Beruflich Dokumente
Kultur Dokumente
The Basics:
Upside Down
A tenn used to describe borrowers who owe more on their loan than their property is currently worth.
A real estate short sale is based on the simple concept of a settlement. Have you ever allowed someone to repay you less than the full amount he or she owes? Maybe after you hear the person's honest explanation, you realize that something is better than nothing. So, you settle: 'Just give me twenty bucks, and we'll call it even." This is the concept behind a short sale. Real estate short sales are typically initiated to help homeowners or property owners in financial distress avoid foreclosure. Let's look at where short sales fall along the foreclosure timeline.
If the seller An insolvent cannot reinstate property owner the loan and has receives notice not sold the from their lender property to repay that they are in the debt, the default of their lender will initiate loan and havce a certain number of ; the 1~<>aI I foreclosure days (typicaly 30 to 45) to cure the process and set a date to sell the default. If the property at public property owner must sell and can auction. The demonstrate a property and title will. pass to d,e hardship, the highest bidder. lender may agree to (short) sell the property to a qualified buyer for a discounted loan payoff
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Foreclosed property not sold at auction becomes real estate owned (REO) by the lender. Because this property is a liability (versus an asset) to the lender, they are ea"er to sell the property and dear it from their balance sheets. They will often hire REO sales agents to list an.d sell the properties for them.
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Note: Foreclosure procedures vary from state to state and ate governed
by state laws and statutes. Take time to get educated about the process in your state. Legal foreclosure is a costly and risky process that both sellers and lenders typicaly wish to avoid. For this reason, it makes good economic sense to pursue other options when it is cleat that full repayment of the debt is an impossibility. So, as one strategy to mitigate their losses, banks
will often accept a short sale settlement for less than what is still owed on the note.
Under water
A term used to describe an asset (such as real estate) that is currently worth less than the outstanding balance on the loan it originally secured.
like no other time in real estate history, mortgage lenders are willing to consider short sales as an alternative to foreclosure and a way to mitigate their mounting losses. Banks are becoming increasingly convinced that their tactics of yesteryear will not work in today's troubled times. Mortgagors once used the mere threat of foreclosure to motivate homeowners to comply with the terms of their loans. A simple letter hinting at foreclosure was all that was needed to send most homeowners scrambling for cash. In panic mode, they would beg, borrow, or even steal to keep their homes and protect their credit. No more.
Unprecedented numbers of homeowners today are in so much debt and hardship that they are numb to threats of home foreclosure, repossession, or negative credit reporting. Millions of homes are under water and their homeowners are drowning fast. These are the people who need short sales the most.
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Lenders are willing to settle with a short sale because the alternatives for them are to Incur the cost of eviction and repossession Carty the cost of the property during the foreclosure process Incur the expense of repairs and improvements in order to make the property marketable
In addition, because the short sale helps stop foreclosures before they happen, this solution ultimately helps the economy and the real estate market. Studies suggest that just one foreclosure in a neighborhood can
result in an additional drop of approximately 9% in property value and home equity for neighboring homes. When you get into the short sale business, you are helping to prevent foreclosures that can further depress home values in your market. Clearly, the short sale is a win-win for all parties involved. Let's dig down further into the opportunity short sales offer real estate agents.
Notes
A Buyer makes an offer that is less than the mortgage (market value)
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Notice that Steps 1 tlttough 5 are perfo=ed by the short sale agent. Then, as the seller's lender is completing Steps 6 tlttough 9 with the short sale file, the agent is running parallel with their own set of tasks. Then, both sides close the file and get paid in Step 10.
1.
Bank acknowledges receipt of the file. This can take 10 days to a month
2.
A negotiator is assigned. This can take 30 to 60 days. A BPO is ordered. The bank probably will refuse to share the results of the BPO. A second negotiator may be assigned. This can take another 30 days
3.
The file is sent for review or to the PSA. This can take 2 weeks to 30 days.
The bank may then request that all parties sign an Arm's-Length Affidavit.
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is more litigious. Strong administrative and organizatiollill skills will help you stay on top of the process and avoid potential legal challenges. I often share with people that short sale processing is a lot like processing a health disability claim. Insurance companies demand thorough documentation to justify paying on a disability claim. "Who are you? How did nhe injury occur? "What steps did you take to prevent injury? "What is the extent of the injury? ... " And in many cases, there is back-anel-forth negotiation about what must occur if the claim is awarded---the terms of the payout, which physicians you will see, the rehabilitation plan, and so forth. When we say you must have administrative and organizational skills, imagine that you'll be working with individuals who think and operate much like these disability claims officers.
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As you already know, short sales typically run on a longer timeline than other real estate sales transactions. Sometimes, it feels like the plan is to "hurry up and wait." The short sale process can take from as little as three weeks to several months. I have had some take a year! Patience is a virtue and a requirement for the successful short sale agent. As you will learn, short sales require the ability to stick to it. Many agents give up on short sales because they don't have the perseverance or the patience. What they lack is a system to help them manage the details and streamline the processing activities. Once these are in place, short sales are more than worth the effort!
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Do you possess these critical skills?
The good news is that you don't have to take on all short sales tasks by yourself. There are a number of ways to run a short sale business.
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Welcome to Day 2
Welcome to Day 2 of 1 Days to Success with Short Sales! In this chapter, we begin the process.
As you will learn, Step 1: Pre-Qualify the Prospect is the most important step in the process. If you thoroughly and diligently prequalify your prospective short sellers using the system we teach you, everything else will fall into place. In other words, your success is determined by this step. You will learn about the four key criteria that determine a seller's eligibility and how lenders view the qualification process. In addition,
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since government-insured loans are handled a bit differendy, we'll spend time discussing how to qualify sellers with those loans. Your best support tool in this step of the process is the Short Sale PreQualification Questionnaire. This document will save you time up front and potential hassles that could develop later. We'll walk through how to use this questionnaire during the interview with your prospect. In Day 2, you will also find tons of scripts you can use with homeowners to help them understand the process and to demonstrate your knowledge and your compassion for the situation.
Notes
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When I was less experienced with short selling, my pre-qualification step was more like a hope and a prayer! I was not always certain about the outcome for my sellers. Now, we are so confident about our 7 Day Systems pre-qualification process that if a lender denies one of our short sale proposals, the next step is to investigate and possibly even dispute. In most cases, the loss mitigator has missed something or there has been
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a miscommunication or an oversight. This is particularly true for short sales involving government-insured FHA mort"o-ages (see "FHA Short Sales" later in this chapter).
Notes
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1.
2. 3.
The homeowner must be experiencing a hatdship. The homeowner must owe more than the home is worth. The homeowner must be in arreats (past due) on their mortgage account. The homeowner must be able to show that they can no longer afford the property or afford to bring money to closing. They must be financially insolvent.
4.
Typically, if your seller meets all four criteria, the short sale proposal will be straightforwatd, and you should experience a greater than 90% success rate for getting these short sales approved, provided that your short sale proposal package is prepated and presented correctly. When interviewing a prospective short seller, it is best to use an interview questionnaire-such as the one offered by 7 Day Systems-to sequence your questions and gather the most relevant information. Before we discuss how to use this pre-qualification questionnaire, however, let's review the four qualification criteria in greater detail so that you will understand what you are listening for in the interview.
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1. Loss of Income
.. .. II .. Loss of job Temporarily out of work for any reason Wages cut New job tbat pays less
1. Increased Expenses
III III III III Mort"oage payment increases Property tax increases Family emergency Additional family members in household (new baby, parents, in-laws) Overextended credit; high minimum payments Other unforeseen expellSes
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3. Medical Problems
II .. .. Medical bills Medical condition resulting in decreased income Medical condition preventing homeowner from living alone/unassisted Mental healtb issues
..
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5. Divorce/Absolved Relationship
Division of marital home Forced move/sale Loss of income Increased expenses
6. Job Transfer
Forced move/sale
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Negative Equity
A term used to describe the situation in which the outstanding balance of a loan is greater than the current value of the asset originally used to secure the loan, For example, if you owe $15,000 on your car loan, but your car is currently worth only $10,000, you have $5,000 of negative equity, Properties with negative equity are said to be "under water," Borrowers with negative equity are said to be "upside down,"
The Seven Most Common Reasons a Seller Is Upside Down (or Has Negative Equity in their Home)
Negative home equity can ~esult from several different factors, The follo"",-ing are the most common :reasons: 1, Person bought at the height of the market and the market illts now declined, Person paid more than the property was worth, The area has become less desirable for any number of reasons, so property values illtve declined. Person purchased the home 'with little or no money down and wants to sell within a few years of purchase, and the property value has not increased during that time, Therefore, the costs associated with selling the property may create a balance due at closing, Person refinanced the home (with a high appraisal value) or took out a home equity loan and now has little or no equity, Person bought in a very new subdivision or recently developed area has not appreciated (or has depreciated) in value,
2. 3.
4.
5.
6.
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7.
The market is soft because there is too much builder (new home) inventory or too many existing homes on the market (buyer's market).
home is worth, they are still short-for example, if they owe $250,000 and their home is currently worth $250,000, they are still technically upside down because closing costs will cause them to fall short. If you detertnine that the homeowner is not actually upside down on their mortgage, you don't have a short sale client, but you still have a new listing and now you know how to proceed!
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Short Sale Agent: "Well, you know, Raymond, these lenders are dealing with several hundred short sale files. They have to assign a priority to each. The files that are not in default (and the ones that are only a few months behind on payments) will get a lower priority.
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The lender wants you to keep making your payments because they want to mitigate their losses. That's their job. But the reality is that when you make your payments, you are preserving your credit-but you're not helping your situation. You're probably hurting it. You may be making payments, but you are likely not bringing down the principal on your loan, so you will still owe more than the value of your home in this current market. You will need to weigh out these choices for yourself. I just want you to be educated about how this all works."
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Most short sale packages contain more than 50 pages of information about the homeowner's situation. The essential elements of the submission package include: Hardship Letter listing Agreement Letter of Authorization Financial Statement Recent Bank Statement(s) Recent Paycheck Stub(s) Fully Executed Purchase Contract on the Property Buyer's Pre-Approval Letter from their Lender HUD-l Settlement Statement (also called HUD-l Estimated Net Sheet) Comparative Market Analysis (CMA) (optional)
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introduced the Pre-Foreclosure Sale (PFS) Program. The pw:pose of this program is to help homeowners with FHA loans-that is, loans insured by the Federal Housing Authority (FHA)-to avoid foreclosure and find a way to transition to more affordable housing. Before 2000, all FHA loans in default were mitigated through HUD. In early 2000, HUD decided to pass the responsibility of loss mitigation on. to the individual HUD-appro"ed lenders (mortgagees). HUD began to train and encourllcge these lenders to offer sellers facing foreclosure the PFS Program as a loss mitigation option. Historically, banks have often opted to foreclose on properties-even when a short sale would offer a better option for the homeowner, buyers, and community---"because of the complexity and time involved in the short sale process. So, to incentivize both sides of the transaction, HUD began offering $1,000 per file to loan servicers for each completed short sale and a $750 to $1,000 incentive per transaction to homeown.ers. (As a sidebar, the problem with this model is that the incentive is given to the loan servicing company (the bank), not to the individual loss mitigato:tS processing the files. So, the historical challen.ge and the bottleneck at the loss mitigator levd remains.)
In February of 2009, the Obama Administration released the Making
Home Mfordable (MHA) program to offer assistance to an estimated 7 to 9 million homeowners by reducing mortgage payments and preventing avoidable foreclosures. The Foreclosure Alternatives portion of the MHA program is meant to help prevent costly foreclosures by providing incentives for HUD-approved lenders and for borrowers to pursue short sales and deeds-in-lieu-of foreclosure. Under this program, lenders may receive up to $1,000 per completed short sale file, and borrowers
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Dealing with FHA short sales, for me, is particularly rewarding because they follow some very specific and documented criteria-whereas conventional loans are not as standardized. For this reason, FHA short sales are much easier for me to pre-qualify.
2.
3.
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4.
Seller must complete an Application to Participate HUn Form 90036. This form is available from HUD's website at www.hud.gov or at www.sevendaysystems.com. You (the listing agent) will receive from the lender an Approval to Participate HUn Form 90045 when they have approved the short sale file. This document will spell out the details of the approval. The seller will be paid a consideration fee of $750 to $1,000 from HUD for a successfully completed short sale. This amount is typically paid at dosing. This incentive is designed to keep the seller motivated and to reward them for completing the process. In reality, however, much of this incentive will likely go toward any closing costs that HUD won't pay (e.g., unpaid HOA dues). So, the seller may see very little, if any, of this incentive.
5.
6.
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Appro''al to P~rtId\HIte other COSts nonmtUy paid by the buyer. you must pay for these Y<lut ;p!<=nl'iI w participule in the HUD Pro--fon:~IOS\1n) Il);Pemle:s.. You must also pay promli:d real estate laxes and Sale prooedure bas b= npproved. By sij;rlingthls furm and assessments lit closi~!l. Yonr mo~ c:J.1l cx:plain wbich saI<:s remming to die above referenced mortgage\: wil1tin 7 da)'li. y<l~ COsts mQy be deducted from HUD's silo proceeds. agreeing to olbide by the foJlowing COnditi<lDS of lheprogrnm. Relocation Services Property Sal~. Jnformation A ",location ~ a.lIiliatc:d with your employer rnay "The property mw.11x: lis1ed f<lts:!le with n llcen.'ed contribute a flXcd sum towards the proceeds of the PFS, without R""IIPI unrelated to you within 7 dny~ ofyoUl' receipt "fthis altering dlcann's length naturcofthcsnlc. This contribution letI~r for a list price ~l ,>r n= $ _ _ _ which i~ the 'AS IS~ simply reduc.m the shortfuU be!W= th~ proceeds and W vulue indicated on th~ upproisaJ <lfY<lnr proper!)'. The listi.og amount ow~'Ii On the motlgngc nolC. As with any other PFS, BgrecIllCIlt must include the foU""ing "Pedfic ""n<::cllation such a =attion must result in. the outright sale of die property clullS(: in the event die terms of n ""l~ arc ooucccptlblc to Qod c:mcellution of the FHA mortg:Igc ins=e. HUO: ~Sel1er mny cancel this ngremnmt prior to the ending daw Occupancy and Property MIIlnterumc:e ofth<: listing JlI'riod without udvan~ no~ce to the broker, and You are responsible for property rnaullenanre and \\'ithout payment ofa commission or any other coosidcrJtion If repair umil olosing. This indudes but is nOllimili:d to cutting th~ propcrt)' is conveyed to the martgage insuJcr or the mortgage the gross, IlIlOW removal. n:gular interior and exterior cle:rning, holder." The sale completion is subjectto upprovtll (under HUD imm<'<llate repair ofbmken doors;md windows. and p:lying guidelines) by the mtll"tg:tgec. utility bills as tb~ become dU1:. If the property is \'aCantor '(<lut d=itin~ to (lbtain a signed Contr:lct ofSlllc from bocomes vacnm: during markctiJlg, you mWll inform your a qu:tlifi~d beyctV; If you !)ave not been oble mortga.gct: immediately and ensW"t: that the property is protIletcd !(l obtain an :lCcept;lhle con!t;lct by that date, yoormortg:lgee from fte=ze d:imDge by "winteri:ciog' plumbing pipes. You may must recommence foreclO;<llI"<: or accept a deed.ill.lieu of nmmge with yoor :Sal~ agellt!(l provide property ll1.Iliolen;mo: foreclosure. but you will continue !(l oe responsible forthe cottdition oftbe Acceptable Term. ofSal~ b(}mc until it is sold. Onmage;md repai:r <:lqlenses resulting Program crileria require that "!leI" amount payable to from fire. flood Or other natnml ~a= must be reported HUD as a result of this sile. after nllow:tble expcn:<cs "ill be ~ imm<'<liatoly to tbe insurance company and to your mortgagee. 1= $ ,(ou must ""hmit yoor proposed Borrower's lDcentive Compl!llSlItIoo Ccmtrm:\ ofSal~ far approval to the MortS:tSce Cont:lct nmtl~d If you mlcces.rul1y cl05e a sole of your home under this above. The sile = t be an """n!m's length~ trnIlsaetion; th~ buyet procedure. )'{)U Wlll be pnid compensation ofS750 a! dosing. cannot be a member ofyour family, business associale, or oth<=l" Y<IIlt C<lmp~(}n Wl11 increase to $1.000 iftbe,.,1e of yow: favO!"Cd P"rty. No hldd<!rll.ctJ1u or special OJIdCl"Stllndings cnn c:cist propt:T!y closes on orbcforc Yoo may clcc( to bt,tween )'lu, die ooycr. upprai"~r. ~t"" Qgent or~ee. If receive casll or apply rome or all of the campem!a~OIl to sales yoo ncgoti:lle with a blIY<=l"!o P"Y for dii<COWlt points, a home coom: nOl paid by HUO, for =pJe, discount points. or hmrn: warranty, rep:tin< notl"llqUircd for a new mortgage, tnlnSfcr tllws or wnrruntj plans. Y(Ill m:.y also ur.e it to pay offjunior liens.
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Hlgh foreclosure rates continue to have devastating effects on families and neighborhoods. The Federal. Housing Administration (FHA) remains committed to taking actions to help families avoid foreclosure. Since being introduced as anationalprogram in 19941> the PFS Program has helped thousands ofmortgagots in default to avoid foreclosure and transition to more affordable housing. The PFS Program can help many families who today are: facm,g foreclosure. The PFS loss mitigation option allows a mortgagor in default to sel! bis or her home and use the sale proceeds in satisfaction of the mortgage debt when the proceeds are less than the amount owed
'This Mortgagee Letter (MI.) serves to remind mortgagees of the relieftbal: tbe PFS Program ~an bring to borrowers with FHA-insured mortgages. To fucilitate greater use oftbis program, FHA has cocsolidated in this ML the requirements of the PFS Program that have been issued over the yellfS, andhas updated and clarified those requirements where needed, to better address the problems aced by mortgagors today and provide greater .flexibility in ~ocsiderio.g a mortgagor's candidacy for participation in tltis program.
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lJinimum List Price Requirements - Properties offetedfor sale under the PFS program are to be listed for sale atno less than the ~as-is" appraised value as determined by a ~urrent FHA appraisal. obtaioed and reviewed by the mortgagee. Negative Equity The ratio of 6~/& for the fair market .. ruue (FJl.fV) to the outstanding mortgage ba.1an~e (mc1udmg unpaid principal and accrued interest) has been. updated to address events in the current housing market, and replaced with tiered net sales pro~eeds.
Page 1 of18
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All of this is great news for you the short sale agent! If you learn the ins and outs of the Mortgagee Letter, you will know exactly how to get your FHA short sales approved! You'll know exactly what the lenders will expect from short sale candidates. So, pre-qualification will be a snap. The Mortgagee Letter explains HUD's position on financial analysis, property value, property condition, contracts, sales period, inspections, closings, and more. Once you learn the directives of the HUD Mortgagee Letter, you'll find that you will be the one educating loss mitigators! You'll know the rules of their business better than they do. Information is power! I'm seeing more educated loss mitigators these days, but I can remember that, on a regul.ar basis, I used to have this sort of conversation with loss mitigators about denied files:
I<inoUy: "Carla, I understand what you';re saying about this file, but this is nat the way it should be done .... " Loss Mitigator: "What do you mean? That is the way we have been doing it for years." l<inoUy:"WeU, I understand, but on page 30 of bhe Mortgagee Letter, it e)qplains that ..." Loss Mitigator: "What Mortgagee Letter? What are you talking about?" <escalation to supervisor... > Loss Mitigation Supervisor: "Yes, iKnoHy, you're right. You know, we reaUy haven't taught our people that section of the Letter. That's a nuance that we really haven't gotten into with them .... But, you're right. We'll approve the file."
Download a free copy of the latest FHA Mortgagee Letter (rev. Dec. 2008) from www.sevendaysystems.com or from the U.S. Department of Housing and Urban Development's Homes and Communities website at http://www.hud.gov/ offices/ adm/hudclips/letters/ mortgagee/.
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That's up to 3% hours per listing! A phone-based appointment (with email followup)willsaveyouupt02t03hoursperlisting.At 50 listings per year, you will save about 150 hours of your life-almost a full month of workdays! You may be asking yourself, "What will the seller think of this approach!?" The prospect will follow your lead, so it will be important for you to educate them on why a face-to-face meeting is not necessary initially.
Prospect on the Phone: "So when will you be coming out to see my home?" Short Sale Agent: "You know, Caml, it sounds like you have a wonderful home. My team is eager to see it. Howeer, the bank doesn't reatly care what ,I think about the value of your home. What I mean is, once I 00nvince the bank to agree to do a short sale on your horne, they wiU hire their own independent appraiser who will come out and view your home and set a va'luation based on its condition. So for right now,1 wiU need to focus my energies on getting your short sale approved. In order to get the process going quiddy, !I wiH need to send you my short sale package and get that information back from you first, before my team member goes out to put up the sign and Lockbox and take some photos." Prospect on the Phone: "Okay. But who will let me know what I need to do to the home to get it ready for sale?" Short Sale Agent: "That's a great question, Carol. We won't be recommending that you do anything to the home that will cost you money. The truth is, since you won't be netting anything from the sale, the last thing you probably want to do is spend more money on a home you no longer can
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afford. For that reason, we will be selling your home 'as-is.' My only suggestion is to clear out as much clutter as you can. Other than that you're _ okay." Prospect on the Phone: "That sounds good to me. What kind of marketing do you guys do?"
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Short Sale Agent: "Carol, our team has an extensive marketing plan for homes we list. However, with short sales, marketing is not what sells the home. Short sales are price-driven. Our marketing strategy will be to price the home very well so that we can quickly generate a contract and get the bank working on getting your short sale approved."
Expect to receive some inbound calls off of your marketing. Respectfully address the caller, but stay on track with your plan to get prepared before the fortnal pre-qualification interview with a new prospect.
Prospect on Phone: "Hello, Knolly? This is Carol Carter. I was referred to you by Maureen Jones. She told me you might be able to help me. I think what I need is called a short sale."
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Short Sale Agent: "Carol, I am so glad you called and that Maureen sent you my way. I am absolutely going to be able to help you! Now, what's your address? ... " Prospect on Phone: "I'm at 123 Oak Street, here in Austin ... " Short Sale Agent: "Fantastic. Now, Carol, Maureen told me you were going to call. I've got something going on right now, and you deserve my complete attention. I need to talk to you about this. Are you going to be available around 3:00? We can do this by phone. I'm sensitive to your time, and I want to make this as painless as possible for you. So, I'U just caU you at 3:00, then. Okay? ..."
For outbound calls th2.t you make to short sale leads, you will be "bie to p~epare in advance =d roll right into fie questions on the Short Sale Pre-Qruilification Questionruilre once you get the seller on the phone.
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and techniques to get my clients' home sold for the most money in the least amount of time ... " Short sellers, on the contrary, are In the middle of a crisis. Due to hardships and financial challenges, they are being forced to sell their homes. Regardless of whether they qualify for a short sale, these homeowners are still distressed and facing challenges that they cannot handle on their own. For those sellers who have only negative equity in their homes (i.e., they are upside down), they cannot sell for a profit or even a breakeven. They are desperate to get out of their situation, and they need help. Typically, these sellers have sought you out for your short sale expertise, and you may not have any competition for the listing. As these sellers see it, you are their only hope for turning the situation around. Sellers who are distressed and/or upside down are typically facing a myriad of financial problems. It is important to have a thorough understanding of exacdy what the homeowners are facing, so that you will be well-informed and prepared to interact with them throughout the short sale process. Some sellers simply need to sell because they have been transferred to a job in another location. Others are facing a death in the family, medical problems, or divorce. Some of these individuals are just a heartbeat away from foreclosure or even bankruptcy, and they're scared of what the future might hold.
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Welcome to Day 3
Welcome to "Day 3: Gathering Infonnation for the Short Sale Package." In the previous chapter, you learned how to conduct the critical prequalification interview to gather a preliminary set of details about the homeowner's situation. In this Day 3 of learning, we will focus on the next step in the process-how to collect the key documents that will help you to verify this information and to move forward with the homeowner.
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It is dw:ing this phase of the process that yow: "prospect" officially becomes yow: "client" with a signed listing agreement. And, furthermore, if their situation qualifies, they will become yow: "short sale client." As we mentioned earlier, new short sale agents are often surprised and frustrated to learn that each lender has a unique set of requirements for short sale documentation! In this chapter, you will learn how to gather and prepare a documentation package that will satisfy the requirements of all lenders across the board. It is a rare occasion for lenders to request their unique format after receivillg a package that follows the format developed by 7 Day Systems .
ex.teVl-sLoVl- of tne pre-q"wLLfLc,C'ltLoVl- step. The LVl-tevvLew Ls 'RolA.Vl-cl oVl-e/ C'lVl-cl LVI- Lt 1 gC'ltner sOVVl.e preLLVVl.LVl-C'lr1J lA.Vl-verLfLecl LVl-forVVl.C'lHoVl-. Now, 1 WC'lVl-t to see Lf tnese prospec,ts C'lre goLVl-g to pC'lSS 'RolA.Vl-cl TWO.' wLLL tneLr C'lc,tlA.C'lL cloc,lA.VVl.eVl-tC'lHoVl- VC'lLLclC'lte tnC'lt tne(j C'lre eLLgLbLe for C'l snort sC'lLe?"
Notes
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'-
The Checklist
A complete short sale documentation package must contain the followingitems:
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Hardship Letter Listing Agreement Letter of Authorization Financial Statement Recent Bank Statement Recent Paycheck Stub(s) Fully Executed Purchase Conttact on the Property Buyer's Pre-Approval Letter from their Lender HUD-l Settlement Statement (also called HUD-l Estimated Net Sheet) Comparative Market Analysis (CMA) (optional)
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Additional Documents for FHA Loans: The most recent two years' tax return Application to Participate HUD FORM 90036
Immediately after you complete the pre-qualification interview, send your short sale client a follow-up email with a checklist of the documents they will need to gather for the proposal package. Include in this email a link to your website FAQs.
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I~
From: Knolly@knolly.com
To: client@clientsemailaddress.com Subject: Short Sale Info - 123 Main Street
Hi Porcia,
Good talking to you today. Based on your situation, the short sale is likely your best option. Also, we will get an offer over to CiliMorlgage to postpone the loreclosure. Can you emaH or send the payoff info you have (or your most recent mortgage statement) along with any leiters you have received kom your lender? You can also get more information about the shortsa'le process, along with oommonquestions and answers at: www.8hortSa:leSite.com. Keep in mind that appl1ing for a short sale is like appl1ing for a loan, so the lender asks for lots of documents. However... it is well worth it when you get into the program, since they wiill forgive the balance owed. And they will also pay my fee and the diosing costs. I have attached an information sheet and a checkl,ist of the documents we
i_
I need. We basically do all the work-so you'll be in good hands! Thanks again! Knolly
Sample Follow-Up Email
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Listing Specialist
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accept less than the full amount due, commonly rsferred to a ''short pay" or
Many homeowners who are "upside down" on their mortgage opt to simply walk Ciway from their home and allow it to foreclose. The short sale cffers a much better option and provides a win-win for the lender and the homeowner.
from the lender's perspective a short ssle sS!V9S many of the high costs 35figciated wjth the foraciq:;.llre process attomey fee's, the eviction process, delays from borrower bankruptcy, damage to the property, costs associated with resale, etc. 11"1 a short sale scenario, the lender gets their money faster and is able to cut their losses.
Once you are approved for.a short sale, the lender will order an appraisal of your property to determine the market value. Once the value is determined, the lender will allow KnoJJy to sell your property at market value. Once sold, the remaining debt is usually forgiven. The lender often expects to collect 90% or more of the appraised value, so you may still accept an oftSr [ower than the appraised value. The bottom line is... If your home is worth less than you owe, you can still sell it via a short sale-without bringing ;,ny money to closing! Knolly Williams is one of Austin's premier short-sale listing specialIsts.
PLEASE FAX ALL REQUIRED DOCUMENTS TO Listing Manager: Morris Thompson - Fax #: 512-532-0626
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o o o
Fully Executed Purchase Contract on the Property Buyer's Pre-Approval Letter from their Lender HUD-l Settlement Statement (also called HUD-l Estimated Net Sheet)
These three documents are essential to the short sale package, but they cannot be completed and added to the package until a buyer is under contract for the property. Tills means that you will begin the process of collecting the necessary documentation for the short sale proposal, but these hst three documents will come a bit later in the process. We'll discuss these documents both in tills chapter and in "Day 5: Receiving Otters and Submitting the Short Sale Package."
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to recoup their money before the homeowner faces a short sale or a foreclosure. Years ago when I fIrst began doing short sales, the fIrst lien holder would negotiate directly with the second to settle the short sale. This made my job easier, and the second lien holders were more convinced that they should act quickly. These days, the fIrst lien holders are so swamped that they are not willing to take on this additional task.
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ing Offers and Submitting the Short Sale Package." At this point, as you read about the specific documents required for a short sale proposal package, remember that if there are two liens on the property and they are both short, you must prepare and submit a separate package to each lender.
Notes
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Keep it short!
Avoid the temptation to create a long, drawn out, two-page document. In most cases, the hardship letter should be between three and six sentences. I have learned from experience to keep it brief. I tell the banks only what they need to know to make a decision. Typically, I take three sentences to explain the unique elements of the homeowner's situation, then one to two standard closing sentences. (See samples.) I am cautious not to inadvertently give lenders ammunition that they can use to disqualify the short sale.
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x
James Martin
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To: COUNTRYWIDE
Property Address: 12813 BOBBYSOCK DiRIVE, AUSTIN, TX 78748
LOAN Accoul1t #:
Last 4-digits SS#: 6674
152104687 ad 152104607
Due to circumstances beyond my control, 1 was (!tut ,of work for three months this y.ear; between April. 2008 and June 2008. In order to .continue making paymeflts on ,this home 1 had to deplete my savings and borrow money. With my new jo.b~ my expenses are roug:h.:ly SI,200 per month more 1itaJll .n: make.
Unfortunatdy I can no longer afford to make my mortgage payments. I have to sel1 my home and have no alternative bru: to seck 'a short.sale. SincereJy and Respectfully -Submitted.
x
Mindy Karmi
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LOAN Account#:
Last 4-digits SS#: 4677
2287647331
To Whom It May Concern: Our property taxes have gone up by over $4,200 per year since we purchased this home. We also have incurred many additional expenses including gasoline and other costs of living. We now owe the IRS over $7,000. Also, Jennifer is pregnant and facing increased medkal expenses, Unfortunately we can no longer afford to make our mortgage payments. We have to sell our
home and have no alternative but to seek a snort sale.
x
Darin Miner III Jennifer Miner Sample Hardship Letter 3
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Hardship Letter/Short Sale for 555 Oak Terrace, City, State 78577
To 'VI'hom It May Concern: I'm a single mom who purchased our home at 555 Oak Terrace in October 2005. At that time, I had just started my own business as a cosmetics sales consultant. I had great hopes for generating an income to support my mortgage and lifestyle with my daughter.
Unfortunately, sales were very slow the first SL'C months, and this put me into a desperate situation with my mortgage and my credit cards. To supplement my cosmetic sales, I began to wait tab!es at a local restaurant and my parents loaned me $4,000, which didn't last long. After struggling for months to make my expensive mortgage payments, I had no choice but to put my house on the market. In April of 2Cl06, I put my home up for sale as a For Sale By Owner. I set the original asking price as $240,000. I didn't get any offers at this time because most buyers were concerned about the water damage in the living room-caused by roof damage the house suffered duting a storm in late 2005.
e I could not
'~
make the repairs, so I lowered the asking price, but still had no offers. Over the next couple of months, I lowered the home price three times,
(continued ... )
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finally settling at $170,000. This price was the lowest I could go and still cover final costs. I am not anticipating any profit. The home still has no offers. I have now decided to list the house with a real estate agent, instead of as a FSBO. I think this will make a difference. I realize that I can no longer afford the home I am in. I have
given up on the cosmetics sales business, as it seemed too competitive in
my area. ., I am waiting tables full time. In my current situation, I cannot support a mortgage payment of $2,200 per month. I fear that foreclosure is around the corner, and that would have a devastating effect on my credit. I am requesting assistance in avoiding foreclosure action. I deeply appreciate your assistance and understanding. If you have any questions, or need anything further from me, please contact me.
Best r""""rds,
"What's going on here? In the documents you signed to get your mortgage, you promised to maintain the property. Are you not keeping your commitment?"
C)
., "Did you not do your research on the market before you entered this business?"
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o Listing Agreement
As soon as you complete the pre-qualification call, begin preparing the listing agreement. Set a goal to send the agreement to your client by fax or email the very next day. The bank will require that a copy of the signed listing agreement be a part of the short sale package you submit.
From: KnollY@knolly.oom To: client@clientsemailaddress.com Subject: Listing Agreement - 123 Main Street
, Hi Porcia,
I've attached a copy of the 'listing agreement that we discussed. This is the
i
dooument that will aJllow me to Illst your home for sale. Please print, sign,
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This statement protects the seller and makes them feel more comfortable knowing that they are not "locked in" if they are not approved for the short sale. Consider adding a statement about price instead of a dollar amount. In the sales price section of the agreement, we recommend that you not state a dollar amount, but rather add a statement such as: Sales price to be determined by lender.
This will give you maximum flexibility and will allow you to adjust the price as necessary, without having to go back and get your client's permission each time. Again, because the seller cannot make any money from the short sale transaction, they are likely much less interested or engaged in the pricing strategy or potential price reductions. However, if they are concerned that this statement will somehow mean that their home will be sold at a cut rate, reassure them that their mortgage lender will want to get the highest price for the house. Lenders have an investment in this and they want to mitigate their loss.
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Some states may not allow a statement to be added instead of the price in a dollar amount. Our team has not heard of any challenges to this strategy, but you will want to be educated on your particuhr state and local guidelines. If your broker takes particular issue with this strategy, you could add a listing price of market value or slightly under and a statement such as: III Seller grants listing agent the permission to adjust the list price as stated in paragraph X as market conditions dictate.
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o letter of Authorization
As first discussed in Day 2, you will need written authorization to speak with your client's lender(s) about their financial information. To make this request from the lender, you will need the last four digits of your client's Social Security number and a signed authorization statement. Remember that it may take up to 72 hours for the lender to process the Letter of Authorization and give you access to the client's account. If a foreclosure date has already been set for your client, every day counts!
Note: If your client has mortgage loans from two different lenders and both loans are short, you will need to complete (and your client will need to sign) a Letter of Authorization request for each lender.
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[ authorize ~ r.eail. estate ageBl: KnoB! '\iW.mrJ:s and his associates B'~bam Riorilanand Mmrls ''I'homp.ron ,ofThe KDoRy 'If.eam!Kdler "'"illi.ams Realty amd escrow 'officer ''!racy Jrute.S @fEla"'T.lfJ.e to:discuss!lbis account on my _Iilf'
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Please add them to my account ,as p,a:dies ,3l!tthQrizoo to receive information. P.lease , owect ,all cGmrmmications T~Cfu:tg my short sale ilransacti@nto them. 1 also aathC!lme the use of any incentiv<e toward '~mses mcmred on ,my behal:t:
"lie1: 512-294-2143
Fax: 512-532-0'626
Date
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Start building your database of bank contacts! Checkout the 7 Days to Success with Short Sales Toolkit CD! You'll find more than 250 unique contacts for lenders and their loss mitigation departments. More than 40 of the top lenders are included in this instant database!
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o Financial Statement
All lenders require a financial statement from homeowners applying for a short sale. Think of the fInancial statement as your client's financial budget. On the financial statement, your client will list their expenses and their income along with assets and liabilities. Whereas the pre-qualifIcation step relied on your client's recollections, opinions, and perspective, the financial statement is gtounded in the factual realities of the situation and will validate (or invalidate) the client's initial statements. Much of the lendet's decision to approve a short sale rides on the financial statetnent and the hardship letter. Your clients should be able to complete the financial statement with few challenges. It's essentially a simple budget statement and should be selfexplanatory. As a short sale agent, however, you need to be very confIdent and knowledgeable about this document so that you can effectively analyze the data and draw conclusions.
~
..
Again, I have spent years processing short sales, and I have learned a gteat deal about what lenders are looking for in the financial statement. The 7 Day Systems Personal Financial Statement represents a comprehensive document that will more than satisfy the information requirements made by the major lending institutions. There is only one important instance in which I recommend using the bank's own financial statement format if it's going to serve your client best. We'll discuss that exception later in this section.
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113
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( Scr.i.Pk!) Agent: "Have you had any car repairs thjs year? . . '..
_ _, ..... .... No? Ok, but what do you typically budget for car . . maintenance each year?" Agent: "You noted $0 for dental expenses. Do you not go to the dentist? What about your three children? Let's figure out what two cleanings a year would cost for your whole family. Then we'll divide that by twelve." Agent: "Did you say your husband has already started his new job in the other city? Is he paying rent on a place there? We need to add that to the rent line item."
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I had one client who failed to note that she had more than $60,000 in school loans. She had not been making loan payments for months, so she just forgot to add those payments as an ongoing monthly expense.
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"If !jO['( deterVlA.~""e tViClt Cl cl~e""t's VlA.o""tVil!j ~""coVlA.e ge""['(L",,el!j exceeds tVie~r VlA.o""tVil!j expe""ses b!j Cl co""s~derClble ClVlA.O[,(""t (~500 Cl VlA.o""tVi or VlA.ore), tVie"" !jo['( VlA.Cl!j ""eed to co ['(""sel tneVIA. Clbo[,(t WCl!jS to ~eep tne~r nOVlA.e. Tne!j VIA.~gnt q[,(CllLf!j for Cl loCl"" VlA.od~f~CC!tLo"", for eXClVlA.-ple. If tne!j stLll VIA.['(st sell, tne!j wLll ""eed to follow tne trCld~tLo""Cll -process ~""steC!d of req ['(estL""g Cl snort SCl leo n
116
117
Notes
118
Notes
119
o Fully Executed
Purchase Contract
This component of the package will be added later.
At this point in the process, you may not have identified a buyer for the property. However, the final short sale package should include a fully executed purchase contract signed by all parties. Most banks won't consider doing a short sale without a contract on the property. Under the Special Provisions section of the contract, we recommend you add the following statements:
.-,
"This contract is subject to and contingent upon seller's lender approval of a short sale." ''Property is being sold as-is."
Note: Some Multiple Listing Services (MLSs) and local boards have specific addendums that they require to be included with a short sale offer or contract. Make a point to familiarize yourself with these fottns.
,-,
-,
We'll discuss the guidelines for buyer contracts in "Day 4: Listing and Marketing the Property," and we'll discuss how to review offers and prepare the contract documentation in "Day 5: Receiving Offers and Submitting the Short Sale Package."
120
Along with the executed buyer's contract, you will also need to submit a buyer's pre-approval letter as part of the short sale package. This informs the seller's lender of the buyer's approval to finance and purchase the home without complications. We'll discuss the buyer'S p:re-"'pprovalletter further in ''Day 5: Receiving Offers and Submitting the Short Sale Package."
Notes
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o Estimated HUO-1
Settlement Statement
This component of the package will be added later.
Once you have an offer on the property, you will be able to move forward with an estimated HUD-l Settlement Statement (also called "estimated HUD-l net sheet") to add to the short sale package. This settlement statement is extremely important because it shows the bank how much they will net out of the transaction.
A.
Settlement statement
~I
122
Consider developing a training document to help settlement agents (esorow officers/attorneys) draw up HUD-1 Set~.lement Statements in the manner that will be necessary for short sale processing. Check out the sample training document on your 7 Days to Success with Short Sales Toolkit CD!
As a standard requirement of their job, a settlement agent knows how to enter in the "settlement charges" such as commissions, fees, taxes, and so forth. The challenge comes in accurately documenting the summary of the seller's side of the short sale transaction. At this point in the process, you have already been authorized to speak with your client's lender(s) regarding their accounts. If your client has two liens on their property, you have ordered payoff statements from both lenders. These payoff statements will help you determine whether one or both of the liens are short. Again, it is possible for the sale of the home to generate enough net proceeds to completely payoff the first..
123
lien holder, but not the second. Other times, you will need to request approval for a short sale from both lien holders. Every market is different. In my experience and in my market, I have found that in 75% of the cases with two property liens, both liens will be short. In a traditional real estate sales transaction, the payoff amount for the loan(s) would be noted on the seller side of the document (lines 404 and 405 of the HUD-l). In a short sale, "payoff amount" is an irrelevant factor in the settlement equation. A short sale means, by definition, that the lender will be accepting an amount that is less than the loan's actual payoff amount. So, what does this mean for the HUD-l form? As the short sale agent, you must carefully direct the settlement agent to enter figures that will (hopefully) satisfy the settlement positions of both lien holders. The figure on the next page, illustrates how the bank(s)' net proceeds would appear on the HUD-1. We'll discuss the details of completing the HUD-l Settlement Statement further when we reach "Day 5: Receiving Offers and Submitting the Short Sale Package." At this later point in the process, you will have the remaining puzzle pieces necessary to complete the HUD-l-sales price and dollar amounts that should go to each lender (if more than one lien).
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125
o Comparative
OPTIONAl.
While optional, the Comparative Market Analysis (CMA) is highly recommended. Yes, the bank will order their own appraisal or broker's price opinion (BPO). However, you can help inform the bank's thinking early on by including your own CMA in the short sale package you submit. Some short sale training systems teach agents how to get the bank to agree to a low ball listing price (lower than market value)-when they know that the property will quickly and easily sell for more (with little or no improvements). These strategies appeal to investor agents who will buy-and-flip or buy-fix-and-flip their short seller's property. These strategies also appeal to agents who know they can find a buyer who will pay market value or higher--allowing the agent to pocket the difference. These strategies are not the strategies of 7 Dqys to Success with Short Sales. We recommend that you practice the same CMA strategy you would with any seller-short sale or traditional sale-who needs to sell within 30 to 60 days. In fact, my rule of thumb is to price the property at an amount that would create an offer within 15 to 30 days. Price the property to move. Price it right; price it correctly. Price the home at the best price within reason for a quick sale with active marketing. The CMA format recommended by 7 Day Systems is short and sweet. It's a synopsis document that can be assessed at a glance. We find that this format works to our advantage-particularly when banks say they don't want to see the listing agent's CMA. They will look at this short, concise, persuasive document.
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per foot
Square footage of subject property: 2376 Square Feet. Average days on market 76 to 120 days Notes: There is a definite downward trend toward a lower price per square foot compared to sales from several years ago. There are many foreclosures and pre-foreclosures in the neighborhood.
BASED ON THE CURRENT MARKET, THE SUBJECT PROPERTY VALUE IS ESTlMATEO TO BE $139.400 ($58 per sq foot)
Kn:olIIy ~nams, Associate Bro'ker
KEllERWlLUAMS REAlTV
J:OIP tl) AUSTI:NI.AREAlRIEAl TOR AUSTIN'S 11 SHORl"SAlE1'EAM
127
o Additional Documents
for Government-Insured Loans
When you are processing a short sale on a property with a governmentinsured loan, you will need to submit additional documents in the short sale package. For VA Loans:
For FHA Loans: The most recent two years' tax return Application to Participate Form (HUD-90036)
128
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Recent Mortgage Statement-preferred, not required Homeowner's Association Statement-preferred, not required Loan Payoff Information-requested from lender(s) Property Survey-requested from homeowners (or from the settlement agent used at their closing) Property Tax Information Title Search-requested from title company/title attorney
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Email From: Knolly@knolly.com To: client@clientsemailaddress.com Subject: Property Survey - 123 Main Street Hi Porcia, We need a copy 01 the survey plat of your property. The survey is a drawn map of !he property showing fence :lines and how the home sits on the lot. : There wlll be a state seal stamp on the survey along with the name of the company that performed the survey. Please fax the sUlVey to us at (512) 532.0626. If you cannot find a copy of the survey, please check with the litlecompany that you used when you closed on your home. We willi need Ihis surv,ey document in order to close the sale on your :property. 11 helps to have a copy of the survey in our fi'le now, rather than waiting until the lasl minute before closing. Than'ks again, Knolly
Sample Email to Client Requesting Property Survey
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RUSSELL & KIM DUANE 5209 Fawn Valley Ct Antelope, CA 95843-6401 Dear RUSSELL & KIM DUANE Loan Number: #####4865
As your home loan servicer, we want to work with you to determine what options may be available to help you stay in your home or avoid foreclosure. Please read this letter carefully. We will be sending a representative to meet with you at your home to collect documents that will help us conduct a review of your loan to determine if there are home retention options or foreclosure alternatives available for you. The representative will be from Titanium Solutions. When our representative visits you at your home, you can expect the following: You will be shown the representative's identification and, to protect your privacy, our representative will verify your identity by asking to see photo identification such as a driver's license. You will be provided a copy of this letter without the enclosures. Our representative will gather the required financial information, as described in the enclosed checklist. Please have copies of the required financial information ready for our representative to take with him/her. It is important that you have all the documentation ready when the representative comes to your home. If you have recently sent information to us, our representative will confirm that we have received it and if it is complete. Once we have all of your necessary financial documentation, we can evaluate your options and we will contact you to explain those options.
To schedule the visit on a day and time that is most convenient for you, please call Titanium Solutions at 1.877.803.0039 Monday through Friday from 9:00am to 7:00pm EST. If you do not want a representative to visit your home, please let us know by calling that same number. If we do not hear from you, our representative will attempt to visit your home over the next 7 to 10 days. We urge you to provide the requested information to Titanium Solutions so we can work to determine if assistance is available to help you avoid foreclosure. If you have any questions about this program or the documentation that we need, please call 1.877.803.0039 from 9:00am to 7:00pm EST.
Enclosures:
Checklist Request for Modification and Affidavit (RMA) Household Expenses and Liabilities Worksheet Dodd-Frank Certification Form Authorization and Acknowledgement Form Third Party Authorization Form
In order to expedite this process Bank of America, N.A. is working with a third-party company, Titanium Solutions. Federal law requires that we communicate to you that Bank of America, N.A. and Titanium Solutions are debt collectors. However, the purpose of the communication is to let you know about your potential eligibility for programs available to help you avoid foreclosure. Mortgages funded and administered by an Equal Housing Lender. Protect your personal information before recycling this document
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:-~ev~r make your mortgage payments to anyone other than Bank of America, N.A without our approval.
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Complete and sign (by all borrowers) the enclosed Request for Modification and Affidavit and Household Exoenses and Liabilities Worksheet. 2. Copy of the last year's e-filed or signed tax retl:lrns for all borrowers. Please include all and schedules even if blank. 3. Complete the Dodd-Frank Certification Form. 4. A current utility bill showing the borrower's name and property address. 5. Fill out and sign the Authorization and Acknowledgement Form. 6. If the property is subject to homeowners association or condominium fees, a copy of a current bill or assessment. 7. Return the required income documentation. This documentation includes:
For each borrower who receives a salary or hourly wages Copy of most recent pay-stubs showing at least one month of compensation and year to date earnings (for all jobs) For each borrower who is self employed Most recent quarterly profit / loss statements (with year to date profit) Two most recent bank statements showing receipt of such payments (all pages) For each borrower who has income such as social security, disability or death benefits, pension, adoption assistance, public assistance or unemployment Copy of benefits statement or letter from the provider that states the amount, frequency and duration of the benefit, AN D Two most recent bank statements showing receipt of such payments (all pages) For each borrower who is relying on alimony, child support or separation maintenance as qualifying income Copy of divorce decree, separation agreement, other written agreement filed with the court, or decree that states the amount and period of time over which it will be received, AND Two most recent bank statements showing receipt of such payments (all pages) For each borrower who has rental income or if you are current on your mortgage payments Copies of the most recently filed signed federal tax return with all schedules, including the Schedule E - Supplemental Income and Loss If no Schedule E is available because the property was not previously rented, then please provide a current lease agreement and two most recent bank statements or cancelled rent checks. For each borrower who has non-wage income (part time employment, bonuses, tips, and investment income) If the non-wage income is more than 20% of total income, copy of documentation describing the nature of the income (for example, an employment contract or printouts documenting tip income) If you have questions about the paperwork required please contact us at 1.877.803.0039.
Important Information Keep a copy of aI/ documents for your records. Do not send original income documentation. Continue to the next page if your house is listed for sale or you also wish to be evaluated for PreForeclosure Sale (Short Sale) or Deed-in-Lieu of Foreclosure Programs as other alternatives to foreclosure. If you do not wish to be evaluated for Pre-Foreclosure Sale or Deed-in-Lieu programs please check and sign here 0
To be evaluated for Pre-Foreclosure Sale or Deed-in-Lieu of Foreclosure Programs; please provide the following information in addition to documentation requested on the prior page of the checklist.
Documents requested in pOint 10 apply if you have your home listed with a real estate agent. Documents requested in points 11, 12, and 13 apply if you have a valid and signed purchase contract in hand to be evaluated by Titanium Solutions. The originals of the enclosed documents, signed by all borrowers on the loan:
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8. Third Party Authorization Form Only sign and return if you would like Bank of America, N.A to discuss your request for a Pre-foreclosure Sale of your property with a third party acting on your behalf such as realtors or attorneys. 9. Please provide us with the lead contact name and phone number for us to be able to gain access to the property to perform a FHA property appraisal. We require that all utilities to the property be on so that the appraisal can be completed. 10.lf applicable, please provide a copy of the current Listing Agreement with your Agent/Broker. The Listing Agreement must contain the following verbiage: "Seller may cancel this agreement prior to the ending date of the listing period without advance notice to the broker, and without payment of a commission or any other consideration if the property is conveyed to the mortgage insurer or the mortgage holder." 11.lf applicable, please provide a copy of the Purchase Contract signed by the buyer and seller that contains language that the sale is contingent upon the seller obtaining approval from Bank of America, N.A. Also when participating in a FHA Pre-Foreclosure Sale, the maximum seller concession that HUD will allow is 1% only if the buyer is getting a FHA loan. If there is more than one purchase contract, the seller may submit ONE offer to Bank of America, N.A for review. 12.lf applicable, a copy of the statement of the seller's closing costs or HUD-1 settlement statement. The figures in these statements must be accurate because Bank of America, N.A approval will be based, in part, on the figures submitted with the package. The maximum commission paid on a pre-foreclosure sale is 6% with the exception of the State of Washington which may be less. 13.lf applicable, all other lien holders must provide written notice of their willingness to release their liens before Bank of America, N.A will issue an approval letter for the FHA Pre-Foreclosure Sale. In most cases, no proceeds will be given to any of the other lien holders to release their lien.
APPLICATION
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The property is my: The property is:
Mailing address
Is the property listed for sale? DYes DNo Have you received an offer on the property? DYes DNo Amount of offer $ Date of offer Agent's Name: Agent's Phone Number: For Sale by Owner? DYes D No Who pays the real estate tax bill on your property?
Dido D Lender does D Paid by condo or HOA
Have you contacted a credit-counseling agency for help DYes DNo If yes, please complete the following: Counselor's Name: Agency Name: Counselor's Phone Number: Counselor's E-mail: Who pays the hazard insurance premium for your property?
Dido D Lender does D Paid by Condo or HOA DNo
Are the taxes current? DYes DNo Condominium or HOA Fees DYes DNo Paid to:
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Is the policy current? DYes Name of Insurance Co.: Insurance Co. Tel #: Filing Date:
Have you filed for bankruptcy? DYes DNo Has your bankruptcy been discharged? DYes
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I (We) am/are requesting review under the Making Home Affordable program. I am having difficulty making my monthly payment because of financial difficulties created by (check all that apply): D My household income has been reduced. For example: unemployment, underemployment, reduced payor hours, decline in business earnings, death, disability or divorce of a borrower or co-borrower. D My expenses have increased. For example: monthly mortgage payment reset, high medical or health care costs, uninsured losses, increased utilities or property taxes. D My cash reserves, including all liquid assets, are insufficient to maintain my current mortgage payment and cover basic living expenses at the same time. D My monthly debt payments are excessive and I am overextended with my creditors. Debt includes credit cards, home equity or other debt.
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Explanation (continue on back of page 3 if necessary):
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Second ~ortgage Payment Insurance Property Taxes Credit Cards / Installment Loan(s) (total minimum payment per month)
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The following information is requested by the federal government in order to monitor compliance with federal statutes that prohibit discrimination in housing. You are not required to furnish this information, but are encouraged to do so. The law provides that a lender or servicer may not discriminate either on the basis of this information, or on whether you choose to furnish it. If you furnish the information, please provide both ethnicity and race. For race, you may check more than one designation. If you do not furnish ethnicity, race, or sex, the lender or servicer is required to note the information on the basis of visual observation or surname if you have made this request for a loan modification in person. If you do not wish to furnish the information, please check the box below. BORROWER
Ethnicity: Race:
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CO-BORROWER
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In making this request for consideration under the Making Home Affordable Program, I certify under penalty of perjury:
1. That all of the information in this document is truthful and the event(s) identified on page 1 is/are the reason that I
need to request a modification of the terms of my mortgage loan, short sale or deed-in-lieu of foreclosure. 2. I understand that the Servicer, the u.s. Department of the Treasury, or their agents may investigate the accuracy of my statements and may require me to provide supporting documentation. I also understand that knowingly submitting false information may violate Federal law. I understand the Servicer will pull a current credit report on all borrowers obligated on the Note. I understand that if I have intentionally defaulted on my existing mortgage, engaged in fraud or misrepresented any fact(s) in connection with this document, the Servicer may cancel any Agreement under Making Home Affordable and may pursue foreclosure on my home. a condemnation notice; and there has been no change in the ownership ofthe Property since I signed the documents for the mortgage that I want to modify. 6. 7. I am willing to provide all requested documents and to respond to all Servicer questions in a timely manner. I understand that the Servicer will use the information in this document to evaluate my eligibility for a loan modification or short sale or deed-in-lieu of foreclosure, but the Servicer is not obligated to offer me assistance based solely on the statements in this document. I am willing to commit to credit counseling if it is determined that my financial hardship is related to excessive debt. I understand that the Servicer will collect and record personal information, including, but not limited to, my name, address, telephone number, social security number, credit score, income, payment history, government monitoring information, and information about account balances and activity. I understand and consent to the disclosure of my personal information and the terms of any Making Home Affordable Agreement by Servicer to (a) the u.S. Department of the Treasury, (b) Fannie Mae and Freddie Mac in connection with their responsibilities under the Homeowner Affordability and Stability Plan; (c) any investor, insurer, guarantor or servicer that owns, insures, guarantees or services my first lien or subordinate lien (if applicable) mortgage loan(s); (d) companies that perform support services in conjunction with Making Home Affordable; and (e) any HUD-certified housing counselor.
3. 4.
5. That: my property is owner-occupied; I intend to reside in this property for the next twelve months; I have not received
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Be advised that by signing this document you understand that any documents and information you submit to your servicer in connection with the Making Home Affordable Program are under penalty of perjury. Any misstatement of material fact made in the completion of these documents including but not limited to misstatement regarding your occupancy in your home, hardship circumstances, and/or income, expenses, or assets will subject you to potential criminal investigation and prosecution for the following crimes: perjury, false statements, mail fraud, and wire fraud. The information contained in these documents is subject to examination and verification. Any potential misrepresentation will be referred to the appropriate law enforcement authority for investigation and prosecution. By Signing this document you certify, represent and agree that: "Under penalty of perjury, all documents and information I have provided to Lender in connection with the Making Home Affordable Program, including the documents and information regarding my eligibility for the program, are true and correcf' If you are aware of fraud, waste, abuse, mismanagement or misrepresentations affiliated with the Troubled Asset Relief Program, please contact the slGTARP Hotline by calling 1-877-sIG-2009 (toll-free), 202-622-4559 (fax), or www.sigtarp.gov. Mail can be sent to Hotline Office ofthe Special Inspector General for Troubled Asset Relief Program, 1801 L st. NW, Washington, DC 20220.
page 3 of3
Dodd-Frank Certification
The following information is requested by the federal government in accordance with the Dodd-Frank Wall Street Reform and Consumer Protection Act (Pub. L. 111-203). You are required to furnish this information. The law provides that no person shall be eligible to begin receiving assistance from the Making Home Affordable Program, authorized under the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5201 et seq.), or any other mortgage assistance program authorized or funded by that Act, if such person, in connection with a mortgage or real estate transaction, has been convicted, within the last 10 years, of anyone of the following: (A) felony larceny, theft, fraud, or forgery, (B) money laundering or (C) tax evasion.
Ijwe certify under penalty of perjury that Ijwe have not been convicted within the last 10 years of anyone of the following in connection with a mortgage or real estate transaction:
(a) felony larceny, theft, fraud, or forgery, (b) money laundering or (c) tax evasion.
Ijwe understand that the servicer, the U.S. Department of the Treasury, or their agents may investigate the accuracy of my statements by performing routine background checks, including automated searches of federal, state and county databases, to confirm that Ijwe have not been convicted of such crimes. Ijwe also understand that knowingly submitting false information may violate Federal law.
This Certificate is effective on the earlier of the date listed below or the date received by your servicer. Borrower Signature Date
Date
Account No: ______________________ Borrower Name: __________________ FHA Case#: ___________________ Property Address: ____________
Order a credit report from any credit agency Order a title search from any title agency Verify the accuracy of the information contained in this Financial Statement, including without limitation, any current or previous employment information.
I agree that I will notify Bank of America, N.A immediately of any material change in the financial information that I have provided herein. If I fail to do so, or is determined that the financial information provided herein has been misrepresented by me, and Bank of America, N.A, the Investor or the Mortgage insurers make decisions which would not have been made had the true facts been known, then (1) I shall be liable for all costs incurred or damages suffered by Bank of America, N.A, the Investors or the Mortgage Insurers, and (2) Bank of America, N.A shall have the right, in its sole discretion, to terminate any arrangement or agreement that has been extended to me based, in whole or in part, on the inaccurate or incomplete information that I have provided.
Submitted this
day of
, 20 _ _ _ _ '
BORROWER:
CO - BORROWER
Signature
Signature
AUTHORIZATION FORM
I Hereby authorize BANK OF AMERICA, N.A ("BANK OF AMERICA, N.A") to discuss my request for a Short Payoff with the individual(s) that I have identified below as my designated agent(s) (hereinafter the "DeSignated Agent"). Further, BANK OF AMERICA, N.A is hereby authorized to negotiate the terms of a Short Payoff. I understand that I will be fully responsible for reviewing any information that is sent by BANK OF AMERICA, N.A to my Designated Agent. This Authorization will remain effective until I specifically notify Bank of America, N.A's Workout Department in writing that this authorization is of no force and effect. My Designated Agents are: (Insert name)
(Insert name)
(Insert name)
Date:
1 __
Borrower
Date:
1 __
Co- Borrower
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HOUSEHOLD EXPENSES WORKSHEET
A. HOUSING EXPENSES FIRST MORTGAGE PAYMENT (PRINCIPAL & INTEREST & ESCROW IF INCLUDED) SECOND MORTGAGE PAYMENT OTHER MORTGAGE PAYMENTS PROPERTY TAXES (IF NOT INCLUDED IN MORTGAGE PAYMENT) PROPERTY INSURANCE (IF NOT INCLUDED IN MORTGAGE PAYMENTI HOMEOWNERS ASSOCIATION DUES SPECIAL ASSESSMENT TAXES (COUNTY' CITY' TOWN) HOME MAINTENANCE (HOUSE KEEPER, LAWN MAINTENANCE, FURNISHINGS) SUBTOTAL HOUSING EXPENSES B. COURT-ORDERED OR MANDATED EXPENSES MONTHLY PAYMENT
BALANCE DUE
$ $ $ $ $ $ $ $ $
MONTHLY PAYMENT
$ $ $ $ $ $ $ $ $
BALANCE DUE
ALIMONY' CHILD SUPPORT' MAINTENANCE GARNISHMENTS' COURTORDERED STIPULATION PAYMENTS (CHECK IF PAYROLL DEDUCTED.:I) LOCAL, STATE, OR IRS TAX LIEN PAYMENTS SUBTOTAL COURT-ORDERED OR MANDATED EXPENSES C. LIVING EXPENSES
$ $ $ $
MONTHLY PAYMENT
$ $ $ $
BALANCE DUE
FOOD'MEALS PERSONAL CARE (CLOTHING' DRY CLEANING' HAIR SALON OR BARBER) CHILD CARE' ELDER CARE' AFTER SCHOOL PROGRAMS' CHILDREN'S ALLOWANCE EDUCATION (TUITION & RECURRING MONTHLY EXPENSES including student loans) MEDICAL' DENTAL' VISION' HOSPITAL BILLS PRESCRIPTIONS , TREATMENTS UNION DUES HEALTH INSURANCE (CHECK IF PAYROLL DEDUCTED.:I) CHARITABLE DONATIONS (including church tithe) LIFE, DISABILITY' ACCIDENTAL DEATH INSURANCE (CHECK IF PAYROLL DEDUCTED .:I) ENTERTAINMENT' MEALS OUT PET CARE OTHER MISCELLANEOUS EXPENSES SUBTOTAL LIVING EXPENSES D. TRANSPORTATION EXPENSES AUTO LOANS, LEASES AUTOMOBILE EXPENSES (GAS' MAINTENANCE' DMV REGISTRATION' INSPECTIONS) AUTOMOBILE INSURANCE PUBLIC TRANSPORTATION' PARKING' Tolls SUBTOTAL TRANSPORTATION EXPENSES E. UTILITIES ELECTRICITY HOME HEATING GAS' OIL WATER 'SEWER TRASH COLLECTION TELEPHONE'INTERNET CABLE' SATELLITE CELLULAR' WIRELESS SERVICE SUBTOTAL UTILITIES OTHER DEBTS I CREDIT EXPENSE OTHER INSTALLMENT LOANS (CHECK IF SECURED BY RENTAL OR OTHER REAL PROPERTY.:I) CREDIT CARDS OR REVOLVING LINES OF CREDIT (ENTER THE TOTAL OF THE MINIMUM MONTHLY PAYMENTS) PAYDAY ADVANCES OR LOANS
$ $ $ $ $ $ $ $
$ $ $ $ $ $ $ $
$
MONTHLY PAYMENT
$
BALANCE DUE
$ $ $ $ $
MONTHLY PAYMENT
$ $ $ $ $
BALANCE DUE
$ $ $ $ $ $ $ $
MONTHLY PAYMENT
$ $ $ $ $ $ $ $
BALANCE DUE
F.
$ $ $ $ $ $
$ $ $ $ $ $
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HARDSHIP INFORMATION
Borrower Name' _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
Loan Number_ _ _ _ _ _ _ _ _ _ _ _ _ _ __
yes_ _ __
No_ __ No _ __ No _ __ If your home is vacant, how many months has it been vacant? _ _ _ _ __ If you have tenants, how long have they been in the home? _ _ _ _ __
Is your home currently vacant? Yes ___ Is your home currently being rented? Yes
Generally, financial hardship includes a number of factors involving a reduced income and/or increased expenses. Please check the reasons why you are currently unable to pay your mortgage or bring your mortgage current.
Reduced Income See comment about checkboxes. Check the item(s) below that describes your current situation: Death of wage earner Illness / Disability of wage earner (receiving disability) Illness / Disability of wage earner (not receiving disability) Military Duty (Reducing or interrupting income)
Increased Expenses
IJ
Check the item(s) below that describes your current situation: One time increase - situation that caused increase is no longer an issue) IJ
IJ IJ
IJ IJ IJ IJ IJ IJ
Unexpected or unplanned expenses, lasting less than 12 months - i.e.: car repair Unexpected or unplanned expenses lasting longer than 12 months - i.e.: Ongoing health expenses Increase in housing expenses (Need for relocation or duplicate housing caused by divorce, job transfer, or other necessary relocation) An excessive amount of debt
IJ
Reduction of Pay (Cut in hours, overtime, salary, commission, bonus, etc.) Unemployment with payments (layoff, termination, shutdown, etc.) Unemployment with no unernployment benefits
IJ
Please provide any additional detail you want us to consider when reviewing your application jor assistance:
Borrower Signature : _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
Date:
134
Welcome to Day 4
Welcome to Day 4 of 7 Dqys to Success with Short Sales! You've started collecting the documentation you need to submit a short sale package for your property. In this next step in the process (Step 3: List & Market the Property), you'llleam how to move forward with the property sales process.
In "Day 4: Listing and Marketing the Property," we will discuss the techniques for posting the short sale listing on the Multiple Listing Service (MLS). And we'll get into the details of one particular document
135
that will make your life a lot easier: the Short Sale Disclosure and Agent Guidelines. Your approach for marketing a short sale listing will be very different from the approach you typically follow with traditional listings. We'll discuss why this is so. And before we end this day of learning, we will discuss why it is important to contact the title company or attorney to open a file and initiate a title search on the property.
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136
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Do I need to wait for the bank to run their appraisal/BPO before I set the price of the home and list it on the MLS?
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Even though the lender will ultimately determine what they will accept for the sale of the home (the settlement), they want to wait until further in the process to declare this amount. This means that the short sale agent should move forwa~d with a standard Comparative Market Analysis (C]'v1A) roevaluate the best price for the home. It is only after the price has been set and the home attracts a buyer with an executed offer that the lender ",-ill begin the process of negotiating for their final settlement figure. The lenders want the buyers to "tip their hand first," so to speak As first discussed in "Day 3: G<tthering the Information for the Short Sale Package," your pricing strategy for a short sale property should not differ drastically from your strategy for any other home that needs to sell within 30 to 60 days. Price the home as you would for a highly motivated client with equity. Price the home to move. This typically means that you will price the home right at market value or slightly lower.
137
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t1llve t1llo( ple~ttl of Ilge~ts Il~o( M~-lLc,e~seo( L~vestors IlS~ vvce t10w to vvcll~LpV<.lllte Il C-MA, t10w to L~fLV<.e~c,e tt1e bll~~'s 1;PO Ilge~t, Il~o( t10w to o(ec,eLve loss vvcLHglltors. T11etl ~~ow tt1llt tt1e o~ltl WlltJ to bV<.tI Il st10rt sille for c,t1ellp Il~o( fLLp Lt for Il sV<.bstll~tLlll profLt Ls to c,o~vL~c,e tt1e bll~~ sovvcevlOw tt1llt tt1e properttJ Ls wortt1 less tt1ll~ Lt llc,tV<.lllltJ Ls. Tt1Ls Ls wt1tJ bll~~ te~o( to O(LstrV<.st Ilge~ts Il~o( L~vestors. I o(o~'t pllltJ tt1Ls gllvvce. I belLeve vvctJ stlstevvc waL t1elp people leilr~ tVie bV<.sL~ess Il~o( t10w to vvcll~e vvco~etJ tt1e rLgt1t WlltJ."
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A solid, well-researched CMA is your key. When you run your comparatives, make sure that you pull 30- or 60-day reports. That is, you should compare your client's property to homes that have sold in less than 60 days on the market (DaM). Your client's neighborhood may be averaging 200 DaM, but the lender is not going to wait 200 days for a sale! Now, when I say to use comps of homes that took 30 to 60 days to sell, what I actually mean is, I use comps for houses that took 30 to 60 days to sell once they were priced correct!J. Many times I will use a comp on a house that technically took over 100 days to sell. However, when I research the sales history, I can easily see that the price was adjusted and the home then sold within 30 to 60 days of the last price adjustment. Such comps are also usable. By using 30- or 60-day comps for your pricing, you are pricing the home cortectly and setting yourself up to generate an offer quickly. Once you have completed your CMA, stand behind it and communicate to the other parties in the process. As we discussed in Day 3, even
138
though banks say they don't want or need your CMA, make sure that it's a part of the short sale package you submit. This will help prevent unreasonably high lender appraisals. like any industry, there are many opportunities for corruption. I have heard of BPO agents who intentionally value properties too high so that the homes will not sell and will go into foreclosure. Of course, this doesn't really benefit their bank clients, but their strategy is to be there (i.e., be the trusted agent) when the bank needs to engage an agent to sell the property as an REO foreclosure property. Sneaky, huh? This is not a regular occurrence, but this is another reason you want to communicate your CMA and pricing to the banks and to the BPO agent.
