IMPORTANT NOTICE MORTGAGE ASSISTANCE RELIEF SERVICESDISCLOSURE

Transcription

1 Short Sale Package

2 MORTGAGE ASSISTANCE RELIEF SERVICESDISCLOSURE The following disclosure is made pursuant to the Federal Trade Commission s MARS Rule (16 C.F.R. 322 et seq.). IMPORTANT NOTICE You may stop doing business with us at any time. You may accept or reject the offer of mortgage assistance we obtain from your lender [or servicer]. If you reject the offer, you do not have to pay us. If you accept the offer, you will have to pay us $ for our services. Short Trac is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage, you could lose your home and damage your credit rating.

3 SHORT TRAC SHORT SALE COORDINATION PROGRAM What is it? The Short Trac Short Sale Coordination Program is designed to help the seller coordinate and facilitate communications between the listing associate ( associate ), the lender and the closing/title agent ( closing agent ) through the short sale process. It is a program offered by Short Trac, a TRG affiliated business. This Program is offered in an effort to assist your clients through what can be a difficult process. How do we use it? Your local Short Trac representative has the Short Trac Short Sale Packet, which includes the following documents: Realtor Submission Checklist Borrower / Seller Short Sale Information and Document Checklist Short Trac Short Sale Agreement ( Agreement ) Authorization to Obtain Information Short Sale Coordination Form TRG s Affiliated Business Arrangement Disclosure Statement Affidavit of Arms Length Transaction Sample Hardship Letter Sample Personal Financial Statement Associates are encouraged to bring the short sale packet with them on listing appointments that the associate knows, or believes may be, a short sale listing. A sample packet is attached. Associates are not expected to explain the program but simply to deliver the materials and direct the seller to contact Short Trac with any questions. Upon receipt of an executed Short Trac Short Sale Agreement, Short Trac will open a short sale file. Short Trac will begin coordinating the necessary documents and compiling a completed short sale packet to submit to the lender. Once the short sale file is opened, the associate should provide Short Trac with a copy of the fully executed Listing Agreement and Short Sale Listing Addendum. Upon receipt of a fully executed sales contract, the associate must provide Short Trac with a copy, including the Short Sale Contract Addendum, the most recent CMA, BPO or appraisal for the subject property, and the escrow deposit. Who is responsible? Short Trac will be responsible for (a) the process of coordinating the short sale transaction; (b) reviewing the completed short sale packet; (c) delivering the seller s authorization to short sale lender; (d) reviewing all preliminary HUD-1s before being sent to short sale lender; (e) submitting the short sale packet to short sale lender; (f) delivering weekly file status updates to the Associate; (g) reviewing all approval letters (h) forwarding all approval letters to the associate and (i) forwarding the approval letters to the closing agent to complete the closing. Short Trac will not negotiate or attempt to negotiate anything associated with the short sale transaction. What does it cost? The seller will pay Short Trac a fee of $800 at closing. If closing doesn t occur, no fee will be due. This fee is very competitive with, if not less than, other third party companies providing a similar service. Contact Information for Short Trac Team is as follows: Direct Line: (888) Fax: (303) start@shorttrac.com

4 REALTOR S SUBMISSION CHECKLIST Please submit the following documentation to Short Trac: 1. Copy of the fully executed Sales Contract with all Addenda including, but not limited to, any Short Sale Addendum to Purchase and Sale Contract. 2. Copy of the fully executed Listing Agreement and Short Sale Listing Addendum. 3. Proof of Escrow deposit. 4. Most recent CMA or BPO for the subject property or recent appraisal. 5. Fully completed and executed Short Trac Short Sale Packet which contains: a. Short Trac Agreement; b. Authorization to Obtain Information (completed for each loan/mortgage); c. Short Sale Coordination Form (Info Sheet); d. TRG Affiliated Business Arrangement Disclosure Statement; e. Arms Length Transaction Affidavit; f. Seller s financial information (tax returns, W-2s, most recent pay stubs); g. Latest correspondence received by the homeowner from the existing lender(s) showing who holds the mortgage and the loan number or latest mortgage statement and any correspondence from the homeowner s association (if any) or their attorneys; h. Any communications from first mortgagee/lien holder; i. Any communications from second, third or other subordinate mortgagee lien holder; and j. Any communications from Homeowner/Condo Associations.

