SHORT SALES 101 FOR SELLERS

 How to Use a Short Sale to Protect your Finances and your Credit, and Stop Foreclosure  Negotiate a sale to your lender to accept less than you own on your mortgage
Written by: Russ Irizarry Licensed Real Estate Broker Short Sale Expert 305-390-0574 Direct ishortsalefl@gmail.com

South Florida Short Sales
“A registered member of the Better Business Bureau” www.seflorida.bbb.org South Florida Short Sales is a Florida Licensed Real Estate Brokerage License # CQ1038301

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Legal Disclosure Notice The content in this presentation is based upon our research, knowledge and experience. In no way is any information contained herein to be interpreted as legal or tax advice. To be assured of sound legal advice with regards to foreclosure, real estate, bankruptcy or agency laws, please employ the use of a competent legal or tax professional and/or your real estate broker. Please consult your broker, accountant and attorney, as appropriate, for advice specific to your situation. Although every effort is made to keep this presentation current and relevant, it is your responsibility to seek guidance from qualified professionals in order to keep up with rapidly changing market conditions and periodic changes to the law.

Mortgage Assistance Relief Services Disclosure IMPORTANT NOTICE: Before using this service, consider the following information: Our company cannot charge you any upfront fees in conjunction with providing you any type of mortgage assistance relief service. Our company is NOT associated with any government agency or program and our company is NOT approved by the government or your lender(s). You may stop doing business with us at any time with regard to the short sale, our short sale negotiation services (if any), or real estate brokerage services (if any). If you stop paying your mortgage, you could lose your home and damage your credit rating.

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Table of Contents
1 2 INTRODUCTION ............................................................................................................................... 4 PRE-FORECLOSURE HOMEOWNER OPTIONS ................................................................................. 5 2.1 2.2 2.3 2.4 2.5 2.6 2.7 3 Loan Modification ............................................................................................................... 5 Repayment or Forbearance Plan ........................................................................................ 5 Refinance ............................................................................................................................ 5 Bankruptcy .......................................................................................................................... 5 Deed-in-Lieu of Foreclosure................................................................................................ 6 Foreclosure ......................................................................................................................... 6 Short Sale ............................................................................................................................ 6

SHORT SALES 101 ................................................................................................................... 7 3.1 3.2 3.3 3.4 What is a Short Sale? .......................................................................................................... 7 Why Lenders Allow Short Sales........................................................................................... 7 Standard Documents Required for a Short Sale ................................................................. 8 Benefits of a Short Sale ....................................................................................................... 8

4 5 6

PRE-FORECLOSURE TIMELINE ............................................................................................... 10 FORECLOSURE vs. SHORT SALE – A SIDE BY SIDE COMPARISION ............................................ 11 POSSIBLE SHORT SALE OUTCOMES ....................................................................................... 13 6.1 6.2 Promissory Note ............................................................................................................... 13 1099C vs. Deficiency Judgment ........................................................................................ 14

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OUR SHORT SALE PROCESS DIAGRAM................................................................................... 15 FREQUENTLY ASKED QUESTIONS .......................................................................................... 16 8.1 8.2 8.3 8.4 8.5 8.6 8.7 8.8 8.9 What does your company South Florida Short Sales (SFSS) do exactly? .......................... 16 How much will this cost me? ............................................................................................ 16 How long does the short sale process take? .................................................................... 16 What are the seller’s responsibilities in a Short Sale? ...................................................... 16 Can I receive any proceeds from the sale? ....................................................................... 16 Why pursue a Short Sale? ................................................................................................. 17 I’ve already received a foreclosure notice, is it too late for a short sale? ........................ 17 Can the bank still come after me for the balance after the home is sold? ...................... 17 I’m ready to get started, what’s the next step? ............................................................... 17

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ATTORNEY – BORROWER AUTHORIZATION LETTER ............................................................... 18

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1

Introduction
Inside this report you will find valuable information on the Foreclosure process and timeline in the state of Florida. It is a brief summary intended to help Homeowners understand their preforeclosure options. This information will provide Homeowners with basic knowledge of a Short Sale, as well as introduce our company South Florida Short Sales (SFSS) and explain how SFSS works. What’s important is that you understand your options so that you can make the very best, most logical decision.

