Download - SHORT SALE PRE-QUALIFICATION PACKAGE Sale Pack… · SHORT SALE PRE-QUALIFICATION PACKAGE Dear Home Owner, Thank you for allowing us to work with you in an effort to successfully

Transcript
Page 1: SHORT SALE PRE-QUALIFICATION PACKAGE Sale Pack… · SHORT SALE PRE-QUALIFICATION PACKAGE Dear Home Owner, Thank you for allowing us to work with you in an effort to successfully

SHORT SALE PRE-QUALIFICATION PACKAGE Dear Home Owner, Thank you for allowing us to work with you in an effort to successfully short sale your home. Please rest assured that you have chosen to work with a team of very experienced professionals, who have made every effort to ensure they are at the forefront of today’s real estate market place. We understand you may be in a very stressful and emotional situation. As such, it’s important to seek the advice of experts who can take a very analytical approach to solving your problem based on current laws and trends in the market place. We will do our part to help make this process as simple as possible to help you get through this, and on with your life. This is a financial pre-qualification package, designed to gather the information necessary in determining whether or not a short sale will best suit your needs. We commend you for taking action in trying to avoid foreclosure. Many homeowners are simply walking away from their homes, not realizing the long term ramifications to their financial lives. Please note that your Realtor has a team assisting him/her with the very labor intensive and arduous task of negotiating with your mortgage lender(s). Members of his/her team may contact you from time to time requesting further documentation or information to help facilitate the negotiations. Next Steps: Please take time to review and complete this package, and gather the required supporting documents. Once completed, you can email or fax all required documents to us, and a member of our team will Contact you once reviewed. Please allow up to 3 business days for review. Thank You!

602-380-4985 [email protected] www.myteamelite.net Please note that members of Team Elite carry the following designations: CERTIFIED DISTRESSED PROPERTY EXPERT * CERTIFIED SHORT SALE NEGOTIATOR 

Page 2: SHORT SALE PRE-QUALIFICATION PACKAGE Sale Pack… · SHORT SALE PRE-QUALIFICATION PACKAGE Dear Home Owner, Thank you for allowing us to work with you in an effort to successfully

Package Checklist • Foreclosure vs. Short Sale – Know how each of them may impact you. • Authorization forms (2 if you have more than one loan) • Questionnaire • Short Sale Negotiation Disclosure • Property Checklist • Financial Statement – Be as thorough as possible listing all sources of income and expenses • Sample Letter of Hardship • Letter of Hardship Form • Referral Form • Short Sale Seller Advisory • Short Sale Hold Harmless Agreement In addition to the contents of this package, our team will need the following additional documentation from you: • Most recent mortgage statements and any other recent communication from your lenders • 2 most recent tax returns (ALL PAGES) • If wage earner: most recent consecutive paystubs covering a 30 day span (usually 2) • If self-employed: Year-To-Date Profit & Loss Statement • 2 most recent checking account statements (ALL PAGES) • 2 most recent statements on other asset accounts: savings, retirement, etc… NOTE: Proof of income should be provided from all working members of the household, not just the borrowers on the loan. NOTE: During the short sale process, we are often asked by mortgage companies to provided updated paystubs and bank statements. So during this time, please keep them in a convenient place for easy access, OR you may simply fax paystubs and bank statements to us as you get them. Additionally, we require you forward us copies of all written communications from your lenders 

Page 3: SHORT SALE PRE-QUALIFICATION PACKAGE Sale Pack… · SHORT SALE PRE-QUALIFICATION PACKAGE Dear Home Owner, Thank you for allowing us to work with you in an effort to successfully
Page 4: SHORT SALE PRE-QUALIFICATION PACKAGE Sale Pack… · SHORT SALE PRE-QUALIFICATION PACKAGE Dear Home Owner, Thank you for allowing us to work with you in an effort to successfully

AUTHORIZATION & RELEASE FORM Institution: ___________________________________________ account # ______________ For the property at: ____________________________________________________________ To Whom It May Concern: I/We have authorized the following third parties, their Agents, and Assignees to represent me/us in all matters regarding the referenced mortgage and property. ___Re/Max New Heights Realty Armando Banda 602-380-4985_______ My Real Estate Company Agent Phone __Lawyer’s Title Theresa Hall/ Ellen Webb/ Shayna Sargent 602-993-4545_______ My Title/Escrow Company Escrow Officer Phone This authorization includes: - Permission to receive full disclosure and documentation from our lender(s) on the status of our mortgage(s), including pre-foreclosure proceedings and all information on any existing liens against the above named property. - Permission to address our lender(s) on our behalf. - Permission to negotiate with our lender(s) on our behalf. - Permission to assign responsibility to third parties they may employ in assisting in this matter. - Permission to facilitate the resolution of my mortgage prior to foreclosure. We kindly ask that you contact Re/Max New Heights Realty, its Agents or Assignees directly on all matters pertaining to our mortgage. The above mentioned third parties may address and assign this authorization to any party relating to the above referenced mortgage and property. A copy of this authorization may be accepted as the original. This document may be reproduced by a purchaser\ or trustee of the property to obtain information as needed. Your prompt reply to Re/Max New Heights Realty, its Agents, and Assignees is appreciated. __________________________________________________________/ _____________________ Borrower: Signature Date D.O.B. Social Security Number ________________________ ________________________________ ____________/ ________ Borrower: Signature Date D.O.B. Social Security Number 