Notes
139
Agent Comments
When listing a short sale on the MLS, I always disclose to other agents that the property is a short sale. For example, I add the following statement in the Agent Comments section (not viewed by the general public):
There are different schools of thought on whether or not you should disclose the fact that the property is a short sale. It may be true that some buyer's agents will be less motivated to show a home that is a short sale (due to the longer-than-average close time). However, I believe full disclosure of the fact that the property is a pre-foreclosure short sale is the most ethical practice and it is, indeed, required by many real estate boards. You can also regularly update your comments in the MLS to alert agents about the current status of the short sale. For example:
Short sale subject to seller's lender approval. Package already submitred to the lender. Short sale subject to seller's lender approval. BPO already ordered.
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Short sale subject to seller's lender approval. Almost approved. Short sale is already APPROVED by seller's lender at list price. Quick close!
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On our team, we require that the Short Sale Disclosure and Agent Guidelines be signed by both the buyer's agent and their buyer client before we will submit a short sale offer or ,executed contract to the lender. I ask that the buyer'S agent read the document first and then call me with questions. This streamlines the process.
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Having explained this, we also understand this ",reates an obligation for the buyer to provide the
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tKlWly laM 30-69 -dt''t5 to e!n:;e They can take longer, and the
closing t'late tlf::ro :days bey.oml1:ile -o&r l>I!lbmission daw. When on ,mffer is recejyru;\ AErfB $hart sa'\e a.pproval, an ~frer wlll take '5-10buslness 00% for aP)llrovaV11!eniak
final cl~mg dabs is contingent 1:IpOn the 'lender. If Ithe ibuyer must 'be in the .home SOONER t:hn this time firame~ OR cannotto~r~ deklys beyond 60 days.,. they should NOil"m.!Ike lin offer. This time frame is dependant on where the file is in ~he oShort 'Sale proceS"s- For example, Jf 11na) S"hort sale CIlproliai has been .gr:,mted, tloe.m the prOc:ss5 call take, .as few.as 20 days. W,e .nac:tImmend a
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2. COMMISS10NS: Ca.rnmissUlm 'I'r0y ",ot exceed '6% on FHA Hens-Split is SO/58. For
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4-~split
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3. SPECIAL .PlROVISIONS1 A:II .offers MUST include :the follO'wing .contimgetTIcies~ '?r<wert't' is be'in:g sOld 1 IS. (DUE! to severe -Icrrss -being ~;:_ikem Iby tbe lem!hu, rep.<!Lr.s cannot
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Ibs rni3l!ls by ~hese1ler'or"ti1B ,lender.} =t!Iye!!?!Wl!mnt <ifgle !S'ClD-!!Iditionn! "-I!!\'9n1jn-aJ ,"pnrM/a! gf'Sellgr's Igndcrtmrllnr'H! 10 "
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f\!!!!t'er ",,;0 Jm '.grmnt,ed e 'lQ-dlW !i!lswdjipn 'Mr;od gt ...9 plu....1" j,he 'irl5psdt:ian :perWd will COlITImerrtee 'I.ll1lCe tr.e <!irllYsrs agent rec,eilJ;eS 'written :nctific:ation fum, ~hs ltrtillg agE!m: t:hat the short sale fll.e.is sppr:01!edby the seller's 'lender. DurirLg the inspCtion'pSl'k,d, buyar Ima}' terminate the 'c:ontr.!ct for<lny rElasoJ:l arml i'in)' -ea-rnest moroie~ will be rslease-d b8ck to
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4.. a..OSING COSTS: 1.ende.r will pay typical <100 ,eustom.ary closing costs such as title policy,
c:ommiissians, ,stc.
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FHA 'Shor1: SalB' BOO 'Wi~ alfow 'Up to J:% of the b\:lyer's mortgage amount for closirtg cost-to be ,included In the "Seller's Cos:!:" on the HVD~l for ali trao-rzaetions that mvclll>'i 'NEW FHA-insured mrJ rtgages. ,0.,. C(!II'.MENT,IOI!I.!Al Short Sale: SeHer's ,[anrlsr 'M,'!'Y OR 'lolA), INOT f:-AV :em'l buyer's ciQS;rlg-CCls:t or ass:ist3nce Prtl'9roams. Yau ar-e welcome to SUbmit ')-our 1!lfffi::or, on C0NY 'liens, with th~ =s:ts inclutWd a11td we will fJJrw.ard tlil the sellar's ,Iender-they will make iJb-e (!ecision em whetharto pay.
5. SURVEY:"11tre se'lleramnot be abligallerl,to pay fora SJ.:IlVi8y~ end,the sell-er's ~eJ)derwill Rot 'p.ay for '!he survey ,Olil the se!De-r':s IbShlillff. ,"here ,ear:. ilia no "OI:mgabioJ:l ClaLl$9'u t!loi'it 'lEquests the se'l1er toO 1l'ay the cmt of ip1"-OV,ldirlg a $lll'ltey, ATTIiElR :EXPENSE, because -rille short sale leiWer (sener's mortgage :company) WIlli 't.10T pl.ay that a-perrse ,under aray ocir=lrru7t-=, and the seller ,[5
.prolWited from c-orntribu.tillg fina,1cJa!I'1i to t!:l-e transaC'tion. In ,other warcis, 'jfj:h9 sener fails to ,proviOe the SUnray and/or sl'\}' AIf.td&vlt.in! the :presc!lib~d UJIIl9 period, s/he '1>'rould 'bEl in breach cefcontract. The document woulD co-nta"in a promfse that the Stllier cannot fulfill-thus forcil1'2l- ,breach ofcontraec.
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1. CLOSING DATE
Short Sales usually take 30 60 days to close. They can take longer, and the final closing date is contingent upon the lender. If the buyer must be in the home SOONER than this time frame, OR cannot tolerate delays beyond 60 days, they should NOT make an offer. This time frame is dependant on where the file is in the short sale process. For example, if final short sale approval has been granted, then the process can take as few as 20 days. We recommend a closing date of 30 days beyond the offer submission date. When an offer is received AFTER short sale approval, an offer will take 5-10 business days for approval/denial.
2. COMMISSIONS
Commission may not exceed 6% on FHA liens-split is 50/50. For Conventional liens, the lender may only pay 4-5'%--split 50/50. We
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won't know until they provide a "counter offer." Please check MLS listing under BUYERS AGENT PERCENTAGE.
.-----~-"Mtj -poLLc,tj Ls to s-pLLt tne c,ovvcvvcLssLovo SO/SO wLtn tne butjey's Clgevot. you vvcust tJec,LtJe tj0UY owvo -poLLc,tj j ust be ClWClye tnClt LevotJeys ttj-pLwLLtj WClvot to see Cl SO/SO s-pLLt, iAvotJ Lf tnetj see ti-lClt ovoe iAgevot Ls iAc,c,e-ptLvog Less tniAVO sOfa (Let's SiAtj, Cl 2'(0 wvvcvvcLssLovo), tnetj wLLL iAutovvciAtLc,iALLtj stClvt ClskLil'vg wntj botn [lgevots wovo't iAC,c,e-pt tnLs Lowey c,ovvcvvcLssLovo. AvotJ thetj vvcLg nt just tJedde to c,oV1A;eclowvo fyo,VVC ClLLowLvog Cl totiAL sfo c,ow.;vvcLssLovo ovo tne sClLe to iA 4'(0 c,oVlA.vvcLssLovo, foy eXClvvc-pLe. It's iALWClk:JS best to nClveCl SO/SO s-pLLt yLg nt
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notification from the listing agent that the short sale file is approved by the seller's lender. Duting the inspection period, buyer may tenninate the contract for any reason and any earnest monies will be released back to the buyer."
4. CLOSING COSTS
Lender will pay typical and customary closing costs such as title policy, agent commissions, etc. On FHA Short Sale: HUD will allow up to 1% of the buyer'S mortgage amount for closing cost to be included in the "Seller's Cost" on the HUD-l for all transactions that involve NEW FHA-insured mo~<>ages. On CONVENTIONAL Short Sale: Seller's lender MAY OR MAY NOT PAY any buyer'S closing cost or assistance programs. You are welcome to submit your offer, on CONV liens, with these costs included and we will forward to the seller's lender-they will make the decision on whether to pay.
5. SURVEY
The seller cannot be obligated to pay for a survev. and the seller's lender will not pay for the survev on the seller's behalf. There can be no "obligation clause" that requests the seller to pay the cost of providing a survey, AT THEIR EXPENSE, because the short sale lender (seller's mortgage company) will NOT pav that expense under any circumstances, and the seller is prohibited from conttibuting financially to the transaction. In other words, if the seller fails to provide the Survey and/or any Affidavit in the prescribed time period, s/he would be in breach of contract. The document would contain a promise that the seller cannot fulfill-thus forcing a breach of contract. Having explained this, we also understand this creates an obligation for the buyer to provide the cost of a survey. It must be understood that the
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short sale lender sees the survey as a "buyer expense," since it is a document that is required by the buyer'S lender. As a professional courtesy, we will work diligently to obtain an existing survey from the seller and will provide it to the buyer'S agent, but we make no warranties or claims as to its accuracy or validity. The survey provided will NOT be accompanied by an Mfidavit.
8. MULTilPLE OFFERS
We only work with the bank on one offer or contract at a time. In the event that we receive multiple offers on this property, we will not counter for your best and final offer. Our policy is to select and submit the best offer, so bear this in mind when submitting your offer.
9. PRE-APPROVAL LEITER
TI,e offer must include a pre-approval letter from the buyer's lender if 3rd-Party Financing is being accomplished. NOTE: if the offer is a CASH offer, the lender will still want to see a document that shows proof of funds available.
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be in the buyer(s) name anyway, this is our standard protocol. In the event that the buyer chooses not to move forward with the transaction by exercising their termination option or the short sale lender does not go forward with the contract, the I(nolly Team will reimburse the buyer(s) for costs associated with turning on the utilities .
.-----f)-"WneVe I fLrst stlAvteo! LVe tne snovt slALe b14sLVeess, I w014Lo! t14rVe oVe tne 14HLLtLes LVe VOLk:) VeIAVOLe, b14t tnLs betlAVOLe IA nlAssLe IAVeo! IA vtsR lAS I LLsteo! VOLore IAVeo! VOLore snovt slALe pwpevtLes. Ac,tLve 14HLLHes lAre Veec,esslArk:) for tne LVespeC-HoVe, IAVeoi tne LVespec,HoVe tk:)pLwLLk:) nlAneVes IAfter tne snovt slALe nlAs beeVe IAnroveoi bk:) tne LeVeoier. It Ls rlAre tnlAt Lt w014LoI Veeeol to nlAneVe before. So, Ltj14St VOLIARes seVese to nlAve tne b14k:)er go IAnelAoilAVeo! t14rVe oVe tne 14HLLHes LVe tneLr VelA VOLe IA Veo! pIA k:) for tne LVespeC-HoVe. If tne b14k:)er o!ec,LoIes (oI14rGVeg tne LVespec,HoVe perGool) Veot to p14rc,nlAse tne propevtk:), VOLk:) telAVOL wLLL reLVOLb14rse tneVOL for tneLr 14HLLtk:) set14p c,osts. n
CLOSING PARAGRAPH
The Short Sale Disclosure and Agent Guidelines document closes with a summary statement to help set expectations for the buyer'S agent and their client: In closing, the short sale program offers the buyer an excellent opportunity to get a great deal-provided the buyer is patient. For those of us accustomed to fast-paced real estate sales, the short sale process can be particularly frustrating, aggravating, and slow. In the end, however, the short sale process is a win-win program. Investors/Buyers, Lenders, Mortgagees, and Agents all benefit from the successful short sale. Investors/Buyers can purchase the property at or below market
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value. Lenders get the majority of their money back. Sellers get the relief they need and are able to sell their property and avoid foreclosure. And Real estate agents can facilitate the transaction and receive compensation (commissions) from the sale of the property.
Signatures
Make certain that along "With any offer, the buyer's agent and their buyer client submit a signed Short Sale Disclosure and Agent Guidelines document. This "Will help protect you against potential liability. Indeed, if issues arise, you may need to refer to the document and remind the buyer's agent and buyer that they signed and agreed to these terms.
Notes
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Listing Marketing
Sellers of traditional (non-short sale) properties have high expectations for your marketing plan. They want to know the details of how you intend to sell their home for the highest price in the least number of days. The reality is that price sells homes-not marketing. But perception is reality. These sellers perceive that heavy marketing is always necessary. Sellers of short sale properties are ill a different mental place with different expectations about the sale of their home. As discussed before, they want to turn the entire process over to their agent and wash their hands of the details. And, because you have already educated them about the process and how the lender will ultimately determine the settlement amount, they are not likely to be interested in the details of how you will market the home to sell. I really rely on talented buyer's agents to recognize a good deal when they see one and bring it to their client's attention. I do not devote a lot of budget to heavy marketing. Virtual tours, for example, are well worth the effort and the expense for traditional listings, but not necessary or cost-effective for short sale listings. Note that your short sale clients may not want their neighbors to know that they are in a short sale situation. So, you must be respectful of this and ask for your client's pennission to disclose the situation when developing any publicly displayed marketing materials for the property. On the other hand, you may have other clients who have already relocated out of the neighborhood, for example, and who don't mind publicizing the fact that the property is selling as a short sale. When you formulate your strategy for marketing the short sale property, never forget that listing marketing is always a great way to generate additional listings and buyer leadsl
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Title Search
After you have posted the new short sale listing to the MLS, send an email to the title company or attorney to open a file and begin a title search for liens on the property. Note that the title company or attorney that you will use is negotiable. However, it is customary for the party paying for the title policy to choose who will perform the title work. In the case of short sales, the seller's lender will pay for the title policy. Regardless, it makes sense for all parties to work with an experienced escrow agent.
, From.: Knolly@molly.com
To: Trac",@thetitlecompany.oom
Subject: Open Title for Short Sale on 123 Main Street
Hi Tracy,
i
We need to open a @e file for the property :Iisled below, which willi be a : short sale. I have attached ~he lax information and a copy of (he property survey.
i
PROPERTY ADDRESS: 123 iMain Street OWNER NAME: Ben Johannsen As soon as 1receive the offer, I will forward a separate request for the HUD-1 Settlement Statement. Thank you, Knolly
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Day 4 Wrap Up
Congratulations! You have completed Day 4, and now you are more than halfway through 7 Dqys to Success with Short Sales. This day of learning focused on steps you follow once you have taken a short sale listing and you are ready to market it for sale. In particular, we shared tips and tricks for posting this unique type of listing on your MLS system. In order to work efficiently and see the greatest success in short sales, you must help others around you understand the rules and the process. For this reason, I developed the Short Sale Disclosure and Agent Guidelines document to educate buyeis agents and their clients about how to make an offer on a short sale property. This document (which should be customized to comply with your state and local board and MLS) provides an explanation of and guidelines for the closing date, commissions, special provisions, closing costs, the survey, the home warranty, HOA fees, multiple offers, the buyer's pre-approval letter, and what to do about property utilities. You won't believe how much time you will he saving by implementing this Short Sale Disclosure and Agent Guidelines. Let the document do the work for youl Once you have priced the home coxrectly and posted the new listing on the MLS, you've done most of the work you need to do in terms of marketing this short sale property. Aggressive, high-exposure marketing plans are not necessary for these properties. They are priced to move and competent buyer's agents should be able to help spot these deals for their clients. Before going much further in the process with this new short sale listing, you need to get all of the "cards on the table." Contact the title company or attorney and initiate a title search immediately to identifY all
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outstanding liens on the property. Cross your fingers that the homeowners aren't facing tax liens from the IRS. But if they are, you
will know what to do to clear the path for the short sale transaction.
In Day 3, we began the process of collecting the essential documents for the short sale package. Then in Day 4, we took a break from the package prep work in order talk about how to get the property on the market and how to start attracting buyers. Things will heat back up again with the next day, "Day 5: Receiving Offers and Submitting the Short Sale Package." In this day, the remaining puzzle pieces will fall into place, and you'll be ready to submit your expertly prepared short sale proposal package to your seller's lender. Let's do it!
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Notes
Agents
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Reviewing Offers Preparing the Final Short Sale Documents Submitting the Package to the Lender Day 5 Wrap Up
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Welcome to Day 5
Welcome to "Day 5: Receiving Offers and Submitting tbe Short Sale Package"! In this day of learning, we'll talk more about working witb buyer'S agents and tbeir clients.
You will want to be very systematic about reviewing purchase offerswhetber you receive one or multiple offers for your short sale listing. As we discussed in Day 4, tbe Short Sale Disclosure and Agent Guidelines document outlines your expectations and requirements for tbe purchase contract. Tbis document will become important once again, as you review each offer against your criteria.
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We will also discuss how to prepare the final documents and submit the entire short sale proposal pacbtge to the lender. At this point, you should be ready to add the last outstanding documents-the purchase contract, the buyer's pre-approval letter, and the estimated HUD-l statement-to the pacbtge. We'll teach you the 7 Day Systems tips and tricks for organizing the pacbtge, preparing a coversheet, and sending the documents to the lender. You have been asked to absorb quite a bit of detailed instruction thus far in 7 Dqys to Success with Short Sales. Hang in there! And let me remind you that your careful pre-qualification work and the your attention to detail during the pacbtge preparation will payoff immensely when you see that you have laid the path to a successful short sale approval!
Notes
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"I oV\,c,e hCld Clv\' ClttorV\,etJ C,OV\,tClC,t V1A-e VLCl wtLfLed Letter wLth the th reClt of Cl LClWSkLt. The LV\,tLV1A-LdCltLV\,g Letter c,LClLV1A-ed thClt I hCld treClted hLs dLeV\,t kV\,fClLrLtJ bec,Clkse hLs dLeV\,t nCld skbV1A-Ltted Cl ()Clsn offer oV\, Cl prD"perttJ. IV\, ClC,tkClLLttJ, we hCld rec,eLved three offers oV\, thLs properttJ Ilv\'d hLs dLeV\,t's c,Clsn offer WClS the Lowest of tnese offers. AppClreV\,tLtJ, tne prospec,tLve bktJer Clv\'d hLs
bktJer's ClgeV\,t hCld fClLLed to LV\,forV1A- tne ClttorV\,etJ of tne Short sClLe DLsdoskre Clv\'d AgeV\,t CikLdeLLV\,es. After c,oV\,skLtLV\,g wLtn V1A-tJ broRer, we seV\,t tne ClttorV\,etJ Cl c,optJ of tne gkLdeLLV\,es, sLgv\'ed btJ nLs c,LLev\'t. NeedLess to SCltJ, tnllt WClS the eV\,d of tne stortJ, Cl v\'d we V\,ever hell rd froV1Atne ClttorV\,etJ ClgClLV\,."
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the property's short sale approved within 90 days. Along with the purchase contract, the buyer will deposit a non-refundable earnest money amount (say, $500) with the title company or attorney. If the buyer walks on the contract before the 90 days are up, this money will be released from the title company or attorney to you the listing agent. On day 91, the buyer has the option to terminate the contract and get the earnest money back. As the listing agent, you do not have to close on the property in 90 days, but you are committing to doing your best to get the short sale approved in this time frame. You might, in fact, opt to add a statement such as the following to your Short Sale Disclosure and Guidelines document III "Buytt agrees that $500 of the earnest money deposited shall be non-refundable within the first 90 days of the date of the contract. If 90 days from the contract date. have passed and the seller's lender has not issued a short sale Approval Notice, the earnest money will convert from non-refunGbible to refundable."
Investor Buyers
As we have discussed, the 7 Dqys to Success with Short Safes system is most
appropriate for investors who wish to buy-and-hold. Most buy-and-flip investors want to make at least 10% off a deal. Because most short sales (versus foreclosures) are priced at or very near market value, the only way for the investor to make close to 10% on tlle deal would be to somehow influence the bank and its BPO agent. I know from my own years of experience, I have never seen a lender knowingly settle for 30% less than the property valuation, for example. While I still think that short sales are a wonderful investment opportunity, investors will typically not get a "steal." They will be able to buy properties at or slightly below current market value. These deals are a great opportunity for investors who wish to purchase a property, hold and rent it for a few years, and then sell. This buy-hold-sell strategy can
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be particularly effective in areas that have experienced a significant decline in property values due to a market over-correction. For investors who prefer to buy-and-flip, shott sales may not be the best opportunity, since lenders are trying to actively mitigate their losses by getting the highest price they can for the properties.
"At-Arms-Length" Rule
Another point to remember when working with buyers is that the lender will require the transaction to be made "at arm's length." In other words, the buyer cannot be related to the seller or be a close business associate.
Notes
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Reviewing Offers
We recommend that you follow a very systematic process for reviewing buyer offers. The steps that we follow in our system help us save time and avoid errors.
Closing Date Commissions Special Provisions As Is Conditiorul upon seller's lender's "'pproval Inspection period Earnest Money
'III
Closing Costs Survey Residential Service Contract (Home Warranty) HOAFees Buyer' s Pre-Approval Letter
II III II III
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2.
On the Knolly Team, we follow this third option. We send a "try-again" email to the buyer'S agent, reiterating specific guidelines and asking the agent to submit a revised offer. In fact, we typically copy and paste passages directly from our Short Sale Disclosure and Agent Guidelines document. Rather than calling the buyer's agent or marking up the document, we just send this email. Agents who have prepared offers for foreclosures will be familiar with this "try-again" approach. Banks require that agents submit offers on their REO properties a certain way. They won't correct the documents or give lengthy explanations; they will just reject the offer/contract and ask for a revision. We follow this same model because it saves times and it is effective.
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Email From: Knolly@knolly.com To: Linda@LindaTheBuyersAgent.com Subject: 907 Country Lake Drive-Short Sale Offer Linda, After reviewing all offers, we have selected your buyer's offer to submit to the seller's lender to begin their short sale review process. There are, however, a few necessary updates per the Short Sale Disclosure and Agent Guidelines.: Page 2 Sect '6-C: Survey-You have Box 1 checked. You must, instead, oheck Box 2. The seUer'slender will not accept the conlract wffih Box 1 checked for Ihe following reason:
Q. 'IUhe seller allready has aneJ<iisting survey, and is agreeable
Sample "Try Again" Email Sent to Buyer's Agent (Note: Some language here is based on Texas Resale Contract.)
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and the seller is usually prohibited from contributing financially to the transaction. In other words, if the seller failed to tum in the Survey and/or Affidavit in the prescribed time period, s/he would be in breach. In the event of breach, the document would contain a promise that the seller cannot fulfill. Having explained this, we also understand that para 6-C-(2) creates an obligation for the buyer. It must be understood that the short sale lender sees the survey as a 'buyer' expense, since it is a document that is required by the buyer's lender. As a professional courtesy, The Knolly Team will work diligently to obtain an existing survey from the seller and will provide it to the buyer, but makes no warranties or claims as to its accuracy or validity. The survey provided will NOT be accompanied by an Affidavit. I have attached a copy of the survey which is attached to the MLS listing. Page 2 Sect 6-E-(2) Property HOA-You have checked that the property is NOT subject to mandatory membership, but it does have a mandatory membership. Special Provisions-There are no problems with the provisions (seller's responsibility) you have listed. In addition to these, we need the following per the Guidelines and per the requirements of the seller's lender: 'Property is being sold AS IS.' 'The contract of sale is conditional upon final approval of Seller's lender and/or HUD.' And we recommend the following be added, to ensure the buyer knows when the "option" period begins: 'Option Period will begin once the contract of sale is 'approved' by the Seller's lender and/or HUD.' (continued ...)
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Once we get these updates back, we will have the seller execute the offer and forward it along with their short sale package to the seller's lender to begin the review process, Note that we have changed the listing to "PB," and will only take back up offers until your buyer contract is approved or countered, If you have any questions, please let me know! Thanks!
Knolly
On the Knolly Team, we attempt to respond to offers within 24 hours and email the buyer's ."oent a notice of any necessary chilllges, We know that if the buyer's agent does not make the <:hanges now, they will have to make them later-when the lender discovers the errors, Lenders ",;n typically allow themselves a minimum of 1(l business days to review and respond to a short sale package and an offer, on<:e the file has been assigned to a loss mitigator. Some lenders take up to 3{) days! If they kick back the buyer contract and it's resubmitted for a second review, they will again take, at minimum, 10 business days to review and respond. Now you've lost 4 or more weeks in this cycle! When lenders receive a short sale package and an offer that have been prepared according to our strict 7 Day Systems guidelines, they know they have the real deal on their hands. They know they won't be able to shove this package off to the "needs revision" pile!
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I recommend you advise your clients not to countersign low-ball offers. This is the script I use with a buyer's agent who submits a low-ball offer on a short sale property:
Knolly: "This offer is so low-based on our market research on the property's value-that we do not believe the bank will accept this offer. We will go ahead and submit this as an offer [i.e., an unexecuted contract], but we will continue to market the listi ng for a better offer. If we receive a more reasonable and acceptable offer, we will submit that forward as an executed contract."
This strategy is another time-saver for us. If we submit a low offer as an executed purchase contract, we will set ourselves up for more complicated negotiations, as the bank will counter to try to get a price that is more in line with their BPO. Some investor buyers will intentionally submit very low offers, and they are not surprised or concerned about the strategy to send forward their offer unexecuted. You might wonder if it is a waste of time to send the lender an unexecuted offer. As we discussed earlier, the lender wants the buyer to "tip their hand first." They want to see what kinds of offers are possible before they spend time working the short sale package. We have learned through experience that lenders will go ahead and start working a file (i.e., reviewing the proposal package) with just an offer. They will move forward and order their BPO to assess the value of the property, and they'll reach a determination about what they will take as a settlement for the short sale. The lender will ask for an executed contract when they are ready to approve the file. Meanwhile, the unexecuted offer allows us to continue marketing the property for a more acceptable offer.
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1.
2. 3.
Establish a policy on multiple offers and publish it. Submit only one offer or contract at a time. N ever take multiple contracts without appropriate backup addendums.
Your Policy
Be prepared for how you will handle multiple offers. If you do not establish a firm policy and communicate it, you will set yourself up for a lot of grief and unnecessary conversations with frustrated buyer's agents. I have defined my policy and published it in my Short Sale DisciosW'e and Agent Guidelines document. Let's look at that policy ",,"2in: III Multiple Offers: We only work with the bank on one offer or contract at a time. In the event that we receive multiple offers on this property, we will not counter for your best and Enal offer. Our policy is to select and submit the best offer, so bear this in mind when submitting your offer.
One-at-a-Time
You see, my strategy is to get the lender working on only one offer at a time. This means that even if the lender is working on an unexecuted offer and my office receives a better offer, we will wait until the lender has processed the package on their desk. I find that it is most effective to allow the lender to do their job without confusing them with two or more offers.
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Multiple Contracts
Now, what you need to avoid at all costs is multiple executed contracts-a very different situation than multiple offers. Some agents just getting into the short sale business make the mistake of assuming that short sales follow a different set of rules regarding the legal contracting process. I recently consulted with an agent who made the mistake of sending two buyer contracts forward-the second contract offered $50,000 more for the property. When the lender saw the higher one, of course they want to take it, but they were legally bound to continue working the current executed contract to completion. So, the lender countered the first contract and raised them $50,000. When the prospective buyers were unable to pay this higher sales price, the lender rejected the contract and began working the second-more appealingcontract. This messy and time-consuming situation could have been avoided if the agent had submitted the first offer as an unexecuted contract. As in traditional real estate, once your have an executed contract, you may take backup offers, with the appropriate addendums and so forth. Again, just remember that traditional real estate rules regarding offers and contracts apply to short sale transactions. Be sure to utilize your local and state :MLS protocols when handling multiple contracts.
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will need to submit a revised HUD-l statement for approval, since the net proceeds may be different.
The mistake that you want to avoid is telling the lender that you have lost the buyer midstream. The lender will halt the process and wait for you to resubmit with new buyer information. In most cases, they will close the file. To re-start or re-open the file could cause a delay of 30 to 60 days or more! Again, simply allow the lender to process and approve the seller's information and the short sale request using the buyer information that they originally received. If this buyer does not follow through on the transaction, that's okay. Simply inform the lender that different buyer information will be used for the final purchase documentation. As long as the purchase offer is the same as or better than what you had originally submitted, the lender will move forward with the file.
.-----.,-----,
"IV\, Vel1LLttl, I see tne fi-yst offey I vec,e~ve lAS a 'guv\'eI1 "p~g' offev. Tnts w..alj oy IM;lAtJ Mt be tne offer tnat IM;IAR.eS t to tneevwt of tnt pyocess. -gut, tVie [w..portlAY\-t tVivcg Ls tVilAt tl1Ls Ls tne offer tn< gets tVie baLL voLLLvcg! Qu~te oftevc I get t0e snort s&lLe rYo"posaL 1A"p"pYDved wt0 oV\,e offer, but theY\- closed wtn dLffevevct fLv\'&lL offev."
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The Checklist
A complete short sale documentation package must contain the following items:
o o
o o o o
D D D
Hardship Letter Listing Agreement Letter of Authorization Financial Statement Recent Bank Statement Recent Paycheck Stub(s) Fully Executed Purchase Contract on the Property Buyer's Pre-Approval Letter from theit Lender
o o o
Additional Documents for FHA Loans: The most recent two years' tax return Application to Participate HUD FORM 90036
Remember, if your client has two mortgage 'liens on their property and both are found to be short, you will need to prepare and send a short sate package to each lien holder. ilf the first lien is not short, you will not need to send a package to this Uen holder. If, by chance, both liens are held by the same tender and both Hens are short, you only need to submit one package to this lender. Just make sure to put both lien numbers on the package documentation.
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to the buyer's agent. Then, you will include a copy of this fully executed buyer contract with the other documents of your complete short sale package.
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6%
$980
$495 $500 Aug 20, 2010 Dalilene Moses James Gergin
I have attached a copy of ~he buyer's purchase contract If you have any questions, please contact me or one of my team members. Thanks again,
Knolly
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Email From: Knolly@knolly.com To: Tracy@thetitlecompany.com Subject: Request for Short Sale HUD on 10700 Bella Mar Circle Hi Tracy, Please prepare an estimated HUD-1 on the following property, which will be processed as a short sale: Liens: Sales Price: Second Lien Amount Commission: Pre-Foreclosure Fee: Processing Fee: Estimated HOA Fee: Closing Date:
~
TWO $400,000 $9,300 6% $980 $495 $500 Aug 20, 2010 James Thomas Michelle Ingram
Seller: Buyer:
I have attached a copy of the buyer's purchase contract. If you have any questions, please contact me or one of my team members. Thanks again,
Knolly
Sample email requesting HUD-l Settlement Statement (Two Liens) Note that in the sample emails shown here, I have added a ''PreForeclosure Fee" and a ''Processing Fee." We'll discuss these fees further in Day 7 when you learn strategies for supplementing your commission.
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Even though the title company or attorney has researched the title and you have obtained a purchase offer with purchase details, the HUD-l statement that you request will still be an "estimate" because it will not yet show the buyer's side of the transaction. The buyer has not yet received the specifics of their loan and so forth. The reason that the lender wants an estimate at this point, however, is so that they can see the net proceeds they will receive from this sale. The title company that I use processes approximately 5 to 7 HUD-l requests for us each week. They guarantee to have the HUD-l back to us within 24 hours, but oftentimes they return it the same day. For your short sale business, make sure that you work with a title company or attorney who can process your HUD-I requests quickly and accurately.
company for this step in the process. ] have learned from e]"-pe11ence that it pays to have a knowledgeable settlement agent run the title search and identifY all outstanding unpaid taxes, additional liens, and so forth tied to the short sale property. The worst thing to have h.appen is to submit an HUD-I to the lender, only to find out later that the numbers are all wrong because there was an outstanding lien (e.g., delinquent HOA charges) not accounted for in the settlement.
1n
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As I stated, I prefer to work with a title company rather than preparing the HUD-l statement on my own. Furthermore, I prefer to work with knowledgeable and capable settlement agents. To help everyone get educated and on the same page, I have developed a training document that explains how to draw up HUD-l Settlement Statements in the manner that will be necessary for short sale processing.
July 27.2009
Knolly WHUams
ASSOCIATE 8ROKER
SHORT SP.i.E AND USTING SPEClPlJST THE #'I 'SI'iORi SAI.:E TEAM 'IN CCNTRAL TEXAS 'lConsidar i-t $OI..D!~
INSTRUCTIONS FOR. TITIE/ESCIlDW COMPANY CTeatinga 'HUD-l for aShort Sale T:cansaction
"'Thzik yru for~-with 'as .onthis transact:iun. Because ,short ~ are quite differ.ent: than st:.uld.3fd 1:'e2ii,estate1c:lru:actinm, 1 hmre ,putto-gctbct' 'Ibe followinginf1lt'Dati on , "I'Iobith rou =1 find help:fu1.
Wb:atiis a shnrtsa1e? A$hol!!: .:\ale.rr.fers !ethe sale of ~t'otl property for i\.!\ :l.mouw.les'~ thm the amount O":.>erlon the po;:pecty. The tender: '(Ma, VE-., or lB3nl0 ::t~ .to accept:l.es-i; than the ful1. b:il:l..t1<le due on 'the debt :md. usw1ly "f~,eS" iIl-o!'a~ p:>rtion ofthe.diff=nce.
Prelimiw:ty Estii.J:nal:ecI. HUD-ll.. OIl Shol;t sale twlsa.ctions, the scl1e1"s leo.det !tquiU's ,tb:ll. we submh iI. ~"E::t:imlIted HOD-l Settle=t St:aremem:a:J.ongwitb. h wnw.ct/offet: "Thqwi!J. usethisdocumeJIl:tc.
~howroucl:l~xeceiv.efrom1:hett:msa.diion.$:hcirIl.etproceeds).
Li:nc.5@O.. P.aydiOflirst~<r:e.ln2a...lll thoee'il'entth2ttbe &stHenis sbott, tllereh no.need fOl:Yro to order .a ~.fffrom.:the le:nder. 1'll of the: seIler oosts 'Will. be st2:tod on th.~ iF.ruD-l ill thcir appl'Opli:It~ fields,. and th~ {after::ill oth<er 'o:osts bmr~ b~el'l w'btmcted} "This is the It::OO.er'~ ~ net ~.1lhis w.iII. be ,tfu, amOWll: stmd in li:n~ 3'04 Please do not put 1h.e net p!:~ amoontin !me -Gre, astbis knoti:l:l.uppro.ved fbnn:l!:.ofthe short sale lend,er.
J..in.e 3OS. ~:Of secaa:d~-e 103D.:iEr.t tJb.,e evem tlW: t.heze i~ a second lien on ,the propel:ty, there is.DO need foryou to arl.u lly.tyefffrom the secondb :bolder. We~mjn!:trud: you on:the 'Settlement llm<:l<Int Ito phce on this line. Jl:'s typioilly $1,OOOto $'5,000.
I..ine613. line 603 must:m:ooot; $0.00
Onpo:!perties with two liens mere the &stli.cnis NOT shart lin the event thst onlytbe seoondlien i$ sl:Jort,. then the fuIl. payoff =ou:.U: to the Jmt lien holder 'w:iD. be p1ace:l. o.n line 504. 'We 'wiI1 otl:l.er the p:ayo:ff amount from. the first lien holder 2nd send tt to YOIl. .AlI of the other seller o:>$tSwill ~ ;Wed on the HOD-l, in their appropriate fields. The seoondlien hclderw:ill then whilteuerislefl This =ntwill beplacci in line
ncern:
505. 'Iharlk ynuin advaru:e! Please crmt:act!he Knolly Team:at 5:122J6.oooo if you have :any questions or email 1X1J 1istiogmanager, Morris "lhompson:mOIris@k:uoJly.c::om
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Follow Up Relentlessly
Gather Info
Negotia!e& Counter
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Start marketing yourself as a "Short Sale a: Loss Mitigation SpedaUst." Put this descriptive title on your fax ooversheets, your business cards, your email signature block, and other malMketing materiails. This gets the attention of lenders, seUers, and buyers al1d helps them feel more conftdel1tthat you know what you are doing within this unique area of rea!l estate.
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THE
KN.LLY
~
REALTY
TEAM
KELLER WlLLIAMS
1801 S Mo-Pac, Suite 100, Austin, TX 78746 Direct (512) 906~2882 Fax: (512) 532-0626
www.Knolly.com
* * www.ShortSaleSite.com
knollY@knoUy.com
.,
= iPhone:
Pases=
w/cover
Date,
"""
o Urgent 0
For Review
Please Comment
Please Reply
In addition please find a Short Sale Executed Contract on the above property.
Documents Submitted: Hardship Letter Recent Bank statement
o o o
Listing Agreement
o Financial statement
Purchase Contract 0 Estimated Net Sheet - HUD 1 Buyers Pre-Approval Letlerfrom Lender Your Estimated Lender Net: $ _ _ _ _ _ _ __
ContractArnount $ _ _ _ _ __
Closing Date: _ _ _ _ _ _ _ _ _ _ _ __
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Note that our fax coversheet design also clearly identifies the package as an "**Urgent Short Sale Request**." In the current foreclosure crisis, mortgage lenders are processing an unprecedented number of loan modifications, short sales, and foreclosures. If you don't take care to send your short sale package to the correct person and clearly identifY your documentation, you're sunk. Depending on the documentation I am sending, I reference the package as a "Short Sale Request and Executed Contract" or a "Short Sale Request and Offer."
Organize the documents in the package according to the list of items on your coversheet. :Make sure you have me loan number at the top of every page of the package. The easiest way to do this? Create a bibnk docmnent with your client's loan number printed in the very top margin. Then run the pages of your short sale p"ckage through your printer to print the loan number at the top of every page. jLook on your 7 Dqys to S uceers with Short Safes Toolkit CD for a document with a sample page header prepailJed for this task.]
III
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,------ T~ . . 1p------,
You'll find more than 250 unique contacts for lenders and their loss mitigation departments on your 7 Days to Success with Short Sales Toolkit CD! More than 40 of the top lenders are included in this instant database!
If the lendet you need is not on your 7 Dqys to Success with Short Sales Toolkit CD, you may obtain the telephone and fax numbers of the lender's loss mitigation department by calling the lender's customer service number and requesting them. To find the lender's customer service number, refer to the seller's mortgage statement or search for the lender online. It is certainly frustrating that facsimile (fax) is still the lender's preferred method for receiving these lengthy packages. Digital upload would make more sense, but that's not the standard at the present!
Fax Do's
1.
Do include a coversheet Do include the client's loan number on every page Do make certain the pages are in order
2. 3.
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Fax Don'ts
1.
Don't fax your package to the wrong depru:tment! Make sure you are using the fax number for the Loss Mitigation Depru:tment of your seller's lender. Don't overload your fax machine. Some fax machines cannot handle documents of this length. You may need to "babysit" your machine and feed it individual pages. Or you may need to upgrade your machine. Don't fax your package in batches as you recelve the documents from your seller or the title company. Wait until you have a complete set of documen.ts, and fax the en.tire package at one time.
2.
3.
Notes
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. .
II ..
..
Note: As you are learning the techniques in this chapter, t=ember that if your client has two mortgage loans that are both found short, you will need to follow the same set of activities for both lenders.
Relentless FoUow-Up
Throughout this chapter, we will remind you of the importance of follow-up and the importance of a call schedule. Timeblocking is critical.
Wait 4 to 7 days-After you fax the package documentation to the lender's loss mitigation department, wait 4 to 7 days for them to receive the package and upload it (scan it in) to their system.
Call 2 times per week-Once you have given them this
..
initial grace period, start calling 2 times per week to inquire about the status of the file. We'll talk more about the key questions to ask.
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Call once per week-Once the file has been assigned to a loss mitigator, plan to call once a week to get updates on the progress of the file.
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You'll find more than 250 unique contacts for lenders and their loss mitigation departments on your 7 Days to Success with Short Sales Toolkit CD! More than 40 of the top lenders are included in this instant database!
Notes
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The Setup
Lender Receives and Sets Up File
The first step in the loss mitigation process is for the lender to receive the faxed file and begin to set it up for processing. This is a preparation step and is typically handled by a very small group of administrative representatives in the lender's loss mitigation department. Even in the largest banks, Loss Mitigation will be a small department, and within it, an even smaller group will handle the file setup process-possibly 2 to 6 people. For example, I recall that when I was working short sales back in 2005, Wells Fargo had just one lady responsible for setting up all short sale files-that is, all short sale files for all of Wells Fargo! Ca:n you imaz,oine? She was the gatekeeper, and I got to know her very well! The shift in the housing market has likely made many of the larger banks inc~ease their staff in these departments, but it is still a very specLalized activity for banks. Just remember that when you submit your Shollt s.ale package, you will be sending it to a very small number of people...An~ over time, they will start recognizing YOUR package, and you will sw.: devceloping a relationship with these key individuals. As we mentioned on Day 5, most banks require that you fax all documentation to their office, but a few banks will receive short sale p,;:kages by mail. Many, many banks are moving to an electronic fax '(ef,",,) system that will allow them to receive your faxed documents ms PDF files attached to an email. This most surely is a times aver on their end. Regardless of the technology used, it will typically take the setup agent up to 7 days to enter the documents into their system and prepare the short sale file for processing. This setup agent's job is to perform a compliance check on your package to determine if it meets the lender's basic format and criteria.
195
After you fax the short sale package to your client's lender, wait 4 to 7 days before placing your initial call to the loss mitigation department. This will allow them time to set up the file. The minimum time the bank requires for setup is 72 hours, but I find that if there is no critical urgency (i.e., imminent foreclosure), it is fine to wait up to a week.
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-who is typically avoiding all mail from their lender. (That could have cost us quite a bit of time in the process!) To the setup agent, an incomplete file indicates a waste of time, and they will move on to other assignments. If you don't call their office for a month, let's say, they will let the file die. It is essential for you to proactively investigate the status of your file.
Plan to call the loss mitigation department 2 times per wee,k (i.e., every 2 to 3 days) to inquire about the status of the file. There is a delicate balance between catling too often and not enough. This is the call frequency we have found to be effective in our system. Occasionally, the setup agent wiU teU you when to caU back for an update. 'It is courteous to ask them when they would like for you to caU back. If the answer is vague, faU back on 2 times per week.
The questions you ask of the loss mitigation department's setup agent are critical! On your initial phone call, begin to ask the 5 key questions that will inform you of the status of the file.
In my career as a short sale specialist, I have successfully worked more than 450 short sales. I have trained my team to follow my system, ask
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these key questions, and commit themselves to relentless follow-up. This system has been highly effective for us and it will be for you as well.
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Above all else, you need to remain patient with the bank. Be nice, courteous, and respectful. You will gain nothing by being rude, abrasive, or discourteous.
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Why are you calling the setup agent as often as 2 times per week? If your file must be re-sent, if you must provide some missing information, or if a foreclosure date has been set, you need to know this immediately! You need as much time as possible to react. In addition, you should be prepared to keep on top of this calling schedule. Your short sale file could get tied up in the setup step for 30 or even 60 days-even if the file is complete and ready to process.
If a loss mitigator (or "negotiator," as they axe sometimes called) has not yet been assigned, be patient and make certain you have asked yow: other four questions. Tell the setup agent that you understand that the file has not yet been assigned, and that you will call again to inquire about the status of the file. At some point, the setup agent may know which loss mitigator is likely to receive yow: assignment. Try to get this name if possible.
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-cZ
~"Y'
,)
When you call a loss mitigation/short sale department, be prepared to wait on hold for a long time. They're swamped. When I'm making my weekly calls, I typically call from a separate phone. While I am on hold with the lender, I am conducting my regular daily business on my other phone. When the lender comes to the phone, I quickly hang up on the other call (sometimes mid-sentence!) and give the lender my undivided attention'!
5_ "WiI'l you please update the notes in the file to show that I caned ... "
At the end of each call, ask the setup agent to update the notes in their system to reflect the key points of your conversation and the action items you have discussed. If you don't ask them to do this, they often won't, and you need cO develop a history in the lender's notes. Since most calls are typically monitored or recorded, they will add the notes if you ask them to.
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Script!
LM Dept: "Hello, this is Saxon Mortgage, Maria speaking. Can I have your loan number please?" Knolly: "Hi, Maria, this is Knolly Williams. I'm the real estate listing agent on this property, and I have authorization to discuss the account. The loan number is 2348879874." LM Dept: "Okay. I do see here that you have authorization on file. Can you verify the property address for me?" Knolly: "Yes, the property address is 211 South Main Street, Austin, Texas 78747." LM Dept: "Can you verify the name on the account?" Knolly: "Yes, the names on the account are James Sandifer and Carol Sandifer." LM Dept: "Can you verify the last 4 digits of the primary borrower's social security number please?" Knolly: "Yes, it's 3868." LM Dept: "Okay. Thank you. What can I do for you?"
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KnoLly: "Thanks, Maria. I submitted a short sale package on this file last week-on September 21st. Can you please verify that you received the short sale package?" LM Dept: "Okay. Hold on ... I'm looking at the notes here ... hmmm ... Yes, I do see that we received the package. It was updated into our system on September 23rd."
[If they have not received the package, see variation below.]
KnoUy: "Thanks Maria. 1submitted a complete package. Can you verify that you have everything you need?" LM Dept: "Uh ... hold on ... let me see here." KnoUy: "No problem, take your time." LM Dept: "Okay, thanks, KnoHy. Yes, I do see that we have a complete file here. We don't need anything else at this time."
l[If mcomplete, see vwtion below.]
KnoUy: "15 there a foreclosure date set on this property?" LM Dept: "Uhh, wait a minute here ... No, there is no foreclosure date set." KnoLly: "Fantastic, Maria."
[If a date has been set, see variation below.]
KnoLly: "So, has the file already been assigned to a loss mitigator?" LM Dept: "No, it hasn't been assigned yet."
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Knolly: "Okay. Can you tell me, Maria, when it will be assigned?" LM Dept: "No, I don't know when that will happen." Knolly: "Okay, I understand. So, it sounds like you have a complete file, but you don't know when it will be assigned to a negotiator, right?"
LM Dept: "Well, yes. That's what I show as of
right now." Knolly: "Okay, great. Do you happen to know which negotiator it will be assigned to? I've recently worked with Charles Wells and Sandy Newton on files."
LM Dept: "No, I don't know who will be getting this one."
Knolly: "Okay, I understand, Maria. If you can, I'd like to see if Charles can get this one, if possible. [laugh] When should I call back for an update?"
LM Dept: "I would say to try back this time next week."
Knolly: "Great. So, I need to call back on October 5th. Now, will it be assigned to a negotiator by then?"
LM Dept: "Well, I really don't know for sure."
Knolly: "Okay, Maria, thanks again. One more favor ... Can you please update the notes in the file to show that I called inquiring about the status of the file today, and that you indicated that the file is complete, and that you asked me to call back on October 5th?"
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LM Dept: "Uh ... Well, sure. I can update the notes on the file." Knolly: "Thanks so much for doing that, Maria. I will be updating my notes as well." LM Dept: "Okay then. Is there anything else I can help you with?" KnoUy: "That's it, Maria! You've been very helpful. "
CSc~~P1!Q Knolly:"nanks, Maria. I submWted a short sale - ....}; package on this file last week-on September 21st. Can you p'iease verify that you rec:eived the short salle package?"
LM Dept: "Okay, hold on ... I'm looking at the notes here ... hmmm ... No, I don't show that we received anything." Knolly:"Thanks, Maria. I submitted a complete package. 'How long does it usuaUy take for the file to update into your system?" LM Dept: "Well, it usuaUy takes at least 72 hours, but right now our scanning department is running a little behind schedule." Knolly: "Okay, I understand. Can you verify the fax number I should be sending the package to?" LM Dept: "Yes, it should be faxed to 866-9880099. " Knolly: "Yep. That's the number I have on file. 'Hmmm ... So, do you think I should give it a few more days?"
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LM Dept: "Yes, I recommend you give it a few more days to roll over into our system." Knolly: "Okay, Maria, thanks again. One more favor ... Can you please update the notes in the file to show that I called inquiring about the status of the file today, and that I faxed a complete short sale package on September 21? You indicated that the short sale package has not yet been updated to the system, and you have asked me to call back on October 5th , to verify that the package has been received." LM Dept: "Uh ... Well, sure. I can update the notes on the file." Knolly: "Thanks so much for doing that, Maria. I will be updating my notes as well." LM Dept: "Okay then. Is there anything else I can help you with?" Knolly: "Just one more thing-has a foreclosure date been set on this property?"
[Continue standard script from here.]
(SCriP
....
I!0
Knolly: "Thanks, Maria. I submitted a complete . ' package. Can you verify that you have everything you need? LM Dept: "Uh ... Hold on ... Let me see here." Knolly: "No problem, take your time." LM Dept: "Okay, thanks, Knolly. Well, I do see that we are missing the hardship letter and page 8 of the listing agreement. We also need the Sandifers' most recent pay stubs. We don't need anything else at this time."
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Knolly: "Okay. Those pages must not have come through on your fax. What number can I fax these missing documents to?" LM Dept: "Fax them to: 8669880040." Knolly: "Okay. To whose attention shall I put it?" LM Dept: "Put it to my attention: Maria at extension 11323." Knolly: "Okay Maria, I'll fax that to you in just a bit. "
[Continue with standard script. Ask remaining key questions.]
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LM Dept: "Yes, I'll work on that as well. What number can I call you back at?"
Knolly: "Call me back at 512-448-4111 or call my cell at 512-999-9999."
LM Dept: "Uh ... Well, sure. I can update the notes on the file."
Knolly: "Thanks so much for doing that, Maria. I will be updating my notes as well so that I'll have everything I need in case I need to speak with Sarah directly."
LM Dept: "Okay then. Is there anything else I can help you with?"
Knolly: "Yes, when should I listen for your return call?"
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LM Dept: "Uh, well ... I can call you in a few days." Knolly: "Great, Maria! You've been very helpful. I'll look forward to your call in the next few days. " If a negotiator has already been assigned:
Script!
KnoUy: "So, has the file already been assigned! to a loss mitigator? LM Dept: "Yes, it looks like the file has already been assigned to a negotiator." KnoUy: "Great. Can you tell me, Maria, who it has been assigned to?" LM IDept: "Yes, it was assigned to Jack Smalls." ,Knolly: "That's great. Can you give me Jack Smalls' direct contact information?" LMOept: "Yes, his number is 604-778-9989." KnoUy: "Great, does Jack have an extension?" LM Dept: "No, that's his direct line." KnoUy: "Okay, good. What's his fax number?" LM Dept: "Uh, let's see here. It's 604-778-9963." Knolly: "Fantastic, Maria. And what's Jack's email address?" LM Dept: "Uh, well, we're not allowed to give that out. You can call him, though." Knolly: "Okay, thanks, Maria. I want to give Jack time to review the file. Can you tell me when he received the file?"
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LM Dept: "It looks like he just got it a few days ago. " Knolly: "Okay, Maria, thanks again. One more favor ... Can you please update the notes in the file to show that I called inquiring about the status of the file today, and that you indicated that the file is complete, and that the file was assigned to Jack Smalls on September 24th?" LM Dept: "Uh ... Well, sure. I can update the notes on the file." Knolly: "Thanks so much for doing that, Maria. I will be updating my notes as well." LM Dept: "Okay then. Is there anything else I can help you with?" Knolly: "That's it, Maria! You've been very helpful. "
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Sometimes you will be working more than one unassigned file with the same lender. In this case, when you call the loss mitigation department, you can ask about multiple files while you are on the call. This will cut down the overall time you are spending on hold!
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You are
her~!
Moving to a loss mitigator means the setup team has performed their preliminary review, and your file seems acceptable or "do-able." They reviewed for blatant disqualifications, and your file passed the test.
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212
Package Review
Now, it is time for the assigned loss mitigator to perform their review of the short sale file. They will review the package details to determine whether the package is "approvable" prior to ordering an appraisal or BPO. Here is how the loss mitigator reviews the file:
Hardship Letter-The loss mitigator will review the hardship letter to verify that there is a legitimate hardship. It should be noted that many hardships may appear to be self-inflicted (i.e., simply a result of the homeowner's own choices). Perhaps the homeowner bought more home than they could afford, they were fired from a job (due to incompetence), they switched careers resulting in lower income, they relocated for personal reasons, they started a risky bu.sinessendeavor, and so forth. If your short sale client elaborates in too much detail on the hardship letter, the loss mitigator may find cause to reject the file. (Review our discussion on Day 3.)
..
Listing Agreement-The loss mitigator will review the listing agreement to examine when the home was listed and how long it has been on the market. They will also use the agreement to detennine the current list price. They will check to make swce that the listing agreement is fully executed.
Letter of Authorization-The loss mitigator will review the file to make sure a current Letter of Authorization is on file. Many lenders require the authorization to be dated within the past 90 days, or else they may require an updated letter with a more recent signed date.
..
..
Financial Statement-The loss mitigator will review the financial statement to make sure that the client is bringing in less income than they have in expenses. (Review discussion of this on Day 3.) They will also verify the
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stated income by reviewing the seller's bank statements and pay stubs. Recent Bank Statements-The loss mitigator will review the most recent bank statements to compare them to the financial statement. If a person's deposits are more than their stated income, this will be questioned, unless the homeowner recently experienced a reduction in income (i.e., job loss, pay cut, etc.). The loss mitigator will also be looking for any large recent withdrawals or surplus funds in the account. For example, if your client recently withdrew $8,000 from their bank account, this will be questioned. Also, if the statements show a large surplus of funds (enough to make at least two or more mortgage payments), this will also be questioned. Recent Pay Stub(s)-The loss mitigator will review the seller's most recent pay stubs and compare them to the financial statement and bank statements to verify the homeowner's income. Fully Executed Purchase Contract on the PropertyThe loss mitigator will review the purchase contract and notate any changes to the contract that they may require. If an unexecuted offer has been submitted, the lender may, at this time, require that the offer be executed before they move forward. If they move forward with the unexecuted offer, they will require an executed contract prior to issuing an approval on the file. Buyer'S Pre-Approval Letter from their Lender-The loss mitigator will make sure that this important document is in the file. HUD-l Settlement Statement-The loss mitigator will review the HUD-l to see if there are any items that they will not pay. They may not tell you what expenses they will not pay until after the BPO or appraisal has been ordered.
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Seller's Credit Report-The loss mitigator will occasionally order a copy of the seller's credit report. They will use the information on this report to detertnine if the seller is telling the truth about their situation. If they can see that the seller is up-to-date with all of their payments except the house, they may determine that the seller is simply trying to sell their home and get the bank to pick up the tab for the deficit. On the other hand, the seller's credit report will typically present a telling tale of woe. Many accounts will be in artears and the lender will be able to see that the seller is truly in trouble.
Once the loss mitigator has completely reviewed the seller's file and cross-checked the various documents against each other, they will determine if they believe the hardship story that is being told. 1 they don't quite believe the story, they may decide to do some further investigation. This can lead them to attempt to contact you for some additional information or they may try rocontact your client directly. Be aware of one particular strategy used by some loss mitigators. On occasion, a loss mitigator might contact your seller client directly to obtain more information, verify information, ask questions, or discuss the possibility of a loan modification as an option. I do not recommend that your seller (the homeowner) correspond directly with the lender at all. Here's why. Inadvertently, your client could rWsstate some information or give an inaccurate impression of the situation and put the short sale proposal at risk. For example, I once had a client who received a call from their lender's loss mitigation department. They inquired about my client's situation, and they asked if he was currently living in the property. (Mind you, I had already told them that my client was indeed living in the property.) My client answered, "No." Because the loan was an FHA loan, this information immediately disqualified the seller from the short sale program. When I asked my client why the short sale suddenly went from "Approved" to "Declined," he told me about the call he had received. I
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asked Illm, "Why did you tell them you had moved out?" He said, "Well, I'm working in Houston every week." I asked Illm, "But where are all of your things? Where do you still receive mail? Where do you live when you come back to Austin at the end of each week?" He answered, "In my house." "So, Carl," I said, ''You're commuting to work. You haven't moved out of your home. There's a big difference." The sad conclusion to this client's story? He had ruined the short sale proposal, so he had to sell his home in a traditional sale and bring $8,000 to the closing table. This was a terrible lesson learned. I recommend that my clients use the following script (or something like it) when they receive a call from their lender:
(SCriP "I am.ment~ll~ and emotiona~ly incapab.le of . ~..., .. , handhng thlS nght now. I am m a place m my llfe
. where I can't handle this. I have hired Knolly Williams and his team to be my representatives. Please contact Knolly Williams."
I!0
Another solution would be to host a three-way call with the seller client and the lender. Once the call starts, I announce, "The seller has hired me to represent them." And I will jump in and rephrase questions if I believe my client may be confused or misled by the lender's questions. Ofrentimes when the loss mitigator contacts the client directly, they will ask the seller what their hardship is, and they will ask the seller to verify their income and expenses. Why would the loss mitigator ask the seller these questions when they already have the answers? The loss mitigator may be digging for any information that they can use to decline the file or they simply may want to verify that the seller is telling the truth. The seller should always stick to the hardship letter and the financial statement. If the seller ever speaks directly to the loss mitigator, they simply should recite the information right off of the hardship letter and the financial statement. The seller should not elaborate and delve too
216
deeply into a conversation with the lender without having you on the call with them. As previously stated, the lender may try to entice your client to do a loan modification. You should have already covered this (Day 2) with your client. So, if the issue of a loan modification comes up, your client simply needs to reiterate what is on the hardship letter-no more and no less. They simply need to tell the lender that they have "no alternative but to seek a short sale."
You are going to need to befriend the loss mitigator. Approach them with the right mindset and start building a relationship. The worst thing that you can do is make them feel that you do not respect how hard they .are working on your file and other files at the same time. These are people with feelings. You want them to know you care and you respect the work they are doing.
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Tlrtelj're goLV'vg to Lose VM.ore VM.oV'velj wLtn C1 foredoSkre!' [poLLteLlj reVM.LV'voi VM.lj c,LLeV'vts tnC1t tnelj C1re tne oV'ves wno too~ Okt tnLs LOC1V'v for tVieLr VioVM.e, C1V'voi V'vow tnelj nC1ve gotteV'v LV'vto trokbLe C1V'voi WV'v't VM.C1~e tneLrpC1ljVM.eV'vts. Tnelj C,C1V'v't c,oVM.e LV'v rksnLV'vg C1V'voi oieVM.C1V'voiLV'vg tnC1t tne bC1V'v~ settLe for Less tnC1V'v wnC1t Ls rLgntfkLLlj oweoi. [V'voieeoi, tnese nOVM.eowV'vers snokLoi be beggLV'vg for forgLveV'vess.
[ ofteV'v see C1 sLVM.LLC1r nostLLe C1ttLtkoie froVM. snort sC1Le LLstLV'vg C1geV'vts. c.OVM.e OV'v, foL~s! rtkVM.LLLtlj C1V'voi respec,t
snokLoi be ljokr C1pprOC1c,n wLtn tnese LeV'voiers."
So, you should know that going into it, many loss mitigators are going to be reserved, defensive, or even adversarial towards you. If your opening line is, "Have you even looked at my file?" the loss mitigator is going to immediately put on their fighting gloves. Now you have upset them, and guess whose file is going to the bottom of the stack! In addition to dealing with hostile short sale agents, loss mitigators often have to deal with inexperienced and uninformed agents. I have had some mitigators share with me that they feel like they are constantly educating agents. It takes time and energy to explain the steps of the process over and over again to new and untrained agents. This is one reason why many loss mitigators don't answer their phones! On the 7 Dqys to Success with Short Sales Toolkit CD, we have provided you with a list of numerous bank contacts. As you begin processing short sales, you will add the contact information of your favorite loss
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mitigators to this list. As time goes by, you will learn that you can sometimes go through the "side door" when you have a new short sale file. For example, you can easily contact a loss mitigator you recently worked with on a file and ask if you can fax the complete package directly to them and have them walk it over to the setup team. This can be very helpful when you have a short timeline and the foreclosure sale date is in the near future. This side-door strategy is particularly effective at smaller banks, but my team and I have even used this approach at the largest ones. By the same token, if a file is taking too long to get through the setup process, I sometimes contact a loss mitigator or supervisor I've worked with in the past and have them look into the situation.
As you are building rapport with the loss mitigator, you want them to understand that you-with your knowledge and expetience--are going to make their life much, much easier. Your goal is to let them know that you are different and that working with you will be a smooth and easy process. You want the loss mitigator to enjoy working your file and to work it as quickly and efficiently as possible. Building that relationship is key. In fact, just this one technique can save you wee'ks in the process! And, the more time you can save, the more money YOllcan maketaking more listings and closing more deals.
Before the file goes to a loss mitigator, you will want to call the department 2 times per week (every 2 to 3 days) to find out if the file has been assigned. Once it is assigned, however, you will want to back off your calling schedule to once per week. This schedule shows your eagerness, but also your respect for the hardworking loss mitigator and their efforts.
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Loss Mit: "Yes, I do see that we have a complete file here. We don't need anything else at this time. " Knolly: "Is there a foreclosure date set on this property?" Loss Mit: "A sale date? Hold on ... Wait a minute here ... No, there is no foreclosure date set." Knolly: "Fantastic, Jack. That's good to hear. You know, Jack, you won't have anything to worry about with me. I'm a short sate specialist and my team has closed over 42 short sales so far this year. I only work with clients who quaUfy for a short sale, so you won't have to spend your vatuable time educating me on the process." Loss .Mit: "Wow, KnoUy. That sounds good, man." i(;noHy: ''Well, thanks again, Jack. Oh, by the way, have you already orde'~ed the BPO?'" loss Mit: "No, the BPO hasn't been ordered yet." Knotty: "Okay. Can you tell me when it will be ordered?" Loss Mit: "Uh, !let me see here. Well, I'll need to just review bhe fille one final time, andl'U probably order the SPO by the end of next week." KnoUy: "Okay, great! Do you already know who will be assigned to do the BPO?" Loss Mit: "No, not at this time." Knolly: "Oh, I see. Well, can you note that I will be the point of contact for the BPO agent?" Loss Mit: "Sure thing."
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Knolly: "Great. The BPO agent can call my office number at 512-448-4111 or my cell at 512-9999999. " Loss Mit: "Okay. I've got that noted here. Looks like that's alii need for now." Knolly: "Okay, thanks again, Jack. When should I call back for a status update?" Loss Mit: "I would say to try back in two weeks." Knolly: "Great. So I need to call back on October 18th then. Will do. Do you think you can have the file approved by then?" Loss Mit: "Well, [laugh] I really don't know for sure. I'll see what I can do!" Knolly: "Thanks, Jack. I know you've got so much on your plate right now, so I really appreciate you taking the time to speak with me. I'll call you back on October 18th. Shall I call you at 10 a.m. or is 2 p.m. better?" Loss Mit: "Uh, well ... I'm here all day. Just call me at 2 p.m. That's better for me." Knolly: "Okay, Jack, thanks again. One more favor ... Can you please update the notes in the file to show that I called inquiring about the status of the file today, and that I will call again on October 18th to see how the BPO turned out?" Loss Mit: "No problem. Will do." Knolly: "Thanks so much, Jack. I will be updating my notes as well. You've been super helpful. Talk to you then!"
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Script! . "Hello Jack, this is Knolly Williams. I'm a short . sale specialist and listing agent with The Knolly Team in Austin, Texas. I'm calling for a status update on a file you're working. I do have authorization to discuss the account. The loan number is 2348879874 and the last 4 digits of the social are 3868.
Jack,1 just need to verify that you have a complete file. Also I want to make sure that there is no foreClosure date set on the property.
:t'm a short sate specialist, and I only work with dients who quailify for a short sale, so you won't have to spend your vatuable time educating me on the process.
I aliso want to see if you've already ordered the SPO on this one. I'U be the point of contact for the BPO agent. Anyway, can ),Iou please ca'll me at 512-448-4111 or ca'lt my cell at 512-999-9999. I won't take much of your time. You can also email me at knol'ly@shortsatesite.com. Thanks again Jack. I know you've got so much on your plate right now, so I really appreciate your taking the time to speak with me. I look forward to hearing from you!"
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Follow Up Relentlessly
Gather Info for the Package List& Market the Property
. Order AppraIsal Youare here!
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Some lenders will order a BPO and others will order an appraisal. As a rule of thumb, when lenders are processing a conventional loan, they will typically order a BPO, and when they are processing an FHA or VA loan, they are required to order a full appraisal. A BPO is more akin to a comparative market analysis (CMA), although it's a bit more expanded. A BPO will typically be 1 to 4 pages in length (including photos, etc.), while an appraisal can be 20 or more pages. The purpose of both documents is to arrive at a market value of the property.
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"wheV\. the LeVl-oiev ovders (lVl- (l"FP~'(lLs(lt ov -g,PO, (jov~ shouLoi taRe thLs as (l vev(j goool SGgVl-.IV'~ fact, (It tViLs 1poLVl-t,1 LLk:,e to sa(j thVlt (joVi. l1(lve vec6veol (lVl- 'Vi.Vl-s1p0f.?,eJl\, sl10vt sVlL:en-pprovaV5sseVl-hnLL(j.' the hVlVl-f.?, Ss S(l(jlVl-g tViVlt the(j have evev(jthLVl-g the(j Vl-eeol fvow.. (jovl, VlVl-d thel::j have deci.deDi to w..we fOVvviiVd wLth tVie short sViLe. TlrIe(j vl(lve yevtewed the ?Vlck(lge VlVl.-d detev.w..LVl.-td tViVIt !jouv seLLey qVi.(lLLfLes fov tVie shorr sViLe ?vogriiw..."
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The appraiser or BPO agent may be using the wrong comps. When there are several comparable properties to choose from, it is imperative that the appraiser or BPO agent select the right ones as comparables. For example, some subdivisions have sections that are valued higher than others, and this may be overlooked when the appraiser or agent pulls their comps. Or, an overvaluation may result if the report considers properties that took longer than 60 days to sell (as discussed in Day 3). In addition, the appraisal or BPO may be assessed using comparable properties that were completely remodeled, updated, or in far better resale condition than your listing. And, considering the fact that BPO agents typically make around $50 for doing a BPO, the faster they can get it done the better. Sometimes, they will delegate the task of performing BPOs to an agent with less experience.
12.6
The BPO agent may have the wrong ulterior motives. Most agents are honest, and I don't see this scenario happening very often. However, when a property
forecloses, it typically becomes a bank's REO (real estate owned) property. This means that if the property does go into foreclosure, the BPO agent or someone from their company or team has the potential of getting the property as an REO listing to sell on the bank's behalf. A BPO agent may use higher priced comps in order to prevent the short sale from getting approved so that they can get the foreclosure listing later. For these reasons it is imp=tive iliat you get your information into the hands of the BPO agent or appraiser before they go out and do their valuation! If they do not cont"ct you first, they will not be afforded the insight that your infolTIlation can bring, and you may find yourself with an overpriced approved short sale that no one will buy.
This information helps them know what I am thinking-my starting position. And this lets them know iliat I am on top of my game, and I know how this property should be valued. My other objective is to get to know the appraiser/BPO agent-but stay at arm's length. I want them to be educated about how I arrived at my CMA numbers, but I do not want to appear that I am trying to coerce
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them or tamper with the process. I want to stay close enough, however, to assist and to facilitate the process whenever possible.
: BPO Agent: "Hello, Knolly, this is Pauleen with Homelite Realty. I've been asked to do a BPO for your listing over on Sagebrush." Knolly: "Hey, Pauleen. That sounds great!" BPO Agent: "Well, Knolly, I need to get into the property. Is it still on lockbox?" Knolly: "Yes, it's still on lockbox, and it's vacant. When are you going out to do the BPO?" BPO Agent: "Uh, I'll probably get out there sometime tomorrow afternoon or so." Knolly: "Great! When do you need to turn in the BPO?" BPO Agent: "They gave me five days to do it. I'll have it back there by Wednesday of next week." Knolly: "That sounds awesome, Pauleen. That property is a very interesting. My office has sold several properties in that subdivision. I need to send you a few pages of information about the property that you may find helpful. Can I fax that to you or do you prefer me to email it?" BPO Agent: "Oh, well, just email it to me. My email ispauleen@homeliteteam.com. " Knolly: "I sure will. What's your phone number, Pauleen?"
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Knolly: "Thanks again, Pauleen. I promise I won't call you since I know how busy you are. I'll just keep it here in the file, just in case."
BPO Agent: "No problem, Knolly!"