5 SHORT TRAC SHORT SALE PROGRAM ~ SELLER INFORMATION SHEET What is it? The Short Trac Short Sale Program is designed to help you coordinate and facilitate communications between you, your listing associate ( associate ), the lender and your closing/title agent ( closing agent ) through the short sale process. It is a Program offered by Short Trac, a TRG affiliated business. This Program is offered in addition to the closing/title services offered by TRG in connection with the transaction. How do we use it? The Short Trac Short Sale Packet contains the following documents: Borrower / Seller Short Sale Information and Document Checklist Short Trac Short Sale Agreement Authorization to Obtain Information Short Sale Coordination Form TRG s Affiliated Business Arrangement Disclosure Statement Affidavit of Arms Length Transaction (to be executed once a fully executed contract is received) Sample Hardship Letter Sample Personal Financial Statement Once you receive and review the packet and are satisfied you understand the program, you will need to execute the Short Trac Short Sale Agreement ( Agreement ) and return it to Short Trac. If you have any questions concerning the program you should contact Short Trac. Upon receipt of an executed Agreement, Short Trac will open a short sale file. In addition to the Agreement, you will need to complete the Authorization to Obtain Information, Short Sale Coordination Form, and TRG Business Arrangement Disclosure Statement. You will also need to gather the information listed on the Borrower/Seller Short Sale Information and Document Checklist. Upon receipt of these items, Short Trac will begin coordinating the necessary documents and compiling a completed short sale packet to submit to your lender. Once all necessary documentation is received, including a fully executed sales contract, Short Trac will submit the completed short sale packet to your lender. Your closing agent will be responsible for ordering the necessary title documents to close the transaction and clear any title issues. Any additional information needed by Short Trac will be coordinated with you and your listing associate. It is not unusual for the lender to request a recent CMA, BPO or appraisal for the subject property or other documents to support your short sale request. Your cooperation in supplying this information is crucial in the process. Failure to timely provide this information may result in a delay in the process and Short Trac cancelling the Agreement. Short Trac will work with you and your associate to coordinate and submit this information on your behalf. Who is responsible? Short Trac will be responsible for (a) the process of coordinating the short sale transaction; (b) reviewing the completed short sale packet; (c) delivering the seller s authorization to short sale lender; (d) reviewing all preliminary HUD-1s before being sent to short sale lender; (e) submitting the short sale packet to short sale lender; (f) delivering weekly file status updates to the associate; (g) reviewing all approval letters (h) forwarding all approval letters to you and your the associate and (i) forwarding the approval letters to your closing agent to complete the closing. Short Trac will not negotiate or attempt to negotiate anything associated with your short sale transaction. What does it cost? You will pay Short Trac a fee of $800 at closing. If closing doesn t occur, no fee will be due. This fee is very competitive with, if not less than, other third party companies providing a similar service. Contact Information for Short Trac Team is as follows: Direct Line: (888) Fax: (303) start@shorttrac.com