Websites and other resources that may be helpful:
To estimate the value of your property: www.Eppraisal.com HUD Tips for Avoid Foreclosure: http://portal.hud.gov/hudportal/HUD?src=/topics/avoiding_foreclosure Foreclosure Assistance in Miami-Dade http://www.miamidade.gov/csd/foreclosure_prevention.asp Foreclosure Assistance in Broward http://www.broward.org/Housing/Pages/ForeclosurePrevention.aspx

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2

Pre-foreclosure Homeowner Options
Below are the most common solutions for homeowners who are facing foreclosure. Each homeowner has a unique situation with various circumstances. This section provides you with a definition of the most common solutions. There are two categories of Options: 1. 2. Staying in the house Moving from the house

OPTIONS FOR STAYING IN THE HOUSE 2.1 Loan Modification (most common)
A loan modification allows for changes to the original terms of a borrower’s promissory note, which may include an adjustment to the interest rate %, an extension of the loan term, or adding missed payments to principal. Homeowners must qualify for a modification as they would qualify for a new loan. Currently, loan modifications have about a 50% success rate. (The problem with loan modifications is that lenders are generally not reducing loan principal to the current market value of the underlying real estate.)

2.2 Repayment or Forbearance Plan
The borrower is allowed to catch up on missed payments by making more than the monthly payment until the loan is brought current. The bank allows you to skip monthly payments temporarily, or make partial payments for a specified time. Missed payments may be added to principal or become part of a repayment plan or loan modification. ( only possible if financial problem is temporary)

2.3 Refinance
The borrower pays off the existing mortgage loan with proceeds from a new loan with more favorable terms. (must apply before missing payments) Refinance will not be an option if there is no equity in the home, at least 20 – 30%. The chances of a homeowner getting refinanced while behind in their payments are very slim.

2.4 Bankruptcy
Generally, there are two types of personal bankruptcy: Chapter 7 (liquidation of assets), or Chapter 13 (repayment plan). In either type of bankruptcy, the court appointed trustee will not have much interest in a property that has no equity. In a Chapter 7, once the bankruptcy is discharged, the bank will continue with the foreclosure process. In a Chapter 13, the homeowner cannot miss one payment of their re-structured payment plan or the lender can South Florida Short Sales 6538 Collins Ave #67 – Miami Beach, FL 33141 305-390-0574 Main - 786-398-4614 Fax

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continue to pursue the foreclosure process. The vast majority of Chapter 13’s do not make their scheduled payments, thus resulting in a double penalty on the homeowner’s credit report of a Bankruptcy AND a Foreclosure. NOTE: The most important thing you need to know about Bankruptcy as it relates to foreclosure is that bankruptcy does not permanently stop or prevent a foreclosure from occurring. It can only temporarily freeze a foreclosure action. It is advisable that you speak to an attorney and do your own research. A FINAL NOTE: All the above options for staying in the house have one thing in common – the homeowner MUST be in a position to make some sort of reasonable payment that is agreeable to the Bank, and make it on time every month.

OPTIONS FOR MOVING FROM THE HOUSE 2.5 Deed-In-Lieu of Foreclosure
Allows for the homeowner to voluntarily transfer a property to the bank without going through the full foreclosure process. Essentially, the owner gives the deed back to the bank. A Deed-InLieu shortens the process for the lender, with less cost. It has the same negative impact on homeowner’s credit as a foreclosure - a black mark for 7 years. The courts are not involved. A Deed-In-Lieu is not an option if there is more than 1 mortgage or lien on the house.

2.6 Foreclosure
When other options are not pursued, or a Short Sale is not accomplished, the property will go to Foreclosure. At a public county auction the foreclosing lender takes possession of the property, or the property is sold to a buyer, usually an investor. The original homeowner has no further rights to the property, and will have to vacate. Worse, the homeowner can still have financial obligations to mortgage lien holders even after the foreclosure. The foreclosing lender could still pursue a deficiency judgment against the original mortgagor for the difference between the final judgment amount, and the proceeds received from the auction or REO (bank owned) sale.

2.7 Short Sale (most favorable)
The seller can work with specialized Short Sale professionals such as South Florida Short Sales (SFSS) who will negotiate with lender(s) to accept a discount on the existing mortgage loan against the property. In a successfully negotiated Short Sale, the lender agrees to accept less than what is owed to settle the mortgage in full (a discounted pay-off), and release or satisfy its lien upon the sale. A Short Sale can help the seller avoid the damaging consequences of a foreclosure, and allow a homeowner’s credit to heal much faster. A Short Sale gives a homeowner a much greater opportunity to start fresh, and potentially be able to qualify for another mortgage in as little as 2 years.

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3

Short Sales 101

3.1 What is a Short Sale?
A Short Sale occurs when a property is sold for less than the mortgage balance owed on the property. The idea of a Short Sale is to prove to the foreclosing mortgage company that seller no longer has the ability to pay the mortgage, and the value of the property has fallen below the mortgage balance. The seller must prove that he/she cannot recover, and must sell the property. In order for banks to consider a Short Sale, they require the same paperwork as a loan application (ie. tax returns, pay stubs, bank statements). The bank needs to substantiate that the seller no longer has the ability to afford the mortgage payment. In addition to this, a case must be built as to why the home is not worth what is currently owed. NOTE: In 2010, Short Sales accounted for about 22%* of homes sales in Dade, Broward, and Palm Beach counties. Again, two conditions must exist for the lender to consider a Short Sale: 1. There must be little or no equity in the property. 2. Homeowner must prove a legitimate hardship.