Notes
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Let me offer a word of clarification before we move forward. At this point in the process, the focus is on the buyer's offer and on the house value, as determined by the bank's BPO. The short sale proposal has, for the most part, been "approved" at this point. So, if the deal is declined or negotiated, it will be because the structure of the purchase is unacceptable or undoable in someway. If the offer is accepted, you can celebrate because this is the final approval you need to close this deal!
1. Decline
Let's first talk about Decline as an outcome, since this is the least likely scenario you will experience. A straight "decline" is rare. Typically, the file will be tossed back to you with a counteroffer.
Unacceptable Price
The lender may decline the short sale contract due to an unacceptable price. About 15% of the time, the lender will simply decline the deal and not present a counteroffer. Furthermore, they may not even let you know how the BPO came in-that is, they won't let you know what
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value their agent or appraiser gave to the property. This is a tough situation. One of the larger lenders in the nation starting following this practice not long ago. Now, when they decline an offer based on price, they won't give you advice on how to counter. Typically, they just simply say, "Have your buyer submit a revised offer." When you inquire, they will not disclose to you the price that they want. They may, however, let you guess at their price requirements! In a couple of cases, I have felt like that I was playing the classic "High Low Clock Game" on the Price Is Right television show!
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Lenders SetvlC1ng conventional loans don't follow these same rules. They may be looking for 88% of the appraisal, or maybe 92% of the appraisal, or maybe 90%. It's a guessing game each time. And when a conventional lender gives you no insight into the results of their BFO, you are at an even further disadvantage. If the contract is declined and you know with certainty that the offer is priced right at market value, you will need to dispute the appraisal or BFO (see discussion below).
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1:SI1.QIIYWiIJi~m!!
"Consider it SOL~.;3 Office: (512,,) 206-0Q60 Fax: (512) 5~.062~ www.Knoll... comknollu6)knollu.com
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Attn.:JU.sthi M)'19 r$
Fax;: 666-675-8471
RE: Address:
Dear Jl,lstin.
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'neen ma~ketil'l,g ,Has propem for 'Some timewitb '(j list .pric.e: of $134,000. ~he present crffer ls the BEST oJ;te we l:ial'B received.. Your m~ssag-e me!1licned that I'he bank would ~kB n-o ~es$ than $140;000, UnfortI.ll'l3t,etY,1he appraisal'came in too HIGH
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am oertain that the agent who dicllhe 8Pa ;knuws his business weI!, -and it is not my lntemtion to cMlerl,gB him. I :feel, :hOlll<ever, that 'Something mtlSt'have ibe.en ove!'lookedl.
As 'Or.le of the top 10 RlEALTORS fuAugtln .(oot of almost 9;500 agents). Ili81 and se~-ne.,.r~ 1m homes per rear. Pait M mil abrrt:y to sell these- Iwme.s, $ my salel's wiUingness to pricr; their homes >fflihin what the maJ'ketwi~ 'be;ar. Please. see 'nIy Market Analysis attachC!'tL
F otmalletter of dispute
Keep in mind that the lender may counter even though they will accept less. This is old fashioned negotiating. If the buyer counters the lender's counter, take the new amount back to the lender. You may have to go back and forth until an agreement is reached.
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Note that if the lender counters with an amount that the buyer is still not willing or able to pay, and you can't get either side to budge, don't despair! You still have an approved short sale. Put the property back on the market, find an agreeable buyer, and get it closed!
At times, your seller may not understand that the promissory note is the best option they have and the only way that the short sale will go through. Signing a promissory for a percentage of the lien amount (paid
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over time) is certainly better rban facing foreclosure, wbich will result in long term damage to rbeir credit and may result in a judgment against rbem for rbe resulting deficiency balance. Your client should keep in mind rbat even if rbey agree to a 10% promissory note, for example, rbey will still be forgiven 90% of rbe note through rbe short sale settlement! That's really good. In cases where rbe lender requires a promissory note, rbe seller will not be able to sell rbe property wirbout it. It is imperative that rbe lender remove rbeir lien from rbe home in order for rbe seller to sell.
Samp:le Script: What NOT to Say to Your Client Regarding a Promissory Mote
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Sample Script: What You SHOULD Say to Your Client Regarding a Promissory Note
Here's a sample script for the kind of conversation I have with a client regarding a promissory note. This is the RIGHT way to approach the
Issue.
(SCriP~) Knolly: "Hi, Jo~n, I've got some really good news
,,~~
...
.-
Knolly: "Well, John, as you know, you owe about $40,000 on your second lien. The good news is the bank agreed to forgive 80% of it! So they're willing to wipe out $32,000." Client: "Okay." Knolly: "John, that's still exciting news because they are willing to forgive most of what you owe. But since I didn't think 80% was acceptable, I kept negotiating with them. In fact, it's taken me over a week, but I've finally gotten them to forgive 95%! That means they are forgiving $38,000 of the $40,000!" Client: "Well, that's more like it! Thanks, Knolly! So, who's going to pay the $2,000?" Knolly: "Well, John, your bank wants you to pay it. But hold on! I've got some good news about that too. I know you don't have that kind of money, so I did a lot more negotiating and the bank has agreed to let you pay it AFTER we close on the house. AND they'll give you 5 years to pay it at 0% interest. Gosh, John, that's a heck of a deal. That's only $34 per month to save you from foreclosure. "
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Client: "Well, that sounds pretty good, Knolly! Thanks, man. I appreciate what you've done." Knolly: "You're welcome, John!" Client: "But, Knolly... What happens if I decide I don't want to do a promissory note?" Knolly: "Well, John, I've thought about that too. And the ball is in your court. But if you decide not to sell your home and dedde to let it go into foreclosure then you will have a foreclosure on your credit report for the next decade. That can really tank your credit. Did you know, John, that many employers now pull a copy of your credit report when you apply for a job, and many require you to disclosure if you've ever had a foreclosure?" Client: "Oh yeah? Hmmm." Knolty:"And John, if the lender comes after you legally and wins a judgment against you, you couLd be liable for the entire amount plus any resulting legal fees. If you decide to go the foreclosure route, you wiU definitely want to discuss this with al1 attorney to get you some good tegal advice on how your lender may pursue you after the foreclosure. " Client: "Yeah, I guess you're right." KnoUy: And, you know, John, your legal fees to an attorney could likely be higher than the amount of the promissory note! And the attorney won't give you 5 years to pay! My advice is to take what you can get and move on. Let's close on the home so you can get this nightmare behind you." Client: "You know what, Knolly? You're right. Let's do it!"
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This Promissory Note is made on September 10, 2008. For Value received, and intending to be legally bound, the undersigned individual(s) (the "Obligor(s)") promise(s) to pay to the Litton Loan Servicing LP, its successors and/or assigns (the "Obligee"), the principal sum of (U.S. $2656.80), Two thousand six hundred fifty six and eighty cents, plus interest at an annual rate of the lesser of 00.0 % or the highest rate permitted by law, payable in equal monthly installments of (U.S. $22.14). The first installment is due upon signing of this note, and subsequent payments are due on the first day of each month, commencing on December 1, 2009, and continuing until the principal sum outstanding and any late charges or other amounts due and owing under this Note are paid in full. Obligor will make monthly installments payable to Dyck-O'Neal, Inc. and deliver them to: Dyck O'Neal, Inc. , P. O. Box 13370, Arlington, Texas 76094 or to such other servicer or such other address as Aron Valderama may hereafter designate in writing to Litton Lon Servicing (Dyck O'Neal, Inc.). Obligor may prepay the unpaid indebtedness hereof at any time in whole or in part without prepayment charge or premium. Obligee will apply partial prepayments to the principal; partial prepayments will not affect the amount or due date of monthly installments, except that the final payment date will occur earlier and the final installment may be smaller than scheduled. Failure of the Obligor to pay any installment on or before the first day of the month in which it is due, Obligor agrees to pay a late fee on such installment in the amount often percent (10%) of the regular payment, to the extent not prohibited by applicable law. Installment payments will be applied first to the longest outstanding installment. In the event the Obligor fails to make payment of any installment due hereunder by the thirtieth day of any month, the entire unpaid balance of this note plus any unpaid late fees and other sums due hereunder shall at the option of the obligee become due and payable immediately. The Obligee may exercise this option to accelerate regardless of any prior forbearance, and shall not by any act of omission or commission be deemed to have waived any of its rights or remedies hereunder unless such waiver be in writing and signed by Obligee.
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The Obligor consents to the Obligee commencing action on this Note at any time after acceleration in the State of Texas, and the Obligor expressly agrees to be bound by the jurisdiction of the appropriate court in the State. In the event the Obligee takes action to collect any sums owing hereunder, the Obligee may also recover from the Obligor all costs of such action, including costs of suit and other expenses in connection therewith, including a reasonable attorney fee for collection, to the extent not prohibited by applicable law. The Obligor hereby waives presentment for payment, protest, demand and notice of nonpayment and agrees that, without affecting ObUgor's liability, the ObUgee may, without notice, renew or extend the time for payment, or accept partiail payments.
I
This Note shall be the joint and several obl,igations of all makers, sureties, guarantors and 'endorsers and shaU be biinding on them and ti1eir successors and assigns. Any notice to Obligor sihall be given by maUing such notice by certified mail addressed to Obligor at the address staled bellow or to sudm other address as Obligor may designate by written no~ice 10 the address 10 which payments are made. Obligor shC1lilgive such notice within 30 days of any change of address. the even! anyone or more of the provis,ions conlainedin th,is Note shaH for any reason be held invalid, illegal or unenforoeable in any respect, such invalidity, iillegallity orunenforceability shal'l be conslrued as if such ,invalid, mega! or unenfOfceable provision{s) had never been contained herein. This Note and thecibligations of the undersigned shaU be governed by the laws oHme State. Obligor: John Ramsey (Signature)
"'1
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Have a knowledgeable settlement agent prepare the HUD-l for you. Scrutinize all line items. Be conservative in your tax proration. Check the close date on the documentation-as it will likely change.
240
241
Also remember that even if the foreclosure date has been postponed, it has not been stopped. In other words, the date is still on for some time in the future. Make sure you know the date and set a reminder on your calendat to readdress the issue as the date approaches.
242
price, the minimum net proceeds payable to the lender, and the terms of the short sale agreement. Most banks will forgive all or a large portion remaining balance on the mortgage loan. Others will require that the homeowner remain liable for the amount forgiven, and some will even want a promissory note for a portion of the debt forgiven, as we have discussed.
First Franklin
P.o. Box
~g3S
Loan Se-~-ices
lS230-~8~S
PittSburgh~
FA
RB: 'Loan
No~
Property Address
Dear Loan CUstomer ~
This l'e'tter details' t.he 'terms of the conditio..'"'l.al a:-pp:r:ovcd' by ou:r ,company o.f a short pay-oU on the a!bove referenced loan. Please note t:1b.at this app:r.ov.al is NOT FINAL unt.il the berms of thi.s approval have :been m.et and we 'receive al~ the ll".ateriaJ.s required. The ter.ms of approv~. are:
1.
2.
Sal.e Ptic'e:
Certified Pay-of Punds no less than:
$400,000.00$3'S;~70.35
3.
4~
or
before~
O~/l'5/2009
We must receive ,the funds :by 2 pm ET.: The real eStat,e commission must be
Seller{s) mus't recei.ve
DO
OljlGj:<!OOS
more than
t
5.
6.
:00
5%
7~
Final closing' figures must be fa:xed to us' 48 hours prior to the closing.
S.
Seller(s) ~ write a letter requesting that'al~ rema~g escrow funds {if applicable) be applied to the indebtedness. 'this includes any tax and/or insurance refunds.
Please see the second page for materials that ~~st be,provided after closing along with mailing and wiring information"
243
1.
A certified eheck for $356,170.95 representing the pay-off a..-:tount. If funds are sent hy wire, prov,ide the Fed :refex-enae nUIllber for
confirmation. of closing. Wire transfers must be received witliin 24 hours
2.
A copy of the final signed J..1JO-~" If the final signed mJD-l . is not available. a true and certified copy of tbe unsigned,
final HOD-l.
-:t;>e provid.ed..
We also request that you send'the fOllo~g: ~ Copy of signed Buyer{s} ana Seller(s) Closing Statement(s), if
*
*
applicable,
WIRING INSTRUCTIONS
Bar.k of America
026009593
Home ,Loan, Services, !nco
Mortgag~..~:" . LoanN~~r:~
upon satisfaction of the .required terms, inclu.4in9', but not limited to, the receipt of the proceeds and all required material, the appropriate documents will be sent to release the lien. If you have
any questions, I am. available to assist you at aOO-522~5035, ext. 11'730. betlleen S am and,S pm, Eastern Time, Monday through Friday.
I /~:"'::.rv" ~.-......ihci
I I
:fff"t7Ji
Loss Mitigation
You should consider this letter as coming'from a debt collector' as we sometimes actas a debt collector .. Any inormation provided by you will be used to oollect this debt. However, if you a...""e in bankruptcy or have received a bankruntcy discharge for this debt, this letter is not an attempt to collect~the deDt, but notice of possible enforcement of our lien against the collateral property: LM902/SAM
244
certain date. Lenders generally allow 21 to 30 days from the date of approval for the closing. Some allow 45 to 60 days.
In addition, with this final check, the lender wants to make sure other
line items have not been slipped in or changed-affecting their net proceeds. If the lender's net proceeds are less than the amount they approved, a revised approval letter must be received from the lender.
245
Among other things, the Approval to Participate Fonn HUD-90045 document spells out the following:
"
7
How much you can list the property for. This amount is the amount of the appraisal. Your deadline to obtain a signed contract. You will have 120 day (4 months) to obtain an acceptable contract. The minimum net proceeds HUD requires. The minimum net proceeds are 88%. For example, if a home is sold for $100,000, the minimum net proceeds will need to be $88,000, after all seller closing costs are paid (i.e., real estate agent commissions, property taxes, escrow and tide company fees). Mter the property has been on the market for 30 days, the minimum net proceeds acceptable is 86%. After the property has been on the market for 60 days, the minimum net proceeds acceptable is 84%.
By studying the HUD Mortgagee Letter 2008-43 and applying what you have learned in 7 Derys to Success with Short Safes, you should be able to get approval for all of your FHA short sale clients.
246
3. The final HUD-1 settlement statement from the title company or attorney must be reviewed and approved.
And lastly, the lender must approve the final HUD-l statement to ensure that no changes have been made that alter the terms originally proposed. This step is standard for all short sales, but on FHA short sales, the lender will require 48 hours to review and approve the final HUD-l statement prior to closing the transaction. This is strictly a formality. The approvalletrer may state, "final HUD-l must be sent to us within 48 hours prior to closing." As long as the final HUD-l matches the approved Sales Contract Review Form HUD-900S1 you will be fine. More information about this process is discussed in "Day 7: Oosing the Transaction and Getting Paid."
Notes
247
248
~--------~--------~I
'MtJ t)cpen.tl-'\-c,t hCls beel-'\- thClt the Level of ves-pec,t ClVcOi " m-p-povt tJ0H gaLl-'\- wttl-1 Cl Loss W.ttLgiltov wLL'l o!LvectLtJ LVvCpClC,t how qH~ddtJ tJ0HV ~Le Ls wVIA.-pLeteo!, how wstJ the :pvoc,ess wLL be, ... Cll-'\-o! the LLlzeLLhooo! thilt the fLLe wLLL be Cl!p-pvoveol! Do tJ0HV best to wLI-'\- the fClvov of the Loss VlA.LtLgCltor ClssLg\l\-toi to tJoHvfLLe lN
:~
249
Courteous Real Estate Agent: The file will be rotated to the top of the mitigator's stack. Discourteous Real Estate Agent: The file will it be rotated to the bottom of their stack.
Remember, the quicker you get your files approved, the more clients you will help, and the more money you will make.
that you will really wonder what hit you. For example, they may place your file on hold for missing initials on a page. This causes some agents to push back too hard, which digs them even further in the hole with the loss mitigator.
Courteous Real Estate Agent: The mitigator will look for ways they can get your file approved quickly. Loss mitigators are typically given parameters and variances that they can employ when approving files. They may be willing to use their more relaxed criteria so that your file can get
250
Discourteous Real Estate Agent: The mitigator will look for ways they can get yow: file declined. If something
about yow: file is wrong, they can quickly decline (and close) the file and get rid of you. If a file is closed, you will have to resubmit the entire short sale package or appeal to a supervisor to have the file reopened. Either way, the mitigator will be happy that they are no longer dealing with you--as someone else will likely get the file the next time around. Use these tips to yow: advantage. Ensw:e that you do yow: best to get on and stay on the loss mitigator's good side throughout the process. You and this loss mitigator may meet again on a transaction down the road. rt'5 much better to have an ally on your side.
Notes
256
Welcome to Day 7
Welcome to the last day of our 7 Days to Success with Short Sales! We've covered quite a bit of ground, from first qualifying a prospect, to gathering the short sale package, to listing the property and taking offers, to submitting the package and working it through to approval!
In Day 7, we will cover the last remaining techniques and tips to help you reap the fruits of your labor. Let's close the short sale and get paid!
257
258
Once we have a short sale file approved, we basically allow the escrow company to take over. The escrow company contacts the loss mitigator and gets them anything they need (usually updated HUD-ls and contract amendments) in order to close the deal.
~--------~--------~I
"OlAe hVvl-e, I hCII;:! 0 Short soLe ClgelAt OIAe! fYielAe! wLL VVle OIA the e-LosLlAg e!CltJ foy olAe of hLs LLstLlAgs. He WClS veytJ e!LstrtAught. He hoe!justrwLtzee! tVitAt tneLr wptJ of the LeIAe!ey's ApcpYOVClL LetterhClDi IAOt buVv ucpe!Cltee! wLtn tne fLV\-lL, 0ffLe-LClLe-LosLVv6 oIC1te. Tne htle C-DVVljJCllAlj'S htAlAe!s ') , were t"L-ee! bee-Cluse thetJ e-ouLe! Vvot Cle-t wLth out 0 IA CiCCHyClte '~ e!OCUVI>ttlAt. AlAcI VVltJ f",LelAe! hOld beelA tvtJLVv6 to yetAcVl tne .~ Loss VVlLtLgtAtor tALL c{Ci,'-1-wLth M LucR..!~
I
~!ij
~1~
'fJE
:~ ,,~~
.~ ~
I ~<~
!~i
Tne LessolA LeCiYlAee!,.noweve,r, Ls ti1C1t ljou VVlUst stCl(:j OV\. tocp of tALL Vvee-esstAYt;! fLvvaL oIocuVVle'lAtotLoVl 01' troLIA !::J0HY title offLcers to clO thLs foy !::J OH."
,\
Necessary Documentation
Final HUO-1 Settlement Statement
Oftentimes, after a file is approved, there are things about the HUD-l that change. Remember that the lender has been working from an estimated HUD-l Settlement Statement. The final HUD-l may be slightly different from the one the short sale lender approved. Whenever there are changes that will delay the closing date or reduce the net proceeds to the lender, you will need to get a revised approval letter from the lender in order to close the transaction.
259
The following are the three most common items that change on a HUD-1 after the file has been approved:
1.
Net proceeds are reduced due to items on the settlement statement costing more than estimated
2. 3.
Net proceeds are reduced due to buyer's change in terms The closing date is delayed beyond the short sale approval date
Let's take a look at these and see how they can be avoided.
Proceeds Reduced Due to Taxes. Because short sales take a while to close, the final closing date can vary substantially from the originally projected closing date on the original contract. For example, the contract may state a closing date of May 31, but the file may not actually close until July 31. This means that there will be additional prorated taxes applied to the seller's side of the transaction. In states like Texas, where property taxes can be $500 to $1000 per month, this can dramatically skew the net proceeds to the lender. Proceeds Reduced Due to HOA Fees. Homeowner's association (BOA) fees can also catch people off guard. When an escrow officer completes the first estimated net sheet, they may not have an accurate figure for what is due to theHOA.
To avoid having to go back to the lender and get a revised approval on a file, I recommend that you estimate for worst case scenarios. Have the escrow officer draw up the settlement statement with a closing date that is 60 days beyond the contract date Gust to be safe). You can also pad the HOA fee and other fees you think may change. When our escrow officer prepares a HUD-1, we have her charge $1,000 or $1,500 to the HOA fees line
260
item, just in case. If the HOA dues come back as an amount due of $600, for example, then that's fine. The lender will never give you grief about getting more net proceeds than they requested. Proceeds Reduced Due to Change in Buyer's Terms. Sometimes buyers will change their terms midstream. For example, the buyer originally offered $180,000, but now they want to revise their offer to $175,000, or they want to roll in closing costs and so forth. When this happens, you will need to submit a revised HUD-l to the loss mitigator. Sometimes the buyer drops out of the deal altogether, and you are now working a new contract! TIus is covered in Day 5. When this happens and the net proceeds are reduced, you will need to get a revised HUD-l to the loss mitigatnL :111 Closing Date Is Changed or Delayed. Make sure the loss mitigator working your ille recei,"es a revised HUD-l as soon as you know the estimated HUD-l will change (preembly before the Ele is approved). For example, if the HUD-l in your file runs through September 15, and it's akeady September 1 and the file still hasn't been. approved, send a newly revised HUD 'with a closing of October 31 to the miJ:i"oator.
261
If the net proceeds end up being less than the amount required on the Sales Contract Review form, then you will need to trace down the discrepancy. As we've already discussed, the culprit for the discrepancy is probably additional property taxes, HOA dues, and so forth. The loss mitigator should issue you a revised Sales Contract Review based on the new HUD-l, as long as the minimum net proceeds are at least 84-88% (see Day 6) and the additional fees are acceptable seller closing costs. You will need to submit the revised HUD-l along with a letter requesting a revised approval.
262
Email From: Knolly@knolly.com To: Charles Smith@BankofAmericaemail.com Subject: Request for Revised Approval Letter-Loan # 11287035 Charles.
$457.65.
11'1 order to ctose this transaction, I will need a revised App:roval Letter
with net proceeds to 'Bank of America of $163, 188.35 and a closing date of September 24. Thanks so much for your assistance on thiis file, Chaties. Can you please
fax over an updated approval leiter so that we can close Ihis transaction?
Please do nol hesitate to conlact me or the escrow officer if you have any questions.
I
263
Closing Day
I highly recommend that you host a private closing-that is, the seller and the buyer will close separately. My primary reasoning for this is to protect the feelings of my client, the seller. In a short sale situation, the sellers are typically not happy about the sale of their home. At this point in their lives, they are experiencing some life change and hardship that has necessitated this sale. They usually do not even want to know the details of the settlement. They are relieved to be at the end of this process, but they are far from happy about the overall situation. On the other hand, this is a special day for the new homebuyers. They are delighted to have purchased the home at a good price and are excited to take possession of the home today. Two very different sets of emotions. Closing the transaction with the buyer and seller in the same room can only be described as extremely awkward and embarrassing for everyone. Years ago when I used to close both parties together, 1'd have the seller on the verge of crying, while the buyer was telling everyone what he planned to do with the kitchen and cheerfully asking about where the seller was moving, and so forth. Back then, I made a decision to never close the buyer and seller together.
264
that has helped me immensely. I have my clients do what I call a preclose. I explain to them that for their privacy and convenience, I won't be attending the closing.
(~CriP:!0
Knolly: "Hi, Jane. Wow! I am so excited that we were able to get your file approved so you can close on your home and move on with your life." Client: "Thanks, Knolly, me, too." Knolly: "Jane,1 know this is a very difficult time. 1 have found from experience that ... for my short sale clients ... dosing on their home is not a particu1larly fun experience. ~lthough you're eager to move on, what you're going through stilt hurts. " Client: "Welt ... 1 never thought things would tum out this way for me. " Knolly.: "I understand that, Jane. I'm praying for you." Client: "I appreciate that." Knolly: "Listen, Jane, as a courtesy to my cUents, and to protect your privacy during this difficult time, I provide what I caU a private pre-close. May I explain?" Client: "Sure, what's that?" Knolly: "Well, Jane, typically when a home closes, both the buyer and the seller are in the room together signing papers. 1 have found that this can be very awkward. Since this is a short sale, we really don't need the buyers to know any of your personal details. Also, most of my short sale clients want to get in and get out."
265
Client: "Yeah .. .1 understand." Knolly: "Well, Jane, it's up to you, but I've discussed it with the title company, and they have agreed to allow you to do a private pre-closing. This should only take about 15 minutes for you to zip in, sign the papers, and get on with your life. The buyers will come at a separate time. If you decide instead to close alongside the buyers, the closing could take an hour or more and it won't be private. Which do you prefer?" Client: "Well, I'd prefer the private closing." Knolly: "I agree, Jane. That's what I recommend. I'll let the title company know, and they'll arrange a time. Unfortunately, I won't be able to attend your private pre-closing, but the title company will have all of the instructions they need from my office and from your lender." Client: "Oh, that's no problem, Knolly." Knolly: "Okay, then. I'll let Stacey at the title company know you want to do a private close, and she'll get it scheduled. I wish you the best, Jane. I know life will get better for you once this monkey is off your back." Client: "Well, thanks again, Knolly. I appreciate all your help."
So, you may ask, what about making a last impression at closing? Doesn't that help lead to more referrals? Well, yes, it does. But keep in mind that because you have been keeping in constant contact with your client, they know that you worked very hard on their behalf. They will remember you! But if you really want to go the extra mile, you can try a technique that my escrow officer taught me. Purchase a gift certificate to a great restaurant and write a handwritren thank you note to your client. Your
266
escrow officer will present the envelope to yow: client at closing. This will more than make up for yow: absence!
Script!
Escrow Officer: "Thanks so much for coming in today and signing, Jane." Client: "No problem. I'm just glad to get this over with ... " Escmw Officer: "I understand, Jane. KnoLly wanted me to do this private pre-dosing especiaUy for you. He's not here because he respects your privacy at this difficullt time. " Client: "I understand." Escrow Officeir: ":K:noUy dropped this off [present envelope] and asked me to give it to you personally. He knows how difficult this is for you, and he wanted to at 'least treat you and your daughter to dinner 'On him." Client: "Oh, wow. Gosh. WeU, thank you." Escrow Officer: "You're wekome Jane. He wrote a tittte note ~or you as welL"
As you can see, with the right technique and scripts, you can provide yow: client with a private dosing and still give them a wonderful experience even when you are not present! You can provide the title company the gift cards and personal note well in advance of closing. They can hold the envelope in the file.
267
Closing Costs
Seller Closing Costs
The lien holder who is short will typically agree to pay customary seller closing costs. This includes the real estate commission, property taxes, title policy, and escrow/closing fees. They often will not pay for other items such as surveys, home warranty/residential service contracts, homeowner's association (BOA) dues, buyer'S closing costs, home repairs, or agent transaction fees.
Property Taxes
If your client owes outstanding property taxes for the current year (or a previous year), the lender will typically agree to pay them as part of the seller's closing costs.
268
On conventional and VA loans, the buyer may be able to roll in closing costs, as long as the short sale lender receives their required net proceeds. Oftentimes, lenders will not allow any closing costs to be included, but sometimes they will.
Notes
269
Notes
284
choose the ones you like-experiment. With these effective marketing ideas, you find that you will have more prospects than you can hand.le!
,,,ill
285
4. 5. 6.
7.
8.
9.
286
In yow: advertisement, you want to identiry YOlli'self as the local short sale specialist and publish your referral fee. You can also include quotes from other agents who have used your servioes.
~~;;"
"I can negotiate with their lender to accept less than the full balance due ... And forgive the difference_ .. "~L.......
512.732.3808
knolly@knolly.com
~.
'E'f;"E>
KNik!:!
287
288
THE
KN~LbY
'.,
.~~f~~mQprJ(g;
if you have a cHent that owes more than their home is worth, we can negotiate with:their lender to accept 1ess than the :fW] balance .due... And forgive the difference! Just get us y-o-1:lr .client's.name and 'liIjumber. and well dG .all the rest!
W.e have s1Wcessfufly negotiated hundreds of sbmt sales -itb 'WashID,gt\m Mutual, Chase,. Wells Fargo, Countrywide, Citi. Mortgage, EMC and many morel.If you ihave a client fu.1t owes more tban
their home is worth ... WE CAN HELP'!
,
!
Let my team do an the ~'ork, 'while yon sit back anti collect "an easy 25% Referral 'F~e.
Call Morris Thomp.I>n, The Knolly Team Short Sale Specialist at (512) 294-2143 or .email monis@knoUy.com
289
similar to the email or print ad you have and mail it to all of the agents in yOUl: local board or target area. You can contact your local board for a list of board member and mailing addresses. If you are unable to obtain a list from your local board, you can rent or pUl:chase an address list from one of several online vendors. Search online for "real estate agent list," and you'll find several companies that offer such lists. 10 lieu of postcards, you can also send a letter that includes yoUl: business card and any other marketing piece inside the envelope. It's also a great idea to maintain a database of agents you have worked with. As you are referred short sales, keep a database of referring agents that you can market to on a regular basis. You can easily get an additional 50 listings per year by simply having a database of 10 busy listing agents who refer you 5 clients per year. If you maintain a high success rate, agents will be eager to refer their short sales to you again and again.
290
homeowner will likely be more receptive to such a sign going up in their yard. You may want to place this sign closer to the home so it doesn't distract from your For Sale sign. Also, some homeowner associations frown on having more than the For Sale sign posted, so you may want to check with the HOA for their restrictions regarding sign placement. These signs are a wonderful idea because ofrentimes entire neighborhoods are distressed, and there are likely other homeowners in the area who need help .
FACING FORECLOSURE? .
NEED TO S:ElL NOW? FACING AN ECONOMIC HARDSHIP? BEHI,ND ON YOUR PAYMENTS?
.<CALL KNOLLY!.
5.12.206.0060
Sample Yard Sign
291
c~\Knolly
Williams bQ
the mortgage balance owed, and forgive the difference"
Usting & Short Sale Specialist <0< "r will negotiate with your lender to accept less than
060
Sample Ad for Yellow Pages
292
tells her friend, "I think I know someone who can help! I've been seeing her ad in the Penny Saver. Hold on, I'll go get it."
their effect may become diluted by all of the other marketing (e.g., other billboards and store signage). In larger markets, billboards may also be cost prohibitive. There are so = y homeovmers facing foreclosure today that reaching them in a big way may make a lot of sense for you.
bankruptcy attorney in Austin, Texas. I was blown away by the sheer number of individuals in financial distress who would come into his office day in and day out. He had a machine going! He used to place a quarter-page ad marketing his services in our local classified paper. There, he advertised a free one-hour consultation. He also had a toll-free number for individuals to call for a pre-recorded message about how easy it was to file bankruptcy and how it could wipe their slate clean.
293
During his one hour consultation, I noticed that he was highly successful at converting these inquirers into clients. Many of these same bankruptcy clients would actually be great candidates for a short sale. The reason most individuals file for bankruptcy protection is because they are in debt way over their heads and want it wiped away. Some file specifically to stop foreclosure. What many people don't realize is that bankruptcy treats unsecured debt differently from secured debt. With unsecured debt (such as credit card debt), a Chapter 7 Bankruptcy puts a stop to all collection activity and wipes the slate clean. The debt and the creditor go away. With secured debt (such as a mortgage or car loan), the same bankruptcy filing will stop all collection activity; however, since the debt is secured by collateral, the collateral is typically repossessed. So, in essence, although a person can file bankruptcy to put an immediate stop to a foreclosure of their home, they are only buying time. As a secured debt, the home can still be foreclosed on once the bankruptcy runs the legal course. When that happens, the person is left with both a bankruptcy and a foreclosure on their credit. I call that "the double kiss of death" to a credit report. Research indicates that the foreclosure has a far more devastating effect on a person's credit than a bankruptcy does. If a person truly needs to file bankruptcy due to the mountain of unsecured debt they have, it would be far better, in my opinion, for them to do a short sale first and then file a bankruptcy. This strategy will eliminate the foreclosure posting on their credit file. Bankruptcy attomeys are a npe source for financially distressed individuals and potential short sale clients. Every day, these specialists deal with individuals who are at the end of their rope. Even if these people have already filed bankruptcy, a short sale is still their best option if they can't keep their home and the payoff balance on their home is
294
more than their home is worth. Bankruptcy attorneys can refer these clients to you.
are behind on their mortgage payment? My company pulls credit data from the bureau on homeowners that are 3D, 60, 90 days la\e on ~helr mortgage. Given some geographical areas, we send over a spreadsheet wj~hinformation on these highly motivated, distressed households. ,Induded is a wea:llh of ti'lters such as mortgage amount, credit score, number of trades, etc. Ibis data is NOT public record since a Notice of Defau~ has not yet been : filed. This means you cange! 'in touch with these famUies before your competition knows Ihey exist. If there's any interest, please reply back and I'll send over a ralecard and some filters for you to review,
While I haven't personally used any of these service providers, I have to admit that a list of individuals who are behind on their mortgage payments could be very, very valuable. These folks need you and you need them. I haven't looked into the legalities or legitimacy of these companies; nevertheless, I know of a few short sale practitioners who do subscribe to such services and say they are having some success.
295
Several companies also publish NOD (Notice of Default) lists of homes that are coming up for foreclosure sale. This is public information and is typically posted on a public website hosted by the appraisal district in the county where the home resides. Although you can pull this information yourself, these companies compile the information, saving you rime. You can make it a point to contact these homeowners and make them aware of your short sale services. Bear in mind that the homes on the list may be just weeks away from foreclosure, so you'll have to act fastvery fast!
1.
2. 3.
You can make the calls yourself, one by one You can hire someone to make the calls You can use automated calling with a call service
If you make the calls yourself, it's best to rimeblock at least a few hours each morning and an hour in the evening to make these calls. If you hire
296
someone to make the calls for you, make sure they are GOOD on the phone. There are also auto-dial services where you can pre-record a message and have it "blast" out to a bunch of phone numbers. This is a real timesaver, but obviously not as personal. When calling expireds, I used an auto-dialer service that could call approximately 250 expireds in a few minutes time. I told the system to leave my pre-recorded, 30-second message only for individuals who did not pick up the phone and to disconnect the call if a "live" person answered. Yes, the systems they have now can detect if the phone is picked up by a live person or an answering machine. Next, I pulled the list of the "live" answers and caiIled them directly, since I knew for sure they were homdWhat a timesaver! This appmach is very effective.
"
"My name is with The Knolly Team witjh Keller WiUiams Realty." "We've gotten severa! calls from potentiall buyers aoout a home we just SOLD in your subdivision at ,--_-::-_ _ _..,..-. ;1' alike to let these buyers know about your home on _ _ _ _ _ _ _ _ ' Are you still interested in selling?"
"We are very familiar with your subdivision, and it took us on!ly days to sell that home, even
though it had been on the market for months with another agent." "If you sold this home, where would you go next?" "How soon do you have to be there?" "Our team has worked with hundreds of sellers who were previously unsuccessful at selling. The home at was on the market for
297
days before they called us to come sell it and sold it in days." "We're one of the top 5 Keller Williams teams in the area. Are you familiar with the techniques we use to sell homes?" ... If a Short Sale "I've noticed that many of the folks in your area want to sell but still owe a little more than the market is fetching." "May I email you some more information about The Knolly Team?" "For homeowners who qualify, lenders are now allowing them to sell their home at current market value and forgive the difference." "Now, to qualify, you have got to have some kind of hardship. Lenders are looking for things like loss of income, increased expenses, medical issues, job relocation, divorce ... Things like that. Have you experienced a recent hardship?"
If this prospect sounds interested and has a hardship, transition into your Short Sale Pre-Qualification Questionnaire (See Day 2) .
298
... Don't Need to Sell and Don't Have a Hardship "You know, , based on what I'm seeing in your subdivision, if you really don't need to sell right now, you shouldn't. You should wait. The problem is there are many who really do have to sell, and those are the ones who should be selling in today's market."
mail. campaign as well. I have found direct mail to be very, very effective---a1though it can be expensive. A simple letter with a small survey questionnaire has worked for me. In the letter, I share with the prospect what I have to offer and educate them on the option of a short sale, depending on their situation (and whether or not they qualify).
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days before they called us to come sell it and sold it in days." "We're one of the top 5 Keller Williams teams in the area. Are you familiar with the techniques we use to sell homes?" ... If a Short Sale "I've noticed that many of the folks in your area want to sell but still owe a little more than the market is fetching." "May I email you some more information about The Knolly Team?" "For homeowners who qualify, lenders are now allowing them to sell their home at current market value and forgive the difference." "Now, to qualify, you have got to have some kind of hardship. Lenders are looking for things like loss of income, increased expenses, medical issues, job relocation, divorce ... Things like that. Have you experienced a recent hardship?"
If this prospect sounds interested and has a hardship, transition into your Short Sale Pre-Qualification Questionnaite (See Day 2) .
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(~criP(!0
"You know, , based on what I'm seeing in your subdivision, if you really don't need to sell right now, you shouldn't. You should wait. The problem is there are many who really do have to sell, and those are the ones who should be selling in today's market."
effective-although it can be expensive. A simple lette;: with a small survey questionnaire bas worked for me. In the letter, I share with the prospect what I have to offer and educate them on the option of a shan sale, depending on their situation (and whether or not they qualify).
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www.KnoDy.com*knolly@knoUy.c:om
January 23, 2009 Dear Judy, Many sellers in today' s market have little or no equity; that is., the seller owes close to or more than the property is worth. In these situations, lenders are often willing to accept Jess than the full amount due, commonly referred to as a "short sale.... Now more than ever, you can take advantage of this option.
I average selling between 6-10 short sale listings per month. I will negotiate with your lender to accept less than the amount owed and forgive the difference.
J am convinced that, with my approach, your home will sell. With a Shnrt Sale YOll can basically Jist your home for FREE. since mv fee is paid by the lender - all while protecting vour credit rating! If you still have an interest in seJling this property, and have not re~listed with another real estate agent, tben fill out the short sale application below and can me TODAY at 512~9{)6-2882, email knonv@knolTy.com or fax it
QUICK SHORT SALE SURVEY: Property Address: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ Do you NEED to sell this home? DYes ONo Do you owe more on your home than it is worth? 0 Yes 0 No 0 Not sure Are you behind or struggling to make your mortgage payments? 0 Yes 0 No Are you living in the property now? 0 Yes 0 No Additional Infonnation: ,Fax this survey to: (512) 532-0626 or emw1 to knolly@knolly.comorcaIl(512)906-2882 For more infonnation, visit my web site: www.shortSaleSite.com
Your Friends In Real E_state,
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You should have a website (or a section of your current site) dedicated exclusively to your short sale business. This site should educate clients on what a short sale is and how they can benefit from your services. For ideas, check out my consumer website at www.ShortSaleSite.com. Additionally, you will want to have an online contact form (lead generator) for sellers to fill in their information and send it to you electronically. Effective online marketing also includes blo&,oing, Craigslist ads, online articles, and various forms of search engine optimization (SEO). This all helps establish you as the area expert.
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These days, many real estate agents are afraid to knock on doors. This isn't cold calling; it's cold knocking! And yes, it is scary. But let's say you just sold a home in the area. You could proudly knock on doors with the following script:
c. sc~"1!0 Agent: "Hi, there ... My name is John Smith, and I ..... ..... / recently sold the home at 511 Plymouth Stone. It's just a few streets over. We closed on it yesterday. "
[Perhaps you can hand them a just-sold postcard of the home at this time.] Agent: "I was able to help this fami1ly even though they owed :more than their home was worth. I negotiated with their lender to forgive the difference. Who do you know in the area that is looking to seU?"
Don't be scared! Getting yourself in front of people is a great way to hone your crat and pick up new clients (and database contacts).
Idea #17: CaU Agents to He' Them Take lp Their Listings from OLD to SOUD
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"olsatJ. ThLs ~s a yeaLLtJ gODcl Ollle, tJ'aW I LLlse Lt bewv~se Lt's YeCI'L'LtJ aIII OYLgLIIlJ1L ovce that wViIle to Ville fYOVill Olll hLgh! No IsLclclLlIlg!n
You already know that other real estate agents are a great source for short sale leads, right? Why not contact agents who have old inventory that you have identified as overpriced?
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1.
2.
Let's say you just sold and closed a home via short sale. Now, look up all the other homes that are currently for sale (active listings) in the same area and print out the list. IdentifY the ones that have been on the market for a while (longer than normal). Then call the listing agent and let them know you just sold a home in their area via short sale and, if their client qualifies, you can help them sell their client's home too.
3.
Referting the listing to you could be a smart thing for the current listing agent. The listing may be close to expiring and the seller may be ready to try a different approach. Rather than lose the listing, agents who are not savvy at short selling could still earn a nice referral fee for handing the listing over to you.
Sample Script Short Sale Agent: "Hey, Jim, this is Karen with the Tallhouse Team. I'm calling about your listing at 438 Springhill. I noticed it's been on the market for over 120 days. I just sold one at 418 Springhill. Based on my client's situation, we had to sell that one as a short sale. Has you seller considered doing a short sale?" Other Agent: "You know, Karen, I'm not sure. They do owe quite a bit on it, and we've already priced it at break even." Short Sale Agent: "Well, Jim, if your sellers would be willing to consider this option, I can see if they qualify. I'd be happy to do the short sale, and we could partner up or you could refer me the listing and I will handle everything."
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The more you educate others, the more you are seen as the authority in your market.
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Teaching short sale classes is a very good way to establish yourself as the market expert and will typically produce lots of leads for your short sale practice.
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You can partner with some of these companies, making them aware of your short sale services. In fact, you can consider that you are both in the same line of work-hdping folks in difficult financial situations. While the debt consolidation company is busy negotiating a settlement on the homeowner's debts, you can be negotiating the settlement on their home via a short sale.
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If you fiod that you don't have the time or the patience to process your short sales on your own, you can easiJ.y partner with a short sale Pl'ocessor. Here's how it works..
Shott sale processors typic2'lly charge either a fiat fee of $7S() to $l,S()O per transaction or a percentage (30% to 50%) of the listing agent's commission. This nee is payable when the transaction closes. In addition to their fee payabilie at dosing, some short sale processors also cbarge the seller ~ non-refundable fee of $350 to$50Cl payable up front.
Screening Your
Pro~ectiye
Processor
The most important thing to look for when biting one of these tbirdparty comp~nies is not their fees, but their experience and conversion rate. Here are some questions to ask a company you may be considering hiring: II How many short sales have you processed? (preferably over 100) How long have you been processmg short sales? (preferably over 2 yeats) What is your success rate? (What percentage do you get approved)? (preferably over 85%)
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Here is what the processor will be doing: Prepares and submits the short sale package Contact the lender until file is assigned to a loss mitigator Remain in constant contact with the loss mitigator until file is approved
Once the file is approved, you will have to decide who will do the final contract-to-close work. Some processors will do this work for an additional fee. In this case, the file will remain with the processor until closing. As a rule of thumb, I don't recommend that you hire a processor until you are getting a steady stream of at least 5 or more short sales listings per month. Once you are getting over 10 listings per month, you will want to consider hiring a processor as part of your team (See Bonus section 3).
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Make weekly calls to lender to verify the progress and current status of the file Keep all parties involved throughout the process Once file is assigned to a negotiator (loss mitigator), establish rapport and verify that complete package is intact Submit any additional documents needed Contact BPO agent or appraiser to verify when the property valuation will be completed Send BPO agent or appraiser a copy of the hardship letter (if seller approves), the first page of the contract, and CMA Maintain contact with the loss mitigator to insure that process is moving forward efficiently, and that negotiator has everything needed to process the short sale file Receive approval or counteroffer from negotiator and relay to buyer'S agent Obtain short sale approval
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Have contract receipted at the title company/attorney Change status of listing on MLS to "Pending" Compile and collate package with conttact and all short sale documents Submit (via fax or email) complete short sale package to lender Deliver file to short sale processor
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Obtain existing or new survey, if applicable, by date due Obtain appliance manuals from seller Confirm lender has ordered appraisal Make sure survey and BOA information has been obtained and received by title company/attorney Find out about if there is a POA (power of attorney) Confirm conttact contingencies have been resolved and all amendments have been received by title company/attorney Get all utility information from seller and forward to buyer's agent Set date and time of closing
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Remind seller to bring driver's license to closing Remind buyer's agent to do a walkthrough 2 clays before closing After closing, change the status on ~fLS to "Sold" Prepare Just Sold cards if applicaJble
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In fact, make sure that each of your team members is cross-trained (trained to do other team members duties) in case a team member is out sick, on vacation, or quits. Building a great team can be very rewarding, once they are all. properly trained.
Per IDe fee only: Pay a processor a per-file-closed fee of $300 to $500 or more per file closed, depending on the volume of files you are closing per month and their income needs.
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As you would expect, finding the right person to take over your short sale operation may not be easy. You need someone who can uphold your high standards and move your operation forward. Your compensation for this person can be a set monthly lncome, monthly income plus a bonus per closing, or just a percentage of each transaction.
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As far as job duties are concerned, your listing agent may do any of the job duties that the listing manager does (see Bonus section 3), or they can simply oversee the entire team, filling in where needed. Ideally, you will f11ld someone who is already on your team and can be promoted to this position. Otherwise, I highly recommend that you find someone who has a thorough understanding of short sales-perhaps someone who is already a short sale listing agent in your market.
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Sample Script
Buyer: "Hi, this is Jehn.I'm calling abeut yeur hO'use O'n .Map'le Run ... Is it still available?" Buyer Agent: "Hi, JO'hn, thanks fO'r caUing! That's a great home-and it is still available. You iknO'w, Jehn, based O'n the fact that you catlled me abO'ut this heme, it loO'ks to me like you want to' get a gO'O'd deal. NO't enly dO' we have that O'ne, but because we work with So' many pre-foreclosures, we are getting new deals in every week. Also, we have several that haven't hit the market yet. Let me email you some informatiO'n about those."
Since you are providing the leads, a typical split with a buyer'S agent is 50/50 or 40/60 (that is, 40% to you, 60% to buyer's agent). Tfyou have a good listing inventory (12 or more listings) and you do not have a buyer'S agent on your team, you are foregoing a good amount of potential income.
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Office Furniture
I suggest you purchase office furniture from a used office furniture dealer. Look for these dealers in the yellow pages. Please don't buy new furniture--except maybe for your chair. New, top-quality office furniture is expensive and not necessary for your short sale office. Some people look to express themselves through their office furniture. Don't. Get something that works, looks decent, and is affordable. If you do purchase new, look for discount items and assemble them yourself. That's half the fun!
A Decent Desk
Don't get just any desk, and certainly don't buy one because it looks impressive. First and foremost, the desk you choose should be practical. I once purchased a glass desk for my office manager. The desk looked great, but there was nowhere to store files and paperwork! Make sure the desk you purchase has a drawer for storing pens, pencils, paper clips, and so forth. Make sure that the desk has several additional drawers and preferably a built-in file drawer for handy access to the files you use daily. Make sure your desk has enough space for your computer, as well as an adequate work surface. A desk that is at least 5 feet wide should work well.
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A Good Chair
A good chair is essential to working effectively for long periods of time and will help you prevent long-term back problems. The chair you select should be comfortable, ergonomically correct, and should offer great lumbar support. Personally, I prefer a chair that has arms as opposed to the armless (task) chair. Make sure that the arms on your chair will slide under the top of the desk; otherwise you will be bumping them into your desk quite often. You can sp=d from $300 to $500 for a great chair; however, try to find one for less than $100 to $200. The right chairs will give you and your team a comfortable day at the office and could help prevent chiropractic visits down the road. Besides selecting the right chair, don't forget to sit up straight and practice good posture when you are worlring!
TaSk Table
A task tab1e is very important. You v;cilluse this table to setup your short sale package, mru:keting mailouts, and so forth. Unlike your desk, which is used for daily work, this table can be used for all kinds of tasks. I su&,,",,st you purchase a sturdy, 4-foot folding table for these tasks.
FUeCabinet
You will need to keep your files neat and in a systematic order. A lightweight, metal, two-drawer file cabinet will help you do just that. Use the file cabinet for active files, not storage. I suggest you archive any files that have closed over a year ago, and the best practice is to store all files (preferably in hard copy format) for at least 7 years. You may choose to purchase a separate filing cabinet for this purpose.
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Office Equipment
Whether you buy new or used, I suggest you purchase office equipment from a reputable retailer---one that will allow you to make returns or get support if something doesn't quite work.
Computer
When it comes to computers, there are many choices out there. And since technology changes every week, I will keep my suggestions generic. I suggest you purchase an entry-level computer, which will be the best value for your money. You don't need any special bells and whistles, just a good fast, business computer with a good amount of storage space.
AU-in-One Printer/Fax/Scanner
You will be usirg a scanner to create email-able documents to send to your clients, to the lender, and to other agents. You'll also use the fax machine quite a bit. Be sure to select a device that supports multi-page document scanning and faxing.
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My team uses an all-in-one printer/ fax/ scanner at the office. And each of my team members has one of these at home too, since they often call lenders and fax documents after hours.
Telephone
Since you will be spending a great deal of time on the phone, you should consider investing in a good corded or cordless headset and a speakerphone. My short sale processor has two phones. She uses one to call and check status of short sale files and is often on hold for 30 minutes at a time. While she's on hold, she uses the other phone to Illilke short calls and to receive calls. You'll also want to ensure that you 2nd your team members can make long distance calls from yom: office phones. Good reliable equipment is as important as good systems. Make sure your equipment is up to date and operating at mmcimum capacity.
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Question #1: "Does the bank have incentive to close a short sale if the loan has PMI?"
"From a buyer'S agent perspective, my thought is that if the loan has PM} or if it is a guaranteed loan, I should just let that listing go. The bank will continue to get their money up until auction time, and they will not be motivated to work out the short sale. Is that true? I would appreciate your perspective on this."
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In the case where a loan has PM!, the bank has an obligation to mitigate their own losses and those of the PM! company. They will be obligated to disclose to the PM! company their options and the bottom line. The PM! company will almost always find it better to do a short sale.
Question #2: "How do I make a negotiator understand that my client cannot afford to sign a promissory note?"
"I was told by the negotiator that my seller would probably be asked to sign a promissory note because there is PM! on the property and our offer is more than $100,000 short. However, the offer we submitted is the market value for the property. My seller is getting food stamps for groceries right now, the husband is working two jobs, and the wife has just lost her second job. They moved away from our area for better jobs. When I spoke to the negotiator about this, the negotiator said she pulled a credit report and could tell that my sellers were keeping up with their car payments and credit card payments Q.ate on one). It appears that she is putting a lot of weight on this credit report. I would appreciate any information you could give me. I expect approval within the next week. I would like to know how I can help negotiate a promissory should they ask my seller to sign one."
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Given the choice, I would take an UNSECURED debt versus a secured one any day. As it relates to the promissory note, cry and beg if need be. Even let the bank know your client is willing to allow the home to go into foreclosure instead of signing the note. If that doesn't work, then your client will likely be faced with having to accept the promissory note or foreclosure. On promissory notes, the rule of thumb is "5 for 5"-a 5 year note at 5% intenest. Try to negotiate it to 5% (or 10% ma...,,) of the forgiven debt. So, if the deficiency is $100,000, try to negotiate a 5 year promissory note of $5,000 at 0% interest (interest free). This will result in payments of $83.33 per month. This is a much better option than foreclosure.
Question #3: "Our short sale has been approved but the buyer stili doesn't have their financing. What do we do?"
"JI am representing the seller on a short sale. The buyer waited until AFTER the short sale was approved before applying for an FHA loan. (The person I hired to process my short sale did not do their job in edUCl<ting the buyer agent, and I was too igoorant to understand that you do not wait until then to apply for mortgage.) We went under contract in October and the bank approved the short sale in late December. It is now March.
The buyer has already missed the first TWO dosing deadlines and STILL does not have a mortgage in place. At this point, I don't even have approval for another extension. The person I hired to process the short sale has asked for a third extension, but the bank has not responded. With no approval, there seems to be no point in continuing. I now have another offer for the same price in front of the short sale processor, but she is reluctant to release the curtent buyer and deposit monies to start all over. Help!"
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Question #4: "How do you go about working with an expired short sale listing?"
"I am wondering how you go about working with an expired short sale listing? Would you just have the homeowner switch everything over to you? Do you have to completely resubmit evetything? 1'd imagine there would be a proper process in working with expireds, as you don't know how thorough the previous agent was and you also don't want to irritate the loss mitigator. Any tips?"
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Knolly's Answer #4
See if there is some way you can get a copy of what (if anything) was submitted to the bank to this point. Most of the time, you will find that a complete package wasn't submitted because the property likely expired before an offer was received. If an offer and package were previously submitted, you really need to see the hardship letter and the financial sratement. If you can't get a copy of the package, send your Letter of Authorization to the bank and then begin calling the lender to find out how far along the shott sale process is, and what else (if anything) the bank needs. If nothing was submitted to the bank, you can pick up the listing and work the short sale.
Question #5: "What do I do when the bank expects more than the home is worth?"
"I illive a shott sale that is raking a long tin1e. I do not believe it is possible to get an offer at the current list price of $448,000. In fact, a home right down the street just dosed this week for $325,000, and it W2;S the eX2:ct same floor pl= and in 'excellent condition. The loss mitigator informed me th2t I was not allowed to list the property for any less th2t $448,000 or they would proceed willi foreclosure. I have been extremely professional with her and she has granted two extensions on the foreclosures. The lender National City does not have their own foreclosure! short sale department as they have "farmed" all of their business out to a thirdparty company. Have you ever had a loss mitigator telling you what you can list a property for? Do you ignore them and reduce the price in hopes of getting an offer? I have never experienced a short sale like this before. Thank you for your input!"
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uncommon. This typically happens when you don't have the opportunity to speak with the BPO agent before they go out to do the BPO. At this point, you will need to submit a BPO dispute letter, along with a copy of your market analysis (including the home down the street), showing the true value of the home. This should prompt the bank to reorder a new BPO / appraisal. See the sample BPO dispute letter on the 7 Dqys to Success with Short Sales Toolkit CD.
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Question #7: "The second lien holder says they must approve the short sale before they will release the lien. What do I do?"
''1 have bank approval on an offer, after many trials and errors. I started with an outside negotiator for this short sale, and totally forgot about the second lien holder, mostly because the seller listed them in his bankruptcy and they were discharged. Now at the eleventh hour, -when I am asking them when they will release the lien, they are sending me guidelines and asking for all the typical statements and records required by the fu:st lien holder. I fought hard with the fu:st to get to an approval Must I now submit everything to the second lien h.older again., and where will the funds typically come from to offer them? By the way, they want to knock down our commission by one percent from 6 to 5%. Can they do this?"
Knolly's Answer #7:
When a property has two liens that are both short, you have to submit a complete short sale package to both lien holders and receive approval from both of them. It's always best to send the complete package to both at the beginning. The second lien holder shouldn't take as long to generate approval as the fu:st. The first lien holder will be the one offering funds to the second. But if you didn't include any funds for the second lien holder on your original HUD-l net sheet submitted, you will have to revise the HUD-1 net sheet and get another approval from the first lien holder at this point. To answer the question about commission, yes, they can cut your commission. Fight to keep it at 6%.
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Question #8: "I have an FHA short sale. The buyer has asked for 3% in closing costs. What should I do?"
"I just received an offer on a short sale listing of mine. The seller has an FHA mortgage. The buyer asked for 3% in closing costs contribution. I read the FHA Mortgagee Letter and it states the following:
Change in Allowable Closing Costs - Subject to the stated ratios, HUD allows up to 1% ofthe buyer's mortgage amountfor closing costs to be included in the "Seller's Costs" on the HUD-l for all transactions that involve a new FHA -insured mortgage.
So what happens if the buyer is going conventional? Still a problem? We are in the middle of the offer right now and I do not want to make any mistakes and lose this buyer (good offer)."
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Question #9: "The bank wants my seller to switch to a loan modification instead of a short sale. Is this common now?"
''1 just had a bank pull back on a short sale because they said that due to the Obatna stimulus package they were going to be able to offer the current owner a lower interest rate and make the payments more tolerable and therefore the owner was no longer interested in consummating the short sale transaction. I know that the short sale is subject to the seller's lender approval and that neither party is required to perform on the transaction up until they get final lender approval. So, it seems that the bank has the right to do this. I was just wondering if you have had it happen before. I wonder if this is something that we can '. expect to go on ill"LUe near " mture. "
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Question #10: "I have a property that is not moving. Can I reduce the listing price to below what the lender is asking for?"
"I have a short sale property ... initially put it on market at $235,000. Offer accepted 10 days later by seller for $210,000 plus $6,000 towards buyer's closing costs. Seller's lender came back at $220,000 and paying no closing costs. Buyer walked .... Property waS put back on the market 3 weeks ago at the $220,000. The house has been shown about 20 times since, with no offers. Feedback is that house needs too much work. Is it okay to reduce listing price below the $220,000 figure OR ask buyers' agents to bring all offers? Seller's loan is conventional. They are getting out of the house due to divorce."
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Question #11: "My clients have been through Chapter 7 Bankruptcy, now they want to sell their house in a short sale. What's your advice?"
''The homeowners want to sell their house via a short sale, but their bankruptcy attorney squashed that idea without explanation. These folks, who claim that they still own the house, filed Chapter 7 in November 2008, and it was discharged in April 2009. I have my own thoughts on this, but would like to hear what your experience has been in this arena. The existing loans are 80/20; both conventional Thanks."
Kinolly's Answer .#11: An active bankruptcy will KILL a short sale (as the lender cannot legally speak with you while the file is actively going thtoughthe bankruptcy pmcess). However, since the property is a secured "-Sset, in many states the bankruptcy itself does not take away the lender's rigbt to forecloseonce the file is discharged from the bankruptcy. So, while a bankruptcy may discharge the outstanding debt (deficiency) resulting from the foreclosure, a person will walk away with a foreclosute AND a bankruptcy on their credit report. That's the double kiss of death to a person's CUfl'ent and furore credit.
If a person needs to file bankruptcy to wipe out unsecured debt, it just makes more sense to do the short sale FIRST and then file bankruptcy for the other debts, that way there is no foreclosure reported on their credit. At this point, I recommend they move forward with the short sale to avoid a foreclosute on their credit report.
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Question #12: "The first lien holder won't approve the short sale until my client is officially 30 days delinquent. What can I do?"
''1 currently have a client who has a first lien with American Loan Servicing (ASC) and a second lien with Litton Loan Servicing. Second lender, Litton approved the short sale with no problem. First lender ASC would not approve the short sale, as the client is not delinquent. ASC said their investor requires the client to be 30 days delinquent on their loan before they could be approved for a short sale. Client does fall into the loss of income, which they proved on their financial statement to ASC. Client did not qualify for the modification with ASC. ASC instructed client to obtain a REALTOR and do a short sale, which is what client did. Now, ASC is not approving the short sale because client is not delinquent for 30 days. I have spoken to two different managers in the loss mitigation department and they are not budging. Has you ever run into this and is there anything else that could be done other than wait for the client to be 30 days delinquent?"
Some lenders have adopted the really lame policy of reqwnng homeowners to be delinquent prior to accepting their short sale application. To me, the most proactive approach for lenders would be to ASSIST sellers who mayor may not be currently delinquent but who can prove that they will no longer be able to pay their mortgage at some verifiable time in the future. Unfortunately, unlike FHA and VA short sales, on conventional loans there are no hard and fast rules (across the board) regarding delinquency. Each lender has their criteria as it relates to this. If they are being pig-headed, then you should just have the borrower NOT make the next payment, since the lender has, in effect, made this a
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requirement. Obviously, the missed payment would ruve a derogatory impact on your client's credit. Alternatively, the seller could wait until they truly can no longer make the payments and then apply for a short sale.
Question #13: "I'm currently processing a short sale for my client, but the lender is still sending notices about default and foreclosure. How will this affect the short sale?"
''Weare working with a seller on a short sale with first mortgage ,'lith CitiMort"aage. We have a fully executed contract (close to our CMA) and a short sale packet was faxed in 2 weeks ago. (And after several tries, they acknowledge they ruve the packet.) So far no negotiator has been assigned to the account. Yesterday, our seller received a letter from CitiMortgage stating:
This letter will sen~ as n.otice that your mO?tgage is still in default. Al/ reasonable efforts ajJ(JT:dedyou to .C1fre this default haJJe failed. Your loan has been ref=ed to the following legaljirm to begin foreclosure proceedings ... (name of attorney's in Tampa Florida) ... If you haJJe aJZ)i questiotlS regarding .foreclosure proceedings on your mortgage, please contact the .ahove attorney. '
Does this letrer ruve a direct impact on our short sale status with CitiMortgage? Should we he doing anything in response to rbi, letter? Any advioe would be appreciated!"
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The trick is to get short sale approval as soon as possible in order to stop the foreclosure. Always verify with the loss mitigation department that there is no foreclosure date set. If a date has been set, you will need to get it postponed.
Question #14: "First, what is an 'auction date'? And how do I help my buyer buy a house that is in pre-foreclosure with an auction date approaching?"
"My first question is, 'what is the auction or sale date?' And my second question ... I have a buyer who wants to purchase a house that is in pre-foreclosure and is pretty close to the auction date. The property is vacant and is not listed. I'm finding it very hard to locate the owner-though I have a name that I located in the tax records. I tried the White Pages & Zaba Search in order to locate a phone number. Needless to say, I have been unsuccessful. It looks like the owner just walked away from the property. Do you have any suggestions on how I can locate her?"
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Question #15: My buyer is considering a short sale that is $60,000 overpriced! What can I do?"
"I have a buyer and an executed conttact that was faxed to Countrywide on Friday. The foreclosure is set for next month. The appraisal from Countrywide is $360,000. My CMA-and I looked at every property available to me in the area-puts the home in the $299,000 to $310,000 range. Included with the offer is a dispute letter and a copy of my CMA. What can I do that will help my buyer with Countrywide? Are there any other avenues I should be taking and what should I expect from Countywide?"
Question #16: "WiU the bank honor a short sate on an investment property?"
''1 was on your short sale call today, and I have learned a fair amount already. I'm looking forward to the entire curriculum!
Will Bank of America honor a short sale on an investtnent property? My clients are heavily upside down and want out. They are afraid that Bank of America will come after their other assets (401K, etc.) before honoring the short sale. Any thoughts or suggestions?"
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Question #17: "Will the lender in a short sale agree to pay seller's closing costs?"
Question #18: "When should I submit the package to the second lien holder?"
"1 just started a short sale with a $480,000 first lien (Aurora) and $140,000 second lien (WAMU). My current offer submitted is $435,000. The first lien package has been submitted. When should 1 submit the second lien package? Thanks again for all of your help."
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Question #19: "My clients are afraid their lender will pursue a 'deficiency judgment' for the difference on the short sale. What should I tell them?"
''1 need your professional advice again. I'm working a deal with Countrywide. It's a first and second. I have approvals for both liens. Only took 8 weeks to get these! Yikesl My client, the homeowner, is concerned about the second paragraph in which Countrywide states that they may pw:sue a deficiency judgment fo~ the difference. rve asked Countrywide to amend or omit this vtlbiage as we are requiring Countrywide to accept the short sale and forgive all the difference. The negotiator said that this is the only document approved by their legal department. Period. My client is now scared to proceed with the sale and I'm not sure how to advise her., other than to seek an attorney's advice. I'm guessing you've come across many short sales involving Countrywide. Any suggestions?"
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Question #20: "Our short sellers are changing their minds and pursuing loan modifications in the middle of the short sale process. What can we do to prevent this?"
"It was great meeting you at Masterminds last week! Thank you for sharing so much of your knowledge on short sales with the group! Your streamlined syst=s are amazing and your video is great! I wanted to get your opinion/insight on something ... In South Florida, we are experiencing about 80% of all MLS sales as distressed property. Our sales office has well over 400 short sale listings and the balance REOs. One of the challenges we have run into recendy is loan modifications. We had three transactions last week die because, at the eleventh hour after the short sale was approved and accepted, the seller changed their mind and decided they would like to attempt a loan modification. That killed the short sale right in its tracks. The lender closed the short sale file and opened a loan mod without guarantee it would go through. Have you had this happen and if so, do you have anything built into your system to lessen or eliminate it from happening?"
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Question #21: "How much should we pay the processing staff in our new short sale processing company?"
"I plan to join a few other partners and start a short sale processing company. The company would do all the short sale processing and negotiation of the short sales that I bring and a few other REALTORS only in my local area. We don't want to get too big. Can you please share how you structure your short sale processing company as far as the going rate you pay the negotiator/short sale processor staff who calls the banks on your behalf? Based upon your knowledge, do you do an hourly rate or a contact rate/flat fee based upon each approved short sale?"
Plan #2: Pay a pmcessor a flat monthly fee, say $1,200 to $1,500
per month PLUS $300 to $500 per file dosed. Each processor should be able to handle 30 to 40 :files, depending on their hours. Really efficient prooessorscan handle more. Por more detailed information on setting up a processing company, refer to the Bonus Section.
Question #22: "Who should I recruit as processors for my team and how should I pay them?"
"I have several related questions for you ... Wbat type of people do you find to be your best processors? Out-of-work loan processors, exREALTORS, ex-mortgage broker'S, stay-at-home moms? Do you have the processors work from a home office or come into your office? Based upon your experience, which one has worked best: the hourly rate
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or monthly flat fee plus bonus on closed file? If you pay the hourly rate, how do you have them track their hours? Also do you have them as independent contractors or employees?"
Question #23: "The second lien holder wants 10%. How can I get them to negotiate?"
"I have an approved short sale through the first lien holder (Citi) and they are willing to give the second lien holder (National City) $5,000, which I was told is the maximum allowed from Freddie Mac. The
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second came back and they said they wanted a minimum of 10%, which is $17,000. How can I get them to move from that position?"
Question #24.: "What do you tell the lender when you lose your buyer?"
"What do you do, in terms of notifying the lender, when the buyer withclxaws after the package has been submitted to the lender?"
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The bank doesn't care WHO is buying tbe house, so if tbey simply need to change tbe buyers name on tbe approval letter-it's no big deal. This strategy is much better tban having tbe bank continue to close and re-open files. This will save you weeks, if not montbs, of time.
Question #25: "What do you think about allowing buyers to put in offers with no escrow down?"
''In Florida, often agents do not have tbeir buyers put any escrow down until tbe bank gives tbeir approval for tbe short sale. Wbat are your tboughts on this process? Often buyers are putting in offers all over town because tbey have no skin in tbe game."
not
Question #26: "My FHA short seller never filled out the Application to Participate Form. What should I do?"
"Regarding tbe Application to Participate for FHA loans ... Wbo sends tbat to tbe seller? Do we as tbe agent or does tbe lender? The reason I ask ... I have a FHA short sale and my seller never filled out tbat form."
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The seller cannot be approved for an FHA short sale without this form in the package. Not including the form with your original package could hold up your package from even being processed-resulting in weeks of delay.
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Question #28: "I'm working a short sale on an investment property and the lender has denied the short sale unless my client signs a promissory note. What can I do?"
''We had a bad experience with the 30-day delinquency 'rule' for a Countrywide short sale. Our seller's property was an investment property. He would 'qualify' for a short sale (according to the negotiator) once he was 30 days past due. So, he stopped making payments. Once he was delinquent, we found out that Countrywide had mortgage insurance on a second loan with them (it was an SO-l 0-10 loan-SO to the first, 10 to the second, and 10 down). The mortgage insurance company then denied the short sale because it was an investment property (and they are trying for leverage to get him to sign a promissory note)."
In lieu of foreclosure, I recommend the seller sign a promissory note. (See Question #2 above.)
Question #29: "What do you think about more and more lenders reserving the right to pursue deficiency judgments after the short sale?"
''1 just want your take on something ... It seems as if all the approval
letters I'm getting nowadays are purposefully not specific regarding deficiency judgments. I have been successful in the past in negotiating this into the letters. But for the past couple of months, most of the big lenders I'm dealing with are refusing to change the verbiage. They are saying, 'we can't change that. It's been approved by our legal department.' I'm talking specifically about Countrywide/BofA, Chase,
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and Citi. None are guaranteeing that they won't go after the clients for deficiency. Are you finding this to be the case nowadays? Are we finding a new 'status quo'?"
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As I stated earlier, banks are being very quiet on tbis issue right now, and are not pursuing folks currently. But since so many are now reserving that right, it makes one wonder what their motivation is. Bear in mind that ultimately the BANK has the power. The reality is that if the seller does NOT agree to the short sale approval terms and their home forecloses instead, they will still likely be subject to a deficiency judgment AND ruin their credit. Let's say you were to go to your local bank and take out a business loan for $20,000. After 2 years of paying on time, you fell on hard times. If you went to your banker and asked him to have his institution forgive the note, you'd probably be laughed out of his office (or thrown out). If by some unknown miracle he did agree to forgive the debt, you certainly couldn't dictate the terms!