6 BORROWER/SELLER SHORT SALE INFORMATION AND DOCUMENT CHECKLIST NAME(S): PROPERTY ADDRESS: Thank you for selecting Short Trac to assist you in connection with the short sale of your property. As you are aware, certain information and documentation will be required by your lender(s) in order to begin considering your short sale approval request. Although your lender will provide you with a list, the following will help you to prepare your submittal: a. Handwritten or typed hardship letter (sample form attached) explaining your circumstances and the reasons you are requesting a short sale, include any supporting documents (i.e., Medical bills, judgments, etc.); b. Completed Financial Statement (sample form attached). The required form will most likely come from your lender; c. Last two months pay stubs; d. Last two years W-2 s/1099 s; e. Last two years tax returns; f. Last two months bank statements; g. Supporting documents as evidence of hardship (medical bills, judgments, etc.); and h. Divorce documents, if applicable NOTE: YOU SHOULD GATHER AND KEEP THESE DOCUMENTS IN A SAFE PLACE AND SUBMIT THEM WHEN REQUESTED IN A SEALED CONFIDENTIAL ENVELOPE. YOU MAY BE REQUIRED TO PROVIDE UPDATED FINANCIAL INFORMATION THROUGHOUT THIS PROCESS. PLEASE RETAIN A COPY OF THE DOCUMENTS YOU SUBMIT FOR YOUR RECORDS. Disclaimer: Short Trac cannot guarantee the results of a short sale. You should consult with accounting and/or legal professionals concerning the short sale process. Short Trac will not negotiate or attempt to negotiate anything associated with your short sale transaction. Short Trac is not representing you in the short sale process and any communication should not be construed as such. The efforts to assist in the coordination of this short sale transaction should not be construed to mean Short Trac is/or will represent the Seller in a foreclosure or other legal action.

7 Short Trac Agreement This Agreement (the Agreement ) is entered into as of day of, 2010 (the Effective Date ) by and between Short Trac (the Company ) and (individually and collectively, the Customer ). The Company agrees to assist Customer with the facilitation of a short-sale of property located at (the Property ) upon the following terms and conditions: 1. Term of the Agreement 1.1 The term of this Agreement shall begin as of the effective date and shall be in full force and effect until such time as either party provides written notification to the other that said Agreement should be cancelled. 1.2 If Customer shall neglect or fail to provide any of the documents and/or information by Company within three (3) calendar days of request, Company shall have the right to immediately terminate this Agreement. 1.3 If Customer provides false or misleading information to the Company, Company shall have the right to immediately terminate this Agreement. 2. Fees Company s fees for the Services (as defined herein) shall include the payment of a fee of $ to be paid by the Customer at the closing of the sale of Customer s Property. 3. Acknowledgement of Limitation of Responsibilities Company s services hereunder shall be limited to the organization and transmission of data provided by Customer to Customer s mortgage lenders and the transmission of requests made by said lenders to Customer in connection with Customer s request for short sale approval (the Services ). Company does not represent Customer in any fashion and is not acting as Customer s agent. Company will not negotiate on Customer s behalf with Customer s lenders to accomplish the short sale. Company has not and will not provide accounting, tax or legal advice to Customer in connection with the proposed short sale or Customer s sale of their Property. Customer further acknowledges that Customer has been advised to seek tax, legal and accounting advice from Customer s advisors. In the event Customer terminates this Agreement, Company will promptly provide Customer with copies of contact information and correspondence, s or notes of telephone conversations with Customer s lender(s). The Customer acknowledges and agrees they have selected closing agent to perform the closing and provide title insurance in connection with the sale of this Property. The Customer understands the title insurance and closing services are separate and distinct from the Services provided under this Agreement and that there will be separate charges for those title and closing services. The Customer acknowledges and agrees Short Trac and your closing agent may share,