* Source: Southeast Florida MLS

3.2 Why do Lenders allow Short Sales?
Lenders will consider Short Sales for the following reasons: • Lenders are in the business of making loans, not owning real estate. • If the lender forecloses, the value of the loan increases their liabilities, reduces their ability to make loans, and contributes to their insolvency. Approximately 387 major lending instutions have become insolvent and have shut down since 2007. • Foreclosures cost lenders time and money. It costs an estimated $60,000+ to foreclose. • The Short Sale will result in less of a financial loss to the lender, than what a lender will lose by foreclosing and selling the property at a future date (especially in a market where prices are depreciating). • The property is in less “sellable condition” at time of foreclosure. • Lenders created the Short Sale option as an alternative to foreclosure.

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3.3 Standard Documents required for a Short Sale
The Seller’s Lender will require the following documentation from the Seller to consider the Short Sale:  Purchase and Sale Agreement – this is the contract to sell your house between you and the buyer  Hardship Letter – a letter written by you explaining your hardship and why you can no long make your mortgage payments.  Authorization to Release Information – Form signed by you authorizing your lender to release information and negotiate the short sale with your agent, or other 3rd party such as attorney or title company.  HUD1 – financial summary of the transaction that that tells the lender the sales price and the proposed payoff.  Financial Statement – A summary of your monthly income and expenses, your assets and liabilities.  2 most recent Bank Statements, 2 most recent Federal Tax returns, and 2 most recent paystubs. The compilation of the above documents is what makes up a completed “Short Sale Package.” The main purpose of the Short Sale package is to substantiate your hardship to the lender, and prove that you can no longer make your payments. Your bank wants to see that you simply cannot afford your house anymore. The Short Sale Package is similar to making an application to qualify for a mortgage, except you’re doing it IN REVERSE!! You’re making an application to get out of a mortgage.

3.4 Benefits of a Short Sale
The following are the greatest benefits of a Short Sale transaction:  Credit ratings are not as damaged as compared to a Deed-In-Lieu, or a Foreclosure. Sellers can regain their financial stability much sooner, and qualify for a new mortgage easier and much sooner in the future. Credit will ‘heal’ much faster. The Short Sale can be negotiated so there is no deficiency judgment (no remaining liability after the sale). The mortgage lien can be satisfied (depending upon the lender’s approval). Sellers always have a greater sense of relief, dignity, and personal satisfaction by having their home sold, versus losing the property to foreclosure. The 1099C received by the sellers for the amount of debt relieved by the lender is nontaxable if the home is their primary residence. (The Mortgage Forgiveness Debt Relief Act of 2007 eliminates taxation on debt forgiveness if the residence was owner-occupied. See your accountant for details. This is not tax advice.)

  

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Per Fannie Mae guidelines, you can be eligible for a new home mortgage only after 2 years, versus 5 years with a Foreclosure Sellers get the house sold and remove a major burden. The sale allows them to move on with their lives.

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4

Pre-Foreclosure Timeline

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Foreclosure vs. Short Sale – A Side by Side Comparison
FORECLOSURE SUCCESSFUL SHORT SALE
A homeowner who successfully negotiates and closes a short sale will be eligible for a Fannie Mae backed mortgage after only 2 years. An investor who successfully negotiates and closes a short sale will be eligible for a Fannie Mae backed investment mortgage after only 2 years. A homeowner who loses a home to foreclosure is ineligible for a Fannie Mae backed mortgage for a period of 5 years.

Primary Residence Loans (Fannie Mae) Non-Primary Residence Loans (Fannie Mae)

An investor who allows a property to go to foreclosure is ineligible for a Fannie Mae backed investment mortgage for a period of 7 years. On any future 1003 Loan Application, a prospective borrower will have to answer YES to question C in Section VIII, that asks, “Have you had property foreclosed upon, or given title or deed in lieu thereof in the last 7 years?” This will affect all future rates.

Future Loans (from any lender)

There is no similar declaration, or question regarding a short sale.

Credit Score

Score may be lowered anywhere from 250 to over 300 points. Typically, this will affect score for over 3 years.

Only late payments will show, and after sale, mortgage will be report as ‘account settled’ or ‘account paid’. This can lower score from 50 – 100 points, if all other payments are being made. The credit effect of a short sale can be as brief as 12 to 18 mos. A short sale is not reported on a credit history. There is no specific reporting item for “short sale.” The loan is typically reported as ‘account settled’ or ‘account paid.’