In my view, the greatest tbing the bank does in a short sale is release their lien from the property. Without that lien release, the person could NOT sell their home. If the bank ever comes back for a deficiency, it will be an unsecured debt at that time.
Assuming that a person has no other option but to sell their home, my advice to them is to take what they can get.
Question #30: "Will FHA approve a buyer loan for a short sale property that needs plumbing repairs?"
''1 showed a buyer a short sale today which needed plumbing repairs. We know that the bank will not pay for such repairs. The buyer is going FHA, and said that he believes that FHA will not approve a purchase where plumbing work is needed. I can't irn"t,oine how that could be correct. So, I'm just putting tbis out to you for a quick answer."
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roof or foundation repairs, it may not be eligible for these governmentfunded loans. It would depend on the severity of the plumbing repairs needed. FHA may not grant a loan on a property needing major plumbing repairs. They will typically require that major issues be fixed prior to closing. One alternative is to have your buyer apply for an FHA 203(k) loan, which will allow the borrower to get a loan amount that includes the cost of repairs and escrows the funds needed toward repairs. For more information on this option go to www.hud.gov.
Question #31: "Shou:ldlsend the first lien holder's approval 'letter to the second lien holder?"
"I wanted to know if you ever send over the first lien holder's approva! letter to the second lien holder to get the second lien holder to move quicker for an "pproval. "What is your typical procedure vvith first and second lien holder letters? I don't want to disclose anything I shouldn't. 'lb.anks."
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assigned to a loss mitigator. Otherwise it will confuse the heck out of the front-end recipient and will end up in the black hole of nothingness. (That's the place many of our files end up, and we have to fax them over and over again). When one lien holder sees that the other has approved the short sale, it may prompt them to react in kind.
Question #33: "The second lien holder will not talk to us. What do we do?"
''1 have a short in progress that has Chase as the first lien holder and
Bank of Florida (a local bank) as the second. The second bank will not negotiate with us. They will only talk to the seller. We have had many conversations expressing how the seller has selected us and signed an authorization for us to represent him. Still they will not deal with us. We then had the seller deal with them, and he had even offered to pay half of the loan on a promissory note. They will not deal-it is all or nothing for them! The second lien is a home equity loan that the seller took out to payoff his first wife in a divorce for her share of the home-so it is quite large. Now he is remarried and the second lien
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holder feels his new wife should help him payoff this debt. Any suggestions? He was served witb a summons last night for tbe balance of tbat loan. They are playing bard ball."
collections agencies.
When you have seconds that are home equity loans, they are very difficul.t (or impossible) to deal with. As you know, you need tbe cooperation of the lender in order to successfully complete a short sale. If they insist 011. dealing with the homeowner directly, do a three-way ca1! with you on the phone witbthe seller. Back in the 80s and! 90s, most banks didn't want to do short sales at all. They were very reluctant. Thett attitude was "PAY UP or we will FORECLOSE." It sounds like this hank is stillliviog in tbe past. That's ashame. See if you can i:alk to tbe president of tbe bank. The bank will have to be convinced mat they will lose it all if tbey don't play. UnfOr1:U!lately, with smaller banks, I have had them foreclose instead of compromise. Very bull-headed I know, but tbere is notbing you can do if tbe nut won't crack
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Question #34: "This one sounds too complicated. Can I help this guy?"
"Knolly, I got the following email from a prospect last night:
I am currently considering selling my home as a short sale but have a few questions. I have a first mortgage with BofA for $175,000 and a second with Chase for $50,000. I recently filed Chapter 7 Bankruptcy and was discharged in March. I have been on a repayment plan with BofA since the bankruptcy and have contacted Chase to setup the same arrangements-however, after faxing my financial information to Chase's loss mitigation specialist I have not heard from him in almost two months. The second loan balance does not show on any of my credit reports, and I have not been receiving any monthly statements. Did this loan get written off on my bankruptcy or is Chase ignoring me? I've emailed the loss mitigation specialist a number of times and they go through-but still no response."
Can I hdp this guy? He's already made a deal with his first lien holder to repay, and I have no idea what happened with the second. Now he wants to see his home and he is upside down. It doesn't sound like I can help him from what I understand. I would really appreciate your input on this as I would hate to give him false information either way. Thank you so much in advance! Take care!"
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Once you get the listing, you can have your title/escrow company run a title report and see what liens are showing up. It is not likely that the second has released their lien, but it is possible. Regardless, since the bankruptcy has been completed (and is not active), if the prospect qualifies for a short sale, you can do it. NO problem.
Question #35: "Can a short seller's roommate buy the property? Will banks allow that?"
[Continuation of Question #34J "Okay, Knolly, I have some more information and yet ANOTHER question! So, it rums out the guy who contacted me is living in the home with a friend who owns the home, who happens to be the one that filed for ronkruptcy. BofA (the first) has set up a payment plan to help the homeowner get caught up by November, but they also rolled in some back pmperty taxes so the payments are going to be increasing even more shortly. And it sounds .like he will not be able to make the new payment. So doing a short sale is definitely an option. Here is tile tricky part, the roommate who does NOT own the home wants to be the buyer! He sounds like he's tryillg to lure me in by saying that if I listed and sold the home, I would get the full commission. Okay, sounds great. My concern is how would this fly? I know that you're not allowed to sell the property to a family member, which they are not, but I'm assuming the owner would still be living in the home, just as a roommate/renter this time. So the two friends' mles would be reverse<i Do banks consider this the same as if a family member were to purchase the home? And how would this be disclosed ... and what needs to be disclosed? Should I contact a real estate attorney to find out what's legal in my state (CA) or are the rules regarding short sales nationwide for the most part? I know I can definitely pursue the short sale, I just don't know that it would be proper to allow the roommate to be the buyer. I don't want to be tticky."
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'The sale must be an 'arm's length' transaction; the buyer cannot be a member of your familY, business associate, or other favored partY. No hidden terms or special understandings can exist betweenyou, the buyer, appraiser, sales agent or mortgagee. "
Having said that, it does sound as though this will be an impossible deal; however, that is only a likely assumption. The bank MAY still approve this transaction. The issue for you will be whether or not it is worth your time and effort to pursue, given that such a transaction may not meet the arm's length definition of the lender, and they may not grant a vanance. Rather than seeking legal advice (although this is a viable option), I think the best and simplest way for you to protect yourself legally is to provide FULL DISCLOSURE. It's that simple. If you decide to work this one, simply write the following in the special provisions section of the contract
"Special Disclosure: The buyer of this property is currently the seller's friend and roommate."
Working deals like this MAY seem like a waste of time, but I have always enjoyed working the more challenging ones, as they provide loads of experience. Again, if you go forward with this one, set the seller's expectation. Let the seller know that you will be providing the bank full disclosure and that this deal may not be approved. Run this one by your broker as well. If the seller does NOT agree with disclosing that the buyer is his friend and roommate, then WALK AWAY.
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Question #36: "Will a lender require financial information from a co-borrower if that person has abandoned the home?"
"At one time, I thought I had heaxd that if one of the parties on title and on the loan abandons (leaves) the property, then the shorr sale lender should not require any information including financial information on that person. Example: If the husband has abandoned (left) the home ... Would the shorr sale lender require financial information fmm the husband?"
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Question #37: "What do you recommend homeowners write in their hardship letters?"
''1 just received a hardship letter that was handwritten and four pages
long! Is this good or bad? What do you recommend the homeowners write out for your 'few sentences?'?"
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( Script!!.!i Knolly: " ... Frank, thanks for calling me earlier . . . ..;;;J today. Now, tell me, how did you hear about me?"
(us)
Prospect: "Well, we were looking in the paper, and we saw the big cowboy hat." Knolly: "Oh! You saw my cowboy hat! That's great! So, obviously you've got a situation right now. What's going on? Are you facing a medical situation?" Prospect: "Oh, no, no. There's nothing medical. See my wife and I ... she tost ..." [So now we know he's married . ] Knolly: "Oh, okay, you and your wife ... Your wife lest her job?" Prosp,ect: "Yeah, yeah. She lost her job and ... " KrloUy: "So, teU me abeut that. I mean, dees she have any jeb prospects? De yeu think you're going to get back en your feet anytime soon?" Prospect: "Well, no, 1 don't think so because ... I lost my job last year, and I had to take a different job ... a step down ... in my new company." Knolly: "Well, have you all ready talked to your lender about this?" Prospect: "No. I mean, I called and they won't work with me." Knolly: "Who's your lender?" Prospect: "Well, it's Countrywide."
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Knolly: "Oh, yeah, Countrywide. Okay. So, is it only Countrywide, or do you have another lender too?" Prospect: "Oh, yeah, we've got two." Knolly: "Okay. You've got another one. Maybe this one will be more receptive. Who are they?" Prospect: 'Oh, that's AmTrust." Knolly: "AmTrust. Okay. Well, now much do you owe on those loans?" Prospect: "Uh. I really don't know." Knolly: "Okay. Well, how much did you pay for the home?" Prospect: "Well, I don't even remember what we paid. " Knolly: "Okay. Well, you know, that's not uncommon. How much do you pay each month?" Prospect: "About $1,350 a month." Knolly: "So, let me ask you this, Frank. Right now with your current situation ... You say you're behind four months, right?" Prospect: "No, no! It's more like two months ... only two months right now." Knolly: "So, you know what, Frank? Your situation sounds very similar to something that happened to me. And it's one of the reasons why I advertise that I help people with foreclosures ... because of a situation that happened in my life. Have you got a quick minute? Let me just tell you about it." Prospect: "Sure. What happened?"
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Knolly: [after personal story] "Look, I want you to understand what a short sale is, and what it's all about. So, I'm going to send you to a website that gives you more information. In fact, let me give you the website right now. It's www.5hort5ale5ite.com . " Prospect: "What is that, again?"
(your clien't website)
Knolly: .. www.ShortSaleSite.com. That's going to explain to you what a short sale is ... because you're probably wonde,ring how it works." Prospect: "Oh, no. We know all about the short sate ... " KnoUy: "Oh? Okay. Weill, ilook at it anyway. And (we) let me just teU you in a nutshell what I do: I speciaH~e in negotiating with your Lender to allow you to sen your home ... so that you don't have to bring any money to closing. The tender wiU pay aU fees. In fact, my services are absolutely free to you. " Prospect: "Wow, how can that be?" KnoUy: "You know, aU the information is on my (we) website .... You'll learn how I do this. But, for now, what I want to do, because I've got a short amount of time, I want to ask you a few more questions to see if you qualify for the short sale program ... Is there an HOA? ... "
(our)
If you are having problems making mortgage payments and you are considering a Short Sale of your home, you should contact the CalHFA Loss Mitigation Unit by calling us Toll Free at 1-877-552-4839. To qualify for possible assistance for a Short Sale: You must have a legitimate and valid financial hardship. The home must be owner occupied throughout the entire Short Sale process. If the property is vacant the Short Sale will be reviewed on a case by case basis. The property must be listed for at least 90 days. You cannot be attempting to obtain a loan modification. To apply for a possible Short Sale, you must submit a complete Short Sale package. The package must contain a valid offer on the property. In addition, the package must contain the specific required documentation listed below: 1) A completed Borrower Financial Information Form (form provided). Please be sure to fill in the form accurately. Include all of your expenses and income to present a complete picture of your current financial circumstances. A written dated and signed Letter of Hardship (form provided for your convenience). The important thing is that the letter describes in detail the full extent of your financial hardship. What is the cause of your hardship? Has there been a loss or disruption of employment? Has your available income and or expenses changed dramatically? Please be specific. A signed Borrower Authorization to Obtain Information (form provided). This will authorize CalHFA to access your Credit Report, order a property valuation, or property inspection if needed.
2)
3)
In addition, your package must include copies of the following documents (Please send copies, not the original of these documents): 4) Last two months pay stubs for each borrower and documents to verify any other income (e.g., disability, unemployment, SSI, child support, alimony, etc.). Last two years Federal tax returns for all borrowers on the loan. These must be complete tax returns including all schedules and W2s. If you own a business, we also need copies of the business tax return and the annual profit and loss statements for the last two years. 6) Last two months of bank statements for all checking and savings accounts. (Send complete bank statements, including all pages). Copy of Listing Agreement showing that you are actively marketing the property. Purchase Offer signed by at least the seller(s). Estimated HUD-1 or Settlement Statement. A Preliminary Title Report. A Comparative Market Analysis (CMA) or Brokers Price Opinion (BPO) that must include comparative values.
5)
7)
8) 9) 10) 11)
Mail the completed Short Sale package to: California Housing Finance Agency Loan Servicing / Loss Mitigation 1040 Riverside Pkwy, Suite 110 West Sacramento, CA 95605-1522 You can also Fax the package to us at: 916-326-6423
IMPORTANT NOTICE Please send a complete package with a valid offer on the property and all other required documents. The package cannot be reviewed until it is complete. If we receive a package that does not include a valid offer it will be returned to you. If we receive a package with three or more required items missing we will return the entire package to you and ask that you resubmit when you have everything. It will take approximately 45 days to review your package and evaluate your eligibility for a possible Short Sale. While your package is being reviewed, other actions relating to any loan delinquency up to and including foreclosure will continue. If your loan is currently in the foreclosure process, a complete Short Sale package must be received in our office not less than nineteen (19) business days prior to the scheduled trustee sale date. To contact CalHFA Loss Mitigation, please call:
1-877-552-4839
Agents Name: Agent's Phone: Counseling Representative: Counseling Rep's Phone: Are the taxes current? Yes No Are there other liens on the property? Yes No
Do you pay Real Estate Taxes? (outside of mortgage payments) Yes No Filing Date: Attorney's Name: Attorney's Phone:
EMPLOYMENT
EMPLOYER: BORROWER HOW LONG? EMPLOYER: CO-BORROWER HOW LONG?
Monthly Expenses
Other Mortgages / Liens HOA Dues (If any) Auto Loan(s) Auto Expenses / Insurance Credit Cards / Installment Loan(s) Health Insurance Medical Child Care / Support / Alimony Food / Spending Money Water / Sewer / Utilities / Phone Other (Please Specify) Total $ $ $ $ $ $ $ $ $ $ $ $ Home Other Real Estate Type
Assets
Estimated Value $ # $ $ $ $ # $ $ $ $ $ Total $
Checking Account(s) Savings Money Market Cars IRA / Keogh Accounts 401K /ESPO Accounts Stocks / Bonds / CDs Other (Please specify)
"I agree as follows: My lender may discuss, obtain and share information about my mortgage and personal financial sitiuation with third parties such as purchasers, real estate brokers, insurers, financial institutions, creditors and credit bureaus. Discussions and negotiations of a possible foreclosure alternative will not constitute a waiver of or a defense to my lender's right to commence or continue any foreclosure or other collection action, and an alternative to foreclosure will be provided only if an agreement has been approved in writing by my lender. The information herein is an accurate statement of my financial status."
Submitted this _______________________________ day of _____________________________________________________ By ___________________________________________________________ Date ___________________________________ Signature of Borrower By ___________________________________________________________ Date ___________________________________ Signature of Borrower
Before mailing, make sure you have signed and dated the form and attach a copy of your most recent paystubs and bank statement(s) of your checking and/or savings account to it.
LETTER OF HARDSHIP
On the following lines, briefly describe your hardship and current financial situation. Please be as accurate as possible so we can better assist you. Date: _______________________ CalHFA Loan Number: __________________ To Whom It May Concern:
____________________________________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________
Sincerely, (Borrower signature) ________________________________ (Please print) ______________________________________ (Co-borrower signature) ______________________________ (Please print) _______________________________________
I/We,
and
California Housing Finance agency and/or the mortgage insurer to order an Appraisal/Brokers Price Opinion, Credit Report, and/or an interior Property Inspection.
BORROWERS SIGNATURE
DATE
CO-BORROWERS SIGNATURE
DATE
PROPERTY ADDRESS:
City
State
Zip
LOAN SERVICING
Revised: 08/19/2009
We must have a complete package. You should already have the list of items required. If not, the list is available on our website at: www.calhfa.ca.gov/myaccount/ It is best to submit all items at once. If we only have some of the items, we have to hold the file until we have everything. If we receive a package with three or more required items missing, we will return the entire package to you and ask that you resubmit when you have everything.
We will always need your latest pay stubs and bank statements. If time passes and we have not yet completed your review, we will need your next month of pay stubs and complete bank statements to complete your package. When we send a package forward for consideration, it must always contain the latest pay information and bank statements. Bank statements must be complete. We need all the pages. It needs to be an official bank statement like you would receive from your bank by mail. The statement should show your name and address. Tax returns must be your complete return for all borrowers and must be the entire return including all schedules, attachments and W2s. Please call us Toll Free at 877-552-4839 if you have questions,
RE:Kyl~
CaIHFA Loan #022472-3 5020 A Street, Sacramento, CA 95819
Attached please find documentation to support the request for approval for a short sale on the above mentioned home. The package includes: 3'd person authorization letter signed by borrower Borrower Financial Information Form Letter of Hardship and proof of hardship document from UCLA medical center PayStubs for October and November 20 II Federal Tax Returns for 2009 and 2010 Two months bank statements for checking, savings, and current retirement account balance. Listing agreement and current MLS Purchase offer signed by buyer and seller Estimated HUD Current preliminary title report Broker Price Opinion dated 12/22/11, with photos of property and comparables.
Please let us know if we need to provide anything else for this request to be approved.
Thank you,
1Pffi~
Kelli Boehm Ramsey Real Estate Group kelli@ramseyrealestategroup.com Cell 916-947-9814 Fax 916-760-0575
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aa
December 14th , 2001 To Whom It May Concern, I, Kyle give my permission for CalHFA to
discuss my loan #022472-3, or any account associated with the property at 5020 A Street, Sacramento, CA 95819, with Daniel Ray Ramsey Jr. and any employee of Ramsey Real. Estate & Development Corporation. Sincerely,
Kyle SS#
Kelli Boehm Daniel Ramsey kelli@ramseyrealestategroup.com reo@ramseyrealestategroup.com 0011916-947-9814 Ramsey Real Estate Group 759 47th Street Sacramento CA 95819 office 916-737-5656 fax 916-760-0575
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Borrower: Kyle_._ _
IXl No
you
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EJNo
I2Yes
ONo ONo
Attorney's Phone:
Care I
spet:ify)
o
Please
on the property does not cover the expenses for the property - see hardship letter
; I
waiver of or a defense to my lender's right to commence or continue any in writing by my lender. The information herein is an accurate statement of
ill
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Borrower: Kyle
Attn: California Housing Finance Agency Loan Servicing / Loss Mitigation 1040 Riverside Parkway, Suite 11 0 West Sacramento, CA 95605-1522 RE: CalHFA Loan # 022472-3 / / Dear Cal HFA Loan Servicing,
/ / LETTER OF HARDSHIP
This letter is written to explain my current financial situation and the approval of a short sale of my property at 5020 A Street, Sacramento, CA 95819. Due to my degenerative medical condition I was forced to change jobs and move locations, and the rental income does not cover the mortgage expense. I was diagnosed with a disease called Friedreich's ataxia (FA) at age 17. FA is a degenerative, life-shortening neuromuscular disease. The degeneration of my condition has forced me to change jobs, which has forced a move to Pennsylvania. Previously, I had a job as a civil engineer at a firm in Sacramento. My job required me to be in the field the majority of the time. The progression of my disease made it unsafe for me to perform my job responsibilities. I now work for an organization called the Friedreich's Ataxia Research Alliance which is based in Pennsylvania. I have stayed current with my mortgage payments since the mortgage began in 2005 but now with the relocation, I am unable to meet my financial obligations in relation to this property. Enclosed are documents for the past 2 months to explain the financial situation I am currently going through. As you can see, if this offer is not accepted I will not be able to meet any of my financial obligations. I am embarrassed that I am in this current situation and would like to avoid further financial difficulties of continuing negative credit and mounting financial obligations. Enclosed is proof of my medical condition, and a complete short sale package. Thank you for your time and consideration. Sincerely,
Kyle
4 of 130
Date of Service:
Clinical History: Kyle is an 18-year-old student. seen in Neurologic Consultation at the rql!est of Dr. Geraghty for a second opinion on management ot Fliedreich's alaxla Around the age of 13. the. patient notoo onset. while plaYing baseb.aII. of difficulty catching and throwing. Around the same\ime. he note;:i very mild difflcuJty walking down stairs. Over the inteFllening yealS. he has had very gradually progressi'#e problems with balance. Functionally. he is still able to ski and piay other sports .although he notes that he is not as good at them as he used IQ be. One of the early symptoms was spontaneous attacks of shiveJing mille body that were conceived of ,as "tremors." Recenlly these have not been occurring. Tilers has also been slight tremor of the hands with action, most notable when 1I1e patient is tlred, allhough again Illis is nol as prominentas Ihe balance problems.
This patient has had extensive testing for diagnosis of thls condiUon. According to the palient andfam~y. vitamin E levels. electrocardiography. and echocaro!O!Jfam were.aU obtained and were normal. I have asked the patient to have these-records forwarded to me so that they may be reviewed. Genellc tesling performed bY.Ath!laon 12103/99 conlimled that the patient is homozygous for the G-A-A mutation commonly associated wElh F,eKlrerch's ataxia. On the two anneafs.1l1e patient showed 777 and 454 G-AA~.
. -
Previous to this genetic tesllng, the patient had. numerous other diagnoslk; !ElS!s. ViSual evak.ed response testing on 09122199 was within normal limits. and EMG and nelVe ronduc1lon study on 09127199 oflhe righllower extremity showed no signs of peripheral neuropathy. "A somatosensory evokoo response test of llle. posterior tibial nerves bilateraUy revealed absence o.f Ctttical peaks with slimulation of the left posterior tibial neIVe. Testing for very loogchain fatly acids and phytanlc acid 0." 09129199 were within norrnal.liml1s. On fhg same dale, cerulo.plasmln was SO (normal2.5-tl3). On 07!15199. a panel otother genetic tesls for alaxlas-, Including analysis f mutatlonsassoclated with SCA_1, SCA-2.. SCA-3, SCA-tl. and SCA-? were all negatiVe.
Past M.edlcal History: otherwiSe unremarkable. Medications: For Ina past few. days. the patient
2 grams p.o. bJ.d . CoEnzyme Ql0 30 mg p.o.I>.i.d magnesium 50 mg p.o. q.d" and selenIUm.
Drug Allergies: None.
HOSpilaUzatlol'ls And Operations: Appendeclomy In 1.992.
[;"Ijuries: Sroken Ihumb. j
Sodal History; Noncontributory. The paRent is astu<lefll FamHy History; Noncontributory. Review Of Neurologic S.ystems: t</oncootributofl/ ElO(cept as nolelj OOove. COMPlETE REVIEW OF 14 SYSTEMS;. (Obtained by questl0l1l1alre and reviewed by Dr. Whilrnan)
NO!1:contrlbutory.
Physlcal examination: The patient was, a pJeasant. heallhy-appearing young man In.oo distress. Mental Statlls Ex!.m~;atio,,:."rhe patient was alert, attentive, with nonnal concentatkln and able to gwe a clear history. Thera was a 1l1nt of scaMlng speech allhaugh this was by no means obv'aus. There was
Outpatient Consultallon
Ca
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5 of 130
S'~1o!'3:
no ellidenoe of a laoguage disorcf8J". Craoial OaNes: Visual i;elds Wf!re full to oonfronlalioo Wrthollt extinctloo. Funduscopic examination (UndUaled) was uoremaTkable:. PupilS were equal, round and reactive to light, without afferent pupillary defeCt Saocades wete bnsk and accurate. Smooth pursuit was full and conjUgate, Without spontaneous or gaze..evoked nyslagmus. Facial sensation, symmeb:y and strengtl! were within normaillmlls. Palatal elevaaon, phonal/OIl, shouklershrug, and tongue wefe all oonnal. Motor examination: T~ere was no pronator drift Floe tlng8J" movements were very mildly slowed, more so
on 'the left. Rapid ,alternating movements were perfomled less well with tile left hand. On linger-nosefInger leslIng, there were very mild Inaccuracies bull10 frank iotenOOn tremor. There was an inconsistenl bilateral action tremor tIlat was not mudlJ more lhan physiological. Muscle bulk. tone and. strength wer,B Within normal limits. Deep tendon reflexes were absen!. The patient was able to sland with his feet logelher, although 'in the Romberg position, there was moderate sway. Casual gait as well as heel and toe walking were normal. AJlholighthe patlentwas able to walk in tandem. he had more difficulty doing this than expected for age. Toes were down.
Sensory e><am ination: Th.ere was no obvious deficit of-tactile sensation or joint J>O$ifkJn sense. Inaddilion lo tt~a above tests, the patient had a bran MRl on 00/18199. This was said to be unremarkable. However. there was a T2 Jjypeririteflsity in the region of the right petrous ape>< which was said fa possibJy represent "jn!!ammatory disease will1in a pneumatized petrous apex.' I have askadlhe patient to hal/e these films forwarded to me so that I may relliew them personally. Summary; Eighteen-year-old young man who, presents wllh at least a 5 year history of a very graduaUy progressive dislurbanceof balance arid. to a lesser degree. appendicular coordination. 00 e><aminalion, there ar:e mild abnormalilies Of posture and eooroinallon. as well as areflexia. I agreelhat these Signs. symptoms and genetfc testiog are mos!. consistent with ai diagnosis of FreidreidlJ's ataiXla. AltIloughtllere is no specific !realmenl tllat is highly effective for this disoo::ler.l have reCOmmernied a combination of supplements that has been effective in reducing symptoms of ataxia in some palients. I have recommended lhat lhe pallent switch to the buffered liquid formulation (If N-acelylcysteine 1 gram per 5 cc of buffered solullonat a ,dose of apjlroxlmalely 60 mg/kg/day. divided In 3 doses. For convenience, J recommended that !he patient sIart with 1000 mg p.O'. t.t<l. and' this dose may be adjusted depending on !he response an.d any side effects. Additionally, I agree with confinootioll of the, CoEnzyme Q10 arn:! selenium, and malJOesium. If this palient were to develop signs of cardiac disease. then one could certainly (lollSidertreallng Wilh laebenone. A clin icallrial of ldebenane in patients willi Freidretch's ataxia may be initiated at some point in lhe next year. As I menlIoned, I halle asked the patient to send medi;;ai records regarding the electrocardiogram and echocardlogfam to confirm Ihe absence of evident cardiac disease: The jlalient was encouraged to' remain active, safely pursuing activ~ies !hat challenge his balance and build muscle strength. The pa!1ent is to followup In Neurology Clinic With Dr. Periman.
6of130
Borrower: Kylj
Outpatient Consultation
NEUROLOGICAL SERVICES
Auburn. CA 95S02
Phone 53O-aZ3-3407
Phone._ __
(3\D) 1'1tj.-ll~S
Ok,::t,ted~3If.or..::aoo 1~:2;!'
NEURot~CALse~cES
Outpalient Consll/!aliOll
...
'
J30.rfOw.e.t- ~'
Borrower: Kyle '
,
'~-Jv~ ~
State of California
022472-~
,
l!We,
Kyle
California Housing Finance agency and/or the mortgage insurer to order an Appraisal/Brokers Price Opinion, Credit Report, and/or an interior Property Inspection.
12/21/2011
BORROWER'S SIGNATURE
DATE
CO-BORROWER'S SIGNATURE
DATE
95819
City
State
Zip
.. ~
LOAN SERVICING
.~
Revised: 08/19/2009
8 of 130
Borrower: Kyle
".III!II.
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EMPlOYEE TOTALI
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9402. smn:iEL RIDGE NORRISTOWN PA 194()3
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Pay Period: 10101/11 to 10131111 Chock Dale: 10!31'11 Check #; 11e:8 NET PAY AlLOCATIONS
DESCRJPTlON THIS PMIOD lSI
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10 of 130
0026 0045-L0Q6. FrJeeichs. AlaxIa Research AI a 523 Wasl Uwchlan Avenue- Oownlngtown PA 19335 (4S4) B1~015
Borrower: Kyle t
6105243253
To:Kelli
Form
1040
US I d" "dUall"COme Tax Return IVI " For the.,.r Jan 1 Dec 31. 2010, "other lax _ ileginn;;--'"
Yaur fir:l;t f1::.me
."
2010
(99)
CD not WrtIe or
~bple
in ttu5
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MI
firs.t narne!l
laett\O.m6
Kyle
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9402 Sentinel
P",sidontiol
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Ap.;utment nO.
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are correct
O<cking a box I>olow Will not
Eloction c.mpaign
Norristown ~ Check here If you, or your 'PO'" ~ filing jOintly, wanl $310 go to IhlS fund?
1 Z
Single
PA 19403
0 You LJ Spouse
Filing Status
Check only
:1
one box.
ExemplioltS
,am. her. , .. 5 0 68 ~ Yourself,. tf someone can claim you as a dependent. de) rd check box 6a bOS_,," .. ......... " . .... - .. - . .._- ..
' ' "
Head ot household (With qualifying person), (So. Instructions.) It th. quallly'''9 pal""" IS a ""rid but not your dependent, enter 1his child's name here ... Qualifying wi";;(;) With deper1dent child
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to you
l.ast name
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live
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Attach Fonn(,) W2 h.rt, AbO
d Tatal ;;~;;b;( 01 exemptions claimed " " ' - - .... " 7 Wages, salaries, tips) etc, Attach Form(s) W2 s. TlOOIble inter..t Attacll Sch.Qule S It requrred , . "
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..
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b Tax-exompt interest. Do not include on line Sa 911 Ordinary dividends, Attach Schedule B 11 reql.J!rId .. b OuallTlea dividendo ....... . . . . . . . . . . ........
10 Taxable retunds r credits. or offsets of s~te and local income taxes ..... ...... , " .. , . ..... . ........ . .... 11 Alimony received ..... ... .. . - . - " " " ..... " ... . . . .. . . .. . . 12 Busrness income or Ooss). Attach Schedule C or C-EZ . 13 Capillil gain or (los.). All Soh 0 rC<t<!. nn(It reqd, ok here . , ' , , , . . . . . . . . . . . . . ...
14 Other gains or (loss,",). Alta"" Foom 4797 " , , , ..... , .. .... 15a IRA dlstrinutions .. , ......... \ ~bTa)o!able amount. ..... .' .... ..... 16a Pensions and arlnUtlles. ,." 16~ bTaxable aITIount. . " 17 Rental real estate, ro'yalties~ partnerShips. S corporations, trustsr etc. Attadl Schedule E ..
...
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55 500.
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46:..-
1 325.
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13
14
soo instruetions.
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Enclose, but do not attach, any payment. Also, ~I"'" use ."" 100000V_
"
. . . . . . . . . .. . .
Adjusted
Jb'T~~I~'~o~r~t:::::: ...... lOb 200S""ial,acurily",",efits '"'' '''' 2001 21 21 Other Income Combine the amoUnts in the'far ~iant-txiumnfoflint$ 7-thJOUiihl~ihis-li"yQiirlllbii~-. ~.-:. ~. ~. ~ .~: .--... 22 22 ........ 23 Educator oxpenses .. ..... .'."-
,!
56 87l.
Gross
24 Certain
Incomll
gOY\lmment Off~I,I$, Aitaeh ~orm 2106 or 2106, .." .. ' , . " 25 Health sawngs account deduction. Attach rorm 8889 .... ..... Z6 Moving expenses. Attach Form 3903 Z7 Ono-half of seltemployment lax . Attach Schedul. SE , 26 Self. employed SE"P, SIMPLE", and qualified plans."" , 29 Selfemployed health in::;urance deduction .. .. " . ........... 311 Penatty on early WIthdrawal of savirags . . 3l.a Alimony ptlid b Recipient's SSN ......
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24
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............ S2 IRA ~.<lUcDon ...... . '" .. 33 33 Student loan interest deductJOIi . , . 34 34 TUition and ta .., Attach Form 8911." ....... 55 35 Domestic production: activities del,ICtion. Attach form aocJ3 ,. ,. 36 Add lines 23 - 31 a and 32 35 ................ ThiS is ,our adlust~~~ i;';';'~ ~ Sub~nct line 35 from line . FDf,AOl1l BAA For I)l$cIosuro~ PnvlllCY Act, end Peperwork ReduetfOl1 Ad: NotIce; sec scpztnIle Instrudi0n5.
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36
1, 405. :;~,46G:
1212211D
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11of130
Borrower: Kyle
1111
6105243253
TQ:Kelli
P.2/27
Form
Blind, T<>\.I bo_ It Spouse was born before January 2, 1946, Blind. checked ~ b If YOl,lr spouse itelTllzes on <1 separate return, or you lNel'e a dl,l~l-smtus alien, check here. . .... 40 itemized d$ductlons {from Schedulo A} or your ~"mllrd dtduc:tlon (see Instructions) . 41 Subtract lin~ 40 from line 38
You were born before January 2, 1946, 42 Exomptions. Multiply $3,600 by the Tiumbor on line 6d .
39~ Check
gross
D .
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43 T.. ,~10 Inc..... Subtraclii,. mram line 41. If Iino 42 is more than Imll 41, I)q\(ll -0- ... _. _. 44 T.. (see instrs). Check il any taX is from:
. ........ _. _....... .
form 49n .... '1!i Altomotive minimum tox ($ee 'n.truenans). Att.ch rOrm 6251 46 Add linas <14 and 45 .. . ....... . 47 Foreign tax credit. Attach Form 1116 if required ,. r-4;:7c-+_ _ _ _~. __1 46 Credil for child and de~ndenl O3r. expon..,. Atlach rorm 2441
49 EducatJon crodits from Form 8863, line 23 ...
50 5Z Retirement .saVltv.;;; contributions creQit. Attach Form 9880 . Residential energy credits. Attach Form 5695 ..
BFOrm(S) 8814
_ _ ,.,, _ _ _-.:;$=-.;:S~U;o:btr!!ct line 54 from li"""~-,::!=-,54=is~",,-:,, ~l2!.!.=='-"=~:,.: .:.:~,~-'-=-'-"=:+_=+----'~~o!..!. Other 56 Self'''''ploymenl IlD. Attach SChedule .. .. . " .. Taxes 51 Unreported ""ial ""urily.nd Medicarelaxfrcrn Form: e b &919 ... 58 Addition.al tax on lRAs, other Ql,lalificrl retirement plans, ~to. Attach F'0IlTI 5329 if {1lQ,\,Liled , . . . . . . Form(s) W2, box 9 b Schouul. H c Form 540~. line 16. Add i I
Om)
59.0
Payments
qualifying
tax withheld
62 2010 es1tmated tax paymonts and amount applied from 2000 return
!f you hciVe'"aL.. 63 Making work pay credit. Attach Schedule M 64. Eamod incomo cre<llt (Ele) .... child, attach I b Nontaxable combat pay election. Schedule EIC. I 65 Additional child I.x credit. Attach 66 American opportunity credit from Form 8863, line 14 .
67 68 69 70 Firsttime horn~buyer credit from Form 5405, line 10 Amount paid with request for extension to file . E.xcess $OCi~1 security and tier 1 RRTA tax withheld Credit for federaj tax on fuels. AttaC!1 Form 413G
71
D 2439
0 8839
0 88~1
08885
Refund
Direct
SaVings
Do you want tQ aUow another person to discu!>!> this retuJn with tile IRS (see instructions)?
UmleI" ee-na/tioeo!i. of PQlj.lry. t &,dare that I hlil'! exmMd thit. f\9lL1m:;.n<;l ;EtOtnpanyino &dt1Jdu1o!i 0Ind "t::ItI!!Jt\eI\1S, and b;I tI1~ best of tl'lY knowlil!dQ6 and ooli,*, O>cy:iM true, comd", ..00 ~omplete.. ~ of pt'I'ltl~ (othor Ihoan t;1lI;~" is ba6&d on alllnfDmllltion af which pf"OQiIrtf h;r,!il :lny ki'low/&dg&.
Yot.l( signatuN)l
Cb~
phontl' number
~~~~~i~~~~~~~;'~I~~"~.------I~~--li~~~~~--'--1--------------F""",
FDrAOH;? 12122110
Paid
Pre parer's
Use Oldy
12of130
Borrower: Kyl. .
IS. . . . .
6105243253
To:Kelli
SCHEDULE A
(Form 1040)
~
Itemized Deduc;;tions
2010
AItIlch to Fonn 1040.
.. S.., Instructions lor Schedulo A
MeIII",,1
CauUon. Do not include expenses rOlmoursed or paid by others, 1 Mechcal and dental expenses (see InstruCtions) , 2 Enter amount from FOf" lQ.1~ lin.311 ..... IL-'2'--l1______
3 Multiply line 2 by 7.5% (.075) ................ .
7 Ne'w I"rlDWr lfehJcle taxes from line 11 of the works~eet on page 2 (fof certain vehicl" purchased in (009). Skip th" line if l"U chookod box 5b .....
"<>1o.
1.2
Pomts not reported to you on Form 1098. See inrtrs for spcl rules _.
13 Mortgage insurance premiums (see instructions) . 14 Investrrlerlt U"lterest. Atta~h form 4952 if required.
. ................... .
14 .
15
l7
~36.
Charity
YO\)
TheftL.......
and
Cos.olly and
21
if
MiscDllllneous
22 Tax preparation fees . 23 Other expenses - Investment, safe deposit box1 etc. List
25 Enter ,mount from Form loJ, line Sg ..... 1_25=-'-_ _ _ _ __ 26 Multiply line 25 by 2% (.02) I i
Other
Ii>-
Misco1hmcous
Deduction~
Tol.aI
29 ~AdC! the amounts in the far right column for lines 4 through 28.
Also, enter this amount on Form 1040. line 40
nemlzed
Deduc1iOnG
30
elect to itemize deductions even though they are less than your standard
f0lA0301
12121110
Borrower: Kyl......
llllillt
6105243253
To:Kelli
Form
3903
~ 'W""Se~
Moving Expenses
Attach to F0I1l11041l or r ..... 104llNR.
2010
you can deduct your mOVing expEtnses.
"
-_.
costofrneals
"
~See
the Di~ Test and Time Test in the instructions to find out if Members of the Armw Forces in the Inslructions, If a~pJicable ..
..
1
.._,
1 Transportntion
550.
2 Travel (including lodging) from your old home to your new home (see instrucbons). Do not include \he
........ ,' ........
..
I' . ', , ...
2
3
855.
.. ......
r,0U
for the
. .....
...... ..
iSfc0t
. ......
..
1,405 .
- - P . . . . . . . . . . . ... . . .
included in box 1 of your Form
emwo~er paid
exrensas listed
... - ..
o
~
No.
Yes.
You cannot deduct your mOvif1~~ense5. If line 3 is less tt'wn line 4, subtract line 3 from line 4
I
rorm
BAA For Paperwork Reduction Act Notice, " " yOW! Wt mum ...Iruction$.
FPlAJrol
06/lSl10
14 of 130
6105243253
To:Kelli
SCHEDULEM
(form 1040A or 1()4()
D~1'Imen1 Namll~)
OMS No 1545.0074
Irite-mal R@'ienueSeNiC';t
of the T~ry
2010
166
rohown on relult'l
Kyl'"
Caution:
Social Secf1n~y Administration ISSues saciaf secunty numbers.
--.l!!!I!!!!!!!I!.,II!!I.L___
your spouse) on your tax lelurn A SDCia/ securiry number does not include an identifICatIOn number issued by the fRS Only the You cannot take tht; making work pay credit if you
c~t)
To t4lke the making work pay credit, you must inolucJe your sociaJ ~urity nurhbeT (,f filing a joint return, the number of either you or
OtutiQn:
tmportant: Check the 'No' box on line la and see the instructions Ir:
(~) You have fl net loss from 8 busm&$~;, (b) You received a taxablC, scnolarshlp or fellowShip grant not reported on a Form W2,
,.~
(c) Your wages InCllJdo pay for work porformed while an inmlte in a penal Institution, (d) You received a pension or annuity from a nonqualified deferred compensation plan or a nongovernmcntel section 457 piaI'll or (tI) You are tiling arm 2555 or 2555-EZ.
1 a 00 )IlU (and your spouse iffiling joinlly) have 2010 W"dgiS of more than 10,451
(~12.9IJ:l
~ Yes. SkiP lines 1a through 3, Entor $400 ($800 IT married filing jOlnUy) on line 4 and go to Iina No. Enter your earned income (see Instructions) .. .. .. , ."..... r-1~''t-...
.1..
.,,'
...
....
55,466. 75,000."
r2' ..,.
400.
7 Is the amount on line 5 more than the amount on line 6"t g] No.. Skip line 8. t::nter tne amount from line 4 on line 9 below.
. .. .. ....
. , .....
.,,--
......
'"
. '"
II
9
trom
',._ 400.
10 Did you (or your spoU$, if filing jointly) receive an economic recovery p~yment in 2010? YOl J may have received tt)i~ peymeryt in 2010 it you did not,re90ive an eeonmic r.ecDllery payment in 2009 but you received
sacial security benefits. supplemental s;;.e!;Urlty Income, railroad retiremen~ b~n9fits. or veteran 5 disability
comp~nsation
or pension benefits In November 2008, December 2008. or January 2009 (see instructions),
Yas. Enter the total of the payments you (and YOUr spouse, if filing jointly) recelvea in 20 10. Do not enter more than $250 ($500 if married filing JOintly) ..... " . . ............ .
. ".,-.
10 11
,.,"
o.
400.
11
MakIng work pay t:redit. Sub1ract line 10 from line 9, If zero 01' less, enter -0-. Enter the resuIt hero and on Form 1040, line 63; or Form l040A, line 40 .. , . . . . . . . . . . . . .. .' ... ,........ . ........ . " ....
"!tJf you are 1iIJng Form 2555, 2555~EZ, or 4563 or you are excludll"lg income from Puerto Rioo, see InstructiOns. BAA For Paporwork Reduction Act Notice. $1)0 your lax mum instructions. Schedule III (Form 1040A or 1040) 21:>10
FDlA8501
09I20Il0
15 of 130
Borrower: Kyll'
6105243253
To:Kelli
Federallnfonnation Worksheet
... Kee for
2010
recordS
Spo_: Last Name "
First Nama Middle lnitial ....
:==---
Last Name ............ tII!!II!II-L---First Name . .!lI:J."'e'-_ _:::-::--____, Middle Initial .,,. .. ,.,. .. P. Suffix ... Social SecuntyNo, .,' . _
Occupation . , .... ~l?Q...k:iieii5i;p~e",r",s",o",n,:---;-=___:;Date of 8irth ....... ,. . ' - " ' 9(mm/dd/yyyy) or Age as 01 11112011 -zg--Date of death legally blind . ,. . f "m~il Address. .
Suffix, SOCial S"curily No. Occupation ..... ,. . . . ., . ,. _ _ _ _ _ _ (mmiad/yyyy) Date of Birth , . , or Age as of 11112011 .
Date of death
Legally blind , ..
Work Phone
Ext.
Ext .
pncne.
Home Phone.
Check to print phone number on Form 1040
L.JHome
Address
City ...
Spouse
Work
, Apt No.
.. Nq:;,ristown
.... PA
ZIP ewe,
. 19403
For~lgn Country ..
APO/f'PO/DPO <.ldc.lres..,. check jf appropriate ....
PhOOA .
, ....... _.
,
.,......
............
..
Af'>ol
I FpOTI'pPOD
3
4
0 Head of household
0
Married tlltli(! separately ~xpaycr did not iive wiih spouse ~t anytime during the year
OT
... _. _" .. __ . _.
Child's social sect.Jr11;y number ...... :::;,..,--:-:-::::-r"""'-. . , .... _. _ Year the spouse died ............. Il'- 2008' 2009
MI
Suffix
_P~t~ol~~
C
0
.~~,.
-~
tax: credit
taxIT~r In ..
,
Qualified child and dependent care expenses Incurred and paid In 2,010
-,_ ..,..-
,"'-
..
"-T--rr-./",
~ ~T
-"n---
.-
0
0 0
..........
--,,-
--T~~rr--
=_T" 11-~ution:
...
~ Was taxpayer's (and .spouse's if mamed flhng jointly) home in Umted StateS'. for more than half of 2010? Check Any that Apply:
!ills taxpayer or spouse quall1ying child for E1C for flr'lother person?
SociafS0CUfity card says Not V~id for Employment and SSN of tho taxpayer, or spouse if' married filing jointly, was obtainod to get rederaUy funded benefit. such as Medicaid (see Help) Taxpayer filing as head of household Artd lived
FDlY411Z
02122111
16 of 130
Borrower:
Ky":e"'. . . . .
6105243253
To:Kelli
P.7/27
2010
Ky~.,.
_.2
Declaration Control Number Payment by Check (F"onn 1040-11) - Federal Bdanc:e Due
Date Form 1041lV was gIVen to client...... . ....... .
.. , ,.,
.
Check
name in electronic file ana on Forms 8878, 8879, & 9325 ....
Social Securrty Number or' PTIN
"0
ZIP Code
3~062
Pompano Beach
Country
141325
[-mail Address
~nter
a Preparer Code from the FitrnJPreparer Info to assign a different ERO to this return. (See Help) _ __
Paid Prepare,lhfonnation
Firm N<lme
a
Sl<1tc
Ii'l~
ZIP Code
..--33062
E -mati Address
..
fax Number
?Ii(
If your firm is ONLY the ERO and the return being transmitted was not prepared by your firm, enler preparer code from the Alternative Ef Preparer Information to assign a paid preparer. (See Help)
a
..
..
---
17 of 130
Borrower: KyIOllllls._.al
6105243253
To:Kelli
Page 2
------------------------_._--Check this box to suppress Modemiled .,Fite format for the tax return . Check this bo. to force state only filing for all stiltes selecled 10 be filed electronically Returns rejected tor Taxpayer or Spouse name aoo SSN mismatch. Check this box to retransmit this return as an imperfect return. ThIs only applies to reject code 0501 and 0504 .............. . ......... Enter an 'in care of addressee', conijnuation of the address entered on the federal Information Worksheet, or name of personal representative.. . . . . . . . . . . . . . . . .._ _ _ _ __ If married filing joint and one spouse IS deceased. is the surviving spouse also the personal representative? ............ . ............... .. Check this box if your cllenl is in the U.S. Armed forces Wllh a stateside address . Check the appropriate box if the taxpayer (or spouse) last serVed in an area deSIgnated as a combat zone or qualified hazardous dUty area. Iraqi Freedom .............. , .... .. ..... .. Kosovo Operation ........ . Afgha~istanjEndunn9 Free~om Desert Storm .
"0
..Oyes DNa
Haiti ...... .
..
.. .
.
..
.... ." .
."
Che~k the applicable box(es) to identify the attachment., Form 2848. Power of Au(\rney and Declarabon of Representative. , , , .. Form 3115. Change in Accounting Method ............. . Form 3468, Histone Struclul'e Certificate. Form 4136. Credit for Federal Tax Paid on fuels ........ . Form ~713. International Boycott Report........ . ....... , Form 8283. Noncash Charitable Contributions (Declariltion of Appraiser) . , ........ . 1098C. Conlrtbutlons of Motor Vehides. Boa!:> and Airplanes. . . ......... . Form 8332, Releal of Claim to Exempijon for Child by Custodial Parent or Other Documentation Frm 8885 .. Health Coverage Tax Credit.... ..... . .. ...... .... . .... " ..... ~ form 8858. Foreign Disregarded Entines ........ . ..... . .... -.-."." ....... .... Form 8864. attach the CertJilcate for Blodiesel ....... , Acceptable substitute for Schedule 0.1. Continuation Sheet for Schedule D1 Appendix A, Statement by Taxpayer Using the Procedures in Rev. Proe. 200920 to Determine a Theft Loss Deduction Related to a Fraudulent Investment Arrangement ....................................... ~D
.. . . ,,,,,"
. . ..
18 of 130
Borrower: Ky.'. . . . . . .
6105243253
To:Kelli
P.9/27
Form 1040
2010
~ber
~~um
~onnW_2
;',-,.,.,.
;-H
SP
Waoes
Federal Ta
Slate WaDeS
5s.500.
9:""i44
55,500
2.951
1-- ,
,-, ..
---'".-~-.
....,......,,'M'~
'.
55,500 2,951.
Totals.
".- ..
.. ., .. . . .. .. . .
55,500.
9 l 144,::..
----
Description
T""payer
55, 5 oq"_
tollIl
1 Total wages, tips and compensation: Non-statutory & statutory wages not on Sch C .... Statutory wages ,oported on Schedule C Foreign wages included in tOlal wages .
________-,5,-,5!..<,-,5"O"O~.
IJnrljp<:>rted tips. , , . . , ..
. ........... ..
2 T otallederal tax withheld . . . .. ...... .. 3 & 7 Total social security wagesJtips ... 4 Total social security tax withheld . 5 Tolal Medicare wages and tips , ..... 6 Tolal Modicare tax withheld 8 Tolal allocaled tips . 9 Tolal advance earned income credit 10 Tolal dependent care benet,ts , .. , .... 11 Tolal distributions from nonqualified plans ... , 12. Total from Box 12 .. , ......... . b EIec\ive deferrals to qualified plans ., c Roth contributions to 401 (k) & 403(b) plans ...
- -.." - - - - 9,144.
55.500. ___ -" 3,44J. 55,500_ 805.
9,H4.
55,500.
3,441.
55,500. 605.
. _ - - --_ ....
_- ----
9
h
Deferrals to nOn-government 457 plans Deferrals 409A nonqual deferred comp plan. Income 409A nonqual deferred camp plan .....
I
k
m 14a
b
Uncollected Medicare lax , ....... , .. . Uncollected social secUrity and RRTA lier 1 . - - - .. Uncollectod RRTA ~er 2 ......... . Income from nonstatutory stock opnoos . Nonlaxable combal pay .... , ..... . Tala! other items from box 12 . . ........ ..
Total doductible mandalory slate lax .. Total deductible ct>arilable conlfibutions ... , . T alai deductible employee expenses ,. Tolal RR T,er 1 wagas T ctai RR Tier 1 tax ......... . Total RR Toe' 2 lax , ........ , .. Tolal RRTA ~ps .... "., .... .. Total other items from box 14 " Total state wages and tips Tolal slale lax withheld, . Total local tax WIthheld " ......... , .......
._~6~1~1.'-1_--__- - - _ _....;~U.,-
c
d
e
9
h
16 17
19
To:Kelli
Fonn 1040
2010
Ky 1"
8:II..iIIL.
'-_'_0'
EmployorEIN
... 52-2122120
..
Employer Name.,... }!ri_edrei,chs Ata~ia Resea:a::ch. XL Name (cont.) . _ _. Street Address of p, O. Box po. B"x 1537 .. ___ . City . .spdn!l,ield.. State. VA. ZIP 22151
Foreign Addr ..
Foreign Counby .
" 0
nSpouse-"W.2
DDonolt1lmslerltrisW.2tonextymr
[jOAutomaticaily calculate lines 3 ttwough 6 ~nd line 16. Caution: Box 12 entries for deferred compensation will change lines 3 through 6 automatically.
1 3 5 7
Wages t tips, other c()mp ... , ...__~?,.500 ~ Social security wages. ,;;5. 500~ Medicar. wages and tops . .~5, sq.!!.... Social security bps.. .. .... . _ _ _ _ _ _.
13b aRetiremonl plan Foreign source income eligible for exclusion on Fonn 2S55 Aotive duty military pay Box 12
Code .
II eOl< 12 code IS: A: Entor amount attributable \0 RRTA Tier 2 lax .... 1\'1, Enter am"unt attributable to RRlA Tier 2 tax ,
P: R:
Spouse.
Taxpayer ........ . Spouse ......... . G: OEmployer is not a state or toeal governmont Box1S W: Enter HSA contribution for
Box 17
State income
1<;>
2l.951.~
--
8ox20
Locality nal"(l_e_.
8o~19
AssOCiated
~q,ca! inc~!l1e
tax
Sla1e_.
10
11
Advanced EIC payment.. .. .. .. ... ............ .. .. .. .. . .. 9 Dependent care benelns (Check if employer furnished eare at work) .... , ,~D 10 Dependent car. beneilis Amount forreited from flexible spending account '" . Dislributions from Section 457 and other nonqualified plans (See help, it EIC, Olild Care, Child Tax Credit, .r IRAs.) 11
------.
80><14
_.,.2Q.Ac:t~1
20 of 130
6105243253
To:Ke!!i
Form 1040
2010
Page2
1.<~"
_ _ _ _ _ _ _ __
Fr.iedreichs Ataxia Research :At.
6,
Statutoly employe.s
13a. StaMory employee Deducting expenses In connection wrth
BBoX
this income
C
C
Part II
to Schedule C ...... .
o
E
Clergy only:
Designated hOl",ing or parsonage allowance . . .. .. . . . . . Smallest of (a) the designated housing or par'lOnage allowance. (b) amount spent on qualifying housing expenses, or (e) fair rental value. If no FlCA was withheld, check !he applicable box below Pay selfemployment tax on W-2 income only
0
E
F
1 2
3 4
G
Non-Clergy only:
1 2
Bpa
Part III
H 1 TIps $20 or more in a month which were nol reported to employer . 2 Tips less than $20 in a month which were not required to be reported
3 Value of non"ch tips, such as tickets or passes, not reported ............. . Actual amount of allocated tips if different than the amount In box 8 .. . 5 !iJ!s paid oul through a tip-sharing arrangement ............................. . 6 DEmployer is. federal, state, or local government and bps are only subject to Medicare tax
--"-'''-'--H2 _ __ 1 _ _ _ _. H3! _
H4
H5 - - - - .
H1
Part IV
I. If substiMe Form W-2 needed. double-dlck to link this W-2 to a Form 4852 ..
Part V Inmate In a Penal Institution J a Pay from VIlQrk performed while an inmate in a penallnstitl.ltioli ..
..
D
any way)
Part VI
.. -....
_--
Additional tnformation for Electronic; Filing and Certain Stales ($tH1 Help)
Third-party Sick pay Non-standard W-2 (handwritten, typewritten, or altered in
13c
Employee infonnation: Correcl to match employee information on W-2 Employee's SSN. . ..... 607-03::-1532 Suft First fl"lffie M.I. Last name ~K~Y~l~e~_ _ _ _ _ _ _ ~ Bryant
Mdross 9402 Sentinel R.!.dg"., _ _ __
Foreign Q)untry
CIty
St
ZIP code
___
N~.E_.I:istown
PA
19403
21 of 130
Borrower: Ky .. llIlId t
6105243253
To:Kelli
P.12/27
2010
~;~:~.lliiiL'l-____________________________________________~________JI!~II'~~lIn1~'"lumll~i;L-__________
&
_.
~'.
,.,.
Interest Summary
Totallnt......t ...
...
T""~IJI ..
.... --.~
-."'~,
"iis. G.wemmcnt"
.,
1 Selier-fH"Ianced mortgage ....... 1--2 From Schedule 8, Port I ... 3 Frorn Schedule B, Parjll ... .... . 4 From Kl Worksheets . . . . " ..... 5 Exempt"inter(':st dividends (net of adj.) ... f--.' .. . , 'f--.. 6 From f'orms. 6252 , .. ... , .... 7 From rorms 8814 . . .. . ... ' . S Subtotal .. . . . . . ... .. Less Mjuslmonts:
~
46.
_.
",'
-.~~~".
"
"'-"'-
.
...
f - -......
..,,'-
'"
- .. ..
~
46.
.',"N'
.. ..
.,"'
.-
., 10 Nominee distribution 11 010 adjustmant , " . , ' " ..... .... 12 ASP adjustm""! .. " ' ...... .. . ,
.. -.
,,'
..
.
.
~.
13 Accrued Interest .
....
... ,,.... ..
..
...
".~
~."
.,,.
...
~
14 Other adjustment ........ 15 Series EE and I bond eXClusion 16 Total Mjustrncnts ......
l ' Total to Schedula S, line 2 ...
. '"'
,
.
-.. "...'-.'.".
46 .
M,'.
'-'
.
.....-, .. ,,, .
.~"...,,,"~
.....,
."-
18 Total to Form 1040, line 8b ..... ... 19 Total U.s. goven'1!'rJent intrprest . " . , ... 20 Total to form 6251, line 12 ... ... ..
.. .. .
"".
.,'"-
... ,.
..' ...,
''''<0,
capital
~~~._+--_:.:No:::nt"':o:o."'bl::::.___
- - - + - - _ .__ . . . .---
3 Subtotal
Less Adjustmonts:
4 Nominee distribution,
.... f - - - - -
iu
..
...
Capital Gai~;; Summary
:28% rme
Soc:Iion 1250
1----".-- - - - / - - -
2 Ncminee distribution .. 3 other adjustment. 4 Toml Adlustments 5 Total to Schedule D 6 Total to Schedule D .2._..Tptal to Schedule D
.......-
.. ..
1---...
..f - - - - - - - -
+-------1
,j------
F'PIV56tl2
IllOlnO
22 of 130
Borrower: Kyle ~
6105243253
To:Kelli
P.13/27
Form
1040
2010
Kyle . . . .
Worl<sheel DesCliption .
Box
~scripti(m
Own<>rship (defaults to taxpayer}: Check ifTaxpayer .......... .. Check if Spouse. Check if Joint .... Payer's Federal ID number. Enter the abbreviabon of State or Locality issui ng this payment 10 a State abbreviation .......... .. locality abbreviation ........ .
~--~-I----,-- - - - -
B
CA
Payer's name.
. ........ .
state of
....
Unemploymenl compensation. , . a Amount repaid ......... . 2 State or local income tax refunds, credits, or offsets .. 3 Box 2 amount IS tor lax .year .... 4 Federal Income tax withheld 5 Alternative Trade (ATAA) 6 Taxable energy grants ... 7 Agriculture payments ...... . (Doublec1ick) 10: a Link 10 Schedule F Line Ga, 40a .. b Link to Schedule F Line sa, 42 ... c Link to Form 4835 Line 3a ...... d Link to Form 4835 Line 5a ~ 8 Check if the amount in box 2 applies to income from
-_.. _ _--
a trade or business , .
(Doubleclick) to: a link to Schedul" Cline 6 . ~ b Link to Schedule F line 10,44 ... Enter the taxable portion of tihe amount in box 2 to be reported .' on Schedule C or F .. 9 Market gain ........... . a Link to Schedule F Line 6a, 400 ...
b Lmk to Form 4835 Line 3a. 10 b State identification no ....... . 11 State income lax withheld .. .
..
23 of 130
Borrower: Kyle_S
6105243253
To:Kelli
2010
Social Security NLutlber
Estimated Tax Payments for 2010 (If more than 4 payments for any state or locality, see Tax Help)
--"
Federal
Date
.,
"
..
State
Date
local ID
Amount
Amount
Dale
Amount
10
1 04/15/10.
".~
."
,-"
04/!.;!/10 - - - , , - - - 0E;/l5/10
~/10
2 06/1SnO
3 09/15no_
". .....
~
.,- "
.".-
--
,,-
--"-- -----_..
".
.'.~-
4 01/!8/11
5
"
--,.,~--
_C!;t/18/1l
--_....., - - - - ..
c...
.-
.","
....
- _......
~
.. ,-
".-
-.-
----" -
"-
....
'
".
....
--
."
Tax Payments OtIIer Than Withhdding (If multiple stales, see Tax Help)
Federal
Slaie
10
Local
10
_.
---'."-- -" -"
-. ......
."-"."'-,
...
,,,,'"
8
9
Totals Lines 1 through 7 .. " 2010 extensions .... ".. " ". .....
---~
'" "
..
.......-
. ..
Federal
"
State
2,,1 951.
.,,'.
~
Local
10 11 12 13 14 15
..... ...... ,,, .... .. Forms W-2."." ..... " , ... Forms W2G. ' " ..... ". .. ...... ,. ,. .... Forms lO99-R , ........ ". Forms 1099-MISC and 1099-G ....... . .. Schedules K' " " ' , ... ...... .. .. Forms 1099.INT, DIY and 010 ". 16 So"i<ll Security and Railroad Benefits , .... 17 Form 10998 ,," . " St -- Loc - " . 18. Other withholding ". St Loc -St Loc --" b Other withholding ... " Loc C Other wilhholding ..... ". S! 19 Total Withholding Lines 10 through 18c ........ 2D Total Tax Payments for 2010 " ..... ... ......
"
~
..
9 ,.144.
--""
- - ,.. ,,"--
,,--
,.,.--
-_. . ..." - -
-- - - ' "
--.
,.
-""
-,,-
,,--..........
..... ..
~
-_.........
,,........ ,..,..-
--
..
9,144. 9,144_,
State
...
-_..
..'.'.".
---
2,9512,95}._ ID
'
...
Prior Year Taxes Paid In 2010 (II multiple states or localibcs, see Tax Help)
21 22
Local
to
23 24
..... Tax paid with 2009 extensions, "........ .. 2009 estimated tax paid after 12/31/09 ... ... ...... Balance due paid With 2009 return .. . . .. . . . " . " .. Other (amended returns, installment payments. etc) ... ' ".
..
.. ....
-- _."
..
--
"
..
, , - --"'
......
--.-
240f130
Borrower: Kyb . . . . . . .
6105243253
To:Kelli
Schedule A
2010
Une5
Nome(s) ShOwn on Return
Kyle
1 State Income tax withheld . .... .. " ....... " ........ . . , . . . . . . . . ' - " , .. 2 2010 state estimated taxes paid in 2010 .... , . . . . . . . . . . ....... .. -, . .. - ... . ... " ... 3 2009 state estimated taxes paid in 2010 . , 4 Amount paid with 2009 state application for extension .. -, .. . " ... ., ..... , . ., 5 Amount paid with 2009 state income tax return ... , . , 6 Overp",yment on 2009 state income tax return "'Pphed to 2010 tax ...... 7 Other amounts paid in 2010 (amenoed relurns, installment payments, etc.) .,' ... " , . , . 8 State estimated laX from Schedule(s) K-l (Form 1041) ... ,
'
'.,
'
1 2 3 4 S S
7
-.
--,,'
-_.,-_.
--,,-
~'-
10
11 12 13 14 15 16
17
18
19 20
21 22
Local income taxes: ... , Local income tax withheld , . . . . . . . . . . , . . . . .... . . , . . . . . . . . . , .... ., ....... ,. , . ..... , . , ,. , 2010 local estimated taxes paid in 2010 .. , '. , ,. ,. 2009 focal estimated taxes pa.d in 2010 . ....... .... , .. Amount p;;lid With 2009 local application for extension .. ...... " . ..... Amount paid with 2009 local income tax return .. .- ....... ... ............... ., OVerpayment on 2009 local income tax return "'Pplied to 2010 tax" .... . '" Other amounts paid In 2010 (amended returns, installment payments, etc.) .. , Local estimated lax from SchedUle(s} K-l (Fonn 1041) ., ............... Other: st.ate mandatox:y taxas ." Total Add I.nes 1 through 17 . ........ ... .. ... .... .. .... .. .... State and lOCal refund allocated 10 2010 ... , . ...... , , . , .... ..... .. " ...... ,. ....... , " . ... ....... , .. Nondeductible state income tax from line 28. Total reducUons Add fines 19 and 20. ......... ......... , . , " ..... , .. Total stille and local income tax dcdudion Line 18 less line 21 . , ' . .....
9
10
12 13
14 15 16 17
.'
,.,,--
-"--,
611 '-. .. ,
18 19 - ... 20
21 22
3,562 .
~
o. ,.,o.
3,562 .
23 Nontaxable federal employee ""OSI of living allowance ...... .. ," " .... .. .... 24 Adjusted gross income ........ .... . ........ .. .... , . , . " .......... 25 Add lines 23 and 24 . . , . . . . . . . . . .. . . . . . . . . . . . ..... .. ........ 26 Nondeduc6ble percent. Line 23 divided by line 25 .... , .. .............. . . . . . . . . . . .. Zl Hawaii state Income tax included in line 18 ...... . ........ 28 Nondeductible Hawaii state income tax. Multiply line 26 by line 27 .. .- . . . . . , , .
"
23 24 25 26 27 28
-,,-
0/0
._.'"
25 of 130
Borrower: Kyle4
6105243253
To:Ke!!i
for your
rec<ll"ds.
2010
NarIx;IC!:) Shown on
Rerum
Kyle
Cash Contributions Summlll'y
(oj
(1))
50%
(0)
(d)
Total
3D"
limit
100%
LiMit (Seh,K.l)
lbnit.
2.50.
,-----'-'-..:::'._-'
Totals;
,--"
---"=---.:~
---"-::'-::'-.-.--
===2:,,!}O ~
iPortj[]
Non-c.sh ContributlonsSummory
1
(a) T"",.
~Fm.I""I" Property
limit
.....
(b)
..,.
(e) limit
..,.
(d)
(e)
Limit
Limit
""'"
10lals:
[Pirtlll
~--
Tota'
1 2010 conbibutiorui
,_
(b)
Limit
Umil
(0)
Capital G.aIn
"""porty
..,.
(d)
L!m~
..,.
(e)
LImH
(n 20% Limit
2. 201 0 contributjoo~
allowed 3 CanyoI/.", ",.,,, a 2000 tax year . b 200a tax year .
e 2f:jJ7 tal( yea r .
_ _ _,-,-0:
,.,
2!;O."
--....!!."-,--
,,--"--.
,,, _ _ 0_,
. ___ u~,
., .... ,........Q..=...
.. .-2.:..
o.
_ _ _ ,.. ,. O~.
_ _ _ _ O . _ _ _ fl.
----"-'..
--_
"~-'-'-_. '.-"==.,.
26 of 130
Borrower: Kyl . . . . . .
6105243253
To:Kelli
Fonn lD4D
Line 40
Nom.(s) Shown on Return Kyle
2010
US(!: thiS worksheet if (a) SOmeone can claim you, or your spouse it filing jointly, as a dependent; or (b) you or your spouse w.re born before .konuary 2, 1946, or were blind; 1 Enter the amount shown below fef your filing status. Single or married filing separately - $5,700 Married filing joinUy or Qualifying widow(er) - $11 ,400 ~ .. 1 5,100. Head Of household - $8,400 2 Can you be claimed as a dependent? No. Enter the amount from line 1 on line 4. and go to line 5. Skip line 3,
--1
W D
Yes. Go to line 3. as our earned income" more than $650? Yes. Add $300 to your earned mcome, Enter 1I1e total No. Enter $950 Enter 1I1e smaller ot line 1 or line 3. If born after January 1, 1946, and not blind. enter th,s amount on line 6. Otherwise, go to line 5 It born belore January 2. 1946, or blind. mulbply the number on Form 1040. line 39a, or on Form 1040A. line 23a by: $1,100 ($1,400 if single or head of household) .. . ............ . Add lines 4 and 5. Ertter the total here and on Form 1040. line 40; or Form 1040A. line 24 ........... . .............. '
4
5
6
5,700.
5,700.
1Iamed income includes wages, salaries, tips.. professional fees, and other compenSltion received for
pe(sonal services you pertOr'med_ It also includes any amount received as a scholarship that you mu.~t include in your Income. Generally, your earned income is the \o\al 01 the 'lInount(s) you reporled on Form 1040, hnes 7.12. and 18, mmus the amount, if any, on line 27; or on Form I040A, line 7.
27 of 130
6105243253
To:Kelli
2010
Social Security Number
Kyle
.,....
- ....
Taxpayer Spouse
~
Total
--,
1
...
---"
-,
0'-_-
, d One-half of self-employment tax . .... ., .. Subtract line 1d from line 1c .. 2 If not required to file Schedule SIE: .............. a Net farm profit or (loss) , b Net nonfarm profit or (loss) .............. c Add lines 2a and 2b ............. , .......... 3 If filing Schedule C or C-EZ as II statutory
..,- ...
"
"
.......
"
----
..
-.
..
.-..
~.--
of that Schedule Cor C-EZ ............... .. , Add lines le, 2c and 3. To EIC Wks, line 5 ..
--
..
...