8 exchange, and/or communicate information, including but not limited to personal identifying information and financial information, as needed pursuant to this Agreement. 4. Services Not Provided The Services shall not include, and this Agreement shall not require the Company to: 4.1 Prepare documents requested by Customer or Customer s lenders; 4.2 Certify the accuracy of any information provided by Customer; 4.3 Represent Customer or negotiate on Customer s behalf with Customer s lenders, real estate agents or creditors; 4.4 Provide debt relief or bankruptcy services; or 4.5 Provide Customer with any advice concerning the advisability of a short sale. 5. Limitation of Liability 5.1 Company agrees to use its best efforts to provide the Services required under this Agreement in a prompt manner, but in no event shall the Company, its officers, employees, directors, parents, and/or its affiliates be liable for any damages or liabilities, directly or indirectly caused by the failure to consummate a short sale, by length of delay in closing, for any potential damages incurred by Customer for breach of Customer s agreement of sale and any other damages expected or unexpected. In no event shall the Company be liable for loss of profits, or any indirect, special, or consequential damages arising out of any breach of this Agreement. 5.2 Customer agrees Company and its representatives cannot and do not (i) guarantee the results of a short sale, or (ii) predict the time the short sale process will take or the terms and conditions which may be imposed by Customer s lender(s). Customer agrees to hold Company its officers, employees, directors, parents and/or affiliates harmless from any losses or damages of any nature that in any way may arise out of or relate to Customer s efforts to obtain short sale approval, including, but not limited to, any acts or omissions, including negligence, of Company and its representatives in providing any Services hereunder. The parties are encouraged to consult with accounting or legal professionals if they have questions about the short sale process. Company s efforts should not be construed to mean Company is or will represent Customer in a foreclosure or other legal action. 5.3 Company disclaims all warranties of any kind with regard to the subject matter hereof, the Services to be provided by Company, including without limitation, any implied warranty of merchantability or fitness for a particular purpose. 5.4 Customer acknowledges that Customer s real estate broker and sales associate(s) (collectively, Broker ) have not made any representations of any nature regarding the Company s Services or the matters described herein and Customer agrees to hold Broker harmless from any claims or losses in any way arising out of, or relating to, this Agreement or the Services. 5.5 Customer hereby covenants to hold-harmless, indemnify, and defend, Short Trac their employees, agents, predecessors, successors, assigns, parents and affiliates from any and all liability for any and all claims and/or damages in any way arising out of or by reason of, and any and all known and unknown, foreseen and unforeseen damages and claims resulting from, or which may or

9 will result or arise out of, directly or indirectly, this Agreement or the Services contemplated or performed by Short Trac. 6. General 6.1 This Agreement is the entire Agreement between the parties and it supersedes all prior agreements and understandings between the parties concerning the subject matter herein. It may be modified only by written agreement signed by duly authorized representatives of each party Any party to this Agreement bringing a legal action or proceeding against any other party arising out of or relating to this Agreement or the transactions contemplated hereby shall bring the legal action in a state or federal court sitting in Tampa, Florida (the Designated Courts ). Each party consents to the exclusive personal jurisdiction of the Designated Courts for the purpose of all legal actions and proceedings arising out of or relating to this Agreement or the transactions contemplated hereby. Each party agrees that the exclusive choice of forum set forth in this Section does not prohibit the enforcement of any judgment obtained in the Designated Courts or any other appropriate forum. 6.3 Each party to this Agreement consents to the Designated Courts as the sole and exclusive venue for any legal action or other proceeding arising out of or relating to this Agreement or the transactions contemplated hereby. Each party to this Agreement knowingly and voluntarily waives, to the fullest extent permitted by law, (a) any objection which it may now or later have to a Designated Court as the proper venue for any legal action or proceeding arising out of or relating to this Agreement, and (b) any claim that any action or proceeding brought in a Designated Court has been brought in an inconvenient forum. 6.4 Any notice, demand or other communication to a party to this Agreement that is permitted or required under this Agreement shall be given in writing, and shall be deemed to have been duly delivered (a) when delivered by personal delivery, (b) three (3) days after being deposited with the United States Postal Service for mailing by first class mail, postage prepaid, certified mail, with return receipt requested (regardless of whether the return receipt is subsequently received), or (c) one business day after being deposited with a nationally recognized courier service for overnight delivery; and in each case addressed by the sender to the recipient at the address first indicated above, to such other address as a party may notify the other party in writing in conformity with the provisions of this Section. 6.5 Each party hereto agrees to take all further action, and to execute, acknowledge, and deliver any other documents, which may be reasonably necessary, appropriate, or desirable to carry out this Agreement. 6.6 Nothing in this Agreement, whether express or implied, is intended or may be construed to confer upon, or to grant to, any individual or entity (other than the parties and their legal and personal representatives, heirs, successors, and permitted assignees) any right, remedy, or claim under or because of this Agreement or any covenant, condition, or stipulation of it. 6.7 The parties may not amend this Agreement orally. The parties may amend this Agreement only by a written agreement signed by all of the parties to this Agreement. 6.8 Neither this Agreement nor any rights or performance hereunder may be assigned or otherwise transferred by either party. 6.9 Any provision of or obligation under this Agreement, which contemplates performance or