Page 5: SHORT SALE PRE-QUALIFICATION PACKAGE Sale Pack… · SHORT SALE PRE-QUALIFICATION PACKAGE Dear Home Owner, Thank you for allowing us to work with you in an effort to successfully

AUTHORIZATION & RELEASE FORM Institution: ___________________________________________ account # ______________ For the property at: ____________________________________________________________ To Whom It May Concern: I/We have authorized the following third parties, their Agents, and Assignees to represent me/us in all matters regarding the referenced mortgage and property. ___Re/Max New Heights Realty Armando Banda 602-380-4985_______ My Real Estate Company Agent Phone __Lawyer’s Title Theresa Hall/ Ellen Webb/ Shayna Sargent 602-993-4545_______ My Title/Escrow Company Escrow Officer Phone This authorization includes: - Permission to receive full disclosure and documentation from our lender(s) on the status of our mortgage(s), including pre-foreclosure proceedings and all information on any existing liens against the above named property. - Permission to address our lender(s) on our behalf. - Permission to negotiate with our lender(s) on our behalf. - Permission to assign responsibility to third parties they may employ in assisting in this matter. - Permission to facilitate the resolution of my mortgage prior to foreclosure. We kindly ask that you contact Re/Max New Heights Realty, its Agents or Assignees directly on all matters pertaining to our mortgage. The above mentioned third parties may address and assign this authorization to any party relating to the above referenced mortgage and property. A copy of this authorization may be accepted as the original. This document may be reproduced by a purchaser\ or trustee of the property to obtain information as needed. Your prompt reply to Re/Max New Heights Realty, its Agents, and Assignees is appreciated. __________________________________________________________/ _____________________ Borrower: Signature Date D.O.B. Social Security Number ________________________ ________________________________ ____________/ ________ Borrower: Signature Date D.O.B. Social Security Number 

Page 6: SHORT SALE PRE-QUALIFICATION PACKAGE Sale Pack… · SHORT SALE PRE-QUALIFICATION PACKAGE Dear Home Owner, Thank you for allowing us to work with you in an effort to successfully

QUESTIONNAIRE

Your name: ___________________________ Spouse: _____________________________________ Best phone number: ________________________ Best email: _______________________________ Address of the home you wish to short sale: _______________________________________________ Do you live in this house? __________ How many loans do you have on this property? ___________ 1st Mortgage Lender: __________________ Amount Owed: ____________ Acct #: _______________ 2nd Mortgage Lender: __________________ Amount Owed: ____________ Acct #: _______________ How many months behind are you? ________ Have you received a notice of foreclosure? __________ Have you attempted a loan modification? ____________ If so, when? __________________________ * Please note you cannot actively pursue a loan modification and a short sale at the same time. Is there an HOA? ___________________ How many months behind are you? ___________________ Is this house currently being rented? ________ If yes, how many months remain on the lease? _______ * Please note we strongly encourage tenants be removed from homes during a short sale process. What personal property do you intend to remove from the home? ______________________________ ____________________________________________________________________________________ * Please note it is difficult to sell a home stripped of all appliances, lighting fixtures, cabinets, etc… and your lender can file a claim against your home owner’s insurance policy for property taken or damages. If you still live in the home, when do you intend to move out? __________________________________ If we list your home for sale while you still live in it, please note we require a lockbox put on your home for access, and you make the home available for other Agents to show the property. Is this OK with you? ______ Do you have pets? _____ Description: ________________________ IMPORTANT NOTE REGARDING UTILITIES: Even if you choose to vacate your home before the sale, it is important to leave your utilities ON. A potential buyer will want to inspect the home, and test plumbing and electrical aspects of the home. Additionally, a typical short sale can take 3 to 6 months, during which time, the landscaping may need to receive some attention. SWIMMING POOLS: water and power will need to be turned on in order to maintain the pool, or the pool must be drained. Please note most lenders will not lend on a home with a drained swimming pool, and this could hinder most buyers from being able to buy your home. A good cost savings tip would be to keep services on, so you don’t have to pay reconnect fees, and simply turn off breakers and the main water shut-off valve to the home. I agree to keep utilities on and maintain the landscaping during the short sale process. _______ _______ Initials Initials

Page 7: SHORT SALE PRE-QUALIFICATION PACKAGE Sale Pack… · SHORT SALE PRE-QUALIFICATION PACKAGE Dear Home Owner, Thank you for allowing us to work with you in an effort to successfully

SHORT SALE NEGOTIATION DISCLOSURE

You will be asked to complete other disclosure documents. The purpose of this document is to give you a brief insight of what types of responses your lender(s) may have to your short sale request.