..,'
... -
____
Net sel!-employment earnings Olne 4 aDove) .. , Wages, sala,ies, and tips less distributions from nonqualified or section 457 plans, etc .. _.. 7 Taxable employer-provided adoption benefits . 8 Add lines 5 through 7. To Fonn 2441, lines 19 ' ..... ........ . " , .. . and 20 ..... Taxable dependent care benefits ... , ... ..... 9" b Nontaxable comba! pay. . " ...... , ... 10 Add lines 8, 9a and 9b , To Form 2441, lines 4 , ........ .. _-_. ...... and 5 ... ,," . , " 11 Scholarship or fellOWShip income oot on W2 12 SE exempt earnings less nontaxable income ,. 13 Distributions from nonqualified/Sec. 457 plans. 14 Add lines 8, 9a and 11 througll13. 10 Standard Deduction Worksheel or Schedule L, line 3 .
5 6
""--
'-'
."..,
55,500.
-_.
',"",--"
5 5, 5.Q..Q\;:.~
..
-,,-,"~'
55,500.
-...- ....
-"
~
55,500_
"".",._.
..
!:>5,500.
_.
--"-.~
~.",,--"'-'~---
._-55,500.
5:',500_
16
17 18 19
20
21
Nel self-employment income or (loss) ..... Wages, salanes, tips, etc .... Net sell-employment loss Alimony received Nontaxable combat pay. , Foreign earned income exclUSIon .. , Keogh, SEP or SIMPLE deduction . Combine lines 15 through
- - - - 1 - - . -..-
- - - - -......' - -
----
22
M'_ ..'.....
~."
23 24 25 26
27
Self.emp loyed, church and statutory employees Wages. salaries, tips, etc __ .... ____ .. , , ... , .... Nontaxable oombat pay ........... " .. ____ .... __ Forergn earned income exclusion .... _... , ...... Combine lines 23 through 26. To Form 8812, lin e 4a and SChedule M. line 1a ... .......
"'
.......
55,500.
.
55,500.
28 of 130
......
- . ..,,-
-""'-
55,500_
-.-~-
---..- ....
---
-'-
55,500.
6105243253
To:Ke!!i
P ,19/27
2010
2009 State and Local Income Tax InformatiOll (See Tax Help)
--'~r-'-----.------r--'--
- -..,------,-~
(a)
Slale or
(b)
PaldWrth
-----
---~
_.'----
T~~I==E. ~..' ..
~- ====='1 2
;=:-
--===-L-.
2010
----..- - . - - . -..- - - - . -.. --------,---+-. ---_.1-----Filing status Number of exemptions for blind or over 65 (0 ' 4) Itemized deductions after limitation Check box if required 10 itemize deductions .. , . Adjusted gro~<; income. . . . . . . . Ta.liability for Form 2210 or Form 2210-1". Alternative minimum tax .. . . . . .. . .. . .... ...............
3
4
--,,-..-
-0-"-
---,~-
----LJ'3,265.
5
6
. - - . - - ' - -~~
_ _, _ .
7 8
Federal overpaY~~p-l_ie_d_t~_n_ext_y_e_a_r_e_s~_m_ate_d_la_x_._~:"--_~J.:======:J.======
Excess Contribution!'
__
2010
9a ____ ._ _ _ _ ._____ 9 a Taxpayer's excess Archer MSA contribulions a.. of 12/31 b Spouse's excess Archer MSA conlnbutions as of 12131 b ---1-'--'lOa Texpaye"s excess Coverdell ESA <:Dntrlbutions as of 12131 .. 10 .. _,, _____________ _ b Spouse's excess Coverdell ESA <:Dntributions as of 12131 b _,, ___ ,_ _ ,_ _.______ 11 a Taxpayer's excess HSA contribotions as of 12131 11 a _ _ "_______~____
------.--.-----.--.-.--.---..12 .. Short-term capital loss ..... 13a Long-term capital loss .... .....
b AMT Long-term capital loss ..... ............. b AMT Short-term capital loss
2009
2010
------- -------
b _. _ _ _ _ ._ _ ... _ _ .. _ _
-----------0> _ _ ,, _ _ _ . _
15 a
b
_-
16a _ _ _.______.______ b
d 2007 2006..
2005 ._.__"_,,,_____
f
c _ _ _ _ ,, __ ._ _ _ _ _ _ d _ , _ _ ,, _ _ 1 - - - - e _ _._ _ _ ____ _
f ~....l.:-::======::l::=======
29 of 130
Borrower :
Ky'e"I1 ~
6105243253
To:Ke!!i
2010
Fl
2010
Sinqle
,.. _ .._---+
.. '~'---4-------+---------1f--'--+--
56,S1!,,,1,405.
55,466.,
7,022. 17,336.
_-l-_ _ _ ~50 .
',1-----1---
-+---1-----24 60.L
' , , ..
3,650 ...
.1---...- - - - \ - - - --1--
3,665,"
"'1--
----1----
Payments _.
Form 2210 penally
AmQunt owed.
.. ....... 1 - - -
. . I -..----+--------jl-----+--- ,-+-----'&"-'.~
1--- . - - - - 1 _ _ _ --1----
5.89
-rax bracket %
....
FOl'f9201
11109na
30 of 130
6105243253
To:Kelli
2010
5
"1llng 5talt.lS
Nl.D"Tlber of exemptions .....
_1.
Gross In""",e
Wag... and salaries .
Interest and dividend income
Business income (loss) .. Capital gains (10SS<'.s) .... Pensions and annuities , .. Rems, royalties, partnerships, etc. Farm incom0 (loss) ..
Social security ooneflts ..
1,325.,
56,871.
__-=1::,4"-,0,,,,5-,-_ .
.... (Last year's AGI)
55,466.
Itemized/Standard Deductions
Medical and dent.1 ... Taxes ..
Interest ..... Contributions . Q,$ualty or the:tt Ic:::ss(es) ...... " ..
T"".blolncome
Income lax
Alternative minimum tax , Totli; Tues MforA C~i"'g Nonbusiness credits SusinlSSG credits ..
...27,208_.
_ _-,3,,-, .665
Total Ta........
Withholding .. Es~maled lax payments ......... . Olh.r payments , ToIlIl Pooymento . EstirMled tax penally.... . ........ .
Refund applied to next year's estimated tax ...... .
9,144.
Refund
Amount Applied to E _ _ Amount Due
_---'5"-', 679 .
Borrower: Kyl!!lC. . . . . ..
6105243253
To:Kelli
KYI~
SMARr WORKSHEET FOR: Form 1040: Individual Tax Return
3
4 5
6 7
B C
D
. . . . . :
--,,---
::~
E
F
G
J. or income taxes
Income from Form 1040. lIne 38, ..... .. ....... , . ... . . . . . . . . ...... , 55, 46 11.::.. Nontaxable income entered elsewhere on return ..... " .. .. .... .. .. .... .. C Available income: 2009 refundable credits in exceS$ of tax , , O. -' D Economic recovelY Ilaymems .... . , " ... .... " " ... _-- .. " .......... . ... O. E Enter any additional nontaxable income ...... , ........ , . . . . . . . . . . , , "._-, F Tolal available income for sales taxes .. , ...... . .... . .... 55,466 . G Sales tax table information: Enter total (combined) state and local sales tax rate in column (d) lor each slate listed in column (a), If Jl;l, CA, CO, LA, NJ, NY, or SC in column (a): QulckZoom to Mise Global Options to enter default locality, ........ ... ~ or Double-clIck in column (d) to select your locality for each state entered .
"
--_ ..
--
..
(a)
ST
'"
"
,,---
(b)
Lived in State From
(c)
Lived In State
(d) Enter
Total
(e)
State Tax Rate ('Yo)
(f)
Local Tax Rate ('Yo)
c;,
--
8.2500
-'
,,,,'-
0.0000
..
768.
-- -,,--H I
J
0"
788,_
..
..
'
Total general sales taxes lrom table ,,,., ... , .. , . ........ " 780 . .. Enter additions to table amount (molor vehIcle, boat) .. , " , ... .. -'" Total sales ta.es from table plus additions to table amounl. .. ... ....... - , Enter actual sales taxes paid (in lieu of table amount) " .. - .. , .. " -. --. .. - - ' Total income taxes paid ., ..... " ' ..... .. " .. . . . -- . " .... - _ .. '" , . ..... ..
--
..
78a .
3,562 .
"
32 of 130
6105243253
. KyIIlllS_gllEiP:r
.....
Intere,"!
To:Ke!!i
a description and an amount for fully deductible mortgage interest and POints. Check the box if the mortgage was sold to another lender. <)r the mortgage tlas been paid off; the lender's name will not transfer 10 next year's retum. Check the box if the mortgage interest andlor points are not reported on Form 1098. No"', When the POints must be deducted over the life of the loan, enter this information <)n the Other Points Smart Worksheet.
~nder'S NameJDescription
..
,.
~"inance
Deductible
Fully
~UGtible
Paid
M",!gage
00
PolOts
-'~,
.. ,
... . ..
"
~~.t.?':,!9J:nia
Hous;nq
,,-
Agency
17[336.
...
,..
-,.
..
... '"'...
,.
_.__he.
,.,.
..
.,
.~ 1.7.,..... .__1_T_o_t_al_h_o_m_e_m_o_rt_9a_g_e_'_n_,e_,e_st_a_n_d_p_o_1n_ts_lro_m_l_O_98~'_S_fr_o_m_d_e,_ta_i_"_._ _ _ _... ,. , ___ ..,',.:~~.36. 2 Enter amount to deduct on line 10 if different. .............
A Adjust Home mortgage interest and points ",ported on Fonn 1098: ...
r;;;;
---,---.--------.~
._---+
Type
Amount
Miscell?neouS
------------------_...._- - -..
---_.---C Print tash contribution detail with filing copy?
---.----
..- - - - - - - -
.0
Yes
33 of 130
6105.243253
To:Kelli
r
Generallnlormation Smart Worksbeet
A
B
C
e:
Enter the new principal place of work for this move .. California to.,PeIlnsylyania If you are NOT in the military. enter the total amount your employer paid for your move (EnterOHlY if your Form W-2 ~(les not show an amount m Box 12 with code P) . _, .. ..,.."._ _ Enter the number of mIles from your g/d home to your new workplace ... _ ..' 3, 000'rn1"" Enter the number of miles from your aid home to your <lid workplace. 15 miles Subtract line D from line C. If zero or less. enter -D ---..bm mn..
You do not meet this test. You cannot deduct your moving expenses. Do Not complete Fonn 3903. For foreign moves check here only if all the follOWing apply. . . . You moved in an eartier year You are clalmmg only storage fees while you are ....f1'j from tho United States Any amount your employer paId for storage fees is included as wages i~ box 1 of Form W2
"0
_ _-,5,"-,,,0.
."---.. ,
6105243253
To:Kelli
P.25/27
KYle_ SMART WORKSHEET FOR: Form l099G Worksheet (California State Refund) ... .. . .. !'onn 1099-G Electronic Filing Infonn;dion Smart Worksheet
~
'
'''-
Complete onIy if filing electronically -See Tax Help for additional info.
Payer 1
II CORREC1ED check here
Recipient 1
..
0
.. -'
Payer Infonnatioo:
State Identification Number.
68- 0204061 Name, street address, city, state, ZIP code and
telepnone number.
---
Kyle
..9402
City
Br~ant.
Street addre:;;S
~
.--"
Ridge
...
"
Apartment No.
-_........ - - .
stat."
ot,,"'=""-__ _
", ...,.,'
..'
Sen~inel
Slate
Norristown
Accoun! No.
."
(optiona~
pI.
T Ellophone number
----. ,._--'-
'"
..
Recipient 2
.,
...
~.
Payer 2
It CORRECTED check here, '
"0 ..
'"
.
-", ..
-.',,-
Payer Inlonnation:
State Identification Number _. _..
Federalldenbt,~tion
---'" Number ... -"' Name, street address. city, state, ZIP code and telephone number.
0 '
...._.. ..
- -..
City
..".
..
."
..
Apal1m.n! No.
,.-
Street address
,.
,"'
State
Zip code
-",-
"
Telephone numbet
Ext.:
----".-.
-,-
..
,.~---
..
...
Recipient 3
..
..
~."
Payer 3
If CORRECTED check ~re .. .. ,
..,,... ,
..
'"LJ ..
Recipient Inlonn.... on:
....
-'"'
'".
.'-""~
Identification Number
Nama
-,,_.
Street address
--..
ApaI1ment No.
.-.-"
.. -,"
"
---..
.,,--
City
State
-,--
Zip code
--_..
""---
-----,--l'elephone number
-Ext:
--
Borrower: Kyl. . . . . .
6105243253
To:Kelli
P.26/27
Form
8879
~
2010
--------
I<:yle
. . . . . ._ _ _ _.
Sp~sna~
1 AdjuSled gross income (Form 1040, I,ne 38: Form 1040A, I,ne 22: rorm lO40EZ, line 4)
2 Total tax (Form 1040, tine 60; Form l040A, line 37) Form l040EZ, Bne 11) .
3 Federal income tax withheld (Form 1040, line S1~ Form 1040A, line 38; Form lD40EZ, tine f)
4 Relund (form 1040, lin.74o; Form 1OWA. lin.4\\>; Form 1040E4 1".12<; Form 104I).SS, Part I, 1".12.) .
I
for the taJ< year ..ding from my .I",tronic 110m tto IRS (a) (dille ,1,"",(,.,,;,; refund, If applicable. accoullt indICated in the 10 l~i..OtQunl I (B'fPS). In order fur and eft",t until I
1)f ta.xes ro recei\le confidential (PIN) bolow is my signallJre for my
late.r tl!!m 2
T~.
~I
authorll.e
J,....ndividual Tax
i'iioalm DIIMIr
or generate my PIN
31532
I will enter my PIN as my signature on my tax ~ar 2)10 efectronicaUy filed income tax return. Check this. box only own PIN and your return is filed using ttle Practitioner PIN method. The ERO mustcomp!ete Part III below.
Your signall.lrfl
..
oI authorize
I WIll enter my PIN as my signature on my tax year 2010 elec;trcnlc~lIy tiled income tax return. Cho(;:~ this box only if you Bre entering your is filed using tne Practitioner PIN method. The ERO must complete Pert III belOw.
continue below
~_===::::::::::::::::::::=-
__ .-.,"--_::::::::-=-. __
taxpayer(s) Indicated abOve. j ~onftrm that I am submlttlnglhl$ return In accordance With tho requirements of the Ptacttnoner PIN method and PubJlcatlon , 345, Handbook for Authoriloo IRS efiJe ProVIders of Individual Income Tax Returns.
I~
olec1r~jcally
filed income
.~
""",'" 03/03/11
ERO iIIlJ$t Remin This Fonn - Soo ....lrucIions Do Not S"bm~ ThIs form to 1he IRS Unlo$$ R"""""tod To 00 So
BAA For PapeIWOrk Reduction Aclllotic:e, .... your tax roIum instructions.
FDlAl701
1109/10
36 of 130
5105243253
To:Kelli
P.27/27
2010
Plaasa Indicate how the taxp"yer(s) PINts) .re entered into the program. T""Payer(s) entered PIN(s) .......... . ERO enterea Pnmary Taxpayer's PIN .. . ERC entered Secondary Taxpayer's PIN. ERG entemd Prim~r Ta.x>a 1> PIN and Seconda 'sPIN.
ERO Slgnatu",
by any 5 numbers)
.. EFIN
S.II.soleot PIN
C - Signatu", of rllXpayerlSpouse
Perjury Statement:
- - - - - - - - - - - -................_ - - - - - - - - - - - - - - - -
Under penalties 01 perlury, I dedare that I ha'Ve examined 1his return, includtng any accompanYing statements and schedules and, to 1he best of
my knowledge and belief, it IS true, correct, and complete. Consent to Disclosure:
I consent to <::IlIow my Intermediato Service Provider, transmitter. or ElectroniC Return Originator (ERO) t() send my rerurn to I~S and to receive the following information from fRS~ (1) acknowledgement of receipt or reason for rei~on of transmission; (2) refund offset; (3) reason for any delay in processing or refun~: and, (4) date of any refund_
10m signing this TO)( Return ond Electronic FW1ds WllhdYowol Consent, if appliC<lble, by entering my Self-s.t.... PIN below
Taxpayer'$ PIN (enter any 5 numbers) _. _.
Date
If you're filing a joint retum:
Spouse's. PIN (enter any 5 numbers)
. 02/24/2011
---
, .... .. .. CompletIon of thIS ~clJQn Indicates that I am requesting a refund of taxes cverp:rnd by or on bah:al1 o1lha decedent. Under penalties of perjury, I declare 1hat! have examined this Form 1310 claim, and to the oost'Of my knowledge and belief, it is true, correct. and complete,
- - - - - - - - - - - -..
__._ -
I~'~~---------------~'
........-~.-
FDIW1501
11116110
37 of 130
Borrower: Kyle . . . . . .
6105243253
To:Kelli
Form
Departm~)\t
ot til;!
1040
on pg 14.) Usa the
~@09
,2009, endil19
!'ill"
L Label A (Se::e::im:;l
IRSlab.l.
, '0
B E L
H
KYLE
lili
E R
E
want $3 to X Single Married
Filing status 1
2
Check only
onebo)(.
""" p.'''," is" I:lhH<;j but nol your de~erldent, .!nler thiS
;, Yourself. I
Exemptions
Ifmoro
tMnfour
d&pendents,
... pag.17
Nil,otchildrell
Last name
numbel
.dldl\Oth~$WltI1 YIJ
dUato dlVlHce
~r~~e:~~t~oa~
__
an<leheeb
here ...
Income
Sa Taxable In1erest.
56 92B.
b Tax~exemptinterest.Do"
Attach Fonn(s)
W2 her. Also attach Form5
W~ZGand
LI=.lI-,-,-______ ....
Taxable refunds, credits l or offsetsofstate and local income tixes (see pase 23) _ Alimony received 6y$lneGs income or(loss}. Attach Schedule C or C- EZ . .. ) Attach SchedlAleD i1 ro1!qLlired Capital gam or (10$$ 'Ir nl)lll!lqtJil'l!Id. checK here.
11 12 13
gotaW-2,
see page 22.
i~~~r
,:~:w,
'~"": ;.,;;:;:,:z;
16. 18
enclos&, but do
not attach. any payment.Also. pleaseu$e
Fonn 1040~ V.
ftM.if;~~i~A'~tt' ..i$L~~;~"F # .~. i;%V '~~~~:~~WW;> . E:i:' Farm Inome:<.;ni'\'~7_ a""11"-il:I,~~~e. :'::""'". :::",,,,,. . .... :~ilt'~:t'~' 0'''' Unamploymentcompensatlon [n excessof$2,400 perrecipiel1t . _ _ . . . . . 1~ .~ b Taxable amt(see page 27} . 20. Social5ecurlty benefits 21 Other income. usttypeand amount (see page 29) __ ~_~ ., ____________________ _
P~nsionsand~uitie$,;#H,f: '16a
~S'?:
~_'" ,1'-'
t1!hz~"
~%~,
1~1---'--'"---
Adjusted Gross
23
24
Income
25
26 27 28 29
SEP, SIf',tlPLI;, and qualified plans Self-employed health insuraneedli!duction (see page 30) 30 Penalty on earlywithdrnwaiofsavings 31a Alimony paid b Recipienf$SSN ~ 32 IRAdeduction {~e page 31} 33 S\udentloon inter&st deQuQticn ($So page 34) 34 Tuition and fees ded uctlon , Attach Form 8917 35 Domestio produotlon aetivitiesdeduction. Attach Form 6S0:3 36 Add lines 23lhrQugh 31 a. and 32 through 35 Form 1040 (2009)
KBA For Di5c:::!o5ure. Privacy Ad, and Paperwork ReducticnActNotice, see page 91.
CaIHF.IIO~~22472-3
'Form 0
wae-C-oP\'rrgli!HI9S.20101~R.BT;!Gf04j),I!lc:
FD10401V 1.25
38 of 130
Borrower: Kyl . . . . . . .
6105243253
To:Kelli
Tax and
:'8:
Credits
Standard
3S. Check
{8 YouWer~bornbeforeJanuarY2.1945,
_ ,
Deduction for~ Itemized deductions (from Schedule A) or your standard dedudlQn ($~e J~tt margin) . People who ~ check any b Ifyol,J are increasing your~;andard dedUf;ltion by certain real estate taxes, ne\l\f motor
150
40b orwho
claimed asa
p.~.35.
All others:
Sil'l~!eof
dependent,
.... Subtract line 40. from lin" 38 . 42 Exemptions.lfline3S Is$125,100orlessand you did not provide h~using to a Midwestern displaced individual, multiply $3,650 by the number on line 6d. Otherwise. see page 37 . 43 Taxable Income, 44 Tax (see page 37).
vehicfetaxe5. ora net disaster loss, attaoh Schedulel and check here (see page 35)
41
5ep~r:!.tely,
Married lilin9
45 46
'is.700
jaintlyar
MSrrled tilln!J
Qu:alifying
widow(er), $11,400
Heild of
50
5\ 52
S3
hOl,lJ;.qhold, 56,350
Credilforohlld and depend_nteareexpenses. Attach Form 2441 Education credits from form e663. line 29 . Retirement savingsCQratributionserediLAttaoh Form S880 . Child tax credit (... page 42) . . . " . . . " . . Credits kom FOJll1: 08396 b 08839 c ~ 5695 Oth!;!"raredlt& a 03800 /rQm Fgrm.
bOaa01 cO
other
56
57 68
Taxes
1-'-'--+--_._-'''--
Payments
If you nave.
qualifying
61 tiZ
Federal inco me tax withheld from Forms W 2 and 1099 20098stimated tax payments and amount applied from 2008 return Making work pay and govemmentretiree credits. Attaoh Sch M . Earned income credit (EIC)
ehlld,attach
Schedule EIC.
.9
Refund
68
70
72 If Una 71 is more than line 60, subtract line 00 from I Amount afUne 72you wantrefundedto you. If Form Routing number ...
Account number
IKI
ill
. ..
; . '..
~~~~I~~
"".
FD1040-2V1.25
39 of 130
Borrower: Kyle
6105243253
To:Kelli
Itemized Deductions
.... Attach to Form 1040. .... See Instruction5 for Schedule A (Form 1(40).
~@Og
Caution. 00 not include expenses reimbursed or paid by others. Medical and dental expenses (seepageA.. 1) ________________ _
3 Multiplyline2by7.S% (.075) I I
Taxes You
Paid
(See
5 8
pageA2.)
8 6
11
p.goAa.)
Note.
Personal interest is
not
deductible,
12 13 Qualified mortgGtge Insurance premiums (see page A~ 7) 14 Investrnentinterest. Attach Forh'l4952 ifrequired. (See pageA-S,) 18 Gifts by co,hOr oheok.llyou made any glftol$250 or
Gifts to Charity
If you madea giftandgQta benefit for it,
see page A 8.
Casualty and
Theft Losses
19 Add
Job Expenses 21
and Certain
Miscellaneous
Deductions
(See
p'geA.10.)
24 Add Iin.,21through23
25
Total
Itemi%e~
No.
YOl.lrQedLiotlonisnotljmited.Addthe~mount$inthefarrlghtcolumn
Deductions
DYes. Your deduction may be limit~d. See pageA-11 forthe amount to enter
C:all~F~~;;~~~~~R:'~d~U:ct~io~n:A~c~t~~~~~~~~~~~~I~~~~~~~~~~~~~~~~s~c~hedUleA(FOrm1040~)i20.019 ~
2010 14Rij Tl:I~ G!o.:rp~i";.' 1.9
40 of 130
Borrower: Kyl..
....
it
6105243253
To:Kelli
P.4/15
Form
2106 EZ
Your
expenses
(or your business. An expense does not have to be required to be considered necessary.
You do notgetreiml:tursed byyouremp!oyerfQraoyexpenses (amQuntsyouremployerincluded in box 1 ofyolJr Form W- 2ar6 not considered reimbursements fQrthis purpose),
Ifyou are cl~imin9vehlcla expense. you
CaU1iQn:You can use the standard mileage you plil!leed the vehicle in service, or (b)
,. ".r,d.rd mileage rate forthe first year 00111011 oTm.lease period after 1997.
....
. ..
Vehicle ex:pense using the sandard mileage rate. Complete Part II and multiply line Sa by SSt (.55) Parking rees. toils, and transportation. including tra.in, bus, etc., that did not involv!!! overnight travel or commuting to and from work.
,~~~.~~~~ J~~~.;\ ;,:)~~ &Ji <;~:;... :f.W>t Travel e>:pense while away from homeover9jWt, tnclut!~ I~m~, alPnEt~rrental.~l.19, i~~~" """.l O<O<~ .~!;l!_ ~'!l:i ' """ :<?':~,,&,~ onQtinclude meals and entertalnment :;1jW ffi!.~ .",*,%. ~~~\''''';:''' ~:);:'* . . ~~~ :;:~~. ~, ,.;t<oO ' <'"'' ~~ "'" ~j , dJW t$ '~J~~~f ,,,i><;~ '1't1l!:!" "~,, """" '~"?!-~; ~""'~"':5: ....", 6L1Slnes$expenses not included on nnes 1 th1'C;jJg&~1Jo nb'tlnclud"~l!al ;Rftainffient
s.~
O'lL
1()0_,.
2
,....,~
.., "
. <AAl
;~i;r,
;~~
-><"'''''
*r
3
.~.,
:395. 1,600.
4
5
50% (.50). (Employees subjeetto ............ X DepartmentofTransPQl'ti!Itlol'I: (DOT) hoursofservle limits: Multiply meal expenses ineurred
Mealsand ent@rtainmentexpenses: $
while away from hOMe Oil business by 60% (.SO) instead of50%.
Fordet~II$,
$1)0 instructions.) .
.M _ _ _
Total c:!t:penses. Add lines 1 through S. El'Iterhere and on Schedule A (Form 1040},line 21 (oron $(:h~dula A (Fonn 1040!if:W!m:!)' {A~m9.!l!esre$ervl~~e- bae'3tat~tlt@~~. .m~M~*J~~ local govemmentofticials, qUalifi(i;e~form&9 a~dlVldual!l.~.isaijUe~$ee ':'I:~j!~.'"""""]ff''''''''
Rml
7 S
Infonnation on
YO.?\llt~gg:~~~f~
,!od' S .. Ji" ..;tr~~. . ,.~~ :3 166. ;~;<:~~ '~;.if:m::r ~1~. ~:~~: . $~if. thjs Ilf@ oqllll:~f 'm~!dl):~'!lra",$l1lg vehicle expense on line 1 . .. ... ........-. --
~>;-.
,,'~i<i.~.i:1:i!~
:.-:e~
\MIen did you place yourvehicl. in service for busn ... u.. ? (month, day, year) ..
Q2!..9J.L?gg~
Of the total number of miles you drove your vehicle during 2009, entorthe number of miles you used yourvehiele for: 6uoloo.. .'l-..L~ 5 0_ _____ b Commuting (... Instructions)
other
.!..J._!?_________ _
~Yes
9
10
ONo
~No
Oy
~Yes
If''Yes,'' isthe !!tvidence written'? .
11.
b
ONo
ONo
~Yes
KBA
Fo rm 2106 EZ (2000)
CaIHF"1l!ij!hfj!"""'472-~
FD2106EZ 1V1.ll
41 of 130
Borrower: Kyle !
6105243253
To:Kelli
Form
5695
Before
1
Begin Part I: Figure the amount of any credit for the elderly or the disabled you are claiming.
Were the qualified energyeffiolency improvementso( resldential energy property costs for your main home loca!ed in the United States? (see instructions) .
C.ution: If ou checked the "No" oox au c"'Mf6m1~ th.l\lM~f ss y y !.~~\l '*'~".., 'h~!~ ~:r~ 3'W~y I" :~~[~, li1l1>:r.<tiI;;';; '~E~ ~itf
p
. '>:<j~..s:;;:..:,
.~;~~~~~
".""",'IZ'/!!'ll.
=~~.1~<, ~W..t:...
J~~~~'
:;!'~1:= 2 Qualitiod enernyeffioiency Improvements Eile instr.uafO~~:h. ..;#i~ ,1m 1;1 @~"''',,.,> "~>:>'-'''"''"!"''::tw
~~'
Mf
$~i
~:~lf
Ajf i~m~d::>o~w
~i*,~~ m~'~:-:-I$,~~:~t
\~~t"j:(
:~~1~
,~m~
':~:~
02~
d Metal roofwith appl"Qpri:ata pigmented coatings, or asphalt roofwith appropr1:;1te oooling granulos, that are specifically and primarily designed to reduce the heat gain of your home, ~nd the roofmeetsorexceedsthe Energy Star program
requin~ments in effect at the tim@ofpurchaseorinstallation
5
6
8
9
1Q
property cred~
KSA For Paperwork Reduction Act Notice, see instructions.
CaIHF"iI/j.....!l)22472_'
F06695-1Vl.7
42 of 130
Borrower: Ky1etl
6105243253
To:Kelli
KYLE
P"g" 2
Residential Energy Efficient Property Credit (See instruGtions before completing this part.) Note. Skip lines 12 through 21 if
12 Qualified solareleetric propertytosts
15 Qualified gsothermal heatpump property costs 1. Add line. 12through 15 17 Multiplyline16by30%(.30) 1S Qualified fuel cell propertycosts
1& Mulliply 11M 18 by 30% (.30)
21 Enterthesmallerofline 190rline20 22 CreditcanyfolirVi')rd from 2008. Entertht! amount, ifany, from Y0l,Jr2008 Form 5695, litle 29
11'1 Pub. 972 (see instJl.lctions); Form 8396, line 11; Form a839, line 18: Form S859, line: 11; Form 8834, line 22; Form 8910, line 21; Form a9:36, line14;and Schedule R, line 24.
27 Residential energy efficient property credit, Enterthe smaller of line 23 Of line 26 . 29 Credit oanyro"."ard to 201 O. IfUne 27 is less than line 23, subtract line
I
29
308.
Form 5695 (2009)
CaIHFA&96#ij\f!02'472-'
FD56S5.2V 1.7
43 of 130
6105243253
To:Kell;
SCHEDULE M
(Form 1n40A or 1040)
~@09
":;':~:.:~ See the instructionslfYQu can beclaimed as.someone else'sdependent or are filing Form 1040NR.
~errormed while an inmate In a penal institution.
Cheek the "No" box below and seethe instructions If (a) you have a net loss frorn a business, (b) you received a taxable schoJafShip orf@!lowshipgrantnotreportedon a Form W-2. (c) yourwagesincltlde pay forwark
(d) yQU r~eeived a pension or~nnuityfrom a nonqualified
deferred compensation plan ora nongovermental section 457 plan, or (e) youare filing Form 2555 or2555- EZ.
Do you (and your spouse Jffili~9 joinlly) have
1ilinS jointly)?
o
b
[Z]
Yes. Skiplin~1~through
No.
4
5
6
7 lstheamounton line 5morethan tile amount on line 6?
o
B
IZ.I
No.
Multiplyline7by2%(.02).
10
Enter .a.onlln.l0andgotolln.11.
Enterthetotalofth@paymentsreeeived byyou (and yourspouS8, if filing
jointly). Do not enter more than $250 ($600 If married filing jointly)
11
o~:~. ;n~e;~~~:;~~:~~,~:~:~~~~~i~~:n~~ilf~::if'rl
and the answer on line 11 is ''Yes'' f~liPth sPQusemw
12 13 Add lines 10 and 11 . Subtract line 12 from line 9.lfzero otlass, enter 0-
Did you (oryourspol,Ise, iffilingjolnUy) receive a pension or annuity in 2009forservicesperformed Elsan employee ?fthe U.S. Gover~ment ora~y U.S. state or local g~~Jtmm:~aLtroVf~~~~ot cove.tel:.p~$f'R&1 security? Do not Include any penSlon or annuity reported on Form ~~~:;,.".oo .... ~ :~~ ~t~~:~ ~1o~ol<.:-><~",.>.,
~~
" . ,. iW
p@i
J:~'
'"
gjOintil~~~1,mg1
.w......
t!W=~~,,,,,
1ig~~ ~ml
.
If you checked "YCls"on line 10, entet~ 0- (exception: enter $250 I(tlling jointly and the spouse who received the pen!ilion or annuity did notreeeiv~ an economic recovery payment described on line 10)
14
Makihg work pay and government retiree credlts.Add lines 11 and 13. Enterthe result here and on Form 1040, line 63; Form 1040A.line 40; or Form 1O4ONR, line SO
KBA
If you are filing Form 2555 2555- EZ. or 45630ryo~ art! excluding income fro ttl P'uerto Rico, see instructions. ForPaperwork Reduction Act Notice, see Form 1040A,1040, or 104ltNRinstr...ctions. Schedule MiForm 1040A or 1MG) 2009
CaIHFAQM)~U2-.~
FDM1V1.0
44of130
Borrower: Kyle . . . . ._
6105243253
To:Ke!!i
P.B/15
FORM
540
09
C1 Side 1
P
AC
---~. KYLE
5020 A STREET SACRAMENTO 01 06
09
10
1
RP CA
95819
l\.PE
o o o o
o o
12
14 16
56928
900 56949 23079 1185
72 73 74 75 76 77
78
FS
o o o
1325
3800 3803
o o
17 18 31 34
41
91 92
93 94 95
1325
o o o o o
42 43 44 45
46 61
62
63 64
o o o o o o o o
1087
400
71
2412
'''OT
Sign Here
It
i~
I,Inl:.wfullo
rorgo!! a
:;pouse'!.1 RDP's
Firm's n;!lme [or your.:, if 51:11 o:!IYlplOYlld) Firm',," ~dd rll5S
~~9~5~8~1~6~_____
{~4/l11
wlt~
1.19
pilEi=: 17)7
PREPAAER
Prinl Third Party Dosignetl'S name
( 91 6 ) 447 -1 "'02"-'1=--_____
Telephone. Number
046
CalHFA Loan# 0224723
3101096
45 of 130 Borrower: Kyle Alan Bryant
6105243253
To:Kelli
YQurSSNorlTI~
F S
I T
I T , A
:
3
4
NU
G S
~ ~:~::d/RDP nnng
Married/RDP
If
x
T
I
N
E
M
"
0
S
status i dltrel"l!!!ntfrom ourfederal filin ~atus check the box here 6 Ifsomeon@canclaim oU or Gur ouse/RDP asade endent check the box here see iii! e7 7 P&rsonal: If you checked 1,3, or4above. enter 111'\ th@!bo)(.lfyouchecke<l :2 or5, illnt!!r2 in th~ bo)(. If you checked the pO}( on line 6, see p-.,ge 7 ........ . .. . . . .. . . . . .. . . . . .. . . ,7 8 Blind: (fyou (oryourspouse/RDp) arevisuaUy impaired, enter 1; ifbatf1 arevisualiyimpaired, enter2 B S Senior: If you (oryourspou.eIRDP) 0 9
6
Whole dollars only
X $98=$ _ _ _ _-"-9::.8-'-,
X $98=$ _ _ _ __
X $98=$, _ _ _ _ __
r
A
, "
8
0 M
12 13 14 15 16 17 18
. 12
Enlerfederaladjusted gros.inC<:lmefrom Form 1040, line 37; Fonm 1040A, lin. 21; Form l040EZ,line 4 ,
California adJustments- subtraotlolis. Enterthe amount from SOMduie CA (540), line 37, oolumn B. Subtract line 14from line 13.lflessthan zero, eliterthe r@sultinparentheses(seE!page9) ............. California adjustrnents- additions, Enterthe amauntfrom Schedule CA (540), line 37, column C .
. ...... 14
15 ' , ..... ' . 16 . .......
. ............... 17
3Z
33 Subtractiine 32 from line 31. Ifbos5thal 34 Tax. (see pag.l1) Check box iffrom:
35 Add line 33 and line 34 . . . . . ........... .
41 New jobs credit. arnountgenerated (see page 11) . .
33 _ _-=loL'.:=.O.:=.8..:.7-=-,
@34
35
. 41 42
smoun~
1, 087 ,
s c
C 0
I I
p E "
42 43 44 45
Code
.............. 43
Code _ _ _ amount Credit To 121m morethan two oredits{see page 11) ........ .
........ 44
A T , s
46
47
I
47 _ _--::---,:-=_
o T
61
~~
~~
. ........ 63
04 o 71
o 72
.2,412.
n
P A
M E N
73 Real estate and other withholding (see page 13) , ................ ,' 73 ", .... ,74 _ _ _ _ __ 74 Exc SDI(orVPDI)wlthheld(se.pageI3) " ............ , Child and (lependent Car. Expen Credit (S.~illi!!l!9JlAI1!!Oh f<iJ:SB 3506*'i"'it"1~ . . , . f<~'1"''''''''''l':,' .3:$1 ffi!r <~~li~ .. r;<;,,><~, 15 Qualifying person 550(:laI Sflc urlty number .. i~:" ... , , 'i~W' H~~l' ..... ~:~~, 7S _ _ _ _ _ _ __
76 Qualifyin9 person's social security number
.~~P.ii@if.i{1~~"2~~~* --.-.-.-.-.-.-.-.-.-.-.-.-. . .
, ...... . ........ .
.....j~~,~!~tft ________
o 78
7&
79 Add line 71 , line 72, line 73, line 74. iilnd 11M 78.lhese are YQurtotal payments (see p~ge 14} ....
~
T
?J12_
1,325. 1,325.
91 Overpaidtax.lfline791$morethanline64,subtraclline64fffJmline79 ...
91
&2
'0
R~ ~
92 Amountofline91 you want applied to your2.010 estimated tax ...... , ~ XJD 93 OverpaId tax available this year. Subtract line 9Zfrom line 91 . I U o E 94 Taxdue. Irline 791:slessthan line 64, subtract line 79 from liM 64
, '
93 94
0:
USE. TAX95
... " .. 85
046
3102096
46 of 130 Borrower: Kyle
".IIIIII1111&1It
6105243253
YourSSNorlTIN:
To:Ke!!;
c
T
I
N
R
B
California Seniors Special Fund. (see page 2Z) . Alzheimer's Djsease/Relat~d Disorders Fund California FundforSeniorCitizens ............ , ... __ .. "" .... " Rate and Endangered Speeil!!sPreservation Program State Children'sTtust Fund forthe Prevention of Child Abuse
t1.~
.402 .403
.404 .405
California Breast Cancer Researeh Fund .. . CalifQmla Firefighters' Memortal Fund ... , ....... _........ ' ... " ......... .
Emergency Food For Famille. Fund .... , , ... .
_406
.407 .408 .409 .410
ALSfLou Gehrig's Disease Research Fund ....... , ... __ ... " .. , '
AY 0
TUE
MOW
110 Add CQQE! 400thraugh cod~ 414. This is your total contribution 111 AMOUNT YOU OWE. Add line 94, lio095, and line 110 (..ep.ge15).M.ilto FRANCHISE TAX BOARD, PO BOX942867 , SACRAMENTO CA 942670009 .
'110
1 1
O.
111
,
O.
112
112 Interest, late retum penalties, emd late payment~nalties , .. ," __ 113 Underpaymentofestimatedt. CheckboX: U FTB580Sattached
1
FTB580SFa~ache~.::.:::..
to:
113
R E F
N 0
AP
"
E
Dr T
R
E
115 1 ( 3? 5. FRANCHISE TAXBOARD,PO : not attach a voided enQckora depositsHp (see pa.ge 16). Fill In the information to aul:holrjzo: dil.~I:d Have you verified the roultln'9 arId ,'CC'O< All orthefollowin,g amountofmy refund (line 115) Issuthorized fordireet clapositinto the account ShoWn below: cneoking Savings R.outing number _ Type , Accountnumber .116 Direct deposit amount
The remaining arl'lOunt afmy refUnd (line 115) is authorized fordirect depQsRinto the aocountshowl'l bolow:
!f
Routing numb~r
046
CalHFA Loan# 0224723
3103096
47 of 130
.1
6105243253
To:Kelli
P .1l/15
TAXABLE YEAR
SCHEDULE
2009
California
- Residents
CA
C 7 8
9
Additions
See i!l""tructiQ"~
wages, salaries, tips, etc. See instructicnsbefore makiflg an entry in column Bore
Taxable interest.
Ordinarydividend$.
. ........... , ....... .
S~&instruction5.
10
11
12 13
14
Busines$ll'lcm~or(loss)........
"
,':'l.
'I~~)
' , ' :, .,
. Othergatnsor(losses). _. _.... ,
IRAdistrlbutions. Se. instruotions,
........ ~",,*,0 . . . .
~1~~ifir;~
..
".;!:f;!!:f ?!;~%:(
Ii,);.,;,. m$~
'~~~~~~m:~,~
..:'i-.~iW""
"~~'S:IZ~>Y: ..
15 16
17 18
1$
Rental real e~atet royalties, partnerships, S corporations. trusts, etc. . Farminco,"eor(loss)., ... " " " " "
Unemploymentoompensation in exce5S of$2,400 per recipient
--------t-------+-----........ 19 --------t-------17 18
to 21
OtherineQma. .,,4\1~~~1t~~:, J~t a California lottery winnings . -.-., ~~ ~ . W . "']-,- . ~ ~w b Disaster loss carryover from FTB 3S05V ,~ili3806, 3~f:Qt.!eOit &! ~~f '!l'Oth L4iJ~rJI)' 'i!!!j$( ,~~i: c FederaINOL(Forml040,line21)
d NOLcarryoverfrom FTB3805V
20lb)
:-_=:-_-1.______
_:~~~t
'~~~~
21
~$~~
..:m*'"----
22
Total. Combine line 7through line 21 in columnA. Add line 7through 11M 21fin
column Bend colutnn C. Go to Section B
23
Educatorexpenses.
24
25
CertalnbU$lne$$.&XpanSeSOfre5ep,:m~~~~rdfee-ba1f.1~
He-althsavIngsaccouti
l~lh. ,..~u:
18 27
Moving expenses .... , ..... ![~~~~Jt!ilf ~~~,:~:, ~~Jft ,~ij~ ,~, One- half of salf- employment ta~'f'~0;;~~,~:' .... ::-'?~~~~~r.. . .... .i~~i . ... 1;~%. 28 Self- employed SEP, SIMPLE, and qualified plans .. , . 29 Self~ ernptoYe!d health insurance deduction .............. . an P&naltyon early withdrawal of savings . 31. Alimonypald Ib)Rocipienfs: SSN _ _ _ _ _ '_ _ _ _ _ _ __
~~,:.;w.
.*~~}.:':'"
,
:"'"l~ tti;:. ~; ..
.....
..
~stn.m
________________________
36
Add line 23 through line-:31 a and 11M 32through Iine35 tn.eolumnsA, B, and C.
See instructions
.. 36 __________
+-________
~------
___,
37
046
7731094
480f130
6105243253
To:Ke!!;
38
Federal itemized deductions., Ac;lQ the amQuntson federal Schedule A (Form 1040), lines 4, 9, 15, 19, 20, 27,and 28 Enter total offederal Sehedull!' A (Form 1040), line 5 (State Disability Insurance, and state and loca!inoometax.. or
.... 38
26,150
39
General $ah~s Tax), line 7 (new motor vehlele tax), and line 8 (foreign incometaxesol1ly), See Instruetlo)'ls .............. 39
40 Subtractline39fromline3B ...
3, 071
41
......... 41 42
42 Combinellne40and Une41
43
-:'.6::~~
j;'
~~ f~r
< > ~
~$f$~~::$;,
::;:~~}.::::"*'
Is your federal AGI (Form 540, line 13) m%.\1:han t~e $h(l'#!,~~ur fili~~atus? Single ormarrled/RDP filing-,!!?:aratI~~ ."%'S.... ~~~Wr. ~~J SIJl60,739 ~~~0~~~~ -<'f}.~!J;M~'Y' &h .~1i? Headofhouseholcl ....... .";:;:~.;.:y:.f': ,,;"i'"",z,'(l:"'~';t' . -:.: ..~ _ __ ";;<;"i!241,11J
arr.aunt
~;*:~ i'
'''8'',''
'~*1:p.~>x@~@~''''~,~
;:;::t.'??
~~lt%~~~ ~~:;..
.9~,
Jd
't~H
,d:;"
,,,,,~~, . dt"
23,079
... _ ___ . ..
............
$321,483
.. 43
No. Tran$ferthe ~lTIounton line 42 to line 43 Yes. Complete the Itemized Deductions Worksheet in the instruotlonsfor Schedule CA (540), line 43
44
.. .. .. .. . .. 44
L...._~2..23.L,
-"O:.!.721
DO NOT
iim~=~
~j~f~if1 .ifi
Side2 ScheduleCA(540)2009
046
7732094
49 of 130
---.---~-"
..----
.W
Borrower: Kyle
6105243253
To:Kelli
P.1Y15
Form
lr'1to-rn.,!
8879
of theTre.a5ury
Fl,IlIlrenUe
D~fl.artmel'lt
Service
~@Og
Social security number
SlloU$E,!'Sname
2
~
Adjusted gross income (Form 104<1. lin. 38; Form 1040A, Ilhe 22: Form 1040EZ.lIn04) Totalt.. (Form 1040, IInoSO; Form 104<1A.line37; Form 104<1EZ, IIno11)
Faderal income tax withheld (Form 1040, line 61; Form 1040A, line38: Form 1040EZ, line 7) RerUhd (Form 1040.IIn073.; Form 1040A, IIn046.; Form I04OEZ.line12a; Form 1040 SS, Pa~I, lin. 130) .
II
Under penalties ofpe~ury, I decla.rethat I have examined a copyofmy electronlelr.dlvldual ineom!!!t2lx r4!!turn and accompanying schedules and statements for the tax year ending Deoen'lberS1, 2009, and to the bestofmyknowlcdg(!! rmd belief, itistrue, correct, and complete. I furtherdeclarethatthe amounts in Part I above are the inQQmetax return. I consent to atiow service provider, transmitter, o-relectronic return originator (ERO) to :send the IRS of the transmisslon, (b) an Indication of any refund I authorize the U.S, Treasury and its i I institution account indicated in the tax financial institution to debit the b~ dobit(ld througn tnc EJ~trorlic personal identification number (PIN) to to terminate the authorl%ation. To revoke a payment, I must contact the U.S. Trl!!asury FinancialAgent at no larerthan 2 business days prio rto the payment (settlement) date. I also authorize the financial institution$lnvolved inthe processing ofthe eleotronl~ paym&ntoftaxBsto receive confidential information necessary to answer inquires and resolve issuesrelati:!d to the payment. I further Clcknowledgt:! that the personal identification number(PIN) below ism'lsignature formy eleotronicincome tax return and. ifapplloable. my Electronic FundsWithdra.wal Consent Taxpayer's PIN: check one box, only
[j9
I authorize
HR BLOCK
11532
Entl!!rfive numbers, but do not enter all zeros
ERO firm name as my signature on my tax year20Q9 electronically nIed Income tax rl,!'tum.
PINandyourretum is filed using the Practitioner PIN method. The ERO must complete pare III below,
I will enter my PIN as my signature on my tax year 2009 electronically filed income tax return. Cheokthis box onl~ ifYQU are entering your own Your signature
o o
enter or generate my PI N ERO firm tm~ ~~~~ ,,~~;m;;;;;~;:~J;~~~;~;~:t~~~' as my signarure on my lax ye:Glr 2009 electronic'a:Ityfiled incomaiax refdi1t,~ . . . . . ,. . . . . .,.,.,. ."'. . . . . . . . ~
PIN and youfreturn Is tiled usingtJ1e Praotitioner PIN method. The ERO must complete Part III below.
I authorize
..
,._nJ
I will@ntermyPINasmyslgnatureonmytaxyear2009 electronically filed income tax return. Check this box only if you are entering your own
Spous.'ssignature ~ ________~C~O=P--'Y~O=N!.!L:::.Y.!.-
I.Jlll
ERO's EFINI PIN. Enteryourslx digit EFIN followed by your five- digitself~ $elaeted PIN. do not enter all zeros I ~ertifythatth8 above numerioel"ltry Ismy PIN, which ismysignab.lre for the tax year 2009 electronically filed incometax return forthetaxpayer{s) indicated above. t confirm that I am submitting this return in aocordance with the requirements ofthe Practitioner PIN method and pl!l)llcatloli 134S. HaJ1dboor:: for Authorized IRS e- file Providel'$oflndlvidual Income Tax Retl,lm~. . ERO'ssignature
~
_____________________________ Doto
01/29/2910
ERO Must Retain lllis Form - See Instructions Do Not Submit lllis Form to the IRS Unless Requested To Do So
KBA For Paperwork Reductio" Act Notice, see page 2 ofform.
CaIHFAUIZ...,,~.......72_3
form-softwljl,r~opyrtgnt 1986
FD8879D1V 1.0
50 of 130
Borrower: Kyle
.AII .
6105243253
To:K.lli
P.14/15
046
TAXA61.EYEAR
2009
Your name
8879
KYLE
Spouse'slRDP'sname
_......... 3
Part II Taxpayer Declaration and Signature Autnonzation (Be sur~ you get and keep a copy of your retum.)
Under penalties ycarondlns
1.32.5.
,and I
return to
return,
penalties.
[j9
INC
EROfirm name
toenrermyPIN
![~s~~~~~
Do not enter aU ZetO~
01(29/2Ql,Q._ _
I authorize
ERO firm name
to enter my PIN
J
Do not enter all zeros
~:.!!!-==~~===::.:.:.:,==c:..:.::.==",,--
___ ___.____ ._
ERO'5 EFINJPIN. en~ryoursix- digit EFIN (ollowl!!d by your five- digitself selected F'IN,
00 not enter illl zeros I certify that the a.bove numeric entry is my PIN. which is my signature forthe 2009 California individual Income taxretum forthetaxpayer(s) indicated above. [confirm that I am SI.1bmitting thisretumln aeeordancewith the requlrernentsofthe P~ctitioner PIN method and FTB Pub. 1345, 200ge- file Handbook for ALithorized a-file Pmviders,
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~RO'ssign~ture"
_ _ _ _ __
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Dat _ _-"O..=l.!..I..=229:../-=2"'0'-=1"'0'--_ _
FT6 8879 C2
2009
51 of 130
6105243253
To:Kelli
P.i5/i5
1210003581 08458018311
Chec~
Type of Account.
DO NOT
52 of 130
~~
0845 E P EO-3
Tiered Interest Checking o Summary of Your Prima Interest Checking Account Beginning Balance on 11/10/11 Total Deposits Total Checks, Withdrawals,
Transfers, Account Fees Interest Paid Service Charge
$1,587.39
+ 7,816.15
0.05% $.81 1 16 0 0
- 7,693.15
+ .08
Number of purchase transactions Number of 24 Hour Customer Service Calls Self-Service Assisted
- 25.00 $1,685.47
Ending Balance
A monthly service charge was applied to your Prima Account because on 11/28 your balance was below the minimum balance requirement of $10,000.
Checks Paid
Date Paid Number Amount
12/05
1881
$1,274.00
Page 1 of 3
53 of 130
II1II.
Account Number:.
Account Activity
Description Reference Number
Amount
Date Posted
On ine Banking transfer from Sav 6018 Confirmation# 2663033918 Friedreichs Atax OES:Payroll 10:42600800014594x INON:Bryant, Kyle CQ 10:9001907814 PPO Ref:011332010335559 ATM deposit on 12/03, Bank of America ATM #IPAN8135 (Card #653821989)
$7,816.15
$.91 18.09 41.42 55.10 100.00 144.36 1.16 3.59 7.60 20.00 96.65 20.00 50.00 .98 60.02 20.00 .78 161.22
11/14 11/14 11/14 11/14 11/14 11/14 11/15 11/15 11/15 11/15 11/15 11/22 11/25 11128 11/28 11/29 12101 12/01 12/01 12/02 12/02 12/02 12/02 12/02 12/05 12/05 12/05 12/06 12/06 12/06 12/07 12/07
Keep The Change Transferto Acct 6018 For 11/14/11 Check Card Purchase on 11/10 (Card #653821989), Gli'gre~houndlines1508 214-849-8966 TX Ref 112 692161314000491380063
PennS~lvania American Water Co Bill Payment
Peco nergy Bill Payment Cash with rawal on 11112, Bank of America ATM #ICA06781 (Card #653821989)
Corneast Cable Communications Bill pagment
005538
Keep The Change Transfer to Acct 601 For 11/15/11 Check Card Purchase on 11/14 (Card #653821989),
Postnet San Die~o CA
Ref #242465113 9207399600029 Check Card Purchase on 11/14 (Card #653821989), Baja Fresh 111 San Oie~o CA Ref #2469216131900063 298055 Online scheduled transfer to Sav 6018 Confirmation# 6036800585 Check Card Purchase on 11/13 (Card #653821989), Dana Inn & Marina Resta San Diego CA Ref #24492791318118000168522 Online scheduled transfer to Sav 6018 Confirmation# 7196781396 Check Card Purchase on 11/22 (Card #653821989), Fara-Friedreich's 888-955-5455 PA Ref #24323001327123326010018 Keep The Chan~e Transfer to Acct 6018 For 11/28/11 Purchase on 1128 (Card #653821989), Arco Par-paint Rocklin CA Online schedu ed transfer to Sav 6018 Confirmation# 7157200468 Keep The Change Transfer to Acct 6018 For 12/01/11 Check Card Purchase on 11/30 (Card #653821989), Attm'436079943357nca 8003310500 GA - Recurring Ref #24493981334003157403946 Chase OES:Eliay 10:1231268394 INON:Kyle A Bryant Co 10:5760039224 W B Ref:011334012715114 Keep The Change Transfer to Acct 6018 For 12/02/11 Check Card Purchase on 12/01 (Card #653821989), Outback 4461 Lewisville TX Ref #24692161335000986567344 Purchase on 12/02 (Card #653821989),
Giant 6084 Norristown PA
676800
2,301.92 .91 16.41 073764 68.68 200.00 1,945.21 1.71 19.05 37.24 18.14 20.00 110.66 .12 18.85
Northwestern Mu OES:ISA Pa6;mnt 10:1179301 Isapt;mt INON:Kyle Bryant Co 10:9000596 67 PPO Ref:01133501 244088 Online Banking transfer to Sav 6018 Confirmation# 2989261936 Keep The Change Transfer to Acct 6018 For 12/05/11 Check Card Purchase on 12103 (Card #653821989), Bikesport Trap~e PA Ref#24013391 37001329527840 Check Card Purchase on 12/02 (Card #653821989),
~s Restaurants 424 Lewisville TX
ef #24692161337000473954771
Page 2 of 3
54 of 130
Borrower: Kyle"."
Account Number:,
Date Posted
Withdrawals, Transfers and Account Fees Check Card Purchase on 12/06 (Card #653821989), Penns Table Of Lionvill Exton PA Ref #24707801340980150129152 Keep The Change Transfer to Acct 6018 For 12/08/11 Purchase on 12/08 (Card #653821989), Wegmans Malvern PA Check Card Purchase on 12/07 (Card #653821989), Chipotle 1550 Exton PA Ref #24431061342206288000046 Online Banking transfer to Chk 5828 Conf# 2937517835; Feltman, Skylar Keep The Change Transfer to Acct 6018 For 12/09/11 Purchase on 12f09 (Card #653821989), Wawa 8033 Lionville PA Keep The Change Transfer to Acct 6018 For 12/12/11 Check Card Purchase on 12/10 (Card #653821989), Wegmans # 46 Malvern PA Ref#244450013451 00264868699 Total Withdrawals, Transfers and Account Fees
022779
936799
$6,419.15
$.08 $25.00
12/12 12/12
Interest Paid Interest Paid from 11/10/11 Through 12/12111 Service Charge Monthly Service Charge
0 Daily Balance
Date Amount
Date
Amount
Date
Amount
ATM Information
This period, you visited the following ATM locations: Bank of America's ATM Network #ICAD6781 Bank Of America, San Diego, CA #IPAN8135 Bank Of America, West Norriton, PA
California
Page 3 of 3
55 of 130
Borrower: Kyle . . . . . .
....
0845 E P EO-4
1",111,1,"1"111"",11,"11,1 ~
~G
NORRISTOWN PA 19403
Our Online Banking service allows you to check balances, track account activity and more. With Online Banking you can also view up to 18 months of this statement online and even turn off delivery of your paper statement. Enroll at www.bankofamerica.com. Tiered Interest Checking
Summary of Your Prima Interest Checking Account $729.15 Annual Percentage Yield earned this period Interest paid year-to-date Number of ATM withdrawals and transfers - 5,676.31 Number of purchase transactions Number of 24 Hour Customer Service Calls Self-Service Assisted
Beginning Balance on 10/13/11 Total Deposits Total Checks, Withdrawals, Transfers, Account Fees Interest Paid Service Charge
0.05%
$.73 2 28 0 0
+ 6,559.53
+ .02
- 25.00 $1,587.39
Ending Balance
A monthly service charge was applied to your Prima Account because on 11/07 your balance was below the minimum balance requirement of $10,000.
Checks Paid
Date Paid
10/27 10/31
1878 1880
$ 17.58 1,274.00
$1,291,58
56 of 130
Borrower: Kyle . . . . . . .
Account Activity
Description
Date Posted
Reference Number
Amount
Bank of America ATM #IPAN8135 (Card #653821989) Online Banking transfer from Sav 6018 Confirmation# 5383945410 Friedreichs Atax DES:Payroll ID:42214600019247x INDN:Bryant, Kyle Co ID:9001907814 PPD Ref:011300012118490 Online Banking transfer from Sav 6018 Confirmation# 2819921495 ATM deposit on 11/08, Bank of America ATM #IPAN8015 (Card #653821989)
008210
002177
$6,559,53
$,63 10.37 .53 46.47 2.21 8.70 27.45 56.35 008211 000775 60.00 63.59 69.70 20.00 .57 9.43 .53 36.47 1.20 6,99 24,65 043851 553169 014718 023476 42.82 58.64 60.70 .36 17.64
Withdrawals, Transfers and Account Fees Keep The Change Transfer to Acct 6018 For 10/13/11 Purchase on 10f13 (Card #653821989),
Giant 6478 Exton PA Keep The Change Transfer to Acct 6018 For 10/14/11 Check Card Purchase on 10/12 (Card #653821989),
Brickside Grille Exton PA
093039
10117
10/17 10/17 10/17 10/17
Ref #24013391286019094061986 Keep The Change Transfer to Acct 6018 For 10/17/11 Purchase on 10117 (Card #653821989),
Genuardis Star Exton PA
748136
10117
10/17 10/18 10/20 10/20 10121 10/21 10/24 10/24 10124 10/24 10/24 10/24 10/25 10/25 10/25 10/25 10/27
Check Card Purchase on 10/14 (Card #653821989), Amazon Mktplace Pmts Amzn.Com/Bill WA Ref #24692161287000092507612 Check Card Purchase on 10/15 (Card #653821989), Wawa 8003 00080036 Norristown PA Ref #24164071289637000042915 Cash withdrawal on 10/15, Bank of America ATM #IPAN8135 (Card #653821989) Purchase on 10/15 (Card #653821989), Bedbath&beyond King Of Pruss PA Check Card Purchase on 10f14 (Card #653821989), Southwestair52621061793 Dallas TX Ref #24036211288624729522384 Online scheduled transfer to Sav 6018 Confirmation# 6794136900 Keep The Change Transfer to Acct 6018 For 10120/11 Check Card Purchase on 10/19 (Card #653821989), Giant 6478 Exton PA Ref #24692161293000342913703 Keep The Change Transfer to Acct 6018 For 10121/11 Purchase on 10121 (Card #653821989), The Vitamin Sh Exton PA Keep The Change Transfer to Acct 6018 For 10124/11 Check Card Purchase on 10/23 (Card #653821989), Mychangeaddress.Com 888-375-4610 FL Ref #24129421296100003838591 Check Card Purchase on 10/21 (Card #653821989), Chipotle 1550 Exton PA Ref #24431 061295206288000621 Purchase on 10124 (Card #653821989),
Wegmans Malvern PA Purchase on 10122 (Card #653821989),
432110
Page 2 of 4
57 of 130
Borrower: Kyle
Statement Account
November 9, 2011
Account Activity
Description
Continued
Reference Number Amount
Date Posted
11/01
11/01 11/01 11/01 11/01 11/02 11/02 11/03 11/03 11/03
11/04
11/04 11/04 11/07 11/07 11/08 11/08 11/08
Withdrawals, Transfers and Account Fees Check Card Purchase on 10/26 (Card #653821989), Chfotle 1550 Exton PA Re #24431061300206288000632 Check Card Purchase on 10/27 (Card #653821989), Wintercheck Factory 917-623-2480 NY Ref #24492151301849301597938 Keep The Chanw Transfer to Acct 6018 For 10/31/11 Peco Energy ill Payment Purchase on 10/29 (Card #653821989), Giant 6084 Norristown PA Purchase on 10/30 (Card #653821989), Giant 6084 Norristown PA Check Card Purchase on 10/28 (Card #653821989), Brickside Grille Exton PA Ref #24013391302019876619977 Chase DES:E~ay ID:1213101159 INDN:Kyle A Bryant Co ID:5760039224 W B Ref:011301008610787 Online Banking transfer to Chk 2821 Confirmation# 1602364361 Keep The Change Transfer to Acct 6018 For 11/01/11 Online scheduled transfer to Sav 6018 Confirmation# 5716760228 Check Card Purchase on 10/30 (Card #653821989), Knockouts Haircuts Norristown PA Ref #24498131304702288201284 Check Card Purchase on 10/31 (Card #653821989), Attm'436079943357nca 8003310500 GA - Recurring Ref #24493981304003178448850 Card Services Bill Payment Check Card Purchase on 11/01 (Card #653821989), Outback 1064 Clermont FL Ref #24692161305000261265420 Northwestern Mu DES:ISA PaciEmnt ID:1179301 ISapt;mt INDN:Kyle Bryant Co ID:9000596 67 PPD Ref:01130501 941372 Keep The Change Transfer to Acct 6018 For 11/03/11 Check Card Purchase on 11/01 (Card #653821989), Subway 00038687 Clermont FL Ref #24164071306255130517117 Check Card Purchase on 11/01 (Card #653821989), Thai Blossom Winter Garden FL Ref #24071051306158182437404 Keep The Change Transfer to Acct 6018 For 11/04/11 Check Card Purchase on 11/03 (Card #653821989), Carrabbas 6041 Clermont FL Ref #24692161307000778770084 Cash withdrawal on 11/04, Bank of America ATM #1 FLN1556 (Card #653821989) Keep The Change Transfer to Acct 6018 For 11/07/11 Check Card Purchase on 11/03 (Card #653821989), Panera Bread #3354 Clermont FL Ref #2442733130871 0032584622 Keep The Change Transfer to Acct 6018 For 11/08/11 Online scheduled transfer to Sav 6018 Confirmation# 6975898783 Purchase on 11/08 (Card #653821989), Wawa 8033 Lionville PA
Total Withdrawals, Transfers and Account Fees
223773 001672
200.00 .64 8.83 16.53 .48 18.52 005422 100.00 .92 10.08 .28 20.00 58.72
489857
$4,384.73
$.02 $25.00
11/09 11/09
Interest Paid Interest Paid from 10/13/11 Through 11/09/11 Service Charae Monthly Service Charge
Page 3 of 4
58 of 130
Borrower: Kyle . . . . .
Account Number:_
0 Daily Balance
Date
Amount
Date
Amount
Date
Amount
ATM Information
This period, you visited the following ATM locations: Bank of America's ATM Network
#IFLN1556 Bank Of America, Clermont, FL #IPAN8015 Bank Of America, lionville, PA #IPAN8135 Bank Of America, West Norriton, PA
California
Page 4 of 4
59 of 130
Novembe"r~l~~~~.'1~;.
At Your Service
30,2011
1",11
KYLE
9308 NORRISTOWN
.. 11",11,1
RDG PA 19403
Ca II. 530-477-5404
Online: wvwv.bankofamerica,com
Our Online Banking service allows you to check balances, track account activity and more. Enroll at www.bankofamerica.com.
0.05% $7.35
+ 107.33
- 4,745.21
Total Withdrawals
Interest Paid
+ .29
$3,198.49
Ending Balance
Savings Activity
Description Reference Number Amount
Date
10/31 11/01 11101 11103 11/04 11/07 11/08 11/08 11/14 11/15 11/15 11/22 11/28 11/29
Keepthechange Credit from Acct1831 Effective Online scheduled transfer from Chk 1831 Confirmation# 5716760228 Keepthechange Credit from Acct1831 Effective Keepthechange Credit from Acct1831 Effective Keepthechange Credit from Acct1831 Effective Keepthechange Credit from Acct1831 Effective Online scheduled transfer from Chk 1831 Confirmation# 6975898783 Keepthechange Credit from Acct1831 Effective Keepthechange Credit from Acct1831 Effective Online scheduled transfer from Chk 1831 Confirmation# 6036800585 Keepthechange Credit from Acct1831 Effective
Online scheduled transfer from Chk 1831
$1.71 20.00 .25 .64 .48 .92 20.00 .28 .91 20.00 1.16 20.00 .98 20.00
$107.33
California
Page 1 of 2
60 of 130
Amount
Online Banking transfer to Chk 1831 Confirmation# 2819921495 Online Banking transfer to Chk 2821 Confirmation# 5063038970 Online Banking transfer to Chk 1831 Confirmation# 2663033918
Total Withdrawals and Transfers
Interest Paid
$4,745.27
$.29
11/30
0127237.002
California
Page 2 of 2
61 of 130
Borrower, Kyle . . . . . . t
~
E
1",111,
9308 NORRISTOWN
KYLE
PA
RDG 19403
At Your Service Call: 530-477-5404 Online: www.bankofamerica.com Written Inquiries Bank of America Grass Valley Branch P.O. Box 37176 San Francisco, CA 94137-5176
Customer since 1998 Bank of America appreciates your business and we enjoy serving you. Our Online Banking service allows you to check balances, track account activity and more. Enroll at www.bankofamerica.com.
0.05% $7.06
- 1,299.45
+ .37
Ending Balance
$7,836.08
Your savings account earned $,36 in interest this statement period. The Interest Paid shown above reflects interest earned since your last payment date.
Savings Activity
Description Reference Number Amount
Date
09/30 10103 10104 10104 10106 10/11 10/11 10/13 10/14 10/17 10/18 10/20 10/21 10/24 10/25
Deposits and Credits Keepthechange Credit from Acct1831 Effective 09/30 Keepthechange Credit from Acct1831 Effective 10103 Online scheduled transfer from Chk 1831 Confirmation# 7173287598 Keepthechange Credit from Acct1831 Effective 10104 Keepthechange Credit from Acct1831 Effective 10106 Online scheduled transfer from Chk 1831 Confirmation# 7133695235 Keepthechange Credit from Acct1831 Effective 10/11 Keepthechange Credit from Acct1831 Effective 10/13 Keepthechange Credit from Acct1831 Effective 10/14 Keepthechange Credit from Acct1831 Effective 10/17 Online scheduled transfer from Chk 1831 Confirmation# 6794136900 Keepthechange Credit from Acct1831 Effective 10/20 Keepthechange Credit from Acct1831 Effective 10/21 Keepthechange Credit from Acct1831 Effective 10/24 Online scheduled transfer from Chk 1831 Confirmation# 7154577969
$.49 .29 20.00 .30 1.34 20.00 2.55 .63 .53 2.21 20.00 .57 .53 1.20 20.00
California
Page 1 of 2
62 of 130
Date
Reference
~umber
Amount
10/25 10/27
Deposits and Credits Keepthechange Credit from Acct1831 Effective 10/25 Keepthechange Credit from Acct1831 Effective 10/27
,36 .06
$97.06
$300.00 12.45 487.00 500.00
1Dill 10/12
10112
10/28
Withdrawals and Transfers Withdrawal Online Banking payment to Crd 7647 Confirmation# 5345192074 Online Banking transfer to Chk 1831 Confirmation# 6345182947 Online Banking transfer to Chk 1831 Confirmation# 5383945410
$7,299.45
$.37
10/31
0128545.002
California
Page 2 of 2
63 of 130
Borrower: Kyle . . . . . . . .
KYLE--'
Prepared For:
Prepared By:
John Henry Lockwood, CLU I Financial Representative 1425 River Park Dr, Ste 100, Sacramento CA 95815 I 916.648.6448 john.lockwood@nmfn.com I www.johnlockwood-nm.com CA License: 0E6 0969
As Of: December 21, 2011
64 of 130
Borrower: Ky'ele. . . . .