10 observance subsequent to any termination or expiration of this Agreement, shall survive any such termination or expiration, and shall continue in full force and effect. In addition, all provisions of this Agreement shall survive the termination or expiration of this Agreement to the fullest extent necessary to give the parties the full benefit of the bargain expressed herein and of the intent contemplated hereunder. In witness of this, the undersigned have executed this Agreement as of the day and year first written above. Company Date: By: Customer Date: By: Customer Date: By:

11 AUTHORIZATION TO OBTAIN INFORMATION The undersigned hereby authorize Short Trac and/or [ENTER NAME OF LISTING ASSOCIATE] ( Realtor ) to discuss with or inquire about and/or to request/receive information related to the undersigned s mortgage loan accounts and/or any other account placed either voluntarily or involuntarily against the undersigned either individually, jointly or against the undersigned s property. The undersigned further authorizes you (i.e., the lender, bank, and/or creditor) to accept a copy of this signed document as authorization to discuss my account(s) with Short Trac and/or Realtor and to release to them any and all requested information, including but not limited to, payoff statements, changes to instructions or payoff statements, demand letters, subordination agreements, satisfaction letters, paid-in-full letters, co-creditor information or attorney information. Specifically, the undersigned authorizes [ENTER NAME OF LENDER] to discuss with or respond to inquiries from Short Trac and/or Realtor or to provide to Short Trac and/or Realtor any information and/or document requested in connection with the loan/mortgage described below: Loan Number: Property Address: Mailing Address: (if different than above) Borrower Signature Borrower Printed Name: Borrower Signature Borrower Printed Name:

12 Short Sale Coordination Form Full Legal Name: DOB: SSN: Mailing Address: Short Sale Property Address, if different from mailing address: Main Contact Number: Alternate Contact Number: Best time of the day to reach you: Your Address: Your Fax Number: Preferred method to receive documents (circle one): Mail Fax Are you the only person on the deed? Yes / No Co-Owners: Name Address Relationship SSN DOB Are you the only person on the mortgage? Yes / No

13 Are you the only person on the note securing the mortgage? Yes / No Co-Borrowers: Name Address Relationship SSN DOB Are all Owners U.S. Citizens? Yes / No Is this your primary residence? Tenant Occupied? Vacant? Investment Do you know mortgage balances: First Second: Has it been more than one year since the property was mortgaged / refinanced? What type of mortgage do you have? Conventional/Fixed Adjustable Rate Home Equity Line of Credit Names and account numbers of all loans/lien holders? Are you current with the mortgage(s)? If not, how many payments have you missed, and what is the total for the missed payments, including late fees and costs? Current with HOA Fees? Y / N Past due amounts: $ Next payment due date?

14 How much? Have you received any letters from HOA? Current on the property taxes? Any other liens (e.g., IRS/child support/alimony) on the property/amounts? Have you talked to your lender about a short sale or loan workout? Have they said that they would consider a short sale? Who have you spoken to/contact info: Have you been assigned a loss-mitigator? If yes, name/contact info: When was the last time you spoke with the lender? What documents have you sent them or have they requested? Have they sent you a short sale packet or other documentation? Have you received: Letters from the bank: Notice of Seizure: Court papers or papers from any attorneys? Have you spoken with an attorney? Have you spoken with an accountant? Please do not provide any communications between you and your lawyer or accountant as doing so may result in your waiver of any attorney/accountant client privilege that may exist.