A real estate short sale, implies that you will be asking your mortgage lenders to take “short” payoffs on the amounts you owe them. As you can image, most people don’t like being paid back less than what they are owed, neither do banks. That said, a short sale can be a difficult negotiation, since the dollar amounts we are asking the banks to compromise are so large. It’s not uncommon that we are asking a bank to take a loss on a loan in excess of $100,000. The best case scenario from your short sale request to your mortgage lenders is that they will agree to the short pay offs based on the sales price of the home, and not ask for any contribution from you, HOWEVER, homeowners are sometimes asked to contribute to a portion of the debt. Cash at closing – Sometimes mortgage lenders may ask you to come in with money to pay towards your debt, we have seen anything from $2,500 to $20,000. Promissory notes – Sometimes mortgage lenders may ask you to agree to payback some of the debt after the sale of the house. Usually it’s a promise to pay at zero percent interest over a 10 to 20 year period. For reference, a $10,000 promise to pay over a 20 year period is only about $75/month. As Negotiators on your behalf, it’s important for us to know what we can expect from you should you be asked to contribute to the sale of your home. I may be able and/or willing to agree to a promissory note for part of the difference of what’s owed to my mortgage lenders. ( ) YES ( ) NO I may be able and/or willing to agree to come in with money at the time of closing, ( ) YES ( ) NO If so, what is your MAX available contribution? ______________ We will not reveal this figure to the banks, we just need to know what room we have to work with during our negotiations. HOME OWNER’S ASSOCIATIONS Besides cash contributions required by your mortgage lenders, please note that your HOA usually will require transfer fees (around $300 to $600) paid up front during escrow, and they will require the full satisfaction of your account should you be delinquent. Often times, mortgage lenders don’t allow any of the sales proceed to pay for your delinquent HOA account, which means you will have to cover this cost. I agree to keep my HOA current, and/or am willing to pay the balance on my HOA dues through to time of close of escrow. Additionally, I agree to pay any upfront transfer or disclosure fees my HOA may require, should my Agent and his/her team successfully negotiate my short sale with my agreement to my lenders terms. __________________________________________ ________________________________________ Borrower Date Co-Borrower Date

Page 8: SHORT SALE PRE-QUALIFICATION PACKAGE Sale Pack… · SHORT SALE PRE-QUALIFICATION PACKAGE Dear Home Owner, Thank you for allowing us to work with you in an effort to successfully

PROPERTY CONDITION CHECKLIST

Address: _______________________________________ _______________________________________ Borrower: _______________________________________ Co-Borrower: ______________________________________ Overall, I would say the property is in: ( ) excellent condition ( ) good condition ( ) fair condition ( ) needs repairs The above referenced property needs the following repairs (your opinion of repair cost is helpful): ESTIMATE Kitchen: _____________________________________________________________ ___________ Master Bedroom: _____________________________________________________ ___________ Bedroom # 2: _________________________________________________________ ___________ Bedroom # 3: _________________________________________________________ ___________ Bedroom #4: _________________________________________________________ ___________ Master Bath: _________________________________________________________ ___________ Bathroom # 2: ________________________________________________________ ___________ Living Room: ________________________________________________________ ___________ Family Room: ________________________________________________________ ___________ Outdoors: ___________________________________________________________ ___________ Swimming Pool: ______________________________________________________ ___________ Other: ______________________________________________________________ ___________

Page 9: SHORT SALE PRE-QUALIFICATION PACKAGE Sale Pack… · SHORT SALE PRE-QUALIFICATION PACKAGE Dear Home Owner, Thank you for allowing us to work with you in an effort to successfully

FINANCIAL STATEMENT

Lender: ______________________________________ Loan #: ____________________________ Property: ________________________________________________ Occupancy: _______________ Borrower: ______________________________ Co-Borrower: _____________________________ Employer: ______________________________ Employer: ________________________________ Number of members of household: _________

MONTHLY INCOME Borrower Co-Borrower Total Employment (Gross income) - Take home (NET income) Part Time Work Child Support/ Alimony SSI/ Disability Rental Income Other:

MONTHLY EXPENSES PAYMENTS BALANCE NAME OF CREDITOR 1ST Mortgage (primary res) 2nd Mortgage (primary res) HOA (primary res) Home Owner’s Insurance Property Taxes Electric Water Gas - Home Cable/ Phone/ Internet Home Maintenance Cell Phone Auto Loan #1 Auto Loan #2 Gas – Auto Auto Maintenance Auto Insurance Student Loans

Page 1 of 2

Page 10: SHORT SALE PRE-QUALIFICATION PACKAGE Sale Pack… · SHORT SALE PRE-QUALIFICATION PACKAGE Dear Home Owner, Thank you for allowing us to work with you in an effort to successfully

(continued from page 1) MONTHLY EXPENSES PAYMENTS BALANCE NAME OF CREDITOR Medical Insurance Life Insurance Uninsured Medical Expenses Back Taxes Child Care Food/ Groceries Recreation/ Entertainment Alimony/ Child Support Credit Cards Loans Rent Loss Education Other Properties: Other:

EXPENSE TOTAL: ASSETS BALANCE/ Value INSTITUTION Checking Savings 401K/ IRA/ retirement Personal Property Autos Real Estate Other: I/we have described my/our financial condition in the above worksheet and certify that it is a true and accurate reflection of my/our financial circumstances. I/we understand that in providing this information, it does not obligate my creditors to assist me or stop the foreclosure process. I/we authorize my/our creditors to verify the above information through the request of credit reports and/or title searches. I/we agree to notify my Agent/Broker and my creditors of any material changes to the above information. I/we understand that my creditors are relying on the accuracy of this information to make a determination on my accounts with them. _________________________________________________ ________________ ____________ Borrower (signature) Date SSN DOB _________________________________________________ ________________ ____________ Co-Borrower (signature) Date SSN DOB