W Northwestern Mutual"
insurance / investments / ideas'
KYLE_
Information As Of: December 21, 2011
Investment/Variable Products
Associated
Account
Account
Type
Number
Fund Family 2:
NMIS Account #
Invested
Product Type
Assets 1
6S
Traditional IRA
Annuitant: Owner:
Kyle, Kyle_
Fara
MASON STREET
ADVISORS
N/A
Variable Annuity
$46,548.13 as of 12/20/2011
Direct Beneficiary:
Contingent Beneficiary:
Kyle Bryant
$46,548.13 $46,548.13
Prepared By: John Henry Lockwood, CLU [ Financial Representative 916.648.6448 I john.lockwood@nmfn.com I www.johnlockwood~nm.com
2010 The Northwestern Mutua! Life Insurance Company. All rights reserved.
CA# OE60969
pages.
65 of 130
Borrower: Kyle
KYLE
Information As Of: December 21, 2011
Scheduled Payments
Monthly Payments
Payer: Insurance Service Account: Billing Method: Due Date:
Electronic Fund Transfer" Sticker Bank Of America, N.8.(1831)
01/01/2012
Insured
Contract Number
Product Type
Monthly Premium
Allocated Dividend
loan
Repayment Payment
Kyl
..
RRNARIABLE ANNUITY AT 98
Fixed Annuities Subtotal:
$200,00 $200.00
$0.00 $0.00
N/A
$200.00
NfA
$200.00 $0.00
$0.00 $200.00
Additional Payment: Service Charge: Account Total: Total Scheduled Monthly Payments:
$200.00
Generally, information shown is only for payments made through an active Insurance Service Account (ISA) or for ULife payments made by Electronic Funds Transfer (EFr). Please contact your Financial Representative for more information.
Prepared By: John Henry Lockwood, CLU I Financial Representative 916.648.6448 I john.lockwood@nmfn.com I WVo/w.johnlockwood~nm.com
2010 The Northwestern Mutual Life Insurance Company. All rights reserved.
CA# OE60969
This report is not complete without the accompanying
Page: 3 of 6
~Disclosures"
pages.
66 of 130
~ Northwestern Mutual"
insurance
KYLE
Information As Of: December 21, 2011
investments I ideas'"
'"
End Notes
We have collected values for the assets shown in this report which were the most current available as of the date shown in the top right hand comer
of this report. For the most up to date values, and information on the Jag time in valuation availability for certain assets, consult your Financial
Representative.
Accounts that have an entl)' in the "Fund Family" column are maintained (custodied) by the mutual fund family listed ("Direct to Fund" accounts).
NM1S and its clearing broker, pershing, do not hold or control these assets. This report reflects holdings and valuation information received from the mutual fund family. Northwestern Mutual and its subsidiaries do not audit or verify such information. Please review the account statements you receive from the mutual fund famHy for complete information on these assets.
Disclosures
"Nortbwestern Mutual" is the marketing name for The Northwestern Mutual Life Insurance Company and its subsidiaries and affiliates. The Northwestern Mutuai Life Insurance Company, Milwaukee, WI, customer service 1-800-388-8123 (life insurance, disability insurance and annuities) is not a registered investment adviser, a registered broker-dealer or a federally chartered bank. Securities and fee-based investment advisory programs are offered through Northwestern Mutual Investment Services, LLC (NMIS), Suite 300, 611 E. Wisconsin Ave., Milwaukee, WI, 53202, customer service 1-866-664-7737. NMIS is a subsidiary of The Northwestern Mutual Life Insurance Company and a dually registered broker-dealer and investment adviser, member RNRA and SIPC. Investment advisory programs and trust services are offered through Northwestern Mutual Wealth Management Company (NMWMC), Milwaukee, WI, customer service 1-866-664-7737. NMWMC is a subsidiary of The Northwestern Mutual Life Insurance Company and a limited purpose federal savings bank. NMWMC's investment products and trust services are not insured by the FDIC, are not deposits or other obligations of, or guaranteed by The Northwestern Mutual Life Insurance Company, NMIS, NMWMC, or their affiliates, and are subject to investment risks, including possible Joss of the principal amount invested. Recommendations and/or transactions involving equities and fixed income securities may only be offered and/or sold by appropriately registered and appointed representatives of NMIS or NMWMC. The products and services referenced are offered and sold only by appropriately appointed and licensed entities and representatives of such entities. Each Rnancial Representative represents one or more, but not necessarily all, of the entities shown. If you have any questions regarding this report, please contact your Financial Representative. For general information, please visit us on the web at www.northwesternmutual.com. This report is provided as a courtesy to you for informational purposes only and may not reflect all policies, contracts, securities, or accounts you own. This is not an official reporting document for your assets. We encourage you to review and maintain the original, official reporting documents relating to the assets in this report (contracts, policy statements, account statements, confirmations, etc.). You should refer to the official documents when determining the value of your assets. Those official documents may also contain notices, disclosures and other information that is important for you to know and are reliable reference pieces if you have any questions about the accuracy of information shown in this report. The information in this report has not been audited or verified, and does not in any way alter or supersede the terms of any policy, contract, confirmation, prospectus or statement received from The Northwestern Mutual Life Insurance Company, NMIS, NMWMC, their subsidiaries or affiliates, or third party service providers or other organizations. Information presented in this report was gathered from multiple sources, including The Northwestern Mutual Life Insurance Company; Pershing, LLC, member FINRA, NYSE and SIPC (the clearing broker-dealer for NMIS accounts and most NMWMC accounts); and Albridge Solutions (data consolidation and performance reporting provider). In addition, all mutual fund holdings in investment accounts that are held "Direct to Fund" are custodied by the appropriate mutual fund family (or their designated transfer agent) and holding and valuation information is provided by that mutual fund family. This information is not a solicitation or a recommendation to buy, sell or hold any policy, contract, security or advisory program. This information should not be used for financial planning purposes. Payments made under a policy/contract, including benefit payments, are subject to the conditions, limitationS and exclusions stated in the policy/contract. Please refer to the policy/contract for exact details of terms, conditions, limitations and exclusions. Any decisions made by you based on the information in this report are made at your own risk. We have collected values for the assets shown in this report which were the most current available as of the date shown in the top right hand corner of this report. For the most up to date values, and information on the lag time in valuation availability for certain assets, consult your Rnancial Representative. The total at the bottom of the Table of Contents page reflects the aggregate value of all assets included in this report. Valuation methodology may differ from product to product. as described elsewhere in the report and in these disclosures. In some cases, valuations of investment and variable products presented in this report may differ from the valuations shown in your official account statements for those assets because of different pricing methodologies that may be used for statements versus this report. You should rely on the valuation information contained in your account statements, rather than this report. The values of Direct Participation Programs (DPPs), private, non-exchange trading Real Estate Investment Trusts (REITs), Limited Partnerships and certain other alternative investment vehicles are provided by a third-party intermediary, and therefore may not be reliable. Furthermore, the value for some of these assets may not be available; in which case the initial purchase price or a zero dollar value may be reflected on this report. The Northwestem Mutual Life Insurance Company and its affiliates do not guarantee the accuracy of this information. Any information concerning these assets should be regarded as informational only and should not be relied on.
Prepared By: John Henry Lockwood, CLU ! Financial Representative 916.648.6448 ! john.lockwood@nmfn.com ! W\v\v.johnlockwood-nm.com 2010 The Northwestern Mutual Life Insurance Company. All rights reserved,
Report Date:
CA# OE60969
67 of 130
Borrower: Kyl . . . . . . .
Northwestern Mutuar
insurance / investments / ideas'
KYLE~
Information As Of: December 21. 2011
Disclosures
This report mayor may not reflect all holdings or transactions, their values, costs, penalties, surrender fees, charges, or proceeds. Accordingly, this report should not be used as a source document for tax preparation or other purposes. Only Official tax forms should be used when preparing tax returns. Please consult with your own tax advisor for specific tax advice. The Northwestern Mutual Ufe Insurance Company may pay dividends, which are an allocation of divisible surplus to a policyowner. Each year, the Board of Trustees, in its sale discretion, determines whether a part of the Company's surplus can be distributed to policyowners in the form of a dividend. The Board decides which policies. if any, should get a dividend and the amount of the dividend. There is no guaranteed method or formula forthe determinat"lon or allocation of this surplus. Accordingly, the Company's approach is subject to change. Neither the existence nor the amount of a dividend is guaranteed on any policy in any given year. Some policies may not receive any dividends in a particular year or years even while other policies receive dividends. Depending on the terms of the policy and personal choice, the dividend may be used to purchase paidup additional insurance, used to reduce premium payments, left to accumulate at interest, or taken in cash. The dividend, if any, is payable on the policy anniversary. Dividend scale changes, loans and surrenders or withdrawals will affect policy values. Changing dividend usage on your policy may cause total insurance protection to be reduced. This report consolidates your brokerage, variable annuity, and investment advisory holdings. However, the investment asset group(s) that this report depicts mayor may not be managed by NMIS or NMWMC as investment advisers. Keep in mind that NMIS and NMWMC are only investment advisers as to those assets that are within investment advisory programs. Because this report consolidates different types of investment assets, it should not be used as the basis for making asset allocation or rebalancing decisions for your investment accounts. Please refer to official performance reports (described below), account statements or other advisory account speciflc reports when considering rebalancing, asset allocation or other changes to your investment account holdings. Investment products are subject to investment risks, including possible loss of the principal amount invested. The Northwestern Mutual Signature Portfolios program is a fee-based advisory program offered by NMIS and NMWMC. The Northwestern Mutua! Signature Choice, Signature Annuities and Signature Managed Accounts programs are feebased advisory programs offered by NMWMC. NMWMC is a limited purpose savings bank. Investment products and advisory accounts offered by NMWMC are not insured by the FDIC, are not deposits or other obligations of and are not guaranteed by NMWMC or its affiliates and, like all investment products, are subject to investment risks, including possible loss of the principal amount invested. To help you see how your financial assets are currently distributed, we classified your investment assets among the following classes: cash, fixed income, commodities, real estate securities, int'l emerging mkts, int'l developed mkts, US equity - small cap, US equity mid cap, and US equity. large cap. This report will categorize your account holdings in slightly different asset class groupings than the NMIS and NMWMC investment adviSOry quarterly performance or other reports. Any variable annuities or variable life insurance policies you own are included in this breakdown by primary asset class, depending upon the subaccounts used within those contracts or policies. These values reflect the gross contract or gross policy values without accounting for surrender fees or adjustments for unpaid premium, if applicable. The underlying mutual funds in which variable annuity and variable life subaccounts invest are not available for direct investment. The Investment/Variable Product Holdings by Client section of this report reflects only the primary asset class for a particular security. Mutual funds, exchange traded funds and other securities may have holdings in multiple asset classes. Although only the primary asset class is reported in this section, in the presentation of your asset allocation in the Ovelifiew - Financial Assets section, the value for these securities is split across the appropriate asset classes. Therefore, for example. a fund that has a primary asset class of US equity Large Cap and a secondary asset class of Int'l Developed Mkts will show only US equity - Large Cap in the Investment/Variable Product Summary section while the dollar value of that position will be split across Large Cap and International in the Ovelifiew - Financial Assets. Your Financial Representative can provide information on how a specific fund is designated across the various asset classes. Negative cash/margin positions included in this report are related to either margin orto Loan Advance balances. Loan Advance borrowings have limitations on permissible uses of those proceeds. For more information, consult with your Financial Representative. For information about your holdings, including fees and conflicts of interest, see the applicable client agreement, program disclosure brochure and prospectus or similar disclosure document for the variable policy, contract, mutual fund, other security or product. NMIS and NMWMC, as subsidiaries of The Northwestern Mutual Life Insurance Company, are under common control with a number of other financial services companies. This affiliation offers many benefits and resources to NMIS and NMWMC, but also may create potential conflicts of interest. Conflicts of interest also may arise as a result of agreements between NMIS and third parties. For information on these conflicts, please see "What Every Investor Should Know About Mutual Funds" available through your Financial Representative or online at http://www.nmfn.com/tn/aboutnet-nmis keypoints. Direct to Fund Accounts: Some investment assets included in this report may be "Direct to Fund" accounts, which means those assets are maintained and controlled by a mutual fund family or its transfer agent, not NMIS or its clearing broker, Pershing. You can determine whether your investment assets are Direct to Fund accounts by reviewing the "Fund Family" column in the Investment/Variable Products Summary section of this report. Accounts that have an entry in the "Fund Family" column are Direct to Fund accountS. For Direct to Fund accounts, this report reflects holdings and valuation information received from the mutual fund family. Northwestern Mutual does not audit or verify such information. Please review the account statements you receive from the mutual fund family for complete information on these assets. For 529 Plan Accounts: Accounts described as "529 Plan" accounts are state college savings plans. Some "529 Plan" accounts in this report are also UGMAjUTMA accounts, and are subject to state UGMA/UTMA statutes as well as 529 Plan restrictions. Please ask your Financial Representative for details on the restrictions applicable to 529 Plan accounts included in this report.
Prepared By: Jolm Henry Lockwood, CLU I Financial Representative 916.648.6448 I john.lockwood@nmtn.com I W\vw.johnlockwood-nm.com
Report Date:
CA# OE60969
2010 The Northwestem Mutual Life Insurance Company. All rights reserved.
680f130
Borrower: Kyle
jill
W Northwestern Mutual'
insurance / investments / ideas'"
KYLE~
Information As Of: December 21, 2011
Disclosures
NMIS is a member of SIPC (Securities Investor Protection Corporation), which protects the value of securities in customers' NM1S accounts up to $500,000
(including up to $250,000 for claims for cash). Direct to Fund assets held by outside mutual fund families are not covered by NMIS' SIPC coverage. In
addition, NMIS' clearing firm, Pershing LLC (Pershing), carries excess SIPC insurance coverage. Assets held at a custodial institution other than Pershing or other assets "not held" at Pershing, including but not limited to Direct to Fund assets, are not protected by the excess SIPC insurance policy. Information about SIPC is available upon request, or at www.northwesternmutual.com and at www.sipc.org. For answers to any questions regarding an outside mutual fund family's SIPC coverage, you may either contact your Financial Representative or the appropriate mutual fund family, or refer to the mutual fund family's statement regarding SIPC membership. SlPC coverage does not protect against potential losses due to market fluctuation. An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency. Although money market funds seek to preserve the value of your investment at $1 per share, it is possible to lose money by investing in such funds.
Report Date:
CA# OE60969
69 of 130
Borrower: Kyle
MLS
Page 1 of3
252.53
5020 A St, Sacramento, CA 95819 * Beds: 2* Baths: 1 (1 0) (FH)* Area: 10819 Vr: 1948*
(12/14/11)
Lot Sz:
Charming 2 bedroom 1 bath in quiet and desirable East Sacramento. Hardwood floors throughout. Large patio and backyard. Great view of the quiet neighborhood in the front with a large front yard as well. Don't miss this opportunity to own in one of Sacramento's most desired neighborhoods!
D:ii
Kelli A Boehm (ID: SRATHKEL) Primary:916737-5656 Seeondary:916737-5656 Lie: 01813767 Ramsey Real Estate & Dev. (JD:01DRRJ) Phone: 916-737-5656, FAX: 916-760-0575 Ramsey Real Estate & Dev. (ID:01DRRJ) Phone: 916-737-5656. FAX: 9167600575
I5Gl
Property Type
Subtype Description
Residential
Detached
Property Subtype(s)
1 House on Lot
Commission
Var/Dual Rate
2.5 %
950* 4835*
No
Sq Ft Source Assessor/Auto-Fill Lot Acres (approx) Price I SqFt 252.53 0.111
o
Sacramento
APN
8aths (FH)
0040092-013-0000
2'
1948* Thomas Bros. (PL,SA) 51st Street 12114/11 12114/11
1 (1
or
298.A4
12115/11
No
239,900 Expiration Date 12/14/12 Jose Occupant Phone Sacramento (Elementary: Sacramento Unified; Junior High: Sacramento Unified; Senior High: Sacramento l
MLS
Page 2 0f3
-Current tenant is allowing showings from 10-12 on Saturdays."" CalHFA Short Sale w/wel[ documented ha lender approval. Any lender reduction in gross commission wiH be shared 50/50, between listing&selling bral H street east to lett on 45th, right on Brand, [eft on 51 st, to left on A street, and home is on the left. Yes
General Information
Zoning Census Tract Lot Dimensions Style Description Construction Foundation Exterior Roof Description Stories # of Garage Spaces Garage Baths Other Floor Covering(s) Laundry Description Dining Description Kitchen Description Kitchen Appliances No. Of Fireplaces Fireplace Desc
R-1
2.00
52 (front) x 91 x 50 x 89
Cottage/Bungalow Frame, Wood Concrete Slab Wood Camp Shingle 1 Story 1 1 Car Attached, Facing Front Tile, Tub w/Shower Over, Window Linoleum/Vinyl, Tile, Wood In Garage Formal Area Counter Tile Disposal, Range Gas F/S 1 Living Room
Miscellaneous
HOA
CC&Rs Site Description Road Description Pool Landscape Improvements Features Misc Air Heat Energy Features Water Utilities Sewer Bonds/Asmts/Taxes REO HUD Auction Existing Financing Tenns Security Features
No
Yes Shape Regular, Trees Few Paved, Public Maintained None Fenced Back, Sprinkler Auto F&R Sidewalk/Curb/Gutter Patio Uncovered Window Furnace Floor None Public District 220 Volts, All Public, Natural Gas In & Connected Unknown
No No No
Treat as Clear Cash, Conventional Smoke Detector
Listing Information
Showing Instructions Tenant Current Rent Possession Type Listing Call Listing Agent, Restricted Hours Yes
$1350
By Agreement Exclusive Right
Privileged Information
Picture Provided By Internet Approved Longitude / Latitude Agent Hit Counter Public/Client Hit Counter Agent to Submit Yes Yes
-121.437614/38.576256 17
http://prospector.metroiist.net/scnpts/mgrqlsp1.dll?APPNAME=Metrohst&PRGNAME=...
1.1 1>.1.130 _ .
Dec.16.2011
04:40 PM
RESIDENTIAL LISTING AGREEMENT
(Exclusive Authorization and Right to Sell)
~C.A.R. Fonn RlA, Revised
PAGE.
1/ 11
~~ASSOCjATION
~
i~.
CIILJFORNIA
OF REA T.TORS"
11111)
hereby employs and grants Ramse Real Est.ale and Develo men!:. beginning (date) 12(14(11 an en ,n9 a : "on a e 12 14 2012 the exclusive and irrevocable right to sell or exChange the r 1property in the City of Sa",,,,,,,,,,,,, to County of SacraTllento Assessor's Parcel No. California, described as: 502.0 A st:reet
I
2. ITEMS EXCLUDED AND INCLUDED: Unle$S otherwise .p.ci~.d in a re.1 estate purchase agreement. all ~xtur.. and fittings that are attached to the Prop$rty are included, and personal property items are exduded, from the purchase price. ADDITIONAL ITEMS EXCL.UDED: ADDITIONAL ITEMS INCLUDED: . Seller Intends that the above i1:em$ be Elxduded or induded ill offering the Property for s~J~, but understands that (1) the purchase agreement supersede. any intention expressed above and will ultimately determine which items .re excluded and included in the sale; and Oi) Broker Is not responsible for and does not guarantee that the above exclusions and/or inclusions will be in the pt.lrcnase agreement.
3. USTING PRICE AND TERMS: A. The listing price shall be: two hundred thi.rty nine thousand nine hundred
B. Admtiona!
Tef~:
lise
rice
~eduction
Dollars {$ fl39.66 of $10,000 every 25 days from first date of list, until
).
an offer lS
~ece~ve~,
negot~ate
an
accepLe. Be
and
er to 0
er a Home warranty to
at his own cost.
uyer,
oompl~te
4. COMPENSATION TO BROKER: Notice: The amount or rate of real estate commissions is not fixed by law. lhey are set by each Broker
individually and may be negotiable between Seller and Broker (real estate commissions Include all compensation and fees to Broker). A. Seller to Broker as compensation for services irrespective of agency relationship(s), either I!I 6 (six) percent
AND Of the
(1) I
a pest
inepect~on
v~rtual
Btag~ng;
'
entered into,
and ofthe~~~~~p~riC~ef),~orr~o~~~~~i~~i~~~~
OR
B.
D.
C.
E.
F.
"urena,~ the pr~~~~~~ entitled t~ compensation such offer expiration of Penod, or any extension). (2) If within calendar days Cal after the end of the listing Peliod or any extension; or (b) after any cancellation of this Agreement, unless othelWise agreed. Seller enwrs into a contract to sell, convey, lease or otherNise transfer the Property to anyone ("Prospective Buysr') or that person's related entity; (ij who physically entered and was shown the Froperty dunng the Ustin9 Period or any extension by Broker or a cooperating broker; or {ii} for whom Broker or any cooperating broker submitted to Seller a signed, written offer to acquire, lea&e. exchange or obtain an Qption on the Property. Seller, howevet, shall have no obligation to Broker under paragraph 4.A(2) unless, not later than 3 calendar days after the end of the listing Period or any extension or cancellation I Broker has given Seller a written natice of the names of such Prospective Buyers. (3) If, without Broker's prior written con."nt. t~e Property is withdrawn from sale, conveyed, leased, rented, othelWise transferred, or made unmarketable by a voluntary act of seller during the Listing Period, or any extension. If completion of the ~Ie is prevented by a party to the transaction other than Seller, then compensation due under paragraph 4A shall be payable only if and when Seller Qol1ects damages by suit, arbitration, settlement or otherwise, and then in an amount equal to the lesser of one-half of the damages recovered or the above compensatioh, after first deducting tine and esorow expenses an~ the expenses of collection if any. In addition, Seiler agre.s to pay Broker: _____ Seller has been advised of Broker's policy regarding cooperation with, and the amount of compensation offered to, other brokers. (1) Broker is authorized to cooperate with and compensate broke,.. R!'rticipaUng throu.!l.h the multiple listing serviceis) ("M"S") by offertnQjo MLS broke", out of Brakefs oampenoation speCified in 4A. either ~ 2. S petcont of the purchase price, or U $ . (2) Broker is authorized to cooperate with and compensate brokers operating outside the MLS as per Broker's poUcy. Seller hereby irrevocably assigns to Broker the above compensaton from Sell.ls funds and proceeds In escrow. Broker may .ubmtl this Agreement, Inotruotions to compensate BrOket pursuant to paragraph 4A, to any eocrow regarding the Property jnvolving Seller and a Duyer, Prospectille Buyer or other transferee. (1) &lller rapreoenls that Beller has not previously entered into a listing agreement with another bloker regarding the Property, unless specified.s follows; . (2) Seller warrants that Seller has no obhgation to ~y compensation to any other broker regarding the property unless the Property is liansferred to any 01 the follOwing individuals or entiti..;
j
=____====;--:==:-=:==========-=-====::
(3) If the Property is sold to anyone listed above during the time Seller Is obllgeted to oompensate another broker: (i) Broker I'; not entitled to compensation undBrthis Agreement; and (il) Broker is not obligated to represent Seller in such transaction.
unauthOrized reproductiOn of this tonn, or any portion thereof. by photocopy mi!!lchlne or any other mGarl$, !\"ac:!Judll"lg faeSlmlJe or computerized fQrrMte.
CQPYriSm@199,.2011.CALIFORNIAASSOCIA1l0NOFREALTORS, INC.
ALL RIGHTS RESE.RVED.
The oopyright law of the Unttil!ld States (Title 17 U.S. COde) fOrbId thil!l
~Ier's
lnltlais (
RES! DENTlA"
720f130
Dec.16.2011
04:41 PM
PAGE.
2/ 11
5020 A .. treet Property Address: Sacramento ca 95819 Date: _'.. .. /2 . .1 2,,1 ,"4.1-..Q '-1'-_ _ _ __ 5. OWNERSHIP, TITLE AND AUTHORITY: Sell$r wa"ant. that: (I) Seller I. the OWner of the Property; ~i) no other persons or entitle. have utie to the Property; and (III) Seller has the authority to ~oth execute this Agreement and sell the Property. Exceptions to ownership, title and authority are as follows: ________. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _
c
6.
MULTIPLE LISTING SERVICE: All terms of the transaction, induding financing, if applicable, will be provided to the selected MLS for publication, dissemination and use by persons and entities on terms approved by the MLS. Seller acknowledges that Broker is required to comply with all applicable MLS rules a. a condition of entry of the listing into the MLa and Seller authorize. Broker to comply with all applicable ML$ rules. MLa rules require that the listing sales prtce be reported to the MLS. MLS rules allow MLS data to oe made available by the MLS to additional Internet sites unl."s Broker give. the MLS instructions to the contrary. MLS rulea generally provide that residential real property and vaeant lot IIsijng. be submitted to the MLS w~hin 48 hours or some other pertod of time after all necessary signatures have been obtained on the listing agreement. However, Broker will not have to submit this listing to the MLS if, within that time, Broker submits to the MlS a form signed by Seller (C,A.R. Form SEL or the locally required form).
Information that can be excluded: A. Internet Display; (1) Seller ean instruct Sroker to have the MLS not display the Property on the Internet. Seller understands that this would mean consumers searching for listings on the Internet may not see information about the Property In response to their search; (2) Seller can instruct Broker to have the MLS not display the Properry address on the Internet Seller understands that this WOUld mean consumers searching for listings: on the Internet may not see the Property's address in response to their search. B. Features on MLS Participant and Subscriber Websltes; (1) Seller can Instruct Broker to advise the MLS that Sailor do... not want vls~ors to MLS Parlicipant or Subscriber W.bsrtes that display the Property listing to have (I) the ability to write comments or reviews about the Property on those sites: or (ii) the ability to hyper1ink to another site containing such comments or reviews if the hyperlink is in immedi~te oonjunction with the Property. seller understands (I) that this opt-out applies only to Websttes of MLS Partlolpants end Subsoribers who are real estate broker and agent members of the MLS; (tI) that Olher Intemet sites mayor may not have the features set forth herein; and (iii) that neither Broker hor the MLS may have the ablUty to control or bloe:k such features on other tnternet sites. 12) Seller can instruct Broker to advis. tho MLS that Seller ';oes not want MLa Participant or auo.criber Web.~O$ that display the Property listing to operate (i) an automated estimate of the market value of the Property: or (II) have the ability to hyperlink to another site containing Suoh automated o.timale of value IT the hyportink is in immediate oonjunotion with the Property. Sollor understands (I) that this opt-out applies only to Websilea 01 MLS Partlolpants and Subscribers who are real eOla!e broker. and agent membelE 01 the MLS; (II) that other Internel site. mayor may not have the f.atures t forth herein; and (iii) that neither Sroker nor tho MLS may have the ability to oontrol or block such f.atur on other Internet siles. Seller acknOWledges that for any of the above opt-out instructions to be offective, Seller must make them on a separate instruction to Broker signed by Seller (CAR. Form SEL or the locally required form). Information about this lisijng will be provided to the MLS of Broksr's selection unless a form instructing Broker to withhold the Ilotlng from the MLS Is attached to thlallstlng Agreement.
1. SELLER REPRESENTATIONS: Seller represents that, unless otherwise spaoffied in wnling. Seller is unaware of: (I) any Nolie. of Default recorded against the Property; (il) any delinquent amounta due under any loan secured by. or other otJlgatlon affecting, the Property; (m) any bankruptcy, insolvency or similar proceeding affe<;ting the Property; (iv) any litigation, arbitration, administrative action, government investigation or other pending or threatened action that affeclS or may affect the Property or Seller'. spiliry to transler i~ and (v) any ourrant, pending or proposed sp.cial ......m.nts affeeling the Property. Seller shall prompUy notify Broker in writing ~ Seller becomes aware of any of thea. items dunng the Lls,ng Period or any ext.nelon thereof.
8.
BROKER'S AND SELLER'S DUTIES: (a) Broker agrees to exercise r.a.onable effort and due diligence to aollieve the purposes of this Agreement. Unless Seller gives Broker written instructions to the OOl'ltiSry, Broker is authorized to (I) order reports and disclosure. necessary, (ii) advertise and market the Property by any method and in any medium Iected by Sroker, including MLS and the Int.rn.~ and, to the extent permitted by these media, control the dissemination of the information submitted to any medium; an(j (III) disclose to any raal estate licensee making an inquiry the receipt of any offers on the Property and the offering price of suoh offers. (b) Seller agree. to consider offers presented by BroKer, and to aot In good faith to accomplish the sale of the Property by, arnong other things, making the Property available for showing at reasonable times and referring to Sroker aU inquiries of any party interest .; in the Property. Seller is responsible for determining at what priea to list and sell the Property. Seller further agree!! to Indemnify, defen<l and hold Broker harmless from all claims, disputes, litigation, Judgments and attorney fees arlolng trom any Incorrect Information supplied by aeU"r, or from any matorial facts that Seller knows but falls to disclose.
DEPOSIT: Broket Ie authorized to accept and hold on Seller's behalf any deposits to be applied toward the purchase price.
9.
SelJer'liIlnitiFJlliiI (
Reviewed by
ome
S020 )\ Klred,
73 of 130
Dec.16.2011
04:41 PM
5020 A .. t:reet
PAGE.
3/ 11
95819
10. AGENCY RELATIONSHIPS: A Dlselo$ure: If the Property includes residential property with one-to-four dwelling unlls. Seller shall receive a "Disclosur.
S,
Regarding Agency ReJationshipsn form prior to entering into this Agreement. Seller Representation: Broker shall represent Seller in any resulting transaction, except as specified in paragraph 4F.
C.
Possible Dual Agency With Buyer: Depending upon the circumstances, it may be neCfiSary or appropriate for Broker to act as
11.
12.
13.
14.
15, 16.
17.
an agent for both Seller and Buyer. exchange party. or one or more additional parlles ('Buyer"). Broker shall, as soon as praeUe.ble. disclose to soller any election to act as a dual agent repr.senting both Seller and Buyer. If a Buyer is procured directly by Broker or en '$$ocialellcensee In Brokersllrm. Seller hereby consents to Broker acting a. a dual agent for seller and suoh Buyer. In the eVi;lnt of an exchange. Seller hereby consents to BrOker collecting compensation from additional parties for services rendered, provided there is disclosure to all parties of such agency and compensation. Seiler understands and agrees that (i) Sroker. without the prior wrj(ten corl$ont of Seller, will not disclose to 8uyer that Seller Ie willing to sell the Property at a prtco lese than the listing price; (II) Broker, without the prtor wrttten coneent of Buyer, will not disclose 10 Seller tho! 8uyer is wJlllng to pey a price greater than the offered price: and (111) except for (I) and (II) above. a dual agent Is obligated to disclo known facts materially affecting the value or desirability of the Property to both parties. D. Other Seller.: Seller underetands that Broker may have or obtain listings on other properties. and that pot.ntial buyers may consider, make offers on, or purchase through Broker, property the same as or similar to Seller's Property. Seller consents to Broker's representation of sellers and buyers of other properties before, during and after the end of this Agreement. E. Confirmation: If the Property includes residential property with one-IMour dweJling units. Broker shall confirm the agency relationship described above, or as modified, in writing, prior to or concurrent with Selle"& execution of a purchase agreement. SeCURITY AND INSURANCE: Broker Is not responsible for 10.. of or damage to personal or real property. or person. whether attributable to use of a keysafellockbox, a showing of the Property, or otherwise. Third parties, induding, but not limit(td to, appraisers, inspectors, brokers and prospective buye". may have acee$$ to. and take videos and photographs of, the interior of the Property. Seller agrees: (I) to lake reasonable precautions to safeguard and protect valuables that might be acoesslble during shoWinge of the Property; and (Ii) to obtaIn Insurance to proteot against these risks, Broker doe& not maintalh insurance to protect SeUer. KEYSAFEILOCKSOX: A ~.y..f.nOckbox is designed to hold a key to the Proporty to permtt soco to the Property by Brokar. cooperating brokers, MLS participants, their authorized lloensees and representatives, authorized inspectors. and accompanied prospective buyers. Stoker. eooperatin~ brokers. MLS and AssociationS/Boards of REAL TORS are not insurers against injUty. theft, 10$$. vandalism or damage attributed to the use of a key.afeJlockbox. Seller does (or If checked 0 does not) authorize Broker to install a keysafellock.box. If Seller does not occupy the Propertyl Seller shall be responsible for obtaining occupant(s)' written permission for use fJf a keysafenockbox (CA R. Form KLA). SIGN: Seller does (or if checked 0 doe. not) authori Broker to in_tall a FOR SAL;;ISOLD oign on tho Property. EQUAL HOUSING OPPORTUNITY: Th. Property is offered in compliance with federal, state and local anti-discrimination Jaws. SUCCESSORS AND ASSIGNS: This Agreement shall be binding upon Seller and Seller'S successors and assigns. MANAGEMENT APPROVAL: If an a$SOCiale-licen in Brok.f$ offic. (I.sperson or broker-a.sooiate) onterslnto thle Agreement on Broker's behalf, and Btoker or Manager does not approve of its terms, Broker or Manager has the right to cancel this Agreement, in wfiting, withf" 5 Days After its execution. ADDITIONAL TERMS: 0 REO Advisory Usting (CAR. Form REOL) [i! snort Sale Information and Advisory (CAR. Form SSIA)
18. ATTORNEY FEES: In any action, proceeding or arbitration between Seller and Broker regarding the obligation to pay compensation
under this Agreement, the prevailing Seller or eroker snail be entitled to reasonabJe attorney fees and costs from the non-prevailIng Seller or Broker, except as provided in paragraph 20A. 19. ENTIRE AGREEMENT: All prior discussions, negotiations and agreements between the parties concerning the subject matter of this Agreement are superseded by this Agreement, which constitutes the entire contract and a compj:ete and exclusive expression of their agreement, and may not be oontradlcted by evidence of any priQr agreement or contamporaneof,.ls oral agreement. If any provision of this Agreement Is held to be ineffectlve or invalid, the remaining provisions wiJl nevertheless be given full force and effect. This Agreement and any supplement, addendum or mOdification, includlng any photocopy or faCSimile, may be executed in counterparts.
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O"'Q'IITQNtTY
5020 A succi.
....
74 of 130
Borrower: Kyle
AIII_lIII!Ia.
Dec.16.2011
04:42 PM
PAGE.
4/ 11
95Sl9
Date: _""1",2J../l"4,,,1,,2,,O,,1.. _ _ __ 1~
A.
MEDIATION: Seller and Broker agree to mediate any dispute Qr claim arisiog t)$tw n tham out of this Agreement. or any
resulting transaction. before resorting to arbitration or court action, subject to paragraph 208(2) below. Paragraph 20B(2) below applies whether or not the arbitration provision is initialed. Mediation fees, if any, shall be divided equally among the parties
involved. If, for any dispute or claim to which this paragraph applies, any party commences an action without
resolve the matter 1hrough mediation, or refuses to mediate after a request has been made, then tt1~t party shall not be entitled to reCOver attorney fees, even If they would otherwise be available to that party in any such action. THIS MEDIATION
fir.st
a1;tempting to
B.
PROVISION APPLIES WHETHER OR NOT THE ARBITRATION PROVISION is iNITiALED. ARBITRATION OF DiSPUTES: (1) Sefler and Broker agree that any dispute or claim In law or equity arising t)$lWeen them regarding the obligation to pay compensation under this Agreement which Is not settled through mediation, shall be decided by neutral, binding arbitraUon, Including and subject to paragraph 20B(2) below. The arbitrator shall be a retired judge or or an allorney wHh .t least 5 year. of residential real estate law experience, unless the parties mutually agree to ~ different arbitrator j who shall render an award in accordance with substantive California law. The parties shall have the right to discovery In accordanCQ wHh California Cod. of Civil Procedure 51283.05. In all oth<tr ,....peet., the arbitration shall be conducted in accordance with TIUe 9 of Part III of the California Code of Civil Procedure. Judgment upon the ,aw;;lrd of the arbitrator(s) may .be entered in any court having jurisdiction. Interpretation of thl!lo agreement to arbitrate shall be governed by the Federal Arbitration Act. (2) EXCLUSiONS FROM MEDIATION AND ARBITRATION: The following matters are excluded from mediation and arbitration: (I) Judicial or non.Judlciai foreclosure or othor action or proceeding to enforce a deed of tru.~ mottgage, or Installment land sale contract as defined in California Civil CQde 2985; (ii) an unlawfUl datainer action; (iii) tho filing or onforcement of a mechanic's lien; and (iii) any malter that i$ within the jurisdiction of a probate, small claims, or bankruptcy court. The filifig of a <>our! action to enable the recording of a notice of pending acfion. for ordor of attachment receivership, injunction, cr other provl$lonal remedies .shall not oonstltute a waiver the medIation and arbitration provl$lons.
j.on"""
or
"NOTICE: BY INInALlNG IN THE SPACE BELOW YOU ARE AGREEING TO HAVE ANY DISPUTE ARISING OUT OF THE MATTERS INCLUDED IN THE 'ARBITRATION OF DISPUTES' PROVISION DECIDED BY NEUTRAL ARBITRAnON AS PROVIDED BY CALIFORNIA LAW AND YOU ARE GIVING UP ANY RIGHTS YOU MIGHT POSSESS TO HAVE THE DISPUTE LITIGATED IN A cOURT OR JURY TRIAL. BY INITIALING IN THE SPACE BELOW YOU ARE GIVING UP YOUR JUDICIAL RIGHTS TO DISCOVERY AND APPEAL, UNLESS THOSE RIGHTS ARE SPECIFICALLY INCLUDED IN THE 'ARBITRATION OF DISPUTES' PROVISION. IF YOU REFUSE TO SUBMIT TO ARBITRATION AFTER AGREEING TO THIS PROVISION, YOU MAY BE COMPELI.ED TO ARBITRATE UNDER THE AUTHORITY OF THE CALIFORNIA CODE OF CIVIl. PROCEDURE. YOUR AGREEMENT TO THIS ARBITRAnON PROVISION IS VOLUNTARY." ''WE HAVE READ AND UNDERSTAND THE FOREGOING AND AGREE TO SUBMIT DISPUTES ARISING OUT OF THE MATTERS INCLUDED IN THE 'ARBITRATIO OF DISPUTES' PROVISION TO NeUTRAL ARBITRATION,"
$eller'~ Initi~ls
By
acl<nclwlad.!JOS that Seller has read, understands, receiv<>d a copy or and agrea& to the terms of this
_ _ _ _ _ _ _ _ _ Email
Soller _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _- - - - - - - - - - - Date _ _ _ _ _ _ _ _ _ __ Addre.s _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Cily _ _-:c_ _ _ _ _ _ _ _ state _ _ _ Zip _ _ _ _ __ Telephone _ _ _ _ _ _ _ _ Fax _ _ _ _ _ _ _ _ _ E.mail _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
Real Estate 8roker (Firm) R&msl!ly Real Estate and .oevelopment ~-i------ DRE Lie. # 01461166
Fax (916) 760-0575
E~malj
By (Agent)
Telephone
DRE Lie. # 01824426 Date_...... 1;:,.2"'(1"'4"'1... 2"'0"'1l'-_-,-_ __ City_""'a c"'r"a"'m"e"nt"'o _ _ _ _ _ State CA .. .... Zip_..:9",S",8"1,,,9_ __
reoram::!eyrealestategrgup.com
THIS FORM HAS SEeN APPROVEC tN THE CALIFORNIA ASSOCIA11ON OF RCALTOR~(C,A.rO. NO AEPRE:SENTA1l0N is MAOE AS TO THE LEGA~ VAL,IPIi'V OR ADEauACY OF ANY PROVISION IN ANY SPEciFIC TRANSACTION. A REAL ESTATE" 6ROKeR 105 THE PERSON QUAUFIEO TO ADVISE ON REAL cSTAT,f; ffiANSACTloN!!:. IF YOU DESIRE LSGAL. OR TAX AOVICI;. CONSUlI AN APPROP~A 'TE PROFESSIONAL... This form i$ Qvailablo fQl" IJ~" bY the entire rea.I est:ate Indus!lY. H 'i3 not 'In!tllc:!ed 10 identify the UIII8f as aREAL TOR. REALTOR is a rog:i;;terod coQodWt:t mtlmbel'$hlp mark which may be U$1Jd o~ bV n~re oftha NATIONAL ASSOCIAllON a; REAl. TO~ Who BUb8.crlbe to Its eode of Ethlca.
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RLA REVISED 11111 (PAGE 4 OF 4) R!;SIDENTIAL LISTING AGREEMENT. EXCLUSIVE (RJ.A PAGE 4 OF 4)
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75 of 130
Borrower : KYJ~,.IIII.1Il
Dec.16.2011
04:42 PM
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5/ 11
.. ~ ASS 0 C I A T I ON
..
CALIFQRNIA
SELLER'S ADVISORY
(C.A.R. Form SA, Revised 11111)
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OF REA L TORS"
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1. INTRODUCTION: Selling property in California i. a process that involves many stops, From start to finish, ~ could take anywhere from a few weel! to many mOMhs, depenclng upon the coMltlon of your Property, local market conditions and other factors, You have already taken an important first step by listing your Property for sale with a licensed real estate broker, Your broker will help
guide you through the process and may refer you to other professionals as needed. This advisory addresses many things you may need to thInk about and do as you market your Property. Some of these things are requirements impoeed upon you, either by law or by the listing or sale contract Others are simply practical matters that may arise during the process, Please read this document oar.fully and, if you have any qu.stions, ask your broker or approprtate legal or tax advisor for help, 2, DISCLOSURES: A. General Disclosure Dutle" You must affirmatively dieclooe to the buy.r, In writing, any and all known tact<; that materially affect the value or dosirabllity of your Property, You mlJSt discl""e th .... facio wh.ther or not asked about such mattor. by the buyer, any broker, or anyone .Ise, This duty to disclos. appli.s even if th. buy.r agr.es to purchase your Property in i1s present condition without requiring you to make any repei"', If you do not know what or how to disclose, you should consult a r1 estate attorney in California of your ohoosing, Broker cannot .dvise you on the leg.1 sUffioienoy of .ny dlsclooures you make, If the Property you are .elling is a residence With one to four units exc.pt for c.rtain subdivis;ono, your broker .Iso has a dUty to conduct a reasonably competent and diligent visual InspeetJon of the a""..slble areas and 10 disclose to a buyer all .dvelSe material facts that the in~pectiOr'l !'eveals. If your broker dlsooyers something that coldd indicate a problerYl, your broker must advise the buyer. B, StaMory Outi...: (For onete-four Reeldentlal UnllB): (1) You must timely prepare and deliver to the buyer, among other things, a Real Estate Transfer Diecosur. Statement ("1OS"), and a Natural Hazard Disclosure Statement ("NHD"). You have legal obligation to honestly and completely fill out the TOS form In its entirety, (Many local .n~tie. or orgenizationo have their own supplement to the TDS that you mayaloo be askoc to complete.) The NHD is a statement indicating whether your Property is in certain de.ignated flood, fir. or earthquake/seismic hazard zones. Third-party profe..lonal companlea can help you with this teak. (2) Depending upcn the age and type of construction of your Property, you may aloo be required to provide and, In certain ea.ea you can receive IImitoc legal protection by provlclng, the buyer with booklets entitled 'The Homeowner. Guide to Earthqueke Safety," "The Commercial Property OWner'. Guide to Earthquake Safety," "Protect Your Family From Lead In Your Home" and "Environmental Hazards: A Guide For Homeowners and Buyers." Some of these bookJets may be packaged together for your convenience. The ~arthquake guides ask you to answer specific questions about your Property's structure and preparedness for an earthquake_ If you are requIred to supply the booklet about lead, you will also be required to disclose to the buyer any known lead-based paint and leadMbased paint hazards on a separate form. The environmental hazards guide informs the buyer of common environmental ha2:ards that may be found in properties. (3) If you know that your property;': (i) I"""toc within one mile of former military ordnance location; or (Ii) in or affeeted by a zone or district allowing manufacturing, commercial or airport use, you must disclose this to the buyer, You are also required to make a good fa~h effort to obtain and deliver to the buyer a disclosure no~ce from the appropriate local agenoy(les} about any special tax I~vied on your Property pursuant to the Melle-Roes Community Facili~ .. Act, the ImprovemeM Bond Act of 1915, and a notice concerning the cont~ctuaj a$S1;IS~ment provided by section 5898.24 of the Streets And Highways Code (collectively. "Special Tax Dlsclosur.,'), (4) If the TOS, NHO. or lead, military ordnance. commercial zone or Spe9jal Tax Disclosures are provided to a buyer after you ,c'cept that buyer's offer. the buyer will have 3 days after delivery (or c5days If melled) to terminate the offer. which Is why tt is extremely important to complete these disclosures as soon as po$$Ible. There are cel1aln exemptions from these staMory reqUirements, however, if you have actual k.nowledge of any of these items, you may stili be required to make a disclosure as the items can be considered rna.terial facts. C. Death and Other Disclosures: Many buyers consider death on real property to be a material fect In the purchase of property. In some situations, it is advisable to disdose that a death occurred or the manner of death; however, Callforn.la Civil Code Seetion 1710.2 provides that you have: DO disrHlSllffi dlil:$ ''where the death has occurred mote than three years prior to the date the transferee offers to purchase, lease, or rent the real property, or [regardless of the date of occurrenceJ that an occupant 01 that property was afflicted With, or died from. Human TLymphotropic Virus Type III/Lymphadenopathy-Associated Virus." This law does not "immuniz;e an owner or his or her agent from making an intentional misrepresentation In response to a direct inquiry from a transferee or e prospective transferee of reel property, ooncerning deaths on the real property." O. Condominiums .and Other ComrnQn Interest Subdivisions: tfthe Properly is a condominium, townhouse, or other property in a common interest subdivision, you must provide to the buyer copies of the governing documents, the most recent finanoiar statements dlstributedt and other documents requira(l by law or contract. If you do not have a current version of these documents, you can request them from the mana,gement of your homeowner's association. To avoid delays. you are encouraged to obtain these documents as soon as possible, even if you have not yet entered into a purchase agreement to sell your Property. The oopyright lam of the Un~ed Slat (T~1e 17 U,S, Code) forbid the unal;lthcrized reprodUctkln 01 this tonTI, or any portion thereof, by photocopy m:ar;:hine or any ether maans, inclucUng facsimile or computerized formats,
Copyright 4D 1991.201" CALiPORNIA ASSOCIATION OF REALTORS, INC. ALL RIGHTS RESERVED,
SeUer's Initied& (
Reviiwed by _ _
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Prepared using zlpFol111 software
Broker; Ramsey Real Esta:te and Dev't Corp.. Ta9 47th Street sacramento, CA 86819
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Dec.16.2011
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9581.9 Oate: 12/14/2011 a. CONTRACT TERMS AND LEGAL REQUIREMENTS: A. Contract Terms and Conditions; A buyer may request, as part of the contract for the sale of your Proparty, that you pay for repairs to tho Proporty and other items. Your docision on whether or not to comply with a buyer'$ requests may affect your ability to sell your Property at. specified price,
PropertyAddress:Bac~t:ol C.i:l
B. Withholding Taxes: Under federal and California tax laws, a buyer is required to withhold a portion of the purchase prloe from
your sale proceeds for tax purposes unless you sign an affidavit of nonforeign status and California residency, or some other exemption applies and is dooumented. C. Prohibition Against Discrimination: Disorlminatory conduct In the Ie 01 real property against individuals belonging to legally protected classes is a vIolation of the law. D. Government Retrofit Standards: Unle exempt, you must comply with government retrofit st.ndards, including, but not limited to, installing operabJe smoke detectors, bracing water heaters, and providing the buyer with corresponding written statements of compliance. Some city and county govemrnents may Impose additional retrofit standards, induding, but not limited to. installing
low-flow toilets and showerheads, gas shutoff valVes, tempered glass, and barriers around swimming pools and epas, You
should consLllt with the appropriate governmental egencies, Inspectors, and other professionals to determine the retrofit standardS for your Property, the extent to which your Property complies with sl,Ich staneards\ and the cos1$, if any. of complisn<:e. E. EPA's LEADBASED PAINT RENOVATION, REPAIR AND PAINTING RULE: The new rule requires that confractolS and maintenance profe.slonal. working in pre1978 hOUSing, child care facilities, and schools with leadbased paint be certified; that their employees be. trained; and that they follow protective work practice standards. The rule appnes to renovation, repair, or
painting activities affecting more than six square feet of leadbased paint in a room or more than 20 square feat of Jead-bas'9d paint on the e;rterior. E.nforcement of the rule begins October 1, 2010. See the EPA; website at Vv'WW.epa,govllead for more F. legal, Tax and Other Implications: Selllng your PropertY may have legal, tax, insurance, title or other implications, You should consult an appropriate professional for advice on these matters.
information.
4. MARKETING CONSIDERATIONS: A. Pre.Sale Considerations: You should consider doing what you can to prepare your Property for oale. such as correcting any def.cts or other problems. Many people are not aware 01 defecta In or problems With their own Property. one way to make
you~elf
aware is to obtain professional home Inspections prior to salel both ,generally! and for wood deetroyitlg peats and organisms, such as termites. By doing thiS, you then have an opportunity to make repairs before your Property i6 offered for sale, which may enhance its marketability. Keep in mind, however, that any problems revealed by such inspection reports or repairs
that havs baen made, whether or not dioclosed in a report, should be dlscl""ed to the buyer (s.. "Disclosures" in paragraph 2 above), This is true even if the buyer gets his/her own inspections covering the same ar.ea. Obtainit\g inspection reports may also assist you duling contract negotiations with the buyer. For e~ample, Wa pest control report has both a primary and secondary
recommendation for clearance, you may want to specify in the purchase agreement those recommendations, if any, for Which
to provide the buyer with, among other things, a home protectionAvarranty plan for the Property. These plans Will generally cOver problems, not deemed to be pre.exlstlng, that occur alter your sale Is completed. In the event somethin,g does go wrong after the sale, and it is covered by the plan, the buyer may be able to resolve the concern by oontacting the home protection company. C. Safely Precaution.: Advertising and marketing your Property for sal., including, but not lim.eo to, holding open house. ",acing a keysafenookbox, erecting FOR SALE Signs, and diSseminating photographs, video tape', and virtual tours of the promises, m.y Jeopardize your person.l.mely and that of your Property. You are strongly encouraged to maintain insurance, and to take any and all possible precaudons and safeguards to protect youlSolf, other occupants, visitors, your Property, and your belongings, Including cash, Jewelry, drugs, firo.r",. and other valuable. 10"'lted on the Property, against injury, theft, loss,
vandalism, damage, and other harm. Il. Expenses: You are advised that you, not the Broker, are responsible for the fees and costs, if any, to comply with your duties and obligations to the buyer of your Propelt)'.
5. OTHER ITEMS:
Seller """fe,'d)'no
By E>igning below, Seller acknowledges receipt of a copy of this document ...-_ _ _ _ _ _ _ Date
Oate_~
=,,-_______________
__
By
Address
Telephone
915-737-5656
Fax 9J 6-760-0575
THIS FORM HAS BEEN APPROVED 6V THE CALIFORNIA ASSOCIATION OF ~EAlTOA:S (OAR.). NO REPRESENTATION IS MADE AS TO THE LEGAL VALIDITY OR ADEQUACY OF ANY PROVISION IN ANY S~CIFIC TRANSACTION. A REAL ESTATE BROKER IS THE PERSON QUAUFIEO TO ADVISE ON REAl. ESTATE TRANSACTIONS. IF YOU ceSIRt; 1-1:iGA.L O~ TAX ADVICl:, CONSULr AN /AJlP~OPRlA TE PROFESSIONAL. Thi:s: form ~ mli:.illablefor It9:B by !he entire malestats Industry. It is not intended 10 identify the ~r as Q REALTOFW, R~TOR ~ .. ~~ eCIIlet(:liYa rnomnel'$hlp mark which may be used only by mElI'nben; of the- NATIONAl. ASSOCIAllON OF ReALTO~ Who subscribe 10 Its Code of Ethics.. Published ana DistriblMd by: III R~ ESTATe BUSINESS SERVICES, INC. l[Jo~-;;~~.~;;;:;;;;;;;;;;;;;;:2"""'~~;;;;;;;;;;;;;;;;;;;;::JI 8subsicfaryof~Cdi~A.,~tJooofRJ!AJ.7'OIlSie . n.<ftteWed "1 [ ] .. 52$ SQI,lt!1 \I!~! AV8I\llt!.losAngElles. Caifania 90020 C
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77 of 130
Borrower: Kyle
Dec.16.2011
04:45 PM
DISCLOSURE REGARDING
(AO ..qulrod by Iho Chili Cod.) (C.A.R. Form AO, ReVISed 11/09t
PAGE. 10/ 11
..
~ ...~
men you enter into ~ rllscll$$ion witi'! i1 real estate agent regarding a real estate transaction) you should from the QUtset undemand what type of agency raiatlonshlp or representation YOLI wish to hlll:ve with the aSl;!nt in the tranS!lotlon.
SEU.ERS AGENT
A Sellers agent under a Iletlng egreel'Ml"It wIth the Seller aots as the agent for the SeUer only, A Seller's agent or a subagent of that agent Ilas the following afflrmstlve obligations.: To the seller. A FidUCiary duty of utmost care, Integrity, hone3ty and loyalty in d~lin!ile with the Sel~(, To the Buyef ~nd ~he Se1ler: (a) DIUg8nt exercise of reasonable skill and care in perfOrma.nce of the agent~ dutll!l3. (b) A duty of honest and mir de~ling imd good raith. (c) A duty to dieclose all facts known to th~ agenf matel1ally a11&ctlng the value or desirability or the property that are not known to, or wIthin the diligent attention and Ob:!8M!Jtion of, the parties. An agent Is not obligated to reveal to either ~rty any confidential information obmined from the other party that does not Involve the affirmative duties set forth above,
BUYER"S AGENT A selling agent can, with a Buyer':s COMl!lnt, agree to act as agent for the Buyer on!y. In these sttuations, the agent is not the Sellera agent, even jf by agreement the agent may r'el::$lve eompene.aijon for SEtrvices l'@nder6Ci, either In full or in part 1i"om the Seifer. An agent acting only for.a Buyer has the
following: affifmat;ive obligat!On&~ To the Buyer: A fiduciary dUty of utmost care, integrity, honesty and loyalty in dealings with th~ Buyer. To the Buyer and the Sel'et: (a) DUIg~nt exercise of reasonable skill and cere in perfotman~ of the agent's dUtlM, (b) A dUty orhonMt and fair dealing and good faith. (c) A duty to Qi~IQ~ allf'ads known to the agent materially affecting the value !;If Qesirability of the property thelt are not known W, or wlth!n the diligent attention and obMlrv:atlon of, the parties. An asant Is not obligated to reveal to either party any oonfidentiBil il"lfOrltlatiol'l obtaIned from the other party that does not involve the affirmative duties set rorth above.
A real estate agent, eitl1er acting directlY or through one or more assocIate licenteelJ., can legally be the agerrt (If both the &I11e-r and the Buyer In a ~n~c;:ti(m, but only Wllh the knowledge and consent of both toe SaUa~ and tha Buyer. In a dual agency 51tuaijoM, _he agent has tne rollowing affirmative obligations. to both the Seller and the Buyer~ (s) A fiduciary dLrty of utmost earll, Il"rh:Igrlty, honesty and loyalty in the dealings with either the Seller or tM auyar. (b) Other dutlas to the Seller and the Buyer as sts.ted above In thelr rt:!speCtiVQ sections. In repre~ntillij both SeHer and Buver, the agent may not, without the e)(pl'ElSS permission 01 the respective party, disclose to the other party that the $eJl~r will ac:cept a price less than the lieting pri~ Qr fnal the Buyar wlU pay a price greater than the price offered, The above duties ofthe agenlln 2; real estate transact10n do not reJleve e SEllJer or Buyer from tht:l responSibility to protect his or her own Interests. You should carefully read all agMaments to ;!issure: that they adequately express your undersw,nding of the transaction. A real Elstate agant 1s i!I. pEIrson quaUf1&d to advise about real etXate, If legal or ~e.X advice is desired, consult a competent professional. Throughout your real property transactiOh you may r.:toolv& morEl than one disclosure rorm, depending upon the number I)f agents assiatil'lg In the tra~ctlon. The law r4!lC(ulres each agent with whom have than a cas.ual relationshIp to ])resent you with this disclosure form. You should read Its contents each time it i~ preaented to you, and the real estate agent in your specific tranGaciion, This disclosure form includes of the Civil Code m fQrtte ",. page 2. Read it camfuUy. WlE ACKNOWLEDGE RECEIPT OF A THE CIVI~ COD!: PRINTED ON THE BACK (OR A
Landlom Landlom
Ten.nt Ten.nt
Oate
o Buyer 0 Seller 0
By
Oate _ _ _ _ _ _ _ _ __
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DRE Uc. #
01461166
o.te
12/14/2011
AGENCY DISCLOSURE COMPL.IANCE (Civil COd. 2079.14): VvhEln the listing brok~ge comp~1"Iy ~ISQ mplttS4!lnts BuyerlTenant: The Listing Agent shQII have one AD form $iijmd j;}y Seller/Landlord and a different AO rorm signed by BuyerfTenant. , V\lhen SellerfLandlQrd ~nd BuyerlrMant 31'f1 represented by different brokel'Bge companies: (i) the Using Agent shall have one AD form signed by' Seiler/landlord and (II) the Buyer'slTenanfs Agent nil have one AD form slgned by Buyerffenant and either (:flat same or a different AD form presented to Seller/LandklJ'd ~r signature prior to presentation of the offer, If the ~me fQrn'l is used, here: ISELl.ERJl.ANOLORD: DO NoT SIGN HERE) SeDerlLandlOrd Date The copyr1ght law;; of thlt UnHM Stale:a (i~lt) 17 U.S. Code) forbid the unauthorized reproductIon of thi$ form, or any portion 1hareof~ ~ phDlocopy machine or any other moons, Including facsimile or computertzed for~t$. copyright C 1~1~2009, CALIFORNIA ASSOCIATION OF ReAl..TOR$, INC. ALL Rl(lrlts RESERVEO. THIS FORM HAS BEEN APPROVl::O av THE CALIFORNIA A9SOCIA11ON OF REALTORS (CAR,), NO REP~SE:NTATlON IS MACE M TO THE LEGAL VALIDITY OR AOEQUACY OF ANY PROVISION IN ANY SPeCl~IC TRANSACTION. A REA~ ESTATE BROKER IS THI; PERSON QUALIrleO TO ADVISe ON REA~ ESTATC1 TRANSAC1l0NS. IF YOU CESIRE ~EGAt. OR TAX AOVICE. CONSULT AN APPROPRIATE PROFESSIONAl.. 1111$ ferm Is J,lv811able for use by the entire real aslatlil indu$!:ry, It 1$ not Intended to Identify the usera& 8. REALTOR, REAI.ToR!$ a Jegbtel'~ (X)lIe:t;l1lve membership mark which may be U500 onlY IW members. of the NATIONAL ASSOCrA110N OF ReAl.TORS. Who !!oLlbecrlbe kl lie Code of Ethics. Publi$/'ied Md DWlribul&d by. II REAL ESTATEOO$INCSS SEflVICES.INC, [ ] asub$ldittry r;I f;tt CsIIbrnia ksreiation of REALTORSS .e eo 525 Sou" ViI#J A~o!:IIUil.l.os An~Ies. Caifomia 90020 Revlowed by Date ~ OPl'olllUWrrV
AD REVISED 11/09 (PAGI11 OF 2) DISCLOSURE REGARDING REAL ESTATE AGENCY RELATIONSHIP (AD PAGE 1 OF 2) Agent: Daniel Ray Ramsey Phone: 916-812~3267 Fax: 916760..0844 Prepared usmg zipForm !jottware Broker. Ramny Raid Estate and ceV't corp. 769 47th stl'8et Sacramento, CA 96819
~ .....
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Borrower.: ~'~le~IIII 1
Dec.16.2011
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CIVIL. CODE SECTIONS 2079.13 THROUGH 2019.24 (2079.16 APPEARS
PAGE.
11/ 11
transaction. and Includes a person who Is lIcensed as Q real eetate broker undi:!r Cha~r 3 (commenctng with Sealon 10130) of Part 1 of Division 4 of the Business and Pro1l!lssions Code, and under whose license a listing Is exec:l,lted or an offer to purmase is obtained. (b) "Assotiate licensee~ means a p~l'$O!"I whO is liCensed Sq a r.el;ill e2;It;lte broke~ Dr sale!5lperson under Chapter 3 (commencing .....ith S!:iction 10130) of Part f or Oivlslon 4 of the Business 21nd Prof'l!lMlans Code and Who la either licensed under a broker or has eRtered Into a written contract with iF!- btol(er ta act as th~ brokers agent In COtlhectiOl"I with ,acts reqtlinng a real estate license and to fUndion Under the broker's supervision In the capacity of an: associate licensee, The agent in the real property transaction bears responsibility for his or her ,at>SCX:iElle licensees whO ~rrorm as agents OJ the agent VVhen an associate licensee o.wes a duty to any prindpal, or to any buyer o.r sellar who. Is ncd a p,nncipa.I, In a. reel property transaction, that duty 1& t:qulvalent to. the duty o.wed to. that party by ffie broker for whom the associate licensee funcUoos. (el 'Buyer" means a tranSferee In it real property trilnS8ction, i!!Ind Includes i!!I permn who execules an offer to. purchase rei!!ll property from a seller through ;!!In agent, o,r who. seeks the ~JVicei of an agent fn more than a C'ae..!al, tra.rwitOry, Qf preliminary manner, with the object of entering into II real property transactlo.n. "Buyer" Includes vendee or lessee. (d) "Dual agent" means an a~ent acting, either direrjly Qf through 1;\0 associate licensee. as agent for both tM aeller and the buy~r In a real property transaetJon. (e) "U5tlng agreement' mea~ a (:Ql1traet between an owner of real property and an agent, by which th& agent hu been authorized to sell tho real propertY or tQ find or o~in ~ buyer, (I) "Listing agent" means e person who has obtained a listlng of rea~ property to aet as an agent tor compensation. (q) "Ustlng price" is the amount expressed In dollars specified In the listing 'or whIch the s@lIarlswllllngtosell the real property through 1M Ilt;ting agent. (h) Otferlnfl prlCEt" Is the amount expressed In dollars sp8cll'led In an ott'lI!lr to purcnase: for WhiCh the buyer Is wRUng to byY the real proP'lI1Y. ('l "Offer 10 purehasa means a written ~ntnlct e)(eeut8d by a buyer aetlng through a seiling agent which betmea the contract for the- sale of the Teal pro~ upon acceDtance by the seller. (i) "Real property" means any estate speoified by subd"M3bn (1) or (2) of Section 761 in property which constitutes or is Improve(J wl~h one to fOur ~lHng unlls, any leasehold 11\ this type of propertY' exoeadlllS one )lear'~ i;lu~tion, and mobile homes. when offerea for $ale or 8Q!d thrQ1.l9tl. ai1 ~~nt pur.stJant to the authorlty contained in sedion 10131.6 oflhl;! BU8ineq$~nd profeeaions Code. (k) "Real propany tranSi!llction" means a transaction for the sale of real pro~rtv in whICh an agent is employed by .one or more of1he principals. to act in that transactiol'l, and melUdas itUi!>tlng or an offer to purchase. (I) "Seu," "sale, or "soldu refef$ to e transaction for the t~nsfer of real property from the seHer to 1he bl:'Yer, and InCludeS a)(ci'anges o( real property between the selier and b~r. transactions for the oreation of a real propertj sales contract within the m~nin9 of SectiOn 2985, ;!;nd transactions forthe creation 01 a leasehold exceeding one yeats duration, (m) "Seller" means the transferor In a real property transaction, and lnolu~ei an owner Who lists real pr.oll@rtVwlthanagent, whether or not a transfer results, or who receives an offer to 'purchase real property .of which he or she is the owner from an agent on behalf of another. "Seller"' Includes both a vendor and a lessor. (b) ~seiling agent means a Ilsllng agent who acts alone. or an agent who acts in coopel1ltlon with ~ rlStilig agent, and who :&aIls or finds and obtains a buy-er for the rear pro~rty, or an agent Who IOC!ites property to.r a buyer or who finds a buyer for :a property for WhiCh no liStIng ~nd presenl$ an offer 10 purchase to tM ~"er. "SUbag!!!nt" meaflEil ~ perwn tQ w!'tQm an agent d6Iega:h!Js. agency powers as provided in ArJ:i9fe 5 (commenc;ing with Section 2349) of Chapter 1 of Trt e 9. However, usubagenf dQee not inlu~e an associate dcensee who Is acting under the 3uperviSlon of an agent In a real property tIlmsadion.
20~.13 As U$l:!d I~ seotlO'ns 2079.14 to 2079.24, Inclusive, the following terms have the toUowing meanings: (<11} "ASl!:!l'Il~ me:ans a person acting under provl'Slons of title 9 (commencing with SectIon 2295) In a. real property
ex.
!o)
2879.14 lkitlng agents and selling agents shall provide the seller I;Ind buyer in a real property transaction wflh a eopy of tM dlSC1o&IJre form ~pecified In &:!dion 20'1S.16, and, except aG provided In $Ybdivi~n (c), PiJh~1I obrein a signed acknowledgement of receipt tram that EiBller or buyer, except as provided In this section or $edion 2079.15. as fQlI~ (a) 1M lISting agl!lnt, It any, :!hi!!ID prOVide the diselO&lre form to the Miler prior 10 entering fmo the fisting agreement, ('" fhe selling agent shall provide the disclosure foon to tile se!Ier as GOQn as prad:i~ble prior to pre~ntin.g the "Iler wiCh an offer to purchase, unle$s Die seiling agttnt previously provldtd the seller with a copy of the dISClosure form pursuant to subdivliion (a), c) Where the eeliing a~enl does not deal on a li;u::e~to-raoa ba:slS With tM seller, the dlsoJosure fooo prepared by the selling agent may be furnIShed to the seller (and aek'nOWledgement of receipt obtained for the eelling ~ant from the seller) by the 1IS1lng aganl. or the MlRng 2g8nt may ~lIv&r tl'"te dlseiOSUfft (onn by O!trtlfted mall addressed to the seller at hie or her I~st Known address, In which 0i!Ia!! no slaned acknowledg&ment of receipt 1& fequll'fld.\d) The Milling agent shall provide the disclosure form to the buyer as soon as prn:eticable nrlor to exacutfon of the buyer's ofter to pul'Ghase, except tha It the offer to purOhase Is. no.t prepared by the seiling agent. the selling agent shell pre~nt the di&elOsUre form 1(1 the buy~r not laler ~n u,@ ne)d bUSiness day anar the selling agent receives the Qffer 10 purchase from the buyer. 2079.18 In any olrcumstance in which the seller or buyer refu~s to itGin an aCk:now1edssmenl of receIpt pUl"SUanl to. Section 2079.14, lhe agent, or an assoclatellcensell!l actIng for an agent, shall set forth, sign, and elate a wlitten declaration of the fadS (lftM refusal. 2079.16 Reproduced on Page 1 of this AD form. 2D79.17 (a) As soon as practicable. the sefling agent e.het:1I di5'l;Ioee 10 tile /;IllYElI' and seller whether the samng agent Is acting In the re81 property transaction exClUsively as the buyer's agent. exclusively as the 5elle(s agent, or a6 a ~ual aset'lt \'@pri:!~ntlng bath tha J)Uyer and th& selltr. iNs. I'fIlatloMi'lJp shall be confirmed in the contract to purcnase and sell real property or in a !ieparate w!i1ing e;x;ecutect or acknOWledged by the saller, tnfl buy&r, and the seiling agent prio.r to or coincident With EOtecllllo.n Of Inat contract by the buyer and the seller. respectively. (b) As soon as practicable, the listing agent ahall diSCloS4:! to the seller whether the neting ~gent is acting in th~ real property transaction exclusively as the seller's agent. or as a dual agent representing both the llliyer and seller, This relationship shall ~ contlnned In the contract to purchase and sell real property or In a separate writing executed or acknowledged by thE;! seller and the listing sgil'nt prior to or coincident wIth tl'te execution 01 that contract by the seller. (c) The confinnation required by subdlvlSlon~ (a) and (b) .shall be In the following tonn. (00 NOT COMPLETE, SAMPLE ONLy) is the agent of (check one): 0 thE! seller e)(cluslv&ly: or 0 both the buYlI!lr and seller. {Na~ ()f Lii3lng Agent) (DO NOT COPL.El'E. SAM~Lc ONLy) is the agent of (check one): CJ the buyer exa!u!iiiVsly; or CI the saller sxclualv6ly; o,r (NaTnel ofSeUing AgfOOl if no! t~e$lllimo~ttile [!$ling Agent) 0 both tha nuyer ~nt;l seDer. (d) The di$!I)$UI'> and oonflrmatlon required by this section shall be in addition to the dl!iqQsure reqUIMd bY Seetion 2079.14. 2879.18 No eening agent in a ~al property tranaadlon may act as an agent forthe buyer only, when the eellios agent Is alSO acting as the listing agent In
the transaction.
