will have several layers of bureaucracy, insurers, and investors that we will have to maneuver through in order to get a Short Sale approved. So, it is important to be patient during this long process.

BUY MY HOUSE IS GOING TO FORECLOSURE, WILL I HAVE ENOUGH TIME? Maybe-maybe not. Just starting a Short Sale will NOT automatically stop a foreclosure. However, many times we can convince a Lender to stop the foreclosure toe let us attempt to negotiate the Short Sale. While there are no guarantees, it is worth the attempt.

CAN I STAY IN THE HOUSE? The key word in a “Short Sale” is sale. The purpose of a Short Sale is to get the property sold. This is not a program that can stop a foreclosure and allow you to keep the house indefinitely. Moreover, it will be easier to sell the house if it is vacant. Therefore, you should most certainly begin making plans to vacate the property.

HOW DO I KNOW THIS WILL WORK? Again, there are no guarantees. We cannot, have not, and will not make promises to you that this will work. Once you miss a payment, the Lender is in charge and can proceed to foreclosure if they want to. But we know they do not want to and we are very good at presenting alternatives to he Lender that they often want to accept, as opposed to moving forward with a foreclosure. We are very proficient at what we do, but NO GUARANTEES are being made as to whether or not the Lender will accept the Short Sale.

WILL I GET ANY MONEY FROM THE SALE? No. A universal requirement of Lenders in granting a Short Sale is that the borrower will not get any proceeds from the sale of the property. Being, he Lender is going to take a loss on your loan, they are most certainly not going to allow you to profit from the situation.

WHAT HAPPENS IF THIS DOESN’T WORK? Your house will likely go to foreclosure. A Short Sale is something we try after you have exhausted your other options.

WHAT IS A “RELEASE”? A Lender may offer a “release”. Which is a security instrument against the property in exchange for less than the total amount of the note. A release will allow the property to be sold without paying off the obligations of the note. However, the note is not satisfied. Advantages: This successful Short Sale will allow the property to be sold and thus avoid foreclosure. Disadvantages: The remaining debt on the property (sometimes called a “deficiency”) still exists. In other words, you are still liable for the note and still owe the money to the Lender. Reality: It is not likely the Lender will purse the deficiency unless you have other significant assets. However, if you chose not to try the Short Sale before going to foreclosure, and then you end up going to foreclosure, it will result in you having a deficiency anyhow.

WHAT IS A SATISFACTION? A Lender may agree to accept less than they are owed as complete and total satisfaction of the note and release its lien against the property. Advantages: Your note and obligation to the Lender are satisfied for less than you owed. When the property is sold, the debt is paid off completely. Disadvantages: You may have some tax consequences that you should discuss with your tax advisor due to the fact the Lender is making money you owe them disappear. Sometimes our negotiations are successful in obtaining a satisfaction. Although, there are other times where the lender will only negotiate to a release.

HOW CAN I HELP? The Lender will require a review of a financial package that usually includes: (2) month’s banks statements, (2) months paycheck stubs, (2) year’s tax return, Financial Worksheet and other information. The leading cause of delay and even denial of our offer to the Lender is caused by the Seller failing to cooperate and/or deliver the necessary items in a timely fashion. To help us succeed, please find as much of this information as you can right now and complete the attached “Financial Worksheet”. These things will help us work faster and increase your odds of a successful Short Sale.



850-392-1770 Fax 888-753-0010

Jeff Payne


Melonie Payne


[email protected]

Expectations and Timeline Marketing your home: Your home will be shown to both investors and traditional buyers. During this process, your process may be shown several times a day in some cases. The goal is to get the highest and best offer in the shortest time possible. Those viewing or calling to view your home have been instructed not to bother you with questions regarding the short sale so as to not put any additional stress on you.

The First Offer: Once an offer is received on your property, I will schedule an appointment for you to come in and sign the Purchase Agreement (this should only take 5 minutes). Although, you do need to sign one offer, your property can attract multiple offers. All other offers will be held as back up offers in the event the first offer is not approved.

The Process: Once we have sent the offer(s) to the lender(s), the actual Short Sale process can take anywhere from 4 weeks to 4 months. This timeline varies with each lender. To keep you informed, I have developed a system which will enable you to get updates from me on a regular basis without actually having to call me. First, you will be able to call any time during the day 850-392-1770.

The second way to get an update is to send me an email with your property address and question in the subject line. ([email protected]). Due to the high volume of calls from prospects, clients, agents, escrow offices and lenders, it is almost impossible for me to respond/return calls same day. In many cases I am not able to return calls personally, since I’m spending most of my time negotiating a successful transaction with your lender(s).

Please understand that I am not intentionally waiting to return phone calls and I am not ignoring your messages, it is simply not humanly possible for me to return all my own calls in a timely manner and still move forward to a successful transaction. Know that I will return all calls within 24hrs to give you an update.

After the lender reviews the Short Sale package, a BPO (Broker Price Opinion) will be ordered by the lender. This is similar to an appraisal and once the lender receives their report, they will usually make a final decision shortly thereafter. The lender orders the BPO so they can figure out what their net proceeds will be (how much of a loss they will be writing off). Your property will be pending sale on the MLS until the lender accepts the offer. Please be patient throughout this process. At times you may feel things are going too slow, but remember this is not a regular transaction and can take longer to complete.

The Accepted Offer: Once an offer has been approved by the lender, I will notify you that we are going to proceed to close the transaction. The lender may demand to close escrow anywhere from 10-30 days, so be prepared. If the buyer does not close by the lender’s deadline, the next highest bidder in line may be accepted. ** If the buyer(s) can not perform and close on time, the lender may decide to proceed with foreclosure thus severing the opportunity for all parties involved to complete a successful transaction. **

The Close of Escrow: You, as the seller, will be instructed to sign seller documents at the escrow office. Please bring with you your I.D., all keys, garage door openers, and a good attitude. We will celebrate your new freedom from this financial burden and stress.

Your Financial Freedom: Keep all of your copies of the documents pertaining to this sale in a safe place. Call me with your new forwarding address so I can keep in touch with you through the year and offer you assistance in preparing yourself for future success. Try not to incur any new debt and try to keep low balances on any credit cards you may have. Maintain good consumer credit by not paying late on your currently active accounts. Pay your rent by check or some other way that can be tracked to show evidence that you are paying on time. This will help you should you choose to purchase a new property in the future.

2011 Short Sale Information package

Documents

Transcript of 2011 Short Sale Information package