Page 2 of 2

Page 11: SHORT SALE PRE-QUALIFICATION PACKAGE Sale Pack… · SHORT SALE PRE-QUALIFICATION PACKAGE Dear Home Owner, Thank you for allowing us to work with you in an effort to successfully

FINANCIAL HARDSHIP LETTER

(SAMPLE)

Your letter of hardship should be brief, and include specific points as to changes in your life or financial circumstances. Instances like pay reductions, job loss, illness, loss of renters, business slowing down, unforeseen medical or child rearing expenses can all play a part in someone’s ability to maintain their mortgage payments. Your lenders need to know what events in your life made you unable to continue making your mortgage payments. HERE ARE SOME SAMPLE REASONS FOR FINANCIAL HARDSHIP: I am self employed, and business has slowed down… My daughter started college this fall, and… I use to put in 10-20 hours per week of over time, when I bought the house, and now my employer does not allow over time… My husband has had his hours cut at work…. I had a major surgery in July, and am now on disability… I am a commissioned employee, and sales have been down for the last year…. When I bought the house, I thought I could handle the payments, but I didn’t anticipate the high costs of home ownership… My wife and I had a baby last year and…. I bought this house as a rental, and have had lost 2 renters over the last year. Each time I spent over $2,000 in repairs and marketing expenses. The rent does not cover the full mortgage payments…

Page 12: SHORT SALE PRE-QUALIFICATION PACKAGE Sale Pack… · SHORT SALE PRE-QUALIFICATION PACKAGE Dear Home Owner, Thank you for allowing us to work with you in an effort to successfully

FINANCIAL HARDSHIP LETTER

Borrower: ____________________________ Co-Borrower: ____________________________ I am having problems making my monthly payment because of financial difficulties created by: (Check all that apply) ___Military Service ___Business Failure ___Divorce / Separation ___Incarceration ___Death of Spouse ___Disability ___Reduced Income ___Too Much Debt ___Unemployment ___Medical Bills ___Job Relocations ___Illness Other (Specify):______________________________________________________________________ I believe that my situation is ____Temporary ___Permanent Explain your hardship:

Signed: ________________________________________ (Borrower) Date: _____________ Signed: ________________________________________ (co-Borrower) Date: _____________

Page 13: SHORT SALE PRE-QUALIFICATION PACKAGE Sale Pack… · SHORT SALE PRE-QUALIFICATION PACKAGE Dear Home Owner, Thank you for allowing us to work with you in an effort to successfully

REFERRALS

Do you know someone else who may need our services? Someone who has fallen behind, or are struggling to make their house payments? Someone who may be considering a Loan Modification or Short Sale? Help us, help them. Please take a minute to add their name, address, phone number, and relationship to you. One thing you can be sure of, is that we will be sensitive to their situation, and they will be forever grateful to you should be we be able to successfully help them. Thank you! ______________________ __________________________________ _______________________ Name Address Phone ____________________________________________________________________________________ Relationship to you ____________________________________________________________________________________ Comments/ Best time to call ______________________ __________________________________ _______________________ Name Address Phone ____________________________________________________________________________________ Relationship to you ____________________________________________________________________________________ Comments/ Best time to call ______________________ __________________________________ _______________________ Name Address Phone ____________________________________________________________________________________ Relationship to you ____________________________________________________________________________________ Comments/ Best time to call

Page 14: SHORT SALE PRE-QUALIFICATION PACKAGE Sale Pack… · SHORT SALE PRE-QUALIFICATION PACKAGE Dear Home Owner, Thank you for allowing us to work with you in an effort to successfully

January 2010 Seller’s Initials __________ ____________ Page | 1

Arizona Department of Real Estate

Short Sale Seller Advisory

A Resource for Real Estate Consumers

Provided by the Arizona Association of REALTORS®

A short sale is a real estate transaction in which the sales price is insufficient to pay the loan(s) encumbering the property in addition to the costs of sale and the seller is unable to pay the difference. A short sale involves numerous issues as well as legal and financial risks. This Advisory is designed to address some of these issues and risks, but does not purport to be comprehensive.

Before Proceeding with a Short Sale Understand a Lender’s Options upon Loan Default There are many types of loans that are secured by real property. These may be purchase loans, refinanced loans, home-equity loans, or one of the various other types of loans. The type of loan and type of property will determine what remedies a lender may have if the homeowner fails to make the agreed upon payments. The available remedies, the homeowner’s overall current or potential future financial strength, the lender’s cost in acquiring the loan and any shared-loss or similar agreement if the loan was acquired by purchase or merger, are some of the many factors that the lender may consider in deciding how to proceed when a loan is in default. For an overview of these issues, go to: http://www.aaronline.com/AZR/Dec/09LoanDefaults.aspx

Be Aware of Predatory “Rescue” Scams & Short Sale Fraud Homeowners worried about foreclosure may be susceptible to predatory “rescue” scams which may cost you money with no results, result in the loss of your home entirely, or involve you in a fraudulent scheme. For more information, go to: www.efanniemae.com/utility/legal/pdf/fraudnews/mortgagefraudnews0709.pdf “Red Flags” of fraudulent schemes include:

• Guarantees to stop the foreclosure • Large upfront fees • Instructions not to contact the lender • Transfer of title or lease of the property • The proposed buyer is an LLC • Requests that the homeowner execute a power of attorney • The proposed buyer, at the buyer’s sole expense, retains a third

party to negotiate the short sale for the seller’s benefit. Report suspected scams to the Department of Financial Institutions at [email protected]; the Attorney General’s Office at www.azag.gov/consumer/foreclosure/index.html#Complaint or NeighborWorks© at www.loanscamalert.org/default.aspx

Contact a free HUD-approved housing counselor or contact your lender directly.