15 AFFIDAVIT OF ARMS LENGTH TRANSACTION BEFORE ME, the undersigned authority, duly authorized to take acknowledgments and administer oaths personally appeared ( Affiant ), who deposes and says under penalties of perjury: 1. Affiant is over the age of eighteen and is competent to make this statement. 2. This affidavit is made with regard to the following described property: [ENTER LEGAL DESCRIPTION] 3. I affirm that I am selling this property to, the Buyers. 4. To the best of my knowledge, the sales price of the Property represents fair market for comparable properties in the area. 5. I am not a relative, by blood or marriage of the Buyers. 6. The property described in item 2 is currently being conveyed in an arms length transaction for good consideration between strangers. 7. No special consideration has been given to the Buyers with regard to the sales price. 8. No party to the sales contract is a family member, business associate or shares a business interest with the Affiant. 9. There are no hidden/undisclosed terms or special understandings between the Affiant and Buyers or their respective agents. 10. The Affiant and Buyers, nor their respective agents, have any agreements, written or implied, that will allow the Affiant to remain in the Property as a renter or to regain ownership of the Property at anytime after the execution of this short sale transaction. 11. No parties to this transaction shall receive any proceeds from this transaction except for the approved sales commission paid to brokers. 12. Affiant(s) hereby agree to indemnify and hold Short Trac harmless of and from any and all loss, claim, cost, damage and/or expense of any kind or character whatsoever, including attorneys fees, which Short Trac shall or may suffer or become liable resulting from their reliance on the matters set forth in this affidavit. STATE OF COUNTY OF Sworn to, affirmed, acknowledged and subscribed before me this Seller Signature Seller Printed Name day of, 20, by, who: [ ] is personally known to me; or [ ] produced as identification. NOTARY PUBLIC SIGNATURE Print Name: My Commission Expires: Stamp/Seal:

16 NOTE: THIS IS A FORM ONLY. PLEASE USE THIS INFORMATION IN PREPARING YOUR OWN HARDSHIP LETTER IN YOUR OWN WORDS. Date: SAMPLE HARDSHIP LETTER (One Letter for EACH Lender) (Name and Address of Lender) Re: Property Address: Loan No.: To Whom It May Concern: Please consider this as my formal request to review my financial situation for the purpose of reducing the required amount to payoff my existing loan in order to avoid the potential of foreclosure. I am unable to continue to make my monthly mortgage payment due to the following extenuating circumstances (please explain in detail your circumstances): Sincerely, Owner/Borrower Owner/Borrower Please attach copies of all applicable documentation to support this Hardship Letter.

17 PERSONAL FINANCIAL STATEMENT NOTE: PLEASE GATHER INFORMATION NECESSARY TO COMPLETE THIS TYPE OF FORM. THIS FORM REQUESTS INFORMATION GENERALLY REQUESTED BY THE SHORT SALE LENDERS. Date Prepared: Borrower s Name: Borrower s Employer: Co-Borrower s Name: Co-Borrower s Employer: Phone Number: Number of Dependants: Property Address: Mailing address (if different): Loan Number(s): Evening: MONTHLY INCOME: Borrower s Monthly NET income: $ Co-Borrower s Monthly NET income: $ Other Income: $ (Please circle) Child Support, Alimony, Rental, Other $ MONTHLY EXPENSES: MONTHLY EXPENSE MONTHLY PAYMENT MONTHLY PAYMENT BALANCE OWED Mortgage Payment $ 2 nd Mortgage $ $ Child Care $ Other Mortgages $ $ Alimony/Child Support $ Rent Paid $ $ Telephone $ Doctor Bills $ $ Cell Phone/Pager $ Hospital Bills $ $ Gas/Oil $ Auto Loan Pymt $ $ Electricity $ Auto Loan Pymt $ $ Trash/Sewer $ *Homeowner s Ins $ $ Food $ *Property Taxes $ $ Water $ Auto Insurance $ *If not included in mortgage payment Transportation/Gas Life Insurance Cable/Satellite Clothing Prescriptions $ $ $ $ $ OTHER MONTHLY EXPENSES (Example: Credit Cards, Department Store Cards, IRS Lien): Paid to: Balance: Monthly Payment: 1. $ $ 2. $ $ 3. $ $ If additional space is needed, please continue to list on reverse side. The undersigned represents and warrants that the information submitted in this personal financial statement is true, accurate and complete. The information and documentation provided does not omit any material fact or matter that makes the information or documentation presented misleading. Borrower Borrower Date Date