2019.19 The payment of compensation or the obligation to ~y cortJpansauon 10 an agent by the seller or buyer is not necessarity detennfn~t1ve of a partJeUJar ageney relationship between an agent and the eeller or buyer, A listing agBnt i!!IM a seiling agent may agree to share any compensation or commlselon paid, or any rlglit to any compensation or ~mm~n for wtlich an obUsation al'lses as the J'@Isultofa real estate transactio.n. and the tenna of any such agrQament shall not neoessarily be detenninalive of a particular relationShip. 2079.20 Nothing in this article prevents an agent fmm SBF6ctlng, ;as 2 condition of the agenfs employment, a specific form of agency relatjQn~lp not specifically prohibited by this. article if1he requireme~ of $ecUon 2079.14 and Sectlo.n 2079.17 are romplled with.
2079.21 A dUil agent ahe:U riot dlSClOSI:! to HIe buyer that the seiler Is willing to sell the property at ~ price Ieee. than the listing ptice, WithQUl the express wrlHQn consent oHhe seller, A duall;\gent shall not disclo5e to the $E!~er mat the buyer Is wlUlng to pay a price greater tha.n the offering price, wittlout the e)(press Vifitlan consent ot the buyer. This section does not alter in any way the dUty or responSIbIlity of tl dual ag&nt to, any prindpal with respecl to GQnfidential informiilltiol'l olherthan price.
2019.22 Nothing In this artiole prec:ludes a listing agent fro.m also being a seiling. agent. ana the combination of ttie$$ fUnctions In one agent dOEls notl o.f rtself, make Ihat agent a dUi!!ll agent
2019.~ A IXI'ntraet blttwoen the prIncipal and agent may be modified or altered 10 Chan~ tI'le agency I'fIl!tlonsnlp at any time before the performance of the act which is the object of the agency with the written consent of the partlos to the agency rel~onship. .
2078.24 Nothing !n thiS article snail be construed t9 either dimlnle.h the duty M diselo.sure owed buyers and sellers by agents and their aisociate Ucen$E!~ :subagente. and employees or to relieVe agenta and their assoolate licensees, GUbagenw. an~ emplOyeM !'rom liability !'or their conduct !n connection with aets governed by this article orwr e.ny breach ofa flduelary duty or a duty of disclosure.
Buyer'S/Tenant's Initial:\,; ( ) ( )
}(
Oate
) 1.:.1
~':'HI1I11$ 502. A
,I"",.
790f130
Jun.24.2010
08:35 PM
PAGE.
1/
. For use by seller or Buyer. May b. uoed for~M"""~Iil~p~la~CO~u-nt=.r Offer. OF REALTORS" (C.A.R.FormCO,Revld11110)
Ca~tomia Residen~al POl,lrr;hsee Agreeme.m, ~II9DlbQr 16. 201.1 ,on properly known as _ __
Oat'
Dill",
~~~~~;3~.r.~~~~===~
B.
but are not by aU partle5. are fjxcll.ld$d 1rom the final agreemant of this Of another Counter Offef. amount(&) will bo adjustGd in 1hQ samo proportion as in the original
Offor
. C. Purchase price to be $207. 000
When depo3it ~C~8B nonrefundab16 and in!p!ct~on cont1ngency is removed, saller to issue 30 dar notice to tenenats C~OSB or 8SCrDY to he 30 days from bank shortsale approva~ Puurcahse funds to be deposited in time to close escrow
D.
followlng
attaehad
oro: __~D:'Ad::d:e:nd:":m~N:o~.::.===========
0 ______________ (date), at
2.
3.
RlOtfT TO ACCEPT OlHER OfFERS: Ifthie 13 a Seller Counter Offer, (i) Seller ha$ the fight to conUnU8 to off(lr the Property for sale or for another transaction, and to accept any other offer at any time prior to Acaeptanoe. as desoribed in paragraph 3 and (10 Seller'Go 9QCeptance of anothar offer prior to Buyer's Acceptance of this Counter Offer) shaD revoke this Counter Offer. EXPIRATION: ThJ~ Counter Offer $hal be deemed revoked and the deposits, if any, shaD be returned unless this Counter Offer is signed by the Buyer or SeUer to whom it is eent and a Copy of the s.lgned Counter Offer i$ pe:l'$onal!y reoelved by the person making this Counter Offer or by
c-c-~~~_o-~~o-~~~~_~____~~c-____~~__~~~~~~c-____________ ,who~a~ortzedroreoeNe
it, by 5:00 PM on thlil third O~"1 Aftarthl!! latar date specified In paragraph 5 or, (if checked) by
AM
($-Signed by Seller In p~rasraph 7 b$l()w and ~ C()py of 'the Cl)unt&r Off(lr SIgMd In p2l~graph 7 Is p~rson2lUy reoelved by Buyer or by 1 _ _ _ _ _ _ _ _ _ _ _ _ _ _...",...,.,..._ _--,.."._=__-,._-,=;-______ , who is authorized to receive it~ by 5:00 PM
on the third Day After the later date specffied In paragraph 5 or, (If cheeked) by (date), at I--~_O AM !,rior to the completion of all of theae ev~nts, Buyer and Seller soall have no duties or obligations for1he purchase or &aIel 'CIf the Flroperty. NOTE TO SEllER: Sign and data In paragraph 5 to make this Counmr Offer.
'001: be
(If cheeked!J MULTlP'LE COUNTER oFFER: SeITer is making a Counter Offet(s) to anotl'ler proa:pecltve buyer(s) on terms that mey or may the same as in this Counter Offer. Acceptance of tllis Counter Offer by Buyer shall not be binding unless and until it ts subsequently
OPM.
SELLER MAKES THIS COUNTER OFFER ON THE TERMS ABOVE ANC ACKNOWLEDGES RECEIPT OF A COPY.
7'
B.
0
Date
OAMOPM
Date
7.
Time
AM 0 PM
~,=,~TI~I:E_ ~~~~JE!t OFF~R .SIO.NA!U~E UNE: By signing ~Iow, Sellei' GG.fIPts this MuJti~18 Counter Offer.
NOTE TO SELLER: Do NOT sign In this box until after Buyer SlgM In paragraph 6. (Paragraph 7 appliea only if paragraph 4 ia; c:hoekftd..)
1_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Date Data
8.
Time Tlma
OAM [M
AM [M
(_ _ _ 1_ _ _ ) (Initials) Confinnation of Acceptance: A Copy of Signed Acceptance was personally received by the maker of the Counter Offer, or that person's authorized agent as specified In paragraph 3 (or, If this is a Multiple Counter Offer, the Buyer or Buyer's authorized at AM PM. A bInding AgRement agent as specified In paragraph 4) on (dste) i,. crvated when II Copy of Signed Acceptance is personally received by 11\9 tha maker of tha Counter Offer, or that parson',. authoriuld ag8nt (or, if 1his is a MuHipl9 Counter Offer, 1ha Buyar tIT auyar'~ autborl%:",,~ ~ltr!t) whcttt'lor or not confinnecl In !hl$ doc:umoot. Compl$liQn of thir> eonfinnat{o~ 1$ not legally Nlq ... 11't!<I in order to creme a bimfing Agreementj it i:. ~olv:ly intended to evidence the date that
tS:r
EOWl-:SiNC
DPP'J~TIIlIlTY
IR$vJowed by
COUNTER OFFER (CO PAGE 1 OF 1)
Date
80of130
Borrower: Kyle
IIIEI
Jun.25.2010
07:21 AM
PAGE.
1/
i~.
For use by Seller or Buyer. May be used OF REALTORS" (C.A. R Form CO, Revised
COUNTER OFFER
r.;!i1~tir Offer.
Oaoo Deoemter 20. 2011
:.~M~~..~n~ll~~~~~~~~~ii~lj1!j!~
A.
dated D.oeolllllb.or 16, California Residential Purchaseas ,on P"'l"'rty known ThIs!$. counter otTer to the: [i)2011
~g~rei.~m~e~nt~'~D~;c~o:unto:~rO~ffo~r~,o~r~~ot~h.~'~~~~~~~~~~~;!(~"OO~i:e~,~.),
(Selle,).
by Bli partils.
excluded from the final agr~ement
B.
Inclu.:lon I~~~'!~~
I>
or another Counter Offer. lo.n omount(.) will b. adjusted In the .ame proportIon In 11> ,Iginol
e
c.
OfIor.
l'pc.hase P%ice
to
Sac.l:'ame:tlto.
CA
95B1..9. Se~~er does not accept oontragt i t . 5.9. Gil. P.rop8rf:y wi-I.! remain in a ZllDnth t:o JDOnth lease, al1d selle%' will SIM:'V'I! t:he ten&nt .. 30 day not.iae to vacate upon .tea!!!!!!!tdpg sho:rt: SUf!I .approval ~d't:t:..r, buyer .removipa tlle iusp.s!otioll 9O;Q.ti~9!!!l1ay. a.nd huyeJ;-o :ftu;ds ~o purchase Gtre depes.i t8d in tflsarow.
D.
2.
3.
______________________________= _______
It, by 5:00 PM on lhelh!J:l! Day Allgr th_Jater date specified in paragraph 5 or, Of checked) by 0
IraMaction. and to accept Ilny ether offer at any time prior to Acceptance, aQ deiCribed in paragraph :3 and (Ii) Seller's acceptance of another offer prior to Buyer's Acceptance of this Counter Offer~ shall revoke this Counter Offer. EXPIRATlON; This Counter Offer shall be deemed revoked and the deposits, if any, shin be rururned unle:i:i thili Counter Offer Is sighed by the Buyer or Sell@r to whom it is sent and a Copy of the signed Counter Offer Is pet50rmlly recel ....ed by the person maldng this counter Offer or by ,who Isauthorlzed to receive
RIGHT TO ACCEPT OT~ER OFF!':fIS: II this Is Seller Counter Oller. (0 Sellor has Iho rtght to ""nllnue to ofrerth. Property 10' sal. or
for another
4.
LJ
AM
____________ (d.te), at
Is
5.
Copy Of the Counter Offer Signed in paragraph 7 is personaUy received by Buyer or by _..,--,-..,-:,-..,-"-,-,..,---,...,...._,,.,....,.,._-,-_:-=_-::.,--:-..,.-"""--;...._ _ _ _ _ , who 1$ authorized to roco". It, by 5:00 PM on the thin:! Day Aft.r the later opeclfled In paragraph 5 (II ohec~.d) by ,date). at A~ ClPM. Prior to the complet1on of all of these events, Buyer and Seller shall have no duties Qr obligations for the purchase or sale of the Property. NOTE TO SELLER: Sign and date In paragraph 6to make this COllnter Offer. , Oate __________________________________ OFFER: D BUYER OR 0 saLER "'AK~S THIS COUNTER OFFER ON THE TERMS ABOVE AND ACKNOWLEDGES RECEIPT OF A COPY.
iii
'no\- bet 1he iame as in thia COunter On'er, Ac:ce~el'lee of thIs Counter Offer by
...~$igne.d by Seller in paragraph 7 be!Qw arll;i
(If checked:)
10 tnaklng. Counlor O.r(o) toshall not prospective buyer,s)and termsItthatsubsequently another on mayor may Buyer be binding unless until or,
0
-,,...---CJ
date
~k"
Date ..J.l""2{"'2'-!!O~{~20,ulUl_ _ _ _ _ _ _ _ _ _ _ _ _ _ __
6.
ACCEPT
r""olp
0
CE: I/wE accept the above Counter 0., (If chockod [Zj.SUBJECT TO THE ATTACHED COUNTER OFFER) .nd acKnowledge
~/
Dot.
12...-"2.:'----"2..)0 t\
Time
DAMDpM
Dot.
7.
1MULTII'LECOUNTER
Time
DAMDpM
DAM []PM
NOTE TO SELLER: Do NOT sign in this box until after Buyer 5jgn~ in pal'agtaph $~ {Pi1Iragraph 7 applle$ only If paragraph 41s checked.)
1_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
Dlt.
O.t.
Time
To....
AM []PM
e.
'--_ _ 1_ _ _ ) (Initials) Confirmation of AccaptanC8: A Copy of Signed Acceptance was personally re~ived by the maKoIllr of the Counter Offer, or that person's authOrized agent as specified In paragraph 3 (or, If this Is 8 Multiple Counter Offer, the Buyer or Buyer's authorIzed
at
DAM
TRANSACTIONS. IF YOU OES1~fi: l.E"GAl. OR TAX ADVIce, CONSULT AN APPROP~IAn: PROFi:SSIONAl... This form Is avaIlable for 1.189 by the entire real 93tale industry. lila not Intended 10 Identify the userss a REALTOR!. REAL.TOR Is a registered ctllh!ctJ'IIa membelrShlp rmt!'k Wh~ may b& utfId only l:ly membttrt of lI'Ilt NATIONAL ASSoctAl1CIN 01" REALTO~ Who :s.tJb5trlbiit to 115 Code Of ethIC:&. Pub~shod end Dislribulod by: _ REAL ESTATE BUSINE:ss SSWICES, INC. j R'mitJo"../ml l:)!j Data =~~u\W [ ] tt&lJb$lchty,,'tIl~CI!fl~ftuccklJh>norREAt.rcl<$$ <: .. 525 Sooth Virgil Avenue, Loa ~Iee, Califomia 90020
is created when a Copy of Signed Acceptance is personally received by the the maker of the Counter Offer. or that person's: iU.ltho.ued agent (or, ff this is a Multiple Counter OfferJ the Suyer or Buyer's authorized agent) wheth.er or not confirmed in this document. Completion of this confirmation is not legally required in order to create a binding Agreement: it is solely Intended to evidence the date that AcctJptance has occurred. The copyright laws of the United Slatl!lll (11tle 17 U.S. Coda) forbid the URauthorized reproduction of this tom, or any portion thereof. bv pIlotocopy machine or any other means, Including fact;tlmlle Qr computerl~ed fonnats. CO!)yrlglrt: 10 19M~2004. CALIFORNIA ASSOCIATlON. OF ReALTORS, INC. ALL Fl:IGH1S ReSERVEO. THIS FORM HAS 'aEEN APPROVED BY THE CAliFORNIA ASSOCIAnON a= REAl.'rORS (CAR.). NO REPRESENTATION IS MADE AS TO THE !..SGAI. VALID1TY OR AOEQUAOV OF ~y PROVISION IN ANV SPeOIFIO 'f'rwJSACTION. A REAl.., ESTATE BROI<'EFI: IS THE PERSON OUAUFlEO TO ADVISE ON ~L ESTATE
!5:t
-
Phone: 916-812-3261 r=ax: $16.160..0644 D~v't Corp.. 769 '7th stre~t Sacramento, CA 96a19
81 of 130
Jun.22.2010
07:38 AM
PAGE.
1/ 15
.~
Abolqna."",
St:reet:
r
rsuyer").
Saoramamnto: Cit
95819
~ituated 111 ,California, f'Property").
c.
D. CLOSE OF ESCROW "'all occur 011
(dote) (or
2. AGENCY:
A. DISCLOSURE: Buyer and Seller ea(;h acknowledge prior receipt of a "Disclosure Regarding Real Estate Ageney ReJallol'l$hlps"
),
within
Days After Acceptance, or 0 ~-"''''''''----:-::---c-:::-::--'''''''''''----. If a I1quklated <lamMe& clauae is incorporated into this Agreement, Buyer and Seller shaU sign a separate ~quidated damages clause (CAR. Form RID) for any increased deposit at1he time it is deposited.
C. LOAN(S): (1) FIRST LOAN: in the amount of. " ' , " , ............ ,....... . ....... $ _ _ _ _ _ _ __ This loan win be conventional finanoing or, if checked, 0 FHA, Cl VA, D Seller (CAR. Form SFA), assumed financing (CAR. Form PAA), 0 Other . This Joan shall be at a fbted rate not to exceed % or, 0 an adjustable rate loan with initial rate not to exceed %. Regardless of the type of I(lan, Buyer 5ha1l pay pointe. not to exceed % of the loan amount. (2) SECOND LOAN: Intheamountof ................ , .......... , ............ , . ,",.,"'" $ _ _ _ _ _ _ __ 1his loan will be conventional financing or, if el'le(:k~d, 0 seU~r (CAR. F(lrm SFA), 0 a500med fihtmcing (CAR. Form PAA), 0 other , ThIs loan shall be at E!I fIXed rate not to exceed :c--:--,.,- % or, 0 an adjustable rate loan with initial rate not to exceed %. Regardless, I)f the type of loan, Buyer shall pay points not to exeeed % of the loan amount. (3) fHANA: For any FHA or VA loan specified above, Buyer has 17 (or 0 ) Days After Acceptance to Deliver l;o Seifer written notice (CAR, Form FVA) of any lender-required repairs or costs that Buyer requestt; Seller to pay for or repair. Seller has no obligation to pay for repairs or satisfy lender requirements unless otherwIse agreed in writing, O. ADDITIONAL FINANCING TERMS:
o
o
E. BAL,ANCE OF PURCHASE PRICE OR DOWN PAYMENT: in the amount of. , , , . , , , , , , , , , , , , " .. , ..... , .... $ _ _ _... 1",9",5..Jt0ll.00"-"o,,,o,to be deposited with Escrow Holder within sufficient time to close flserow.
~:;,.
The
::::;;lE
&
~~TAL):
.... )
.................................
~~:~rs :~~.~.;
QQpyrI.lJht 1_ of the Unitl!d 8tate& (TItle 11 U.<l. Codtl) fom/d the uMulhllrl:!!lId mprodUctk:ln
l!.nr jXI!tlon tIwfwf, by ph9trx:Qpj' mlr;h!nli or .any o!her mliaM, Including f<leD1m/kI or compuMrlzed formats. Copyrig/ll 0 1991-2010, CAI.lFORNJA ASSOCIATION OF REALTORS, INC, AU. FOOHTS RESERVED.
olj~
. . . .;; ____
~
205 c 000.00
farm. or
~~WM~
RPA'(;A REVISED 4110 (PAGE 1 OF 8) CAUFORNlA RESIDENTIAL PURCHASE AGREEMENT (RPA.(;A PAGE 1 of 8)
Agent: Guilfory Broker: Cw;tom Rea
IL.:R~~::::lo~wed~byL:===:..:D::=""'!!..:====.J
p",I"''"'' ...[ng zlpF_ . _...
Phone: (916)487-8393
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Fax: (916)487-8280
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82 of 130
Borrower: Kyld. . . . . .
Jun.22.2010
07:39 AM
PAGE.
2/ 15
5020 A
Property Address:
str"et.
CA 95819 Date:
Saaramemnto,
Deaember
16, 2011
G. VE~IFICATION OF DOWN PAYMENT AND CLOSING COSTS: Suyer (Dr Suye(. lender Dr loan broker pursuont to 3H(1)) sholl, within 7 (or Days After Acceptance, Deliver to Seller written verification of Buyer's down payment and closing costs, (If checked, ~ verifica~on attached.) H. LOAN TERMS: (1) LOAN APPUCATIONS: Within 7 (or 0 ) Days After Acceptanee, auyer shaU Deliver to SeIer a: letter from lender or loan bl'Qker stating that, b~d on a review of Buyer's written application and credit report, Buyer is prequalltled or preapprowd tor any NEW loan specified in 3C ahovE!. (If checked, 0 letter attached,) (2) LOAN CONTINGENCY: Buyer shall act diligently and in good faith to obtain the designated Joan(s). Obtaining the loan(s) specified above is a contingency of this Agreement unless otherwIse agreed in writing. Buyer's contractual obligation::J to obtain and provide deposit, balanoe of down payment and closing cost'$ are not contingenci&& of this. Agreement. (3) LOAN CONTINGENCY REMOVAL: (I) Within 17 (or 0 ) Days After Acceptancet, Buyer shall, as speci~d In paragraph 14, in wrltlf'lg remove the loan contingency or canoel this Agreement; OR (II) (if checked) 0 the Joan contingency shall remain in effect until the designated loah$. are funded. (4) IXJ NO LOAN CON'J1NGENCY (If ~ecked); Obtaining any loan 'iJPecified above Is NOT ~ <::ontingency of this As(eement. If Buyer dOB!> not obtain the loan and as a result Buyer doe$ not purchase 1he PrQPerty, Stller may be entitled to Buyer's deposit or other legal remedies. I. APPRAISAl. CONTINGENCY AND REMOVAL, This Agreement Is (Qr, W <hooked, IXIIs NOT) contingent upon. written approl..1of Ihe Property by a licen$&d or certified appraiser at nt;> lese. than file specified purchase price, If there is O!I 1o00n contingency, 8uYI!lr'.s removal of the loan corttlng.ency sl1all be deemed removal of this appraisal CQntlngency (or, 0 if checked, Buyer shall, as specified in paragraph 14B(3)1 in writing r&mQve the appraisal contingency (lr eancel this Agreement within 11 (or ) Day& After Acceptance). If '!here: hi no loan contingency, Buyer shall, as specified in paragraph 148(3). in writing remove the appral$al contingenoy or cancel this Agreement within 17 (or ) Days After Acceptance. J. !XI A,lL CASH OFFER (If checked): Buyer shaU, within 7 (or 0 ) Days After Acceptance, Deliver to Seller wrlttGn lIerification of SuffICient funds to dose thls nnstl;ction, (If checked, !XI verlficatlOl1 attached.) K. BUYER STATED FINANCING: SeUl;!!r ha6 relied on Buyer's representation of the type of financing specified (including but not IImi~ed ~O. aG applicable, amount of down payment~ contingent or non contingent loan. or al! cash). If Buyer sQeks alternate 1inancing, (i) Sellar has no obli!;lation to cooperate with Buyer's effol't$ to Obtain such financing, e.nd (Ii) Buyer shall also pursue the financing method specified in this Agreemehl:. Buyer's faJllln!! to ~cUi" alternate financing does not $'XCJJSIi!! Sl,Iyer !Tom the obligation to purcha$e the Property and close escrow as specified in this Agreement ... ALLOCATION OF COSTS (If hecked); Unless o1he1Wis1!l $petlfled in writing, this paragraph 'Only determines who is to pay for thl!t il"l$pec'tlon. te5l or service ("Reporf) rnelitioned; it does not datormine who ii'S to pay for any work recommended Qr identified in the Report. A. INSPECTIONS AND REPORTS: (1) 0 Buyer 0 Seller shall pay for an inspl!totlon and report for wood destroying pesta end organisms ('Wood Pest RGptlrt") prepared by
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=-::-_-:::-::".,,-...,.-::-_.,-:-:-_--,,-==,-,-,_-.,._=_,.-__=-""'==_ a registered structural pest control company. 0 Buyer [j Seller ahall pay to have S&ptlc or private sewage disposal systems pumpQd and
D Buyer 0
Seller shall pay to hav" domestic wells tested for water potability al'ld productivity _
0 0 Seller shall pay for OJ natural inspection or report .!XI the following Zone (6) D Buyer 0 SeUer shall pay for the folfowlng IIiQPection or report B, GOVERNMENT REQUIREMENTS AND RETROFIT: (1) 0 Suyer 0 Sl!Iller shall pay for lij,l'I'Ioke detector installatfon and/or wa~t' heater bra~hg, if required by Law. Prior to CIQse Of Escrow, Seller shall provJ(:h, Buyer written statement(s} of compliance in aeeQrdance with state and local Law, unless exempt, (2) Buyer Seller shall p~y the> cost of compliance with any other minimum mandatory government retrofit standards, infJ,pections and reports If required aa a condition of dosing escrow under any laW. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
(4) 0 Buyer (5) Suyer
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(%) 0 IXJ Seller Owner's tiHe policy to be pay forby _ issued ow'nn:.(=.:.:Jijj:O~ln:':"':.:nc:.~p:o:;cy:.:p:e~:-fie:d~in~p:.:ra:gra:p:h~1~2:E-===:::::===========:: (Buyer shaft pay for arry tiHe insurance polley insuring Buyer's IendQr, unfe89 o1herv..;se agreed in writing.) OTHER COSTS:
Buyer
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Buyer Buyer
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IXI SeRer shall pay City tran$f&r tax taX'fee LII Sener shall pay CQut'!ty II'$nsfer or or
Seller shall pay Homeowner'a Asaociation ("HOA") transfer fee shall pay document preparatiM11: Seller shall pay for any private transfer fee _ ...
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(G) 0 Buyer 0 Seller shall pay the cost. not to excl!ted $ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ , of a one-year home warranty plan,
HOA
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o AlrCondltl~r DPQQlISpa 0
, with the foHowing optional coverages: Code and Permit upgrad& 0 Other: Buyer is informed that hQl'/'te wartsnty plans have many optional coveragEis In ackHtion to those fisted above. Buyer is advised [0 IfI\/aatigate these coverages to determin$ tho$$: thelt may be GlJitable for Buyer.
Suyer
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Borrower: Kylel
CalHFA Loan#
022472~3
83 of 130
Jun.22.2010
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PAGE.
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';020 A
Str" .. t
Date: December 16, 2011
Property Address: Sacramsmnto, CA 95819 5. CLOSING AND POSSESSION: A. Buyer intends (or lXJ does not Ili1end) to occupy 1he Property as Buyer's primary residenoe.
B. SeHer.occupied or vacant property: Possession shan b& de!lvflr(!,d tl) 61.1yer at 5 PM or (
Of Escrow; D on ; or 0 no later than Days After Close Of EscrQw. If transfer of 'title i!nd pO&$eselon do not oCCUr at the same 'time, Buyer and Seller are advised to: (i) ~ntar Into a written oooupancy agreement (C.A.R. Form PAA) Pl!lfl!lSl'l!Jpn 2); and (il) comult YlIi1h their insurance and legal advlsor'$.
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84of130
Borrower:
Kyle~S IIIII111P
Jun.22.2010
07:40 AM
PAGE.
4/ 15
5020 A
5tr.... t
CA 95819
D~e;December
15,2011
9. CONDrnON OF PROPERTY: Unless otherwise agr..d; 0) 1118 Property Is sold (a) in its PRESENT physical ("".is") condilion as of the dote 01 Accaptanca and (b) subject to Buyer's Investigation rightc; (if) the Property, in<OlOOlng pool, spa, landscaping and grounds, Is. 10 be maintained in substantially the same condition as on tho date of hoeptanee; and (IH) aN debris and PE!lrsonai property not included In the sale shall be removed by
available to Buyer.
D. Suyer indemnity and Seller prvtection for entry upon property: BUyer 8hall: (i~ keep the Property free and clear of liens; (Ii) repair aD damage arisin9 from Buyer Investigatiomli and (iii) indemnify and hold Seifer harmless from all resu!ti:ng llabNityl Glairns~ demands, damages and costs of Buyer'S investlgallons. Buyer shall carry, or aUye( 6hall require anyone acting on Buyer's behalf to cany, polJch~$ of Uability, workers compensation and other applicable Insurance, defending and protecting SaUer from liability for any injuries to persons or property oclJuning during any euyer Investigations or work done on the Property at Buyer's olfection prlor to CIQSI!! Of E$Crow. Sener is advised that certain protf;!Ctions may be afforded Seller by reoording a ~NQUca of NQn~Tesponsibitity" (C.A.R. Form NNR) for B~er InvestigatiOns and work done 01'1 the Property lilt Buyer's direction. Buyer's obligations under this pari!lgraph shall survive the termination or oancellatton of this Agreement and Close of Escrow. 11. SELLER DISCLOSURES; ADDENDA; ADVISORIES; OTHER TERMS: A. seller DiSclosures (if checked): seller shall, within the time specified in paragraph 14A. complele and provide Buyer wilh .: SeRer Pro Clul!!stlonnalre CAR. Form SPQ OR 0 $u lemental Contractual and Statuto Dl&olOEiure C.A.~. !=orm SSO S. Addenda if chocked : Addendum # (CAR. Form ADM WQod Destroying ~est Inspedion and ARocation of Cost Addendum (CArt. Fonn WPA)
j
o Purchasfl Agr~Gment Addendum (C.A.R Form PAA) o Short Sale Addendum (CAR. Fonn SSA)
n"stAdVloOry (CAR. Form TA)
,be
D. OttlerTerms: fp'Psrty to
12. TITLE AIIIO VESnNG,
A. Within the 'lime specified In paragraph 14, al.lYer shall be provided a current preUmlnary title report, whih 60011 include a search of the General Index. Seller shall within 7 Days After ACC0ptaMe 9iYe Escrow Hotder a completed statement of Information. The preliminary report is only an offer by the title insurer to issue a poUey of title insurance and may not contain every Item affecting title. Buyerls review of the preliminary report and any other matters which may affect title are a contingency of this Agreement as specified In paragraph 149. B. Title is taken In Ita present condition subject to all encumbrances, easemlilntJ, covenants, conditions, restrictions, rights and other matteI'S, whether of record or not, ss of the date Qf Acceptance except (i) monetary liens of record l..Inle$S Buyer is assuming those obligations or takIng the Froperty subject to those obligations.; and (II) those matters which Seller has agreed to remove in writfng. C. WithIn the time $peeitied in pl11lTl11Igmph 14A, Seller has a duty to disclose to aWli!r ~II matters known to Seller affecting title, whether of record or not. D. At Close Of Escrow, Buyer shaH receive a grant deed conveying tiHe (or, for stock cooperative or long~term lease, an as5ignment of stock oertificate or of Seller's leasehold Intef!M;t). lneludihg oil, mineral and water rights if currently ownec:t by seiter. Title shaH vest as designated in Buy.r'. supplemental escrow inslructlons. TH~ MANNER OF TAKING nTlE MAY HAVE SIGNIFICANT LEGAL AND TAX CONSEQUENCES. CONSULT AN APPROPRIATE PROFESSIONAL. E. Buyer shaU receive a CLTAlAl..TA Homeowner'$ Polly of T"rtle insurance. A title company, at Buyer's request, can provide infonnation about the ava~ability. desirabnity, coverage, survey requlremel'l~, and cost of various title insurance coverages 2t'ld el1dONJElmente.. If Buyer desires tiUe vemge other 1han that required by this paragraph, Buyer Me.fl ins1n.ic'l Escrow Holder in writing and pay any Increase in coet. 13. SALE OF BUYER'S PROPERTY: A. Ti')ls Agreement ia NOT contingent upon sale of any property owned by Buyer. OR B. D (If ~he~k/l!d): 1pe attached addendum (CAR. Form COP) res~rdln9 Ih~ CQntingen~ for the sale of property owned by Buyer Is Int::orporated
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. Reviewed by
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8501130
Borrower: Kyle
Jun.22.2010
07:41 AM
PAGE.
5/ 15
5020 A
Str...,t
95819 Date: December 16, 2011
14. TIME PERIOI)S; REMOVAL OF CONTINGENCIES; CANCELLATION RIGHTS: Tho following timo poriods may only be oxl1mdad, allBAJd, modified or c;;hanged by mutual written agreement. Any removal of contingencies or cancallation under 'this paragraph by either Buyer or Seller must be exercised in good faith and in writing (CA.R. Fonn CR or
5 ) Days After Acceptance to Delver to Buytr all Reports, dlseloaures and information fOT which Seller is responsible under paragraphs 4, eA, Band C, 7A, SA, 11A and S, and 12. Buyer may give Seller a Notice to Seller to Perform (CAR. Fonn NSP) if Seller has not Delivered the items with'" the time specified. B. (1) BUYER HAS: 17 (or 1m 8 ) Days: After Acceptance. lIn1e::18 otherwise agreed in WJiting, to: U) complete aD Buyer Investigations: approve all disclosures, reports and other applicable information, which Buyer receives from S4;ij!er; and approve all other matters affecting the Property; and (ii) DelivM to Seller Signed COplM of Statutory and l.Md Disclosures Delivered by Seller in accordance with paragraph SA. (2) Within the 11m" specffied In 14B(1), Buyer may request that Seller make repairs or take any other action regarding 1he Property (C.A.R. Form RR). Sener has no obligation to agree to or respond to Buyer's requests. (3) WHhin the time specified in 148(1) (or =ilFi otherwise speclfled In this ~l'eement), Buyer shaU Deaver to SeDer either {O a removal of the appilcable contingency (CA.R. Form CR), or (ii) a cancellation (C.A.~. Form ee) of this Agreement based upon a contil'lgeney <)f S,,1Ier'f> fall~r(l to DeUver the $p(lelfled iteMs, However, if any report. dis.closure or inronnation for which SeUer is responsible Is not DeHvered within the time specified in 14A, ihen Buyer has 6 (or 0 ) Da~ After Delivery of any such items, or the time specified in 14B(1), whichever is later, to Oe5ver to Seiter a removal of the applicable contingency or cancl;!llatiol"l of thl$ Agreement. (4) Continuation of Contingency: Even after the end of t/'Ia time $pEIlfled in 14B(1) and befure Seller cancels this Agreement, if at all, pursuant to 14C, Buyflr retains the right to E!ith$l' (Q In writing remove remaining contingencies, or (ii) .cancel this Agreement based upon a remalnlng eomlngency or Seller'$ failUre tl;) Deliver the specified terms, Once Buyer's written removal of all contlngEmcies Is OeUvered 11;1 Seller, Seller may not cancel this Agreement pursuant to 14C(1),
C. SELLER RIGHT TO CANCEL,
ee).
(1) Seller right to Cancelj Buyer Contingcmcies: If. wI1:hln time speelfled In this. Agreement, Buyer does not, in writing, Deliver to Seller a removal ofUle applicable contingency or ancellatiOll Qf1tli$ Agreement1hen Seller, after first Delivering to Buyer a Notice to BUY$(" to Perform (CA.R. Form NBP) may c:aJ'lcel this Agreement. In such event, Seller shaH authorize return of Buye(s depos~, (2) Sel~er right to Cancel: Buyer Contract Obligations: SeJler, after first Delivering to Buyer a NBP may (lancei thi1J ~r'eell'lent for' elhy of the followilg reasons: (~ if Buyer fails to deposit funds as required by 3A or 38; (II) if the funds deposited pursuant to 3A ar 3B are not good when deposiled; ~Iij ~ Buyer falls to Oell'l., a notice of FHA or VA oools or terms as required by 3C(3) (C.A.R. Form FVA); (IV) II Boy., falls 10 Deliver a letter as required by 3H; (\1') if Buyer fails to Deliver verification as required by 3G or 3J; (vi) if Seller reasonably disapproves of the verification provided by 30: or 3J; (vii) if Buyer faDs to rewm Statutory and Lead Disclosures ;as rElqulred by pamgtaph 6A(2); or (viii) if Buyer fails to sign or initial a separate liquidated damage fonn for ~I"J ineraased deposit a$ required by paragraphs as and 25. In suoh event, Seller shall autllorize retum of B~$ depo&it. (3) Nolie<> To Buyar To Porto"": The NBP "'aM; (I) be in writing; (iii be signed by SeUer; and (Iii) give Buyer .t I.ast 2 (or 0 ) DaY" After DerlVery (or until1he time specified in the appUeable paragraph, whichever oceurs last) to take the applicable action. ANBP may not be Der[llered any earlier than 2 Day$ Prior to. the expiration of the applicable time for Buyer to removl!t a col'ltlngttney or cancel this Agreement or
11. PRORATIONS OF PROPERTY TAXES "1110 OTHER ITEMS: unless otherwise ag,eed in writing, the foBowing 110ms shan be PAID CURRENT and prorated between Buyer and SeUer as Qf Close Of Escrow: real property taxes and assessments, Intar~et, rents, HOA regular, special, and emergency dues and assessments Imposed prior to Close Of Escrow, premiums on insuran$ a$$umed by Buyer, payments on bonds and assessmoemf$ assumed by Buyer, and payments on Mello~oos and other Speelal AfiSGSsment District bonds and assessments "that are a current Uen. The following; items $halt b~ ~umed by auyer WITHOUT CREDIT toward the putharre price; prorated payments on MeUo-Roo$ and other Speelal Assessment Ol$trict bonds. anti assessments and HOA special Mt;~menl;$ 1hat ;;,re ~ current lien but not yet due. Prope:rty wRl be reasse5Sed upon change 01 ownerehip. Any supplemental tax bDIs shall be pa.id \lII$ follows; (i) for periods after Close Of Escrow, by Buyer; and (ii) for periods prior to Close Of I:.scrow. by Seller (see CAR Fonn SPT or S8SA for further information), TAX BILLS ISSUED AFTER CLOSE Of! esc~ow SHALL BE HANDLED DIRECTLY aeTWEEN BUYER AND SELLER. Prorations shaD be made based on a 3O-day tnonth
Buye", Initials
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Sene"o Inl1lal. (
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Date
86 of 130
Borrower: Kyle
.111111'
Jun.22.2010
07:41 AM
PAGE.
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95819
18. SELECTtoN OF SERVICE PROVIDERS. Brokers do not guarantee 'the performance of any vendors, service. or Product provfders. ("Providers'). whether referrelj by Broker or selected by Buyer, Seller or other person. Buyer and Seiter may select ANY Providers of their own choosing. it. MULnPLE USTiNo SERVICE rNlLS")~ Brokers are authorized to report to the MLS a pending sale and, upon Close Of Escrow, the aales price and
other terme of this 1ra~ctlon shall bet provided to the MLS to be published and disseminated to persons and etrtmes al.JttlorJzed to use 1hf!: information on terms Qpproved by the MLS. ZO. EQUAL HOUSING OPPORTUNITY: The Property is sold in compliance wfIh federal, state and local anti-discriminatJon Laws. 21, ATTORNEY FeeS! In any aotlQI'l. proceeding, or arbitration between Buyer and Seller arising out of (his Agreement, the preva~ing 8u~r Or SeDer shaD be entitled to reasonable attorney fees and costs from the nOl'l-prevamng Buyer or Seller, except as provided in paragrelph 26A. 22. D~FINJTlONS: As us.d In IIlls Agreement: A. "A~ptal1Ce'j means thE\' time the offer or final counter offer Is accepted in wrltlns bye party and Is delivered to and personally receIved by the other party Or that party's authorized agent in accordance with the terms of 1his offer or a final counter offer. 8. CAR. Form" means the specific form referenced or ano~r <comparable Form agreed to by the parties. C_ "Cion Of Escrow" means the date the grant deed, or other evidence of1ransfar of title, is recorded. D. "Copyh means copy by any means including photocopy, NCR, faceJmile and electronil::. E. "Days" means calendar days. However, After A<::ceptance, tha last Day for performance of any act required by this Agreement (including Close Of E&foW) shall not Include any Saturday, Sunday, or legal holiday and shall instead be the next Day. F. "Oay$ After"' means the epec:itled numbElr of calendar days after the occurrence oHhe event specified, not taunting the calendar date on which the ej)ecffied event occurs, and ending at 11 :59PM on the final day. G, "Days Prior" means the specified number of calendar days before the occurrenoa (:If the event specified, not taunting the calendar date on which the specified event 1$ scheduled 10 occur. H. "Deliverlt, 'IDalivared" or "Delivery", regardh!!:S$ of the method uS$d (i.e. messenger, mail, ama~, fax. other), means and eha~ be effectivA uPQtl 0) personal receipt by Buyer or Seller or the Individual Real Estate Lk:ensee tor that principal a$ $pecified in paragrapn 0 of the section titled RQal E$tate Brokers on pagl!l 8; OR (ii) if checked, 0 per the attached addendum (CAR. Form RDN). I. "Elactronlc Copy" or "SlactrQnlc: Signature" means, i!J& applicable! an electronic copy or signature complying with California Law. Buyer and Seller agree that electronic meerm will not be lf$(!d by either party to modify or alter the contl!lnt Or integrity of this Agreement without the knowledge and consent of the other party. J. "Law" means any law, code, sta1ute, ordinance, regulation, rule or order, which is adopted by a controlling Cityl county, statt!!l or federal legislative, judicial or exeeutiVe bodY or agency. K. "Repairs" means any rapalr$ (inc~uding pest control), alterations, replacements, mOdifications or retrofitting of the Property provided for under thie Agreement L. i'SignBd" m~ans elther iii handwritten or electronic signature on an original ~C)Cument, Copy or any counterpm. 23. BROKER COMPENSATION: Seller or Buyer, or both, as appllcablli!l, agrees to pay compensation to Broker as specified in a $eparate written agre&ment between Broker and that Seller or auyer. Compensation Is payable upon Close Of Escrow, or If eecrow does not close, as othelWiae specIfIed In the agreement between Broker and that Seller or Buyer. 24. JOINT ESCROW INSTRUCTIONS TO ESCROW HOLDER: A. The following par.Qgraph$, or applicable porlions thereof, of 1his Agreement eQt1stltUte the joint escrow inst~on$ of Buyer and Seller to. Eserow Holder, which Escrow Halder Is tc use along with any related counter offers and addenda, and ~ny ~dditional mutual instructions to close the eat:row: 1. 3, 4, 6C, 11 Band 0, 12, 138. 1041=", 17,22, 23, 24,28,30, and paragraph D of the section titled R.eal Estate Srokers on page 8. if a Copy of the separate compensation agreement(s) provided for In paragraph 23, or paragraph 0 of the section titled Real Estate Brokers on page 8 is deposited wi1h Escrow Holdet by Broker, Escrow Holdar shall accept such agreement(s) and payout of Buyer's Of Seller's funds, or both, as applicable, the respe:etive Broker's compensation provided for 'In wch agreement(s). The terms and conditions of this Agreement not $peQifioaUy referenced above, in the spelMled paragraphs are additional m~1:t$1'$ fot the information of Escrow Hot4$r, but about which Escrow Holder need not be concerned. Buyer end Seller will receive Escrow Holder's. general provisions directly from Escrow Holder and wilt execute such provieions upon Escrow Hold0r's reql,l$!it To the extent the general provisions are h'lOnuistent or conflict with this Agreement, the general ptovisioll5 will control as to "the duties and obligations of Escrow Holder only. euyer and Seller WIll execute additional instructlQns, dcumente and forme. provided by Escrow Holder that (lire reasonably necessary to close the escrow. e, A CQPY of this Agreement shall be dellvere:id to Sacrow Holder within 3 business days. after Aceeptahce (or 0 """"''''''_-:-:-::---::-:"""''=_-:--, ""_-,,_,.-:=-____.,-__;--:-;_--=--::--::-_--:-::-.,,-_-;:-..,..-=__=). Eserow Holder shaH provide SeDer'S Sfatement of Information to Title company when received from Seller, Buyer and SeDer authorize Escrow Holder to accept and rely on Copies and Signatures as defined in this Agreement as orfginals, to open escrow and for other purposes of escrow. The validity of this Agreement as between Buyer and Seller i$ not .ct-ed by Whether or when Escrow Holder Signs th~ Agreement. c. Brokers are r! party to the- escrow for the soie purpose of compensation pWl'?!IIJant to paragraphs 23 and paragrapl'1 D of the settl!)n titled Real Estate Brokers on page 8. Buyer and Se~er irrevocably assign 10 Brokers compensation specified in paragraphs 23, respectively, and irrevocably instruct Escrow Ho!det tc disburse those funds to Brokers at Close Of Escrow or pursuant to any other mutually executed cancellation agreement. Comperr&atlol1 Il"I$truotione; can be amended or revoked only ~ !;he written consent of Brokers. Buyer and &!Iller shall release and hold harmless Escrow Holder from any liability resulting from escrow Holder's payment to Br(lker($) of compensation pursuant to this. AgrflElment. Escrow Holder shaD immediately notify Brokers: 0) if 6uyer!s initial or any additional depO$lt 1$ not made pursuant to this Agreeml!lnt, or Is 1"I0t good at time of deposit with Est.:row Holder, or (II) If either Buyer or Seller instruct Escrow Holder to cancel ~row. D. A Copy of any amendment that affects any paragraph of this Agreement for which Escrow Holder /1;; responsible shall be delivered to Escrow Holder within 2 business days after mutua! execution of the amendment.
Boyer', lnitiol.
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RPA-GA REI/ISED 4110 (PAGE G OF 8) Print Date CAUFORIllIA RESlO~NTIAL PURCHASE AGREEMENT (RPAc.o.
PAG~
6 OF 8)
Ast
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Borrower: K y l e - '
Jun.22.2010
07:42 AM
5020 A Street
95819
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25. LIQUIDATED DAMAGES: If Buyer fails to complete this purchase because of Buyer's default, Seller shall "'tain as liquldatad damages, the deposit actually paid. If the Property i. a dwelling with no more than four units one of which &.yer lnlflnds to occupy, then the amount retained shall be no more than 3% of the purchase price. Any exc~ss shall be returned to Buyer. Re!ea$& of funds will require mutual, Sign&<! release Instructions from both Buyer and Seller judicial decision or arbitration award. AT TIME OF THE INCREASED DEPOSIT BUYeR AND SELLER SHAll SIGN A SEPARATE UQUIDATED M RID). DAMAGES PROVISION FOR ANY INCREASeD DEPOSIT. (C.A.R. F
26. DISPUTI' RESOLUTION: A. MEDIA1l0N: Buyer and Seller agree to mediate any dispute or claim <:trising between them out of this Agreement, (lr any resulting transaction~ before resorting to ;arbitration or court action. Buyer and Seller also Qgree to mediate any disputes or claims wifb Broker(5), who, in writing, agree to such mediation prior toj or within a reasoflable time after, the dispute or claim is Pl'B$ented to tha Broker. Mediation fae-s.1f any) shall ~ divided equally among the parties involved. If, for any dispute or claim to which this paragraph app~e$, :my party (i) commences an action withoU1 first attempting to resolve the matter through mediation, or (ii) before cc>mmencement of ~n action} refuses to mediate after a request has been made, then 'that party shall not be 81ldtled to recover attomey fees, even if they would otherwise be available to that party in any such action.
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THIS MEDIATION PROVISION APPLIES WHETHER OR NOT THE ARBITRATION PROVISION IS INITIALED. ExIion. from this mediation .g.,.,mont oro __ lIIed In parograph 26C. B. ARBITRATION OF DISPUTES: Buyer and Seller 8grae that any dispute or claim in Law or equity arising between them out of this Agreement or any resulting transactio~, which Is not settled through mediation, shall be doclded by neutral, binding arbitration. 8tJyer and Saller also agf'G8 to arbitrate any disputes or claims with Broker(s}, who, in writing, Jlgree to such arbitration prior to, or within oS reasonable time after, the dispLtte or claim is pl"1!sentecl to the Broker. The arbitrator shall be. retired Judge Of j"stice, or an attorney with at lea$! 5 years of residential real estat" Law experience, unless the patties mutually ag"''' to a different arbitrator. The parties shall have the right to discovery in accordanc" with Code of Civil Procedure 1283.0S, In all other ""peets, the arbitration shall be conducted in accordance with Title 9 of Part 3 of !he Code of Civil Procedure. Judgment upon the award of the arbitrat0r(,,) may be entered into any court having junsdlctlon. enforcement of this agreement to arbitrate shan be govemed by the Federa' Arbitration Act, Exclusions from this arbitration agreement are specified in parallraph 26C. "NOTICE: BY INITIALING IN THE SPACE BelOW YOU ARe AGREEING TO HAVE ANY DISPUTE ARISING OUT OF THe MATTERS INCLUDeD IN THE 'ARBITRATION OF DISPUTES' PROVISION DECIDED BY NEUTRAL ARBITRATION AS PROVIDED BY CALIFORNIA LAW AND YOU ARE GIVING UP ANY RIGHTS YOU MIGHT POSSESS TO HAVE THE DISPUTe liTIGATED IN A COURT OR JURY TRIAL. BY INITIALING IN THE SPACE BeLOW YOU ARE GIVING UP YOUR JUDICIAL RIGHTS TO DISCOVERY AND APPEAL, UNLESS THOSe RIGHTS ARE SPeCIFICALLY INCLUDED IN THE 'ARBITRATION OF DISPUTES' PROVISION. IF YOU REFUSE TO SUBMIT TO ARBITRATION AFTER AGREEING TO THIS PROVISION, YOU MAY BE COMPELLED TO ARBITRATE UNDER THE AUTHORITY OF THE CAUFORNIA CODE OF CMl PROCEDURI'. YOUR AGREEMENT TO THIS ARBITRATION PROVISION IS VOLUNTARY." "WE HAVe READ AND UNDERSTAND THE FOREGOING AND AGREE TO SUBMIT DISPUTES ARISING OUT OF THE MATTERS INCLUDED IN THE 'ARBITRATION OF DISP TeS' PROVISION TO NEUTRAL ARBITRATION." Initials
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C. ADDITIONAL MEDIATION AND ARElITRATION TERMS: (1) EXCLUSIONS: The follow~ matters shall be- exctuded from madilltion and arbitration: (i) a judicial or non-judlcial foreclosure or othet action or procoedlng 10 enforce a dHd of tru$t, mo~aSiI& or Installment land sale contract.as dafinad In Civil Code 2t8Sj (ii, an unlawful detainer actJoOj (liij the filing or enforcQment (If a mechanic's lionj and (Iv) any matter that Is within the Jurisdiction of a probate, small claims or bankruptcy (:;ourt. The filing of a court action to enabla thtl racordlhd of a notice of pending action, for order of attachment, ~ivlffiJhip, injunction, or other pl'OVisionaJ remedies, sM11 not constitute a waiver or viQlation of the madlatiDn and arbitration provisions. (2) BROKERS: BrokEli'S shall not be obligated or compelled to mediate or arbitratE! unless they agra& to do so In writing. Any Broker(s) partlelpatihg In mediation or arbitration $hlilll not be deemed a party t() the Agreement. 27. TERMS AND CONDITIONS OF OFFER:
This 1$ a., offer to purchase the Prop~rty 01'1 the above terms and conditions. The Uquidated damages paragri31ph or the IiIrbitration of disputes paragraph is incorporated in this Agreement if Initialed by aU parties or if incorporated by mUll#lI $greement in a counter offer or addandtlm. If at least one but not ail parries InI1ia:1 such paragraph(s}, a counter offer is required Uf'l'tIl agreement Is r&QQhed. Seller has the right to contInu~ to- Qffer theProperty for sale and to accept any other offer at any time prior to nollfi~tiOh of Acceptance. If this offer 1$ accepted and Buyer subse(JJeni:Iy defaUlts, Buyer may be responsible for payment cf Brokers' compensation. Thi$ Agreement and any supplement, addendum or modification, Including any Copy, may be Signed In two or mote counterparts! aD of which shall constitute one and the same writing. 28. TIME OF SSSENCE; ENTIRE CONTRACT; CHANGES: TIme Is of the sliilsenoe. AU understandings between the parties are incorporated Irl this. Agreement, Its terms are Intended by the parties as a final, complete ~nd exclusive expression of their Agreement with respect to its subject matter, and may not be contradicted by evidence of any prior agreement or contemporaneous oral agreement. If any provlslon or th~ Agreement is held to be ineffective or Invalid, tile remaining provisions wRi MVertheless be given full force and effect. Except as otherwise speclft~d, this Agreement shall be interpreted and dlsputas shall be resolved in accordance with the laws of the State of Cantomla. Nl!I!lUter lt1i5 Agreement nor any provisioll in it may be extended, amended, modHied, altenKl or changed, ex.:ept In writing Signed by Buyer and Seller.
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RPACA RElISED .110 (PAGE 7 OF 8) CALIFORNIA RI'SlDENTIAL PURCHAst; AGREEMENT (RPAoCA PAGE 7 OF 8)
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Jun.22.2010
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29. EXPIRAnON OF OFFER: This off.rsholl be deemed revoked 000 the depos~ shall be returned unless the offer is Signed by Seller and Signed offer is personally received by Buyer, or by
a Copy
Buyer has read and acknowledges receipt of a Copy of the offer and agrees to the above confirmation of agency Date 12~18 .20 o. Date
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Additional Signature Addendum attached (CAR. Form ASA). 30. ACCEPTANCE OF OFFER: Seller warrsnb3. that Seller is the owner of the Property, or has the authority to exeollte this. Agreement. Seller accepts the
above IJffer. agrees to eell the Property on the ab.;we terms and conditions, and agrees to the above confirmation of agency relationshIps. Seller has read and acknowledges receipt of a Copy of this Agreement, and authorizes Brokerto DerIVer a Signed Copy to Buyer.
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(If checked) SUBJECT TO ATTACHEO COUNTER OFFER (CAR. Fonn COl D~~T:E~D~::1:2:(:2=Q=(::2:Q:":"============~ Dare
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CONFIRMATION OF ACCEPTANCE: A Copy 01 Signed Acc.ptance ~a'; .~'''GC,nally received by Buyer Of Buyer'. au1horized agent (date) at A binding Ag......".nt hi .""""" when of 1$ agent whe1her or not eonfinnad in of this a binding Agreement It is solely
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A. Real Estate Brokers are not parties to the Agreement between Buyer and Seller. 8. Agency relationships are confirmed as stated in pDl'a(lmph 2. C. 11 specified in paragraph 3A(2), Agent who. stbmftted the offer for Buyer aeiq10wfedges receipt of depo&it.
O. eOO~ERATINB BROKER COMPENSATION: Usdng Br(ll(er agreea to pay Cooperating Broker (Selling Firm) and Cooperating Broker agrees to accept, out of Listing 6roker's proceeds in escrow: (I) the amount specified In the MLS, pro'Jlded Cooperating Broker is a Participant of the MLS in which the Property is offered for sale or a reciprocal MlS; or (II) (if chl1:cked) the amount specified 11'1 a ~parate written agreement (C,A.R, Form CaC) between Listing Broker and Cooperating Broker. Declaration of Licen&fl and Tax (C-A.R, Form DLT) may be used to document that tax reporting will or that an e:<ernption exists,
DREUc.
Date
Escrow Holder acknowledges rec&lpt of a Copy Qf this ~reemerrt, (If checked, ':::
),
"co~u~n~te~r;O:fI;.r~n:u:m:b:.~r.~d~=.:;::::;::::;:;::;:;=.:;,~D~s~e~1I~er'~s~statement of Informatio.nEscrow Holder subject to paragraph 24 of this Agreement, any and 0 othar"""-,,,::-:::-::::-=.:-=.:;:-::;;-:;-:;:;:--.::::::::::-= ' and agrees to act as supplemental escrow instructions and the terms of Escrow HoJder'$ general provl~;JoM if any, eScrow Holder is advls&d that the date of C()rltirmation of AQoepiance of the Agreement as between Buyer and Seller ~ _ _ _ _ _ _ _ _ __
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REAL ESTATE BUSINESS SERVICES, INC. a $l.ibtidisryofthe Califomifl Association of REALTORS 525 Sculh VwgU Avonu., Loa Angoloo, c.liIom~ 90020 REVISION DATE 4/10 CAUFORNIA RESIDENTIAL PURCHASE AGREEMENT (RPA-CA PAGE 8 OF 8)
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Jun.22.2010
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PAGE.
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("Property").
A. IMPORTANCE OF PROPERTY INVESTIGATION: The physical condition of the land and Improv.m;tnts being purchased Is not guaranteed by enher Seller or Brokers. For this reason, you should conduct thorough investigations of the Property personally and with professionals who should provide written reports of their investigations. A general physical inspection typically does not cover all aspects of the Property nor items affecting the Property that are not physically located on the Properly. If the professionals recommend further investigations, including a recommendation by a pest control operator to in.pect inaccassibie areas of the Property, you should contact qualified "xperts to conduct such additional investigations. B. BUYER RIGHTS AIIID DUTIES: yOU have an affirmative duty to exercise r"a.ona~le care to protect yourself, including discovery of the legal, practical and technical implications of disclosed facts, and the investigation and verification of information and fact. that you know or that are within your diligent attention and observation. The purchase agreement gives )<">u the right to investigate the Property. If you exercise this right, and you should, you must do so In accordance with the terms of that agreement. This is the best way for you to protect yourseW, It is extremely important for you to read all wr~ten reports provided by professionals and to discuss the result. of inspections with the profeional who conducted the inspection. You have the right to request that Seller make repairs, correctiOns or take other action based upon items discovered in your investigations or disclosed by Seller. If Seller is unwilling or unable to satisfy your requests, or you do nol want to purchase the Property In its disclosed and discovered condnion, you have the right to cancel the agreement if you act within specific time periOds, If you do not oeoeel the agreement in a timely and proper manner, you may be in breach of contract.
C. SELLER RIGHTS AND DUTIES: S.II", is required to disclose to you malerlal facts known to him/her that affect the value or desirability of the Property. However, Seller may not be aware of some Property defects or conditions. Seller does not have an obligation
to inspect the Property for your benefit nor i. Seller obligated to repair, correct or otherwise cure known defects Ihat are disclOsed to you or previously unknown defects that are discovered by you or your inspectors during esorow. The purchase agreement obligates Seller to make the Property ava,abte to you for investigations. D. BROKER OBLIGATIONS: Brokers do not have .xpertise in .11 areas and therefor. cannot advise you on many items, such as soil stability, geologic or environmental conditions, hazardous or illegal controlled substances, structurel conditions of 1I1e foundation or other improvements, or the condition of the roof l plumbing, heating, air conditioning. electrical. sewer, septic, waste disposal, or other system. The only way to aocurately determine the condition of the Property Is through an inspecllon by an appropriate professional selected by you. If Broker gives yOu referrals to such profes.ionals, Broker does not guarentee their performance. You may seleCl any professional of your choosing. In sales involving residential dwellings with no more than four units. Brokers have a duty to make a diligent visu~1 in.pection of the accessible areas of the Property and to disclose the results of that inspection. However, as some Properly defect. or conditions may not be discoverable from a visual Inspection, it is possible Brokers ans not aware of them. If you have entered inlo a written agreement with a Broker, the specific terms of that agreemenl will determine the nature and exlent of that Broker's duty to you. YOU ARE STRONGLY ADVISED TO INVESTIGATE THE CONDITION AND SUITABILITY OF ALL ASPECTS OF THE PROPERTY, IF YOU DO NOT DO SO, YOU ARE ACTING AGAINST THE ADVICE OF BROKERS. E. YOU ARE ADVISED TO CONDUCT INVESTIGAllONS OF THE ENTIRE PROPERTY, INCLUDING, BUT NOT LIMITED TO THE FOLLOWING: 1, GENERAL CONDITION OF THE PROPERTY, ITS SYSTEMS AND CDMPONENTS: Foundation, roof, plumbing, heating, air conditioning, electrical, mechanioal, security, pool/spa, other structural and non~structural systems and oomponents, fixtures, built-in appliances, any personal property included in the sale, and energy efficiency of the Property, (Structural eng in""", are best suited to determine pOSSible design or construction defects, and whether improvements are structurally sound.) 2. SQUARE FOOlAGE, AGE, BOUNDARIES: Square footago, room dimensions, lot size, age of improvement. and boundaries. Any numerical statements regarding the nem. are APPROXIMATIONS ONLY and have not been verified by Sell"r and cannot be
verified by BrOkers. Fences, hedges, wallS, retaining walls and other natural or constructed barriers or markers do not necessarily
identify true Property bOl.lndaries, (Professionals s(..Ich as appraisers, architects. surveyors and civil engineers are best suited to determine square footage, dimensions and boundari.s of the Properly.) 3. WOOD DESTROYING PESTS: Presence of, or conditions likely to lead to the presence of wood destroying pests and Qrganisms and other infestation or infection. Inspection reports covering these items can be separated into two sections: Section 1 identifies areas Where infestation or infection is evident. Section 2 identifies areas where there Bre conditions likely to lead to infesta.tion or infection. A registered structural pest control company Is best suited to perform these inspections. 4. SOIL STABILITY: Existence of fill or compacted soil, expansive or contracting soil, susceptibility to slippage, settling or movement, end the adequacy of drainage. (Geotechnical engiflool'$ are best suited to de1erminE;1 such conditions, eause~ and remedies.)
Tn. copjright lows of 1110 Urlted States (Title 17 U.S. Code) forbid 1I1e unauthorized reproductWn of this form, or any portion thereof, by photocopy maohlne or any other means, including facsim~e or computerl2Ad formate:. Copyright C 1991-2004, CALIFOR.NIA ASSOCIATION OF REALTORS>,
INC. ALL RIGHTS RES~RVED. BIA-A REVISED 10/02 (PAGE 1 OF 2) Agent: Guillory Brokar: custom Real
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BUYER'S INSPECTION ADVISORY BIA-A PAGE 1 OF 2 Phone: (916)487-8393 Fax: (816)487-828n .& Loans 360D Power Inn Road $Uite H3 Sacrarnonto, CA $5$26
90 of 130
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5. ROOF: Present condition, age, leaks, and remaining useful life. (Roofing contractors are best suited to determine these cooditions.)
6. POOUSPA: Cracks, leaks or operational problems. (Pool contractors are best suited to determine these cond~ions.) 7. WASTE DISPOSAl-.! Type, size, adequacy, capacity and condition of sewer and septic systems and components, connection to sewer, and applicable fees. 8. WATI:R AND UTILITES; WELL SYSTEMS AND COMPONENTS: Water and utility availability, use restrictions and costs. Water
quality, adequacy, condition, and performance of well systems and components.
9. ENVIRONMENTAL HAZARDS: Potential environmental hazards, induding, b~t nol limited to, asbestos, lead-based paint and other lead contamination, radon, methane, other gases, fuel Qil or Chemi$1 storage tanks, contaminated soil or water, hazardous waste,
waste disposal sites, electromagnetic fields, nuclear source., and other substances, materials, produQIS, or conditions (inCluding mold (airborne, toxic or otherwise), fungus or similar contaminants). (For more Information on these 11ems, you may consult an appropriate professional or read the booklets "Environmental HaZl1rds; A Guid& for Homeowners, Buyers, Landlords and Tenants," "Protect Your Family From Lead in Your Home" or both.) 10, EARTHQUAKES AND FLOODING: Susceptibility of the Property to earthquake/seismic hazards and propensity of the Property to flood. (A Geologist Or GeotljCfinicai Engineer i. best suHed to provide information on the.e conditions.) 11. FIRE, HAZARD AND OTHER INSURANCE: The availability and co.l of necessal)' or deSired insurance may val)'. The locetion of the Property in a seismiC, flood or fire hater<! zone, and other condition., such as the age of the Property and the claims hlstol)' of
the Property and Buyer~ may affect the availability and need for certain types of insurance, Buyer should explore insurance options
ear1y as this information may affect other deciSions, inCluding th~ removal of loan and inspection contingencIes. (An insurance agent is best suited to provide information on these conditions,) 12. BUILDING PERMITS, ZONING AND GOVERNMENTAl.. REQUIRI:MI:NTS: Permits, Inspections, cert~icate., zoning, other
governmental limitations! restrictions, and requirements affecting the current or future use of the Property, its development or size.
(Such information is available from appropriate govemmental agencies and private Information providers, Brokers are not qualified to review or interpret any such information.) 13. RENTAL PROPERTY REsTRICTIONS: Some cities and counties impose restriction. that limit the amount of rent that can be charged, the maximum number of occupants; and the right of a landlord 10 terminate a tenancy, Oeadbolt or other locks and ~r1ty systems for doors and windows, induding window bars, should be examined 10 determine whether they satisfy legal requirements.
(Govemment agencies can provide infolTJ'lation about these restrictions and other requirements.)
14. SECURITY AND SAFETY: State and local Law may require the installation of barriers, access alarms, self-latching mechanisms and/or other measures to decrease the risk to children and other persons of existing swimming pools and hot tubs, as well as various fire safety and other measures conceming other features of the Property. Compliance requirements differ from city to city and county to counly. Unless specifically agreed, the Property may not be in compliance wilh these requirements. (Local govemment agencies
can provide information about these restrictions and other requirements.)
15. NI:IGHBDRHOOD, AREA, SUBDIVISION CONDITIONs; PERSONAL FACTORS: Neighborhood or area conditions, including
schools, proximity and adequacy of law enforcement, crime statistics, the proximity of registered felons or offenders, fire protection. other government services, availability, adequacy and cotst of any speed~wired, wireless intemet connections or other
telecommunications or other techno!ogy services and instatJations, proximity to commercial, industrial or agriculh"r$1 actiVities,
existing and proposed transportation, construction and development Ihat may affect nol.e, view, or lraffic, airport noise, noise or odor
from any source, wild and domestic animals, other nuisances, hazards, or circumstanoes, protectert species, wetland properties,
botanical diseases, historic or other governmentally protected sites or Improvements, cemeteries, facilities and condition of common areas of common inta",.t subdivisions, and possible lack of compliance with any goveming documents or Homeowners' Association
requirements, conditions and influences of significance to certain cultures and/or religions, and personal needs, requirements and
preferences of B~r.
Buyer and SeHer acknowledge and agree that Broker: (I) Does not decide what price Buyer should payor Seher should accept; iii) Does not guarantee 1I1e condition of the Property; (iii) Does not guarantee the performance, adequacy or completenl!SS of Inspections, services, products Qr rElpalrs provided or made by Seller or others; (jv) Does no~ hav$ an ob~gati.on to conduct an inspection of common areas or areas off the sUe of tI1e Property; (v) Shall not be responslblt;! forldentifving defects on the Property, in common areas, or offslte unll!I$$ $ueh defects are visually observable by an inspection of reasonabiy accessible areas of the Property or are knoWn to Broker; (vi) Shan not be responslble for inspecting pl.lbUe records Qr' permits concerning th$ title or use of Property; (vii) Shall not be responsible for Identifying the location of boundary lines or other items affecting 1it1e; (viii) Shall not be responsible for v&rlfylng square f()otase, rE!!preeentations of others or'mformation (:ontained In hwestigatiah reports, Multiple U$ing Service, adVertisements, flyers or other promotiol1lid material; (ix) Shall not be responsible for providing legal or tax atWlce regarding any aspect of a 'b'an$ac~on entered into by Buyer or Seller; and (x) Shall not be responsible for providing other advice or infonnation that exceeds '!he knowledge, education and experience required to perform raal eette licensed acti'tIity. Buyer and Seller agree to $eek legal, lax, ineurlil:nce, title and other desired assI$tance ffol'rl appropriate professionals.
By signing below, Buyar ond Seiler each acknowledge that they have "'ad, understand, accept and have received a Copy of this Ad Is uyer' ncC)uraged to read it carefully.