• Contact a HUD-approved housing counseling agency online at www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm?webListAction=search&searchstate=AZ or call (800) 569-4287 or TDD (800) 877-8339 for advice on your options. For additional HUD resources: http://portal.hud.gov/portal/page/portal/HUD/topics/avoiding_foreclosure

• Contact the Neighborhood Assistance Corporation of America at: https://www.naca.com/refinance/refinanceTenStep.jsp

• Contact the lender directly. To find the lender’s contact information, check the loan billing statement, or coupon book. Ask for the lender's home retention department, loss mitigation department, (or other department that handles negotiation of loans in default); explain the situation and find out if the lender is willing to discuss options.

Page 15: SHORT SALE PRE-QUALIFICATION PACKAGE Sale Pack… · SHORT SALE PRE-QUALIFICATION PACKAGE Dear Home Owner, Thank you for allowing us to work with you in an effort to successfully

January 2010 Seller’s Initials __________ ____________ Page | 2

Before Proceeding with a Short Sale (Continued) Utilize free services available to Arizona residents

• Contact the Arizona Foreclosure Helpline at 1-877-448-1211 (toll-free) or visit www.housingaz.com/ShowPage.aspx?ID=248

• Review the Arizona Foreclosure Prevention Task Force Workbook at www.dbtaz.org/flyers/2009.9.1.State.Task.Force.Wrkbk.pdf. This book will help you evaluate your options and provide you with tools to take action. Additional resources are available at: www.azforeclosureprevention.org.

Obtain Legal Advice An attorney can advise you about your options and legal liability.

• To find out if you are eligible for free or low cost legal assistance, contact a legal aid organization in your county or one of the organizations listed at www.azbar.org/LawyersHelpingYou/freelegal.cfm or www.azlawhelp.org/housing.cfm

• Contact the Lawyer Referral Service in your county where you can consult with an attorney for a small fee for a half-hour consultation. Maricopa County: www.maricopabar.org/displaycommon.cfm?an=16 (602) 506-3296. Pima County: www.pimacountybar.org/web/lawyer-referral-service-lrs (520) 623-4625.

• Attorneys who are State Bar Real Estate Law Certified Specialists can be located at: www.azbar.org/LegalResources/findspecialist.cfm.

Obtain Tax Advice • For Mortgage Forgiveness Debt Relief Act and Debt

Cancellation tax information, go to: www.irs.gov/individuals/article/0,,id=179414,00.html

• Attorneys who are State Bar Tax Law Certified Specialists can be located at: www.azbar.org/LegalResources/findspecialist.cfm.

Be aware of the Consequences of Committing “Waste” Damaging the property or removing fixtures such as sinks, toilets, cabinets, air conditioners, and water heaters may result in liability to the lender for “waste.” In other words, the lender may be able to sue you for damages if you have physically abused, damaged or destroyed any part of the property.

Options other than Short Sale Consider All Options A short sale may not be your best course of action. Consider all your options before making a decision. Loan Workout

• Reinstatement: Paying the total amount owed by a specific date in exchange for the lender agreeing not to foreclose.

• Forbearance: An agreement to reduce or suspend payments for a short period of time.

• Repayment Plan: An agreement to resume making monthly payments with a portion of the past due payments each month until they are caught up.

• Claim Advance/Partial Claim: If the loan is insured, a homeowner may qualify for an interest-free loan from the mortgage guarantor to bring the account current.

Page 16: SHORT SALE PRE-QUALIFICATION PACKAGE Sale Pack… · SHORT SALE PRE-QUALIFICATION PACKAGE Dear Home Owner, Thank you for allowing us to work with you in an effort to successfully

January 2010 Seller’s Initials __________ ____________ Page | 3

Options other than Short Sale (Continued) Loan Modification The lender may agree to change the terms of the original loan to make the payments more affordable. For example, missed payments can be added to the existing loan balance, the interest rate may be modified or the loan term extended. Loan modification resources include:

• Making Homes Affordable: www.makinghomeaffordable.gov • National Foreclosure Mitigation Counseling Program:

http://findaforeclosurecounselor.org/network/home.asp • Homeownership Preservation Foundation: www.995hope.org

1-888-995-HOPE™ Hotline

Refinance If the lender will not agree to a loan workout or modification, the homeowner may be able to refinance the loan with another lender. The HOPE for Homeowners program will refinance mortgages for homeowners that can afford a new loan insured by HUD's Federal Housing Administration. Learn more at www.hud.gov/hopeforhomeowners/index.cfm Deed-in-Lieu of Foreclosure The lender may allow a homeowner to “give back” the property. This option may not be available if there are other liens recorded against the property. Review the HUD requirements at www.hud.gov/offices/hsg/sfh/nsc/rep/dilfact.pdf. Work Out Sale The lender may allow a specific amount of time for the home to be sold and the loan to be paid off. The lender may also allow a buyer to assume the loan to purchase the property even if the loan is non-assumable. Bankruptcy If you are considering bankruptcy as an option, consult with an attorney that specializes in bankruptcy cases: www.azbar.org/LegalResources/findspecialist.cfm. Access the Arizona Bankruptcy Court self help information by calling 866-553-0893 or visit: http://www.azb.uscourts.gov/default.aspx?PID=78#866 .

Foreclosure Allowing the lender to foreclose is another option. The counselors at the Arizona Foreclosure Help Line can explain the foreclosure process, call: 1-877-448-1211. Ultimately, only you and your attorney can decide if foreclosure is the best option for you. Attorneys who are State Bar Real Estate Law Certified Specialists can be located at: www.azbar.org/LegalResources/findspecialist.cfm. Ask your attorney about the possibility of a deficiency lawsuit after foreclosure. Assuming all statutory requirements are met, the Arizona anti-deficiency statutes may limit the lender’s remedy to foreclosure, even if the amount due to the lender exceeds the value of the property. Also, seek professional tax advice about the consequences of a foreclosure and review the IRS information at: www.irs.gov/individuals/article/0,,id=179414,00.html.

Short Sale Considerations If you decide to pursue a short sale, consider taking the following actions. Contact a qualified real estate professional Interview several real estate professionals and ask about their experience in short sales, the number of short sale transactions that they have handled, and their education and training in short sales.

• Review the real estate professional’s background and continuing education on the ADRE website at: http://services.AZRE.gov/publicdatabase

• Ask if the real estate professional has obtained a short sale certification, such as the Short Sales and Foreclosure Resource Certification (“SFR”). See, http://www.realtorsfr.org/

• Find a REALTOR® at: www.aaronline.com/ConsumerAssistance/FindARealtor

Short Sale Considerations (Continued)

Page 17: SHORT SALE PRE-QUALIFICATION PACKAGE Sale Pack… · SHORT SALE PRE-QUALIFICATION PACKAGE Dear Home Owner, Thank you for allowing us to work with you in an effort to successfully

January 2010 Seller’s Initials __________ ____________ Page | 4

Investigate documentation and eligibility Documentation and eligibility criteria for short sales vary depending on specific lender and investor guidelines. Generally, you must prove that you are financially incapable of paying the loan and the lender is convinced that it will fare better by agreeing to a sale for less than the outstanding loan amount than foreclosing. Determine the amount owed on the property All debt and costs must be factored in before determining whether a short sale is feasible. Consider the delinquent loan, home equity loan or other loans recorded against the property, past due homeowner’s association fees, unpaid property taxes and the costs of a sale, such as closing costs, escrow fees and brokerage commissions. If you have more than one loan on the property, be aware that a short sale will generally require the approval of all lenders. Determine the estimated fair market value of the property You must prove to the lender that the home is worth less than the unpaid loan balance. Consult a real estate professional or an appraiser for assistance in estimating the value of the property. Consult legal counsel The importance of competent legal counsel to help you determine whether a short sale is the best option and to advise you during the short sale process cannot be over emphasized. See the legal resources listed on page 2 or visit: www.azbar.org .

Understand that a short sale may not discharge the debt Even if a lender agrees to a short sale, the lender, the VA, or the FHA may not agree to forgive the debt entirely and may require you to pay the difference as a personal obligation. This outstanding personal obligation could result in a subsequent collection action. For example, a lender may accept the short sale purchase price to “release the lien” on the property as opposed to agreeing to accept the purchase price as “full and final settlement of the debt” on the property. Therefore, be certain of the terms of any short sale before making a decision, consult an attorney regarding whether the lender is entitled to pursue a deficiency judgment and obtain any debt forgiveness agreements with the lender in writing. Obtain tax advice A short sale in which the debt is forgiven is a relief of debt and may be treated as income for tax purposes. The Mortgage Forgiveness Debt Relief Act of 2007 created a limited exemption to allow homeowners to pay no taxes on debt forgiveness; however, only cancelled debt used to buy, build or improve a principal residence or refinance debt incurred for those purposes qualifies for this tax exemption. For more information on the tax consequences of debt relief seek professional tax advice and go to: www.irs.gov/individuals/article/0,,id=179414,00.html Be aware of the impact on your credit score The impact of a short sale on your credit score depends upon a variety of factors, including late or missed payments. A short sale may appear on your credit report as “pre-foreclosure redemption,” “paid in full for less than full balance” or other similar term. Understand that there may be a waiting period before you can buy another home Your ability to qualify for a loan to purchase another home after a short sale will likely be impacted by a short sale and there may be a waiting period before you can purchase another home.