;2- J - -;2DII
12/20/2011
Seller Signature
Date
THIS FORM HAS aseN AF>PRO~O BY THE CALIfORNIA ASSOCIATION OF FU!Al,.TOF($I!P (CA.R.). NO REPRESENTATION IS MADE AS TO THe 1.5GAI. VAIJOlj'( OR ADEQUACY OF ArN PROVISION IN ANY SpeCIFIC TRANSACTION, A REAL ESTATE BRO~R 1$ THE pe~$ON aUAUFtED TO ADVISE ON REAL ESTATE TRANSACTfONS. IF YOU DESIRE LEGAL OR TAX AOVICE:, CONSUl.T AN APPROPRIATE PROFESSIONAL Thl$ form it; aIJalbtble fur In!;e by !he entif"e real estate industry, It (s not to jdentify the user sa a REALTOR, REA!.TOR it a ~Istered collective mambernhip mark
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This Short Sale Informalion and Advisory is imamled to give general information regarding short salas, their palenlial impacl, and the rights and responsibilities of the parties involved. It is not intended .s legal advice for any particular property owner or buyer. Seller and Buyer should consult with their own professional advisors for legal, tax, credit and personal advice. Real estate brokers cannot and will not provide such advice. 1. WHAT IS A SHORT SALE: A short sale is the name used to describe a real estatetransaCllon where the sellers len<ler(s) agree to allow the property owner 10 sell the property for les. than the amount of Ihe loan(s) secured by the property. The consenl of the sellor's lender(s) is necessary because wilhoul it Ihere woul<i not be enough money from the sale to pay off the lender{s} in full and to pay other ca.t. of lhe .ale. As a resull, the len<ler's lien(s) would remain on tnle, and the seller would be unable to transfer tale 10 the buyer free of monetary liens. (Properties thai are worth less than Ihe amount owed to the secured lender(s) are often
2.
referred to as being "underwater'" or distressed properties). AL TERNATlVES TO A SHORT SALE: OWners of distressed or underwater properties are faced with dlfflcuH choices that could have finanCial and emotional consequences. Any of the following Or other alternatives potentially have negative tax or credit consequences, or both, for the owner: A. A loan modification is an arrangement between a borrower and a lendei'. It can involve a reduction in the interest rate on the
loan. a defermenl in payments on the loan, an extension of time to pay back. the loan, a reduction in pnncipal of the loan, a combination of these possibilfties, or other changes to Ihe repayment plan. A loan modification requires the consent of both
B. A foreclo&ure Is a legal process through which the lender acquires title to the property from a borrower who has slopped
malting payments on a loan. The lender can foreclose Whether or not the borrower con.ents. A dQQd in liau of foreclosure occurs when the borrower offers to transfer the property to the tender, in lieu of the lender having to go through the foreclosure process. and the lender agrees to accept title to the property from the borrower and forgives the debt. A deed in lieu of foreclosure requires the consent of both lender and borrower. D. Bankruptcy i$ a legal aClion typically flied by a borrower to have debt(s) discharged. An automatic stay occurs as soon as a borrower files bankruptcy, staying all actions against the borrower. While a petition for bankruptcy can have the effect of delaying a foredos:ure, it does not necessarily prevent a foreclosure from eventually occurring. No lender consent i$ required for a borrower to file bankruptcy. 3. LENDER AGREEMENT TO SHORT SALE; In order for a short sale to be completa<l, the lender(s}, at a minimum, must agree to release the property from the lender(s} Uen(s) to allow the sale. The lender(s} mayor may not agree to ra<luce the amount owed to satisfy the deb\. If not, the lender(s) may continue to pursue the borrower for payment of the balance of the debt Prior to granting approval of the sale, the lender(s) may require the borrower to disclose all of the borrower's assets. They may 'equire that the borrower liquidale olhor assets. They may require thai the borrower sign an agreement to repay some or aU of Ihe debt at some laler time. They mey require that the borrower secure the unpaid debt with other sets owned by 1I1e borrower. Additionally. they will generally ,-$qUire that the transaCllon be arm's length, and that all terms of any benefit conferred on the seller be fully disclosed and that Ihe Seller cannot stay in the Property following Ihe Sale. Finally, many filiit lien holders wililimil the amount they will allow to be paid to a second lienhOlder, further complicating negotiation" for the short sale. The lender will usually submij a "term sheet" to the borrower indicating the term. to which lender(s) will agree. If the Seller and Buyer do not modify their contract to comply with the lender(s) terms, the lender(s) may not permH the short sale to proceed. Selier I. strongly advised to seek legal and tax advice regarding review of the term .heet. Brokers cannot ano will not give legal or lax advice on the lender's term sheet or it. effect on the Buyer and Seller's agreement or on the consequences to Buyers and Seller. should they proceed to clos". There Is no assurance that once thelender(s) have begun short sale negotiations, they will discontinue the foreciosure process. 4. SELLER'S CONTINUING LIABILITY ON THE DEBT: Many borrowers who attempt a short sale are concerned with whether th.. borrower is released from any further liability to Ihe lender(s) or whether the lender can pursue the borrower for any unpaid balance of the debt. Some ",fer to conlinuing liability as a deficiency judgement. Generally speaking. a deficiency judgement is the right of a lender to pursue the borrower for the difference between the amount the lender receives and the amount the borrower Owes on the debt. Deficiency judgements in C~lifornia are prohibited in certain circumstances .
C.
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The Stat (TWo 17 U.S. Code) forbid the unauthorized reproduction of thi$ form, Or any portion thereof, tty photocopy maehlne or any other means, including facsimile: or computerized formats. Copyright 1!Il2010-2011, CALIFORNIA ASSOCIATION OF ReALTORS.
INC. ALL RIGHTS RESERVE". SstA REVISED 11/11 (PAGE 1 OF 3)
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Agent: . Guinory
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Borrower: Kyle . . . . . .
Jun.22.2010
07:46 AM
5020 A
street:
PAGE. 14/ 15
CA
95819
A. Short Sale:
1. Beginning July 15, 2011, Code of Civil Praoedure 580e any lender who approves a short sale is not permitted to seek or collecl a deficiency against the borrower ff Ihe loan is secured by a Trusl Deed on residential property containing 14 units. This law may not be waived. The July 15, 2011 law does nol apply to (I) lienholders on other types of property, or (ii) a borrower who has comm~ted fraud or waste or (iii) borrowers who are oorporations, lim~ed liability companies, or limited partnerships.
Prior to this I~w coming in10 effect, from January 1, 2011 the restriction on lenders seeking deficiencies for approved short
sales only applied to lenders holding a first trust deed on residential 1-4 un~. 2, For properties or borrowers to whictl CCP 580e does not apply, some lenders in negotiating a short sale will want Ihe owner 10 sign a note for Ihe balance of the unpaid prinolpal. Other lenders will release the li.n only but not forgive the underlying debt. Some lenders will "reserve their rights." Thus, in these sitUations whether lender retain. tho right to pursue a deficiency
following a short sale becomes a negotiable term for each sale. 3. Sellar is encouraged to (i) obtain a written agreement from lender(s) or other applicable lien holders addressing whether and to what extent Seiler will be released from any monetary or other claim, obligation, or liability upon approval of the .hort s.le, an<1 (;;) have that written agreement reviewed by an attorney, CPA or other appropriate professional of seller's choosing, B. Foreclosure 1, Purcha.... Money Loans; Loans given by lenders to purchase 1-4 unit properties, one of which will be occupied by the borrower, and sellar-financed purchases are subject to "purchase money" anti-defidaJicy protection rules. Generally, this means th.t the lender oannot pursue the borrower for any deficiency after the property is foreclD$ild upon by the selier or lender, whether the $eller or lender uses a non-judicial trustee sale or a judicial foreclosure. Refinancing a purchase money loan causes It to lose any purchase money protection it might have. 2. Trustee Sales: If a lender foreclos". by no,,"judicial trustee sale instead of by Judicial foreclosure, that lender is barred from seeking any deficiency from the borrower after the trustee sale, even If the loan was not purchase money. 3. Refinanced Liens: The anti-deficiency protections become much less clear for loans that are refinanced. Generally, loans that are refinanced lose their "purohase money" protection. Lenders extending refinances may be able to pursue a deficiency judgment against the borrower directly follOwing" judicial foredosure. 4. Junior Liens: The anti-deficiency protections for Junior Liens are also somewhat unclear. Junior liens used to purchase the r.sidence (such as 90110 first and second) would have "purchase money" protection generally. However, junior lien. that are refinanoed or junior liens that are used to take out equity do not have "purchase money" protection. Suctl "non purctlase money" junior lienholders may be able to pursue a deficiency jUdgement against the borrower directly after a Trustee sale by a senior lienholder or after a judicial foreclosure by the junior lienholder. Although the law is not entirely cle.r, home equity loans (HELOCs) may fall into this category. 5. other Liens! Many other types of liens may be recorded on titles including. without limitation, homeowners association liens. JUdgement liens, iax liens, and child support liens. Generally foreolosures by any lienholders senior to such liens do not protect the owner of the property from later legal action by the lienholder to collect on the obligation. 5. CREDIT AND TAX CONSEQUENCES: A. CREDIT: All of the owne~s options discussed above will most likely have a negative impact on the owne~$ "",dit and on the owner's ability to finance or purchase property for some time. The credit impact and length of time the owner would have difficulty in obtaining a loan to purchase property again, or 10 be ~pproved for any other credit transactions such as obtaining a credit card, leasing an apartment, or even to gain employment, v.ries. Lenders may view short sales and alternatives differently daponding on their Own underwriting guidelines and those established by governm"ntal or quasi-govemmental bodie . TQ find out more information about the impact to your credit score, go to www.myfico.com. B, TAX; With some exoeptions, a reduction or discharge of a debl obligation by a lender rasults in income to the borrower. The income might not be taxable if the debt was being used to purchase, build, or substantially improve a borrower's principal residence. Another exception exists if the forgiveness of debt results from a situation where the lender is barred by law from collecting the debt, as in a foreclosure of p~rchase money debt. Insolvency and bankruptcy rules can also shield a borrower from forgiveness of debt income, Generally, when any debt is forgiven by lender, they are required to provide the borrower a 1099 and it will be up to the borrower to make- the proper claim on their tax return to avoid debt forgiveness income. Some of these rules are temporary, and state laws and federal laws differ, Broker has advised Seller that if Lender agrees to acoept less than full paymen~ the difference may re.ult in taxable income to Seller even though Selier does not receive any cash proceeds from the sale. Seller may also be taxed on the gain in value of the Property from the date of Seller'. purchase to the date of sale, regardless of the amount of any existing Loans/Liens. C. PROFESSIONAL ADVICE, Seller advised to discuss with an attomey, CPA or other professional of Seller's choosing before (i) aocepting any offer to present to lender or{ii) agreeing to any ctlanges requested by lender to an already acoepted contracl 6. POTENTIAL IMPROPRIETIES: It is an unfortunate reality that many persons, inoluding r...1 estate licensees, mortgage lenders, and attomeys, among others! have taken advantage of owners of underwater or distressed properties. Some or the schemes present themselves as "rescues" of the homeowner, promising to let them stay in the property, to protect their credit, or to provide payments to them after olosing, and usually outside of the escrow. Both the Califomia Department of Real Estate (ORE) (http://www.dre.oa.gov)and the callfomla Attornay Genaral (hltp:llwww.ag.oa.gov) have i..uad written warning' of potential red flags in short sales and other resoue schemes. Some of these red flags are:
Buy.'slnitiel.
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_ _ _ __
Seller's Initials (
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Copyright 0 2010-2011, CALIFORNIA ASSOCIATION OF R!:ALTORS, INC. SSIA REVISED 11111 (PAGE 2 OF 3)
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Jun.22.2010
07:46 AM
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Date: Degen",..r
I!L 2011
B.
C.
D.
E.
No license: The DRE believes that a real estate license is generelly required to negotiate any short sale; MARS: Short sale negotiators who do not represent the Seller or Buyer in a short sale are generally required to comply with the Mortgage Assistance Relief Services rules and provide required disclosures and notice. to the Seller. Up-front fae$: No real estate licensee can collect any upfront or advance fee Without having flrst obtained a "no objection" letter from the DRE and no upfront rees may be taken for arranging a loan modification; Surcharges: Charges by third parties that are not disclosed to the short sale lender and usually paid outside of escrow; 3rd Party negotiations: The licensing and fee reqUirements above apply whether the negotialion occurs Ihrough a Broker. representing the Seller or Buyer in the transaction, or a 3r(l party short sale Mgoliator. A. with other real estale activi\;'. short sale negotialor fee. are negoliable and not set by law. The exislence, fee and licensed status of any 3rd party short sale ~egotiator shall be disclosed to the lender and must be approved by the lender as part of the overall compensation to be paid
in the short sale transaction,
F.
Straw buyers and house flipping: Buyers misrepresent the value of the property to the short sale lender and flip the property to another buyer already in place; G. other: Other potential red flags include: guarantees to stop the foreclosure; instructions not to contact the lender; transfer of title prior to close (often to a trust) as a condition of negotiating with the lender; the buyer is an LLC; the buyer wanls a power of altomey from the .eller; ana the buyer hires the Ihird party negotiator or wants to negotiate direclly With the lender. While most of the .,.ctlvities on th~ above list on 1heir face are not fraudulent, they serve as waming signs that the owner and the real estate agents involved should proceed with cautior'\. BUYER CONSIDERATIONS: Shorl sales are often difficult lransactions laking considerably longer that a typicol reel estate transaction to complele. There is no guarantee that the lender or lenders will agree to the lerms of the purchase offer or that they will respond in any timely fashion or even r~spond al all. There is no guarantee Ihat the seUer will agree to any terms proposed by the lander as a condition of releasing the lien or the debt on the property. Buyers may expend money on Inspections, Joan applications. escrow fees and other coslS thaI they will nol be able 10 recover from anyone if the lender does nol approve the Iran.oclion. Buyers may also have difficulty oblaining the relurn of their deposit in escrow. if the seller becomes noncommunicative during the short sal. process. Generally, sellers also have Ihe right to continue to give offers to their lender(s) even if they have a contract wilh an existing buyer, Brokers cannot give any assurances as to what will happen. Buyer. are strongly cautioned that any undisclosed and unapproved payments 10 junior lienholders or to seller or to outside third party ne90~ators may be " form of lender fraud. Buyers are also strongly cautioned that writing offers on more than one short .ale property with the intent 10 purchase only one such property could be a misrepresentation giving rise to legal claims by the Seller Including a claim for the buyer's deposit. BROKER ROLE: A real .slate broker cannot give legal or tax advice in connection wHh any of the options available to the borrower nor can the broker suggest what is the best course of action for the owner. Unfortunately, the owner is faced with extremely difficult choices having a lasting Impact on Ihe owner. Owners are strongly caulioned that they must seek legal and lax advice in what is not only a choice impacting taxes and credit, but also personal iS$l,IsS affal;ting the owner and often the owner's family. The broker's role is to assist the owner with the actual sale of the property in a short sale transaction, not to provide legal or tax advice or to guarantee the best possible outcome for the parties, or to assure the buyer Ihat any particular transaction will be completed. Brokers do not. and cannot. assure that either Ihe SeHer or the Buyer will perform on their agreement or that the lender(s) will agree to any of the tanns presented. Brokers are not a party to the contract between Buyer and Seller. BROKER AUTHORITY: Seller authori",' Broker 10: (1) market Ihe Property for sale. (2) contacl lenders concerning lender's approval of a Short Sale (CAR. Form ARC) and Seller agrees 10 give Broker any necessary information to negotiale with lenders, and (3) advertise In the MLS and other advertiSing medium thaI the Property transfer, sales pnce and payment of commiSSions are
7.
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~-~_--------------------_ Date ~1-2-(2-0-1-2-0-1-1----Real Estate Mer (semniff~!Z.~~""'4.... 1"t"'Y:....il"" d"-'Lo""'AA""'''L..._~_ _ _~_~~~_~~_~~~_~~_ _~_ .."'\" R"' ..
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State
CA.
Telephone (n61247~6048
Fax (216/487-8280
Real Estat$ BroKer (Listing Firm) Ramsey Real Estate and Dev.
Sy(Agent} Daniel Ramsey
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Fax
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City
95819
916-760-0575
reo@ramseyrealestateqroup.com
525 South Virgil A,enue. Angelos. C.I~ni. 90020 CoPVTigh\ II:) 2010.201 t. CAliFORNIA ASSOCIATION OF REALTORS, INC. SSIA REVISED 11111 (PAGE 3 OF 3)
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Data
tEl
&UoI. Hotnt/C
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Ast
96 of 130
Borrower: Kyl . .
S 1I
A.
B.:!'l:1!e of Loan
1. FHA
RHS
ConvUnins
6.
Fil~
Number:
i. Loan NUlnbC!r:
a.
lV1or!gag~
InsuraL1c~ CJ$~
Number:
407-9140-
VA
Conv Ins.
C. NOIe: This form is furnished t() give you a srnte=t of actu,~1 ~ettleme11! COSlS. AmOWl15 paid tQ and by ~l settlement agent ~rt' shown. ItelTls marked "(p.o.c.)"' W~rE' paid outside the closing: they ore ShOWil here for InfomlJtlon~1 purpo'>t':S and are not incl\lded In rh~ toWls.
~OLGHA.SEM
b;ASH TRANSACTION
L Settlement Date:
p. Property Location:
020AST ACRAMENTO, CA 95819
H. Settlement Agent:
LACERTITLECONWANY
....
....
'
'I
......
K. -Summarv of SeUer'~_TraDsactions
400. Gross Amount D.Je:to SeDer. 401. COntract sales rice 402. Personal property
207,000.00
403.
404.
405.
Adiustments for items paid bv seller in advance 406. City!mwn taxes 407. County taxes 408. Assessments
Adjustment for items paid bv seller in advance 106. Cityftown taxes 107. County taxes 108. Assessments
109. 110. 111. 112. 120. Gross Amount Due from Borl"ower
200. -AmolUlts-:Paii:Jbv or in-Behalf of Borrower 201. Deposit or earnest money 202. Principal atmUnt of new loan(s) 203. Existing loan(s) taken subject to
409.
410. 411. 412. 420. Gross Amount Due to Seller
500. Reductions Iri AmOWlt Due 1:0 Seller 501. Excess deposit (see instructions) 502. Settlement cha rges to seller (line 1400) 503. Existing loan(s) taken subject to 504. Payoff of first roortgage loan SHORT SALE LENDER 505. Payoff of second mortgage loan 506. 507. 508. 509. Adjustments for items unpaid bv seller 510. Ci !town taxes 511. Coun ,~~ 512. Assessments 513. 514. 515. 516. 517. 518. 519.
207,000.00
18,389.46 188,610.54
301. Gross amount due from borrower (line 120) 302 Less amounts aid b ffor borrower (line 220) 303. Cash Borl"ower
600. -Cash-at SettlementtMrOl'll Selle:r 601. Gross amount due to seller (\lne 420) 602. Less reductions in amount due seller line 520)
The Public Reporting Burden for this collection of information is estimated at 35 minutes per respons e for collecting, reviewing, and reporting the data. This agency may not collect this information, and you are not required to complete this form, unless it displays a currently valid O:MB control numbe T. No confidentiality is assured; this disclosure is mandatory. This is designed to provide the parties to a RESPA covered transaction with information during the settlement process.
97 of 130
lis
Paid From Borrower's Funds at Settlement Paid From Seller's Funds at Settlement
12,420.00
700. Total Real 'Estate .Broker Fees Division of commissions line 700) as follows: 701. Listing Agent Commission S7'..45.00 to RAMSEY REAL ESTATE & DEVELOPEMENT CORP 702, Sellinl1, Al1,ent Commission $5175.00 to CUSTOM REAL TV AND LOANS 703. Commission aid at settlement
704.
800." Items"Fa able.in Comection with Loan 80l. Our origination charge 802. Your credit or char e (points) for the ecific interest rate dxlse n 803. Your ad'usted origination dlarges 804. Appraisal fee 805. Credit repor t 806. TaxseNice 807. Flood certification 808. 9OO.IteuisRe u.iredb .Lender to Be Paid in Advance
901. Daily Interest Charges
(from GFE #1) (fromGFE#2.) (from GFEA) from GFE #3) {from GFE #3) (from GFE #3 (from GFE #3)
902.
e insurance remium
1006.
1007. A 1101. 1102 1103. 1104. 1105.
"'"
1206. 1300. Additional-Settlement Cbar 1301. Required services that ou can shop for 1302 Hazard Disclosure to NHD COMPANY ~ NEED INVOICE 1303. SHORT SALE PROCESSING FEE to NEED INVOICE 1304. Taxes to be Paid: 2nd Install, $1716.51 201112012 TAXES to SACRAMENTO COUNTY TAX COLLECTOR 1305.
114XI. "Total Settlement. Char!! s (enter on lines 103. Section] and sm. SectionK)
18,389A6
O:lilucll .....",tpl,cl""
S8 of 130
Borrower:
Kyl"llill
KYLEA.BRYANT
The HUD-I Settlement Statement which I have prepared is a true and accurate account of this transaction. I have caused or will cause the funds to be disbursed in accordance with this statement.
By:
~SE~TTL~~E~M~E~N~T~A~G~E~N~T~-------------------------
DATE
WARNING: IT IS A CRIME TO KNOWINGLY MAKE FALSE STATEMENTS TO THE UNITED STATES ON THIS ORANY SIMILAR FORM. PENALTIES UPON CONVICTION CAN INCLUDE A FINE AND nvrPRISONMENT. FOR DETAILS SEE TITLE 18: U.S. CODE SECTION 1001 AND SECTION 1010.
99 of 130
Borrower: Kyle
III
Initials:
O:lhudlsestpl.doc
10001130
Description
NEGOTIATED SHORT PAYOFF TOTAL PAYOFF
to:
Loan #:
Total as shown on HUD line 504
(12/2009)
101 of 130
Borrower: Kylelll'
Charges
Credits
207,000,00
188,610.54
&.
Total Existing Loan Cllarges &. Credits Listing Agent Commission 3.50% RAMSEY REAL ESTATE
Selling Agent Commission
DEVELQPEMENT CORP
1BB,610.54 7,245.00 5,175.00 932.00 227.70 569.25 30.00 1,335.00 60.00 150.00 1,716.51 99.00 850.00
Escrow Fee
------------- -------------Totals
207,000.00 207,000.00
The title and escrow cbarges listed above are based on the Sales Price and/or coverage amounts shown above and the tenns provided to escrow. Samples of a few additional services which will increase the above estimate are below.
, , , , , ,
Additional or secondary fmancing My endorsements requested by lender Payment through escrow of any unsecured/credit debt. Recording fees are charged by the recorders office based on numb.er of pages in a document and subject to change. The amounts shown are estimated. Overnight fees are subject to change based on services requested. Document preparation fees are charged for additional documents prepared by us. Some typical additional documents are Powers of Attorney, InteNpousal deeds, Subordinations, Requests for notice. Outside or out of town signing services.
If any of the above services are needed and have not been shown in the above estimate it is
important you advise your escrow officer immediately. Note: Title and Escrow Services are posted with the Department of Insurance. They can not be waived or adjusted.
Initials:
102 of 130
Borrower:
K}iAlIIIIIIIIIIIID
RAMSEY REAL ESTATE & DEVELOPEMENT CORP 759 47TH STREET SACRAMENTO, CA 95819 KELLIBOEHM
Thank you for letting us be of service to you. Enclosed are the reports requested on the above referenced property. If you have any questions concerning this report, please contact the office shown on the first page of the report.
5828 Lonetree Blvd., Snite 200, Rocklin, CA 95765 - (916) 624-8141 Fax (916) 624-7383
1030f130
Borrower: Kyle
RAMSEY REAL ESTATE & DEVELOPEMENT CORP 759 47TH STREET SACRAMENTO. CA 95819 Attn: KELL! BOEHM Phone: 916-947-9814 Fax: 916-760-0575
CUSTOM REALTY AND LOANS 3600 POWER INN ROAD #H3 SACRAMENTO. CA 95825 Attn: MICHAEL ODEM Phone: 916-247-6048 Fax: 916-487-8280
TO COME
KYLEtiI. . . .
5020 A ST SACRAMENTO, CA 95819-2223
Copies: 1 MAIL
PLACER TITLE COMPANY 950 GLENN DRIVE SUITE 120 FOLSOM, CA 95630 Attn: Cindy Perez I Karla Caceres Phone: 916-353-1953 Fax: 916-353-1073
DELIVZRr
10401130
Borrower: Kyle (
In response to the above referenced application for a policy of title insurance, PLACER TITLE COMPANY hereby reports that it is prepared to issue, or cause to he issued, through one of its authorized underwriters, as of the date hereof, a Policy or Policies of Title Insurance describing the land and tbe estate or interest therein hereinafter set fortb, insuring against loss which may be sustained by reason of any defect, lien or encumbrance not shown or referred to as an Exception below or not excluded from coverage pursuant to the printed Schedules, Conditions and Stipulations of said Policy forms. The printed Exceptions and Exclusions from the coverage and Limitations on Covered Risks of said Policy or Policies are set forth in the attached. The policy to be issued may contain an arbitration clause. When the Amount of Insurance is less than tbat set forth in the arbitration clause, all arbitrable matters ~aI1 be arbitrated at the option of either the Company or the Insured as the exclusive remedy of the parties. Limitations on Covered Risks applicable to the CLTA and ALTA Homeowner's Policies of Title Insurance which establish a Deductible Amount and a Maximum Dollar Limit of Liability for certain coverages are also set forth in the attached. Copies of the Policy forms sbould be read. They are available from the office which issued this report. PLEASE READ THE EXCEPTIONS SHOWN OR REFERRED TO BELOW AND THE EXCEPTIONS AND EXCLUSIONS SET FORTH IN THE ATTACHED CAREFULLY. THE EXCEPTIONS AND EXCLUSIONS ARE MEANT TO PROVIDE YOU WITH NOTICE OF MATTERS WmCH ARE NOT COVERED UNDER THE TERMS OF TITLE INSURANCE POLICY AND SHOULD BE CAREFULLY CONSIDERED. IT IS IMPORTANT TO NOTE THAT TmS PRELIMINARY REPORT IS NOT A WRITTEN REPRESENTATION AS TO THE CONDITION OF TITLE AND MAY NOT LIST ALL LIENS, DEFECTS AND ENCUMBRANCES AFFECTING TITLE TO THE LAND. This report (and any supplements or amendments hereto) is issued solely for the purpose of facilitating the issuance of a policy of title insurance and no liability is assumed hereby. If it is desired that liability be assumed prior to the issuance of a policy of title insurance, a Binder or Commitment should be requested.
105 of 130
The form of policy of title insurance contemplated by tlds report is: 2006 ALTA Owners Standard Coverage Policy (6117/06) 2006 ALTA Loan Extended Coverage Policy (6/17106)
The estate or interest in the land hereinafter described or referred to covered by tlds Report is: A FEE SIMPLE
Title to said estate or interest at the date hereof is vested in: KYLE A SINGLE MAN
The land referred to herein is described as follows: SEE EXHIBIT "A" ATTACHED
PRELIM.A
CL TA Preliminary Report
1060f130
Borrower: Ky/
&
EXHIBIT "A" LEGAL DESCRIPTION THE LAND DESCRIBED HEREIN IS SITUATED IN THE STATE OF CALIFORNIA, COUNTY OF SACRAMENTO, CITY OF SACRAMENTO, AND IS DESCRIBED AS FOLLOWS: LOT 17, AS SHOWN ON THE "PLAT OF COLOMA TERRACE UNIT NO.5", RECORDED IN THE OFFICE OF THE COUNTY RECORDER OF SACRAMENTO COUNTY, APRIL 26, 1947, IN BOOK 26 OF MAPS, MAP NO.6. APN: 004-0092-013
PRE.LEGAl',.
Order No. 407-9140 EXCEPTIONS At the date hereof exceptions to coverage in addition to the printed Exceptions and Exclusions in said policy form would be as follows:
1.
TAXES, SPECIAL AND GENERAL, ASSESSMENT DISTRICTS AND SERVICE AREAS FOR THE FISCAL YEAR 2011-2012: 1ST lNSTALLMENT: $1,716.51 PAID 2ND INSTALLMENT: $1,716.51 OPEN ASSESSED VALUATIONS: LAND: $210,442.00 IMPROVEMENTS: $83,300.00 EXEMPTION: $0.00 PARCEL NO.: 004-0092-013 CODE AREA: 03-005 ASSESSMENT NO.: 11040729 NOTE: FIRST lNSTALLMENT IS DUE NOVEMBER 1 AND DELINQUENT DECEMBER 10. SECOND lNSTALLMENT IS DUE FEBRUARY 1 AND DELlNQUENT APRIL 10. THE lNSTALLMENTS SHOWN ABOVE REFLECT A CHARGE OF $37.19, PER INSTALLMENT FOR PAYMENTS TO SACRAMENTO CITY LIGHTING & LANDSCAPING, AND A CHARGE OF $14.34, PER lNSTALLMENT FOR PAYMENTS TO SAFCA CONSOLIDATED CAPITAL A.D.
2.
THE LIEN OF SUPPLEMENTAL TAXES, IF ANY, ASSESSED PURSUANT TO THE PROVISIONS OF CHAPTER 3.5, (COMMENCING WITH SECTION 75) OF THE REVENUE AND TAXATION CODE, OF THE STATE OF CALIFORNIA. THE HEREIN DESCRIBED PROPERTY LIES WITHIN THE BOUNDARIES OF THE SAFCA CONSOLIDATED CAPITAL A.D. , A 1915 ACT BOND, AND IS SUBJECT TO THE LIENS OF SAID DISTRICT. THIS BOND IS PAID WITH CURRENT TAXES, AND IF TAXES ARE PAID CURRENT, THEN THE BOND IS CURRENT. FOR PAY OFF AMOUNTS, PLEASE NOTIFY ESCROW IN ADVANCE OF CLOSING. ANY PAY OFF AMOUNTS GNEN ARE BASED ON FULL PAYMENT OF CURRENT TAXES. ANY UNPAID AMOUNTS NOW OWlNG FOR UTILITIES, OF RECORD OR NOT, DUE THE COUNTY OF SACRAMENTO OR ANY CITY IN WHICH THE PROPERTY IS LOCATED. AMOUNTS MAYBE ASCERTAINED BY CONTACTING THE COUNTY OF SACRAMENTO AT 916-875-5555 OR THE APPROPRIATE CITY OFFICE. DEDICATIONS AS SET FORTH AND SHOWN ON THE OFFICIAL MAP OF SAID SUBDNISION AS FOLLOWS: A. UTILITY EASEMENTS OVER THE SOUTHWESTERLY 5 FEET AND THE NORTHEASTERLY 2 FEET
3.
4.
5.
108 of 130
Borrower: Kyle
Order No.
407-9140
EXCEPTIONS
(Continned)
B. 6.
TERMS, PROVlSIONS, COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS, PROVIDED IN THE COVENANTS, CONDITIONS AND RESTRICTIONS, BUT OMITTING ANY COVENANT, CONDITION OR RESTRICTION, IF ANY, BASED ON RACE, COLOR, RELIGION, SEX, HANDICAP, FAMILIAL STATUS OR NATIONAL ORIGIN UNLESS AND ONLY TO THE EXTENT THAT THE COVENANT, CONDITION OR RESTRICTION (A) IS EXEMPT UNDER TITLE 42 OF THE UNITED STATES CODE, OR (B) RELATES TO HANDICAP, BUT DOES NOT DISCRIMINATE AGAINST HANDICAPPED PERSONS, IN DOCUMENT RECORDED IN BOOK 1367, PAGE 408, OFFICIAL RECORDS. NOTE: SECTION 12956.1 OF THE GOVERNMENT CODE PROVIDES THE FOLLOWING: IF TillS DOCUMENT CONTAINS ANY RESTRICTION BASED ON RACE, COLOR, RELIGION, SEX, FAMILIAL STATUS, MARITAL STATUS, DISABILITY, NATIONAL ORIGIN OR ANCESTRY, THAT RESTRICTION VlOLATES STATE AND FEDERAL FAIR HOUSING LAWS AND IS VOID, AND MAY BE REMOVED PURSUANT TO SECTION 12956.1 OF THE GOVERNMENT CODE. LAWFUL RESTRICTIONS UNDER STATE AND FEDERAL LAW ON THE AGE OF OCCUPANTS IN SENIOR HOUSING OR HOUSING FOR OLDER PERSONS SHALL NOT BE CONSTRUED AS RESTRICTIONS BASED ON FAMILIAL STATUS. CONTAINS: MORTGAGEE PROTECTION CLAUSE.
7.
DEED OF TRUST TO SECURE AN INDEBTEDNESS OF $301,500.00, DATED NOVEMBER 21,2006, RECORDED NOVEMBER 28,2006, AS BOOK 20061128, PAGE 1747, OFFICIAL RECORDS. TRUSTOR: KYLE ALAN BRYANT TRUSTEE: NATIONAL CITY BANK BENEFICIARY: NATIONAL CITY MORTGAGE A DIVISION OF NATIONAL CITY BANK LOAN NO.: 0004975330 THE BENEFICIAL INTEREST UNDER SAID DEED OF TRUST WAS ASSIGNED OF RECORD TO CALIFORNIA HOUSING FINANCINE AGENCY, BY ASSIGNMENT RECORDED DECEMBER 05,2006, AS BOOK 20061205, PAGE 548, OFFICIAL RECORDS.
8.
THE REQUIREMENT THAT A CONFIDENTIAL STATEMENT OF IDENTITY BE SUBMITTED FROM KYLE ALAN BRYANT. ADDITIONAL MATTERS MAY BE REFLECTED AS EXCEPTIONS DEPENDING ON THE IDENTITY OF SAID PARTY OR PARTIES.
109 of 130
Borrower: Kyle
Order No.
407-9140
EXCEPTIONS
(Continued)
*** NOTE: THE FOLLOWING UNDERWRITER HAS BEEN SELECTED FOR THIS TRANSACTION:
Order No.
407-9140
sellS:;
CL TA Preliminary Report
111 of 130
Borrower: Kyle
DISCLOSURE OF DISCOUNTS: You may be entitled to a discount on your title premiums andlor escrow fees if you meet any of the following conditions:
1.
You are an employee of the title insurer or Placer Title and the property is your primary
residence; or
2.
Tbe transactions is a loan, the purpose of which is to rebuild the improvements on the property as a result of a goverumentally declared disaster; or The property is being purchased or encumbered by a religious, charitable or nonprofit organization for its use within the normal activities for which such entity was intended. Please advise the company if you believe any of the above discounts apply.
3.
LENDER'S NOTE: APPROVAL FOR THE ISSUANCE OF THE 1910 ALTA LENDER'S POLICY FORM MUST BE REQUESTED AND APPROVED PRIOR TO CLOSE OF ESCROW. ALL OTHER FORMS OF FULL COVERAGE LOAN POLICIES THAT ARE AUTHORIZED TO BE ISSUED ARE THE 1992 AND 2006 POLICIES.
BUYER'S NOTE:
If an ALTA Residential Owner's Policy is requested and if the property described herein is determined to be eligible for this policy, the following Exceptions From Coverage will appear in the policy:
1. Taxes or assessments which are not shown as liens by the public records or by the records of any taxing authority.
2. (a) Water rights, claims or title to water; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) unpatented miuing claims; whether or not the matters excepted under (a), (b) or (c) are shown by the public records. 3. Any rights, interests or claims of parties in possession of the land which are not shown by the public records. 4. Any easements or liens not shown by the public records. This exception does not limit the lien coverage in Item 8 of the Covered Title Risks. 5. Any facts about the land which a correct survey would disclose and which are not shown by the public records. This exception does not limit the forced removal coverage in Item 12 of the Covered Title Risks.
l:'RE:LIM.NOl'ES (Rev.
9/09)
112 of 130
CLTA PRELIMINARY REPORT FORM Exhibit A (Revised 6-3-11) CALIFORNIA LAND TITLE ASSOCIATION STANDARD COVERAGE POLICY - 1990 EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attorneys' fees or expenses which arise by reason of: 1. (a) Any law, ordinance or governmental regnlation (including but not limited to building or zouing laws, ordinances, or regnlations) restricting, regulating, prohibiting or relating (i) the occupancy, use, or enjoyment of the land; (ii) the character, dimensions or location of any improvement now or hereafter erected on the land; (iii) a separation in ownership or a change in the dimensions or area of the land or any parcel of which the land is or was a part; or (iv) enviromnental protection, or the effect of any violation of these laws, ordinances or governmental regulations, except to the extent that a notice of the enforcement thereof or a notice of a defect, lien, or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. (b) Any governmental police power not excluded by (a) above, except to the extent that a notice of the exercise thereof or notice of a defect, lien or encmnbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. Rights of eminent domain unless notice of the exercise thereof has been recorded in the public records at Date of Policy, but not excluding from coverage any taking which has occurred prior to Date of Policy which would be binding on the rights of a purchaser for value without knowledge. Defects, liens, encumbrances, adverse claims or other matters: (a) whether or not recorded in the public records at Date of Policy, but created, suffered, assumed or agreed to by the insured claimant; (b) not known to the Company, not recorded in the public records at Date of Policy, but known to the insured claimant and not disclosed in writing to the Company by the insured claimant prior to the date the insured claimant became an insured under this policy; (c) resulting in no loss or damage to the insured claimant; (d) attaching or created subsequent to Date of Policy; or (e) resulting in loss or damage which would not have been sustained if the insured claimant had paid value for the insured mortgage or for the estate or interest insured by this policy. Unenforceability of the lien of the insured mortgage because of the inability or failure of the insured at Date of Policy, or the inability or failure of any subsequent owner of the indebtedness, to comply with the applicable doing business laws of the state in which the land is situated. Invalidity or unenforceability of the lien of the insured mortgage, or claim thereof, which arises out of the transaction evidenced by the insured mortgage and is based upon usury or any consumer credit protection or troth in lending law. Any claim, which arises out of the transaction vesting in the insured the estate of interest insured by this policy or the transaction creating the interest of the insured lender, by reason of the operation of federal bankruptcy, state insolvency or similar creditors' rights laws. EXCEPTIONS FROM COVERAGE - SCHEDULE B, PART I This policy does not insure against loss or damage (and the Company will not pay costs, attorneys' fees or expenses) which arise by reason of:
2.
3.
4.
5. 6.
I. Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the public records. Proceedings by a public agency which may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the public records. 2. Any facts, rights, interests, or claims which are not shown by the public records but which could be ascertained by an inspection of the land or which may be asserted by persons in possession thereof. 3. Easements, liens or encumbrances, or claims thereof, not shown by the public records. 4. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct survey would disclose, and which are not shown by the public records. 5. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) water rights, claims or title to water, whether or not the matters excepted under (a), (b) or (c) are shown by the public records. 6. Any lien or right to a lien for services, labor or material not shown by the public records.
PROll.IM.Sl.2011
PAGE I OF 6
1130f130
Borrower: Kyle ..
CLTA HOMEOWNER'S POLICY OF TITLE INSURANCE (02-03-10) ALTA HOMEOWNER'S POLICY OF TITLE INSURANCE EXCLUSIONS
In addition to the Exceptions in Schedule B, You are uot insured against loss, costs, attorneys' fees, and expenses resulting from: 1. Governmental police power, and the existence or violation of those portions of any law or govermnent regulation concerning: a. building; b. zoning; c. land use; d. improvements on the Land; e. land division; and f. environmental protection. This Exclusion does not limit the coverage described in Covered Risk 8.a., 14, 15, 16, 18, 19, 20, 23 or 27. 2. The failure of Your existing structures, or any part of them, to be constructed in accordance with applicable building codes. This Exclusion does not limit the coverage described in Covered Risk 14 or 15. 3. The right to take the Land by condemning it. This Exclusion does not limit the coverage described in Covered Risk 17. 4. Risks: a. that are created, allowed, or agreed to by You, whether or not they are recorded in the Public Records; b. that are Known to You at the Policy Date, but not to Us, unless they are recorded in the Public Records at the Policy Date; c. that result in no loss to You; or d. that fIrst occur after the Policy Date - this does not limit the coverage described in Covered Risk 7, 8.e., 25, 26, 27 or 28. 5. Failure to pay value for Your Title. 6. Lack of a right: a. to any Land outside the area specifIcally described and referred to in paragraph 3 of Schedule A; and b. in streets, alleys, or waterways that touch the Land. This Exclusion does not limit the coverage described in Covered Risk 11 or 21. 7. The transfer of the Title to You is invalid as preferential transfer or as a fraudulent transfer or conveyance under federal bankruptcy, state insolvency, or similar creditors' rights laws.
Your insurance for the follOWing Covered Risks is limited on the Owner's Coverage Statement as follows:
For Covered Risk 16, 18, 19, and 21 Your Deductible Amount and Our Maximum Dollar Limit of Liability shown in Schedule A.
The deductible aroounts and maximum dollar limits shown on Schedule A are as follows: Your Deductible Amount Our Maximum Dollar Limit of Liability
Covered Risk 16: Covered Risk 18: Covered Risk 19: Covered Risk 21:
1% of Policy Amount or <,-_ __ (whichever is less) 1% of Policy Amount or $,----_ _ (whichever is less) 1% of Policy Amount or $,----_ _ (whichever is less) 1% of Policy Amount or $,----_ _ (whichever is less)
$_-$_--
$_--
$_--
J?m:r.nI.S2.2011
PAGE20F6
114of130
S3I....
AMERICAN LAND TITLE ASSOCIATION RESIDENTIAL TITLE INSURANCE POLICY (6-1-87) EXCLUSIONS
In addition to the Exceptions in Schedule B, you are not insured against loss, costs, attorneys' fees, and expenses resulting from:
1. Governmental police power, and the existence or violation of any law or government regulation. This includes building and zouing ordinances and also laws and regulations concerning:
* * *
This exclusion does not apply to violations or the enforcement of these matters which appear in the public records at Policy Date. This exclusion does not limit the zoning coverage described in Items 12 and 13 of Covered Title Risks. 2. The right to take the land by condemning it, unless:
* * *
a notice of exercising the right appears in the public records on the Policy Date the taking happened prior to the Policy Date and is binding on you if you bought the land without knowing of the taking
3. Title Risks:
* *
that are created, allowed, or agreed to by you that are known to you, but not to us, on the Policy Date -- unless they appeared in the public records * that result in no loss to you * that first affect your title after the Policy Date -- this does not limit the labor and material lien coverage in Item 8 of Covered Title Risks 4. FaUure to pay value for your title. 5. Lack of a right:
* to any land outside the area specifically described and referred to in Item 3 of Schedule A
OR
in streets, alleys, or waterways that touch your land
This exclusion does not limit the access coverage in Item 5 of Covered Title Risks.
PRELnI:.S~.2011
PAGE30F6
115 of 130
Borrower: Kyl~
2006 ALTA LOAN POLICY (06/17/06) EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy, and the Company will not pay loss or damage, costs, attorneys' fees, or expenses that arise by reason of:
1.
2. 3.
4. 5. 6.
7.
(a) Any law, onlinance, permit, or governmental regnlation (including those relating to building and zoning) restricting, regnlating, prohibiting, or relating to (i) the occupancy, use, or enjoyment of the Land; (ti) the character, dimensions, or location of any improvement erected on the Land; (iii) the subdivision of land; or (iv) enviromnental protection; or the effect of any violation of these laws, ordinances, or governmental regulations, This Exclusion 1(a) does not modify or limit the coverage provided under Covered Risk 5, (b) Any governmental police power. This Exclusion 1(b) does not modify or limit the coverage provided under Covered Risk 6. Rights of eminent domain. This Exclusion does not modify or limit the coverage provided under Covered Risk 7 or 8. Defects, liens, encumbrances, adverse claims, or other matters (a) created, suffered, assumed, or agreed to by the Insured Claimant; (b) not Known to the Company, not recorded in the Public Records at Date of Policy, but Known to the Insured Claimant and not disclosed in writing to the Company by the Insured Claimant prior to the date the Insured Claimant became an Insured under this policy; (c) resulting in no loss or damage to the Insured Claimant; (d) attaching or created subsequent to Date of Policy (however, this does not modify or limit the coverage provided under Covered Risk 11, 13, or 14); or (e) resulting in loss or damage that would not have been sustained if the Insured Claimant had paid value for the Insured Mortgage. Unenforceability of the lien of the Insured Mortgage because of the inability or failure of an Insured to comply with applicable doing-business laws of the state where the Land is situated. Invalidity or unenforceability in whole or in part of the lien of the Insured Mortgage that arises out of the transaction evidenced by the Insured Mortgage and is based upon usury or any consumer credit protection or truth-in-lending law. Any claim, by reason of the operation of federal bankrnptcy, state insolvency, or similar creditors' rights laws, that the transaction creating the lien of the Insured Mortgage, is (a) a fraudulent conveyance or fraudulent transfer, or (b) a preferential transfer for any reason not stated in Covered Risk 13(b) of this policy. Any lien on the Title for real estate taxes or assessments imposed by governmental authority and created or attaching between Date of Policy and the date of recording of the Insured Mortgage in the Public Records. This Exclusion does not modify or limit the coverage provided under Covered Risk 11 (b).
The above policy form may be issued to afford either Standard Coverage or Extended Coverage. In addition to the above Exclusions from Coverage, the Exceptions from Coverage in a Standard Coverage policy will also include the follOWing Exceptions from Coverage: EXCEPTIONS FROM COVERAGE This policy does not insure against loss or damage (and the Company will not pay costs, attorneys' fees or expenses) that arise by reason of: 1. (a) Taxes or assessments that are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the Public Records; (b) proceedings by a public agency that may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the Public Records. 2. Any facts, rights, interests, or claims that are not shown by the Public Records but that could be ascertained by an inspection of the Land or that may be asserted by persons in possession of the Land. 3. Easements, liens or encumbrances, or claims thereof, not shown by the Public Records. 4. Any encroachment, encumbrance, violation, variation, or adverse circumstance affecting the Title that would be disclosed by an accurate and complete land survey of the Land and not shown by the Public Records. 5. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) water rights, claims or title to water, whether or not the matters excepted under (a), (b), or (c) are shown by the Public Records. 6. Any lien or right to a lien for services, labor or material not shown by the public records.
mua.nl. S4.2011
PAGE40F6
1160f130
Borrower:
Kyle",.IIII11.
2006 ALTA OWNER'S POLICY (06/17/06) EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or daroage, costs, attorneys' fees or expenses which arise by reason of:
1.
2.
3.
4.
5.
(a) Any law, ordinance, permit, or governmental regolation (including those relating to building and zoning) restricting, regolating, prohibiting, or relating to (i) the occupancy, use, or enjoyment of the Land; (ii) the character, dimensions, or location of any improvement erected on the Land; (iii) the subdivision of land; or (iv) enviroumental protection; or the effect of any violation of these laws, ordinances, or goverumental regulations. This Exclusion 1(a) does not modify or limit the coverage provided under Covered Risk 5. (b) Any governmental police power. This Exclusion l(b) does not modify or limit the coverage provided under Covered Risk 6 Rights of eminent domain unless notice of the exercise thereof has been recorded in the public records at Date of Policy, but not excluding from coverage any taking which has occurred prior to Date of Policy which would be binding on the rights of a purchaser for value without knowledge. Defects, liens, encumbrances, adverse clatms, or other matters (a) created, suffered, assumed, or agreed to by the Insured Claimant; (b) not Known to the Company, not recorded in the Public Records at Date of Policy, but Known to the Insured Claimant and not disclosed in writing to the Company by the Insured Claimant prior to the date the Insured Claimant becaroe an Insured under this policy; (c) resulting in no loss or daroage to the Insured Claimant; (d) attaching or created subsequent to Date of Policy (however, this does not modify or limit the coverage provided under Covered Risk 9 and 10); or (e) resulting in loss or daroage that would not have been sustained if the Insured Claimant had paid value for the Title. Any claim, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors' rights laws, that the transaction vesting the Title as shown in Schedule A, is (a) a fraudulent conveyance or fraudulent transfer; or (b) a preferential transfer for any reason not stated in Covered Risk 9 of this policy. Any lien on the Title for real estate taxes or assessments imposed by governmental authority and created or attaching between Date of Policy and the date ofrecording of the deed or other instrument of transfer in the Public Records that vests Title as shown in Schedule A.
The above policy form may be issued to afford either Standard Coverage or Extended Coverage. In addition to the above Exclusions from Coverage, the Exceptions from Coverage in a Standard Coverage policy will also include the following Exceptions from Coverage: EXCEPTIONS FROM COVERAGE This policy does not insure against loss or damage (and the Company will not pay costs, attorneys' fees or expenses) that arise by reason of: I. (a) Taxes or assessments that are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real properly or by the Public Records; (b) proceedings by a public agency that may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the Public Records. Any facts, rights, interests, or claims that are not shown in the Public Records but that could be ascertained by an inspection of the Land or that may be asserted by persons in possession of the Land. Easements, liens or encumbrances, or clatms thereof, not shown by the Public Records. Any encroachment, encumbrance, violation, variation, or adverse circumstance affecting the Title that would be disclosed by an accurate and complete land survey of the Land and that are not shown by the Public Records. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) water rights, claims or title to water, whether or not the matters excepted under (a), (b), or (c) are shown by the Public Records. Any lien or right to a lien for services, labor or material not shown by the public records.
2. 3. 4.
5.
6.
PRELIM.SS.2011
PAGE50F6
11701130
ALTA EXPANDED COVERAGE RESIDENTIAL LOAN POLICY (7-26-10) EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attorneys' fees or expenses which arise by reason of:
l.
(a) Any law, ordinance, permit, or governmental regnlation (including those relating to building and zoning) restricting, regnlating, prohibiting, or relating to (i) the occupancy, use, or enjoyment of the Land; (ii) the character, dimensions, or location of any improvement erected on the Land; (iii) the subdivision ofland; or (iv) enviromuental protection; or the effect of any violation of these laws, ordinances, or governmental regnlations. This Exclusion 1(a) does not modify or limit the coverage prOvided under Covered Risk 5,6, 13(c), 13(d), 14 or 16. (b) Any governmental police power. This Exclusion 1(b) does not modify or limit the coverage provided under Covered Risk 5, 6, 13(c), 13(d), 14 or 16.
2.
Rights of eminent domain. This Exclusion does not modify or limit the coverage provided under Covered Risk 7 or 8.
3. Defects, liens, encumbrances, adverse claims, or other matters (a) created, suffered, assumed, or agreed to by the Insured Claimant; (b) not Known to the Company, not recorded in the Public Records at Date of Policy, but Known to the Insured Claimant and not disclosed in writing to the Company by the Insured Claimant prior to the date the Insured Claimant became an Insured under this policy; (c) resulting in no loss or damage to the Insured Claimant; (d) attaching or created subsequent to Date of Policy (however, this does not modify or limit the coverage provided under Covered Risk 11, 16, 17, 18, 19,20,21,22, 23, 24, 27 or 28); or (e) resulting in loss or damage that would not have been sustained if the Insured Claimant had paid value for the Insured Mortgage. 4. Unenforceability of the lien of the Insured Mortgage because of the inability or failure of an Insured to comply with applicable doing-business laws of the state where the Land is situated.
5. Invalidity or unenforceability in whole or in part of the lien of the Insured Mortgage that arises out of the transaction evidenced by the Insured Mortgage and is based upon usury, or any consumer credit protection or truth-in-lending law. This Exclusion does not modify or limit the coverage provided in Covered Risk 26. 6. Any claim of invalidity, unenforceability or lack of priority of the lien of the Insured Mortgage as to Advances or modifications made after the Insured has Knowledge that the vestee shown in Schedule A is no longer the owner of the estate or interest covered by this policy. This Exclusion does not modify or limit the coverage provided in Covered Risk 11. 7. Any lien on the Title for real estate taxes or assessments imposed by governmental authority and created or attaching subsequent to Date of Policy. This Exclusion does not modify or limit the coverage provided in Covered Risk 11(b) or 25. 8. The failure of the residential structure, or any portion of it, to have been constructed before, on or after Date of Policy in accordance with applicable building codes. This Exclusion does not modify or limit the coverage provided in Covered Risk 5 or 6. 9. Any claim, by reason of the operation offederal bankruptcy, state insolvency, or similar creditors' rights laws, that the transaction creating the lien of the Insured Mortgage, is
(a) a fraudulent conveyance or fraudulent transfer, or
(b) a preferential transfer for any reason not stated in Covered Risk 27(b) of this policy.
mu:LnI.Sg.2011
PAGE60F6
Borrower: Kyle~
11801130
NOTICE FEDERAL FOREIGN INVESTMENT IN REAL PROPERTY TAX ACT OF 1980 (FIRPTA)
Upon the sale of United States real property, by a non-resident alien, foreign corporation, partnership or trust, the Foreign Investment in Real Property Tax Act of 1980 (FIRPTA), and as revised by the Tax Refonn Act of1984 (26 USCA 897 (C)(I)(A)(I) and 26 USCA 1445) requires the transferee (Buyer) of real property to withhold Internal Revenue Service income taxes in an amount equal to ten (10%) percent of the sale price from seller's proceeds, if ANY of the following conditions are met: (1) The selling price is greater than $300,000.00 (2) The selling price is less than $300,000 AND the purchaser does not intend to occupy the property as his residence for at least 50% of the time of the first two 12 month periods following the date of transfer. Withholding is not required if both of the following conditions are met: (1) The selling price is less than $300,000 and (2) The Buyer is acquiring the property as his residence, and the buyer or other qualifying family member will occupy the property for at least 50% of the time during each of the first 12-month periods following transfer of title to the buyer.
If the purchaser who is required to withhold income tax from the seller fails to do so, the purchaser is subject to fines and penalties as
provided under Internal Revenue Code Section 1445. The seller may request a waiver or a reduced withholding amount by submitting a written request for a "qualifying statement" or "withholding certificate" (Form 8288-B) to: Director, Internal Revenue Service Philadelphia Service Center P.O. Box 21086 Philadelphia, PA 19114-0586 Escrow Holder will, upon written instructions from the purchaser, withhold Federal Income Tax from the seller and will deposit said tax with the Internal Revenue Service, together with IRS Forms 8288 and 8288-A. The fee charged for this service is $25.00 payable to the escrow holder. CALIFORNIA WITHHOLDING In accordance with Sections 18662 and 18668 of the Revenue and Taxation Code, a transferee (Buyer) may be required to withhold an amount equal to 3 113 percent of the sales price or an alternative withholding amount certified to by the seller in the case of a disposition of California real property interest by either: 1. A seller who is an individual or when the disbursement instructions authorize the proceeds to be sent to a financial intermediary or the seller, OR 2. A corporate seller that has no permanent place of business in California. The buyer may become subject to penalty for failure to withhold an amount equal to the greater of 10 percent of the amount required to be withheld or five hundred dollars ($500). However, notwithstanding any other provision included in the California statutes referenced above, no buyer will be required to withhold any amount or be subject to penalty for failure to withhold if: 1. The sales price of the California real property conveyed does not exceed one hundred thousand dollars ($100,000.00), OR 2. The seller exceutes a written certificate, under the penalty ofpetjwy, of any of the following: A. The property qualifies as the seller's (or decedent's, if being sold by the decedent's estate) principal residence within the meaning ofInternal Revenue Code (IRe) Section 121; or
B.
The seller is (or decedent, if being sold by the decedent's estate) last used the property as the seller's (decedent's) principal residence within the meaning of IRC Section 121 without regard to the two-year time period; or The seller has a loss or zero gain for California income tax purposes on this sale; or The property is being compulsorily or involuntarily converted and the seller intends to acquire property that is similar or related in service or use to qualify for non-recognition of gain for California income tax purposes under IRC Section 1033; or
If the transfer qualifies for non-recognition treatment under IRC Section 351 (transfer to a corporation controlled by the transferor) or IRC
C. D.
E.
The seller is a corporation (or an LLC classified as a corporation for federal and California income tax purposes that is either qualified through the California Secretary of State or has a permanent place of Business in California; or The seller is a partnership (or an LLC that is not a disregarded single member LLC and is classified as a partnership for federal and California income tax purposes) with recorded title to the property in the name of the partnership of LLC; or The seller is a tax-exempt entity under either California or federal law; or The seller is an insurance company, individual retirement account, qualified penSion/profit sharing plan, or charitable remainder trust; or The transfer qualifies as a simultaneous like-kind exchange within the meaning ofIRC Section 1031; or The transfer qualifies as a deferred like-kind exchange within the meaning of IRC Section 1031; or The transfer of this property will be an installment sale that you will report as such for California tax purposes and the buyer has agreed to withhold on each principal payment instead of withholding the full amount at the time of transfer.
J.
K.
L.
The Seller is subject to penalty for knOWingly filing a fraudulent certificate for the purpose of avoiding the withholding requirement.
119 of 130
Unless you elect otherwise (as described below), all funds received by PLACER TITLE COMPANY (the "Company") io escrow will be deposited with other escrow funds io one or more non-interest bearing escrow accounts of the Company io a fmancial institution selected by the Company. The depositor acknowledges that the deposit of funds in a non-interest bearing demand account by Escrow Holder may result in said company receiving a range of economic benefits from the bank io the form of services, credits, considerations, or other things of value. The depositor hereby specifically waives any claim to such econontic benefits payable to Escrow Holder resulting fmm non-ioterest bearing deposits. Unless you direct the Company to open an ioterest-bearing account (as described below). the Company shall have no obligation to account to you io any marmer for the value of, or to compensate any party for, any benefit received by the Company and/or its affiliated company. Any such benefits shall be deemed additional compensation of the Company for its services io connection with the escrow.
If you elect, funds deposited by you prior to the close of escrow may be placed io an iodividual ioterest-bearing account
arrangement that the Company has established with one of its financial institutions. You do not have an opportunity to earn interest on the funds deposited by a lender. If you elect to earn interest through this special account arrangement, the Company will cbarge you an additional fee of $50.00 for the establishment and maintenance of the account. This fee compensates the Company for the costs associated with opening and managiog the interest-bearing account, preparing correspondence/documentation, transferriog funds, maintainiog appropriate records for audit/reconciliation purposes, and filing any required tax withholding statements. It is important that you consider this cost in your decision sioce the cost may exceed the interest you earn. Funds deposited io an ioterest-bearing account will be withdrawn from such account and deposited io the Company's general escrow trust account approximately two busioess days prior to the scheduled close of escrow or other disbursement of such funds. If you wish to have your funds placed in an ioterest bearing account (with an accompanying charge of $50.00), please mark below, sign and return this form to your escrow officer. In addition, you must complete and return IRS Form W-9. If you do not not want to have your funds deposited in an ioterest-bearing account, you do not need to sign or return this notice and the Company will understand you to have elected to have your funds deposited in a non-interest bearing account. If you change your ntind and later wish to have your funds placed in an interest-bearing account, please contact your escrow officer. The funds you deposit are insured only to the lintit provided by the Federal Deposit Insurance Corporation.
PLEASE CONSIDER THIS MY/OUR INSTRUCTION TO PLACE MY/OUR DEPOSIT(S) IN A SEGREGATED, INTEREST-BEARING ACCOUNT. IIWE UNDERSTAND THAT AN ADDITIONAL FEE OF $50.00 WILL BE CHARGED FOR THIS SERVICE. IIWE HAVE READ AND UNDERSTAND ALL OF THE ABOVE INFORMATION.
Signature
Date
Signature
Date
1200f130
Borrower: Kyl~
Commonwealth Land Title Insurance Company Fidelity National Title Insurance Company First American Title Insurance Company First American Title Insurance Company of New York Lawyers Title Insurance Corporation Montana Title and Escrow Company National Closing Solutions National Closing Solutions of Alabama, LLC NCS Exchange Professionals North Idaho Title Insurance Company Old Republic National Title Insurance Company
Placer Title Company Placer Title Insurance Agency of Utah Stewart Title Guaranty Company Stewart Title Insurance Company Targhee National Title American General Title Insurance Company Ticor Title Insurance Company Transnation Title Insurance Company United General Title Insurance Company Westcor Land Title Insurance Company Wyoming Title and Escrow Company
We may collect nonpublic personal information about you from the following sources:
* * * *
Information we receive from you, such as on applications or other forms. Information about your transactions we secure from our files, of from our affiliates or others. Information we receive from a consumer reporting agency. Information we receive from others involved in your transaction, such as the real estate agent or lender.
Unless it is specifically stated otherwise in an amended Privacy Policy Notice, no additional nonpublic personal information will be collected about you. We may disclose any of the above information that we collect about our customers or former customers to our affiliates or to nonaffiliated third parties as permitted by law. We also may disclose this information about our customers or former customers to the follOwing types of nonaffiliated companies that perform marketing services on our behalf or with whom we have joint marketing agreements:
Financial service providers such as companies engaged in banking, consuraer finances, securities and
insurance.
Nonfinancial companies such as envelope stuffers and other fulfillment service providers.
WE DO NOT DISCLOSE ANY NONPUBLIC PERSONAL INFORMATION ABOUT YOU WITH ANYONE FOR ANY PURPOSE THAT IS NOT SPECIFICALLY PERMITTED BY LAW.
We restrict access to nonpublic personal information about you to those employees who need to know that information
in order to provide products or services to you. We maintain physical, electronic and procedural safeguards that comply with federal regulations to guard your nonpublic personal information.
121 of 130
Borrower: Kyle 11
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\ _ It is merely furnished as a convenience to locate the land in relation to adjoining streets and other lands and not to guarantee any diary OF SACR~MNro mensions. distances, bearings or acreage. Assessor'$ Me p Bk. 4-Pg.09
County of Sacramento, Calif,
NOTE-Asaa.tol.. Srad. NumbefJ Shown In el1llll.s. Amtuar'.s Parnl Numhets5holn in Circles..
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REO#:
PROPERTY ADDRESS:
181 Initial
Exterior Only
DATE
5020 A Street
SALES
REPRESENTATIV"E~'~
_ Kyle
iiiiiiiiiiL========
Improving months months
12/2212011
FIRM NAME:
PHONE NO.
COMPLETED BY:
9167375656
FAX NO.
9167601839
I.
Depressed Declining
0 0
8.29
Slow
Siable
% %
0 0
in past in past
Stable
Excellent
Increasing
Decreased
Increased Remained stable oversupply
12
!81
Normal supply
Approximate number of comparable units for sale in neighborhood: No. of boarded or blocked-up homes:
10
o
214900 231,000 to $ under improvement days.
II.
SUBJECT MARKETABILITY
Range of values in the neighborhood is $ The subject is an 0 over improvement NOffilal marketing time in the area is:
0
55
Are all types of financing available for the property? 181 Yes 0 No If no, explain Has the property been on the marketin the last 12 months? 181 Yes 0 No If yes, $ 239,900 list price (include MLS printout) It was recently listed and we now have an accepted offer, submitted for a short sale To the best of your knowiedge, why did it not sell? approval on 12/2212011 E8J single family detached mobile home condo 0 co-op Unit Type: single family attached townhouse modular annually Current? 0 Yes Dmonthly ONo Fee delinquent? $ 0 If condo or other association exists: Fee S 0
o
o
"-,
No",
I
COMPARABLE NUMBER 1 130 TIvoli Way 1.1 mi REO/CorpD COMPARABLE NUMBER 2 641 54th St 0.8 mi REO/CorpD $ 227,500 COMPARABLE NUMBER 3 677 551~ St 0.9 mi REO/CorpD $ 230,000 $ 278.45 Sq. Ft. 10/12/11 84DOM
$ NJA
$ 252.53 Sq. Ft. 800M DESCRIPTION
I $ 222,000
$ 250.28 Sq. Ft..
8/10/11 82DOM
07/08/11 nDOM OESCRIPTION Cash-Wrth Seller Concessions Suburban Fee Simple 4966
+(-)Adjustment
+(_)Adjustment
-1585
DESCRIPTION FHA WithSelier Concessions Suburban Fee Simple 5532 Tract Ranch-Average Frame 68 years Average
+(-)AdJustment
-6900
Teact
Cottag~nu"ngal ow-Avera e
Frame-Average 66 years Average
Teact
Cottag~~"ungalo w-Avera e
w-Ave~Qe
Framae~:oodAvera e 63 years
Average
,~,
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2
e."
1
'''" 5
None
'"~
2
-.
1
-8000 -5000
"" 5
y"
,,~
"'" 1
Total Bdm;
e",
1
y"
Window/Furnace Floor None 1 car attached Patio, Fireplace Rear Fence None
y"
Central None 2 car detached Fireplace Rear Fence None
y"
-8000 -1500 -10000 Central Dual Pane Full 1 car attached Patio, Fireplace Rear Fence None $-21,085 $206,415 -8000 -3000
Central Dual Pane Partial 1 Attached, 2 Detached Patio, Fireplace Rear Fence None
0+0.
$ -13,000 $209,000
0+181-
181+0-
$-17,900 $212,100
123 of 130
Borrower: Kyle
IIIIB
[8J Vacant
Unknown
181 As-is 0
Repaired
[8J
Owner occupant
Investor
V. REPAIRS Itemize ALL repairs needed to bring property from its present "as is" condition to average marketable condition forthe neighborhood. Check those repairs you recommend that we perfonn for most successful marketing of the property.
0 0 0 0 0
Install new windows install central heat and air system interior Qaint
$ $ $ $ $
0 0 0 0 0
GRAND TOTAL FOR ALL REPAIRS $ 13200 VI. COMPETITIVE LISTINGS ITEM 5020 A Street Address Proximity to Subject List Price Price/Gross living Area Data and/or Verification Sources VALUE ADJUSTMENTS Sales or Financing Concessions Days on Market and Date on Market Location (City/Rural) Leasehold/Fee Simple Lot Size View Design and Appeal Quality of COnstruction Year Built Condition Above Grade Room Count Gross Livin~ Area Basement & Finished Rooms Below Grade Functional Utility Heating/Cooling Energy Efficient Items Garage/Carport Porches, Patio, Deck Fireplace(s), etc. Fence, Pool, etc. Other Net Adj. (total) Adjusted Sales Price of Comparable SUBJECT COMPARABLE NUMBER 1 5530 E St 0.6 mi REO/CorpD COMPARABLE NUMBER. 2 200 39th SI 1.3 mi REO/CorpD COMPARABLE NUMBER. 3 4825 Brand Way .2 mi REO/CorpD
iF.
$ 239,900 $ 252.53 Sq.Ft.
I' /);"
1/"/,"")".1
$ 222.79 Sq.Ft.
$ 219,000
"<.;
MLS
'1
$ 214,900
I',
+1-)MluOlmont
$231.57 Sq.Ft.
I ..
MLS
DESCRIPTION
MLS
DESCRIPTION Conv-No Seller Concessions 72 DOM 10/10/11 Suburban Fee Simple 5053 Tract Cottage/BungalowFrame-Average 1948 Average
,,~
MLS
+ (')AOluotmon!
DESCRIPTION Conv-No Seller Concessions 7DOM 12114/11 Suburban Fee Simple 5968 Tract CottagefBungalowWood-Average 1947 Average
+(IMloolrn".,'
"'.
Suburban Fee Simple 4835
'"
X',;
07/07/11
Suburban Fee Simple
3354
Tract Cottage/Bungalow_ Frame-Average 1941 Average
,,~
Tmot
Cottage/BungalowFrame, Wood1948 Average
". i2 5
None
"." 1
T~
"'" 1
Total
,,~
"""
Total
"'~ 2
Baths
928 Sq. Ft
Ye,
Window/Fumace None 1 car attached Patio, Fireplace Rear Fence None
Ye,
Central Dual Pane Full 1 car detached Fireplace Rear Fence None ..s000 -3000
Ye,
Central Ceiling Fan(s) none Patio, Fireplace Rear Fence None $-11,000 $204.000 -8000 -3000 5000
Ye,
Central Dual Pane Fulll 1 car attached Patio, Fireplace Rear Fence None $-6000 $213,000 -11,000 -8000 -3000
...
0+ 0-
0+ 0- -
0+ 0
.. /.j/il2.
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$0
$203,900
VI. THE MARKET VALUE (The value must fall within the indicated value of the Competitive Closed Sales).
-'2=3"'5,7= 0 ' - - - - - - 00
-"20=5~,O=0~0'-_ _ _ __
Date 11/21/2006
COMMENTS (Include specific positives/negatives. special concems, encroachments, easements, water rights, environmental concems, flood zones, etc. Attach addendum if additional space is needed.)
Property is in average condition and is situated in quiet and desirable East Sacramento neighborhood. It has a large raised patio and backyard with mature trees and sprinkler system. Great view of the quiet neighborhood in the front with a large front yard as well. Lot position is good within the neighborhood, as it is not located on a street with lots of through traffic, or near the railroad tracks that border the area. Most other homes in the area have been renovated to include central heat and air and dual pane windows at a minimum. The subject has not, so this does affect the value, as all sold and actives comps have those two features. The kitchen and bathroom are also original or partially renovated, so that affects the value as well. The median home cost in this area is $323,300, as there are much larger homes in the area that have been renovated and added onto that are on larger lois, or on more desirable streets. Home depreciation the last year has been -8.29 percent. The unemployment rate in this area is 14.70 percent(U.S. CalHFA Loan# 022472-3 124 of 130 Borrower: Kyl . .. . . . . . . '
avg. is 9.10%). Recent job growth is negative and jobs have decreased by 3.19 percent. (bestplaces.net)
Signature:
Date:
12/2212011
Page 2 of 2
125 of 130
Borrower: Kyle A
Photo Addendum
Property: 5020 A Street, Sacramento, CA 95819 Interior BPO - dated 12.22.2011
Description: kitchen
Description: hallway
126 of 130
Borrower: Kyle
1270f130
Description: garage
Description: backyard 1
Description: backyard 2
Description: patio
Borrower : ~y'le ~
1280f130
Comp 3: Sold 3
1290f130
Borrower: Kyle
~
Camp 1: Active 1
Camp 2: Active 2
Camp 3: Active 3
130 of 130
Borrower: Kyle