Page 18: SHORT SALE PRE-QUALIFICATION PACKAGE Sale Pack… · SHORT SALE PRE-QUALIFICATION PACKAGE Dear Home Owner, Thank you for allowing us to work with you in an effort to successfully

January 2010 Seller’s Initials __________ ____________ Page | 5

Review the Arizona Association of REALTORS® (AAR) short sale forms AAR has developed a Short Sale Addendum to the Listing Agreement, www.aaronline.com/documents/SSAListing.pdf, and a Short Sale Addendum to the Residential Resale Real Estate Purchase Contract www.aaronline.com/documents/SSARPC.pdf, to assist in a short sale transaction. Review these contract forms and any other forms you are asked to sign so that you thoroughly understand your rights and obligations. For more information, visit:

• The Arizona Department of Real Estate website: http://www.re.state.az.us/index.html

• AAR’s Consumer Foreclosure Assistance Links: www.aaronline.com/documents/ForeclosureLinks.aspx

SELLER ACKNOWLEDGMENT Seller acknowledges receipt of this Advisory and further acknowledges that there may be other issues of concern not listed herein. The information in this Advisory is provided with the understanding that it is not intended as legal or other professional services or advice. These materials have been prepared for general informational purposes only. The information and links contained herein may not be updated or revised for accuracy. If you have any additional questions or need advice, please contact your own lawyer.

__________________________________ Date_______________ Seller Signature _________________________________ Date_______________ Seller Signature

Arizona Department of Real Estate

Short Sale Seller Advisory

A Resource for Real Estate Consumers Provided by the

Arizona Association of REALTORS®

Page 19: SHORT SALE PRE-QUALIFICATION PACKAGE Sale Pack… · SHORT SALE PRE-QUALIFICATION PACKAGE Dear Home Owner, Thank you for allowing us to work with you in an effort to successfully

RE/MAX New Heights Realty

6427 S Central Ave, Suite 100

Phoenix AZ 85042

Phone: 602-296-0100 Fax: 602-889-0150

SHORT SALE HOLD HARMLESS AND

WAIVER OF LIABILITYAGREEMENT

THIS FORM IS INTENDED TO BE A LEGALLY BINDING CONTRACT. HOWEVER, NO REPRESENTATION IS MADE AS

TO THE LEGAL VALIDITY OR ADEQUACY OF ANY PROVISION OF THIS AGREEMENT OR THE TAX CONSEQUENCES

THEREOF. IF YOU DESIRE LEGAL, TAX, FINANCIAL OR OTHER PROFESSIONAL ADVICE, CONSULT WITH YOUR

ATTORNEY, TAX ADVISOR, INSURANCE AGENT, FINANCIAL AND/OR PROFESSIONAL CONSULTANT, PRIOR TO

SIGNING THIS AGREEMENT.

This HOLD HARMLESS AGREEMENT & WAIVER OF LIABILITY is made this__________________ day

of ____________________, 20_____ by and between____________________________________________, herein

after referred to as “BROKER” and_________________________________________________________________

herein after referred to as “Seller/Sellers”. In addition, “BROKER” and Seller/Sellers” are herein sometimes also

individually referred to as “Party” or collectively referred to as the “Parties”

WHEREAS, Seller/Sellers desires to Employ and Grant “BROKER” and their Agent/Agents_________________

___________________________________________________, the exclusive & irrevocable right to List for Sale

and to Short Sell their property located at ____________________________________________________________

(Address), in __________________ (County), _____________________________________(City),

Arizona______(State), ________________(Zip Code), as evidenced in the attached or enclosed “ER – Exclusive

Right To Sell Agreement”, commencing on _______________(Month), ____________(Day), __________(Year),

and expiring at 11:59 p.m. _________(Month), ____________(Day), __________(Year),

WHEREAS, in exchange for making the Property available to “BROKER” for such purposes as described above,

“Seller/Sellers” desires to Hold Harmless and Waive Liability for “BROKER” and their “Agent/Agents”, from any

and all liability claims and/or litigation arising out of the “BROKER’s” and/or ”Agent/Agents” use of the property,

NOW THEREFORE, in consideration of the mutual covenants & conditions contained herein, “BROKER”, and

“Seller/Sellers” hereby agree as follows:

TERMS AND CONDITIONS

1. HOLD HARMLESS Upon “BROKER’s” use of the Property by any of its employees, agents, invitees and/or

volunteers for the purposes as specified herein, “Seller/Sellers” shall defend, indemnify, and Hold Harmless,

“BROKER” for any and all actual or alleged claims, demands, causes of actions, liability loss, damage and/or injury

(to property or persons, including without limitation wrongful death), whether brought by an individual or other

entity, or imposed by a court of law or by administrative action of any federal, state, or local governmental body or

agency, arising out of or incident to any acts, omissions, negligence, or willful misconduct of “BROKER”, its

personnel, employees, agents, contractors, or volunteers in connection with or arising out of “BROKER’s” use of

the Property. This indemnification applies to and includes, without limitation, the payment of all penalties, fines, judgments,

awards, decrees, attorney fees and related costs or expenses, and any reimbursements to BROKER for any and all

legal expenses and costs incurred by it.

Page 1 of 3 (SELLER’S INITIALS REQUIRED) _____________________/_____________________

Page 20: SHORT SALE PRE-QUALIFICATION PACKAGE Sale Pack… · SHORT SALE PRE-QUALIFICATION PACKAGE Dear Home Owner, Thank you for allowing us to work with you in an effort to successfully

2. AUTHORITY TO ENTER AGREEMENT Each party warrants that the individuals who have signed

this Agreement have the capacity, legal power, right and authority to make this Agreement and bind each

respective party or parties.

3. AMENDMENT; MODIFICATION No supplement, modification or amendment of the Agreement shall

be binding unless executed in writing and signed by all the Parties.

4. WAIVER No waiver of any default shall constitute a waiver of any other default or breach, whether of

the same or other covenant or conditions. No waiver, benefit, privilege, or service voluntarily given or

performed by a Party shall give the other Party any contractual right by custom, estoppel, or otherwise.

5. ATTORNEY’ FEES AND COSTS If any legal action or other proceeding is brought in connection with

the Agreement, the successful or prevailing Party shall be entitled to recover reasonable attorney’ fees and

other related costs, in addition to any other relief to which the party may be entitled.

6. NO ADVICE PROVIDED The undersigned parties (Seller or Sellers) understand that the listing agent (Agent)

will not provide Sellers with legal or tax advice. The Sellers therefore agree to seek independent Counsel pertaining

to sale of their home, land, and real property in the matters of state and federal taxes and legal implications. The

undersigned Sellers shall contact an appropriate real estate attorney and or certified public accountant to obtain

qualified counsel relating to implications of and questions about selling the aforementioned real property. Sellers

further acknowledges that the Sellers have been given the opportunity to discuss this transaction with the Seller’s

private legal counsel and public accountant, and the Sellers have utilized that opportunity to the extent desired.

7. NO GUARANTEES OR PROMISES The undersigned further agree that there have been no guarantees or

promises of sale made to them by the Agent or Brokerage above. It has been explained to the Sellers, and they agree

to as much below, that in a changing real estate market, Brokers and Agents can make no warranties whatsoever

implied or otherwise as to time to sale, sale price, and probability of sale of any property. Because Agent or

Brokerage does not and cannot make any guarantees, Sellers agree that any prior statements made by the Agent to

the contrary are hereby waived and shall have no effect whatsoever in connection with the services to be offered by

Agent or Brokerage. Moreover, any information that the Agent has presented to the Sellers is to assist the Sellers in

making an educated decision in the sale of their home, but in no way should preclude the Sellers from seeking

professional legal as well as tax advice. It is expressly suggested that the seller do both.

8. MUTUAL CONSIDERATIONS In consideration of the mutual considerations between the parties, the Sellers

hereby agree to hold Agent and the Brokerage above Harmless and keep them exonerated from all loss, damage,

liability, or expense occasioned by the services intended to be provided by the Agent and the Brokerage or claimed

by reasons of acts or neglects of third parties, including property inspectors, visitors, or third party independent

contractors. Likewise, Sellers agree that they shall save, defend, indemnify and Hold Harmless Agent and the

Brokerage above from any and all claims, demands, liabilities, actions, proceedings, judgments, fines or other

expenses including without limitation, reasonable attorneys’ fees, incurred by them arising from or related to any

claim of alleged errors and omissions caused by or related to the acts of the Sellers, their agents, servants, principals

and/or employees. Sellers agree that if they take any action against the Agent or the Brokerage, contrary to this

agreement to indemnify and Hold Harmless, the Sellers shall reimburse the Agent and/or Brokerage for any

attorney’s fees or costs of any kind or nature which may be incurred by the Agent and/or Brokerage to enforce the

provisions of this agreement. The Sellers hereby understand and agree that a specific condition of being provided

such services is the execution of this agreement.

Page 2 of 3 (SELLER’S INITIALS REQUIRED) ______________________/_____________________

Page 21: SHORT SALE PRE-QUALIFICATION PACKAGE Sale Pack… · SHORT SALE PRE-QUALIFICATION PACKAGE Dear Home Owner, Thank you for allowing us to work with you in an effort to successfully

9. ENTIRE AGREEMENT This three (3) page Short Sale Hold Harmless & Waiver of Liability

Agreement contains the entire agreement between the Parties related to the matter specified herein, and

supersedes any prior oral or written statement or agreement between the Parties related to such matters. IN SIGNING THIS SHORT SALE HOLD HARMLESS & WAIVER OF LIABILITY RELEASE, I (we)

ACKNOWLEDGE AND REPRESENT THAT I (we) have read the forgoing Waiver of Liability and Hold

Harmless Agreement, understand it and sign if voluntarily as my (our) own free act and deed; no oral

representations, statements or inducements, apart from the foregoing written agreement, have been made; I

(we) am at least eighteen (18) years of age, and fully competent; and I (we) execute the Release for full,

adequate and complete consideration fully intending to be bound by same.

RE/MAX NEW HEIGHT REALTY

By: _______________________________________ ____________________

Print Agent’s Name Date

By: _______________________________________ ____________________

Agent’s Signature Date

By: _______________________________________ ____________________

Print Broker’s Name Date

By: _______________________________________ ____________________

Broker’s Signature Date

SELLER/SELLERS

By: _______________________________________ ____________________

Print Seller’s Name Date

By: _______________________________________ ____________________

Seller’s Signature Date

By: _______________________________________ ____________________

Print Seller’s Name Date

By: _______________________________________ ____________________

Seller’s Signature Date

Page 3 of 3 (SELLER’S INITIALS REQUIRED) _____________________/_____________________ RMNH Short Sale Hold Harmless & Waiver of Liability Agreement 11/2009