Foreclosure will remain as a public record on a person’s credit history for 10 years or ore.

Credit History

Security Clearances

Foreclosure is the most challenging issue against a security clearance outside of a conviction for a serious misdemeanor felony. If a client has a foreclosure, and is a police officer, in the military, a government employee, a security officer, or any position that requires a security clearance, in almost all cases, clearance will be revoked and position will be terminated.

A short sale, on its own, does not challenge most security clearances.

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(continued)

FORECLOSURE
Employers have the right, and are actively and regularly checking the credit of all employees who are in sensitive positions. A foreclosure, in many cases, is grounds for immediate reassignment or termination. Many employers are requiring credit checks on all job applicants. A foreclosure is one of the most detrimental credit items an applicant can have, and, in most cases, will challenge employment. In 100% of foreclosures in Florida, the bank has the right to pursue a deficiency judgment.

SUCCESSFUL SHORT SALE

Current Employment

A short sale is not reported on a credit report, and is therefore not a challenge to employment.

Future Employment

A short sale is not reported on a credit report, and is therefore not a challenge to employment. In a successful short sale, it is possible to convince the lender to give up the right to pursue a deficiency judgment against the homeowner. In a property negotiated short sale, the home is sold at a price that should be close to market value, and in almost all cases, will be better than a later REO sale, resulting in a lower deficiency amount with less liability to the homeowner.

Deficiency Judgment
In a foreclosure, the home will have to go through an REO process if it does not sell at auction. In most cases, this will result in a lower sales price, and a longer time to sell in a declining market. This will result in a higher possible deficiency judgment with greater liability to the homeowner.

Deficiency Judgment $ amount

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6

Possible Short Sale Outcomes
There seems to be a lot of misinformation and uncertainty surrounding the after effects of Short Sales for homeowners. This is due to the fact that there is a wide variety of lenders and lender guidelines, and each Short Sale approval is specific to the homeowner’s financial situation and will vary. Before you can understand the possible outcomes, you must understand the difference between a lien release, and a lien satisfaction. Generally, the Lender has the right to approve the Short Sale in one of two ways: 1. Release the lien - allow the sale of the property to a new buyer, and still pursue further action to collect the remaining debt or a portion of it, or… 2. Fully satisfy the lien – allow the sale of the property to a new buyer and forgive the remaining debt. NOTE: It’s important to realize that if a property goes to Foreclosure, a lender can STILL pursue the homeowner for the shortage between what the bank subsequently sells the property for and the original mortgage amount plus all collection costs (legal fees). The potential liability to the homeowner will be greater if the property goes to Foreclosure due to greater collection and holding costs incurred by the lender, and the lower value of the property (in a depreciating market). In negotiating Short Sales, SFSS will always ask the lender to fully satisfy the lien without the homeowner having to bring any money to closing, with little or no consequences to the homeowner. The Seller should always seek legal and financial advice to help with all Short Sale outcomes. The following are the three most common options that Lenders pursue from the homeowner subsequent to the Sale.

6.1 Promissory Note
On rare occasions, Lenders will forgive mortgage debt, but will ask for an unsecured promissory note for a specified amount to be signed by the seller at closing. This is typical if a mortgage has PMI on it (Private Mortgage Insurance). For example, as a condition to Short Sale approval, the lender may ask for a $10,000 promissory note, zero interest, to be paid over 10 years, with a monthly payment of $83. Usually the terms are very favorable. Or instead of the note, the Seller will be asked to bring a cash payment, say $5,000, to closing. The Sellers can refuse the note and the cash payment and tell the bank it is not an option they are willing to consider, or counter offer with a lower amount. In a Short Sale, everything is negotiable.

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However, if the Short Sale does not close it may result in Foreclosure with greater potential financial liability to the Seller.

6.2 1099C vs. Deficiency Judgment
In a Short Sale, there is the risk that the bank can pursue the deficiency (difference b/w total mortgage owed and sale amount) in what is known as a deficiency judgment. However, if there is no money to be recovered (if the seller doesn’t have any other assets worth pursuing) a deficiency judgment will usually not be enforced by the lender. In most cases, the lender is more likely to issue a 1099C in the year after the sale, for the amount of debt relief. The 1099C signifies that the lender has forgiven the debt, and has written it off. It is important to understand that the lender cannot issue a 1099C and pursue a deficiency. It can only do either one, not both.

NOTE: A lender can still pursue a deficiency judgment even if the home goes to foreclosure for the difference b/w the REO sale price and the total mortgage balance!! HOWEVER, by doing the Short Sale, we can negotiate with your lender to waive the right to pursue a deficiency. In the state of Florida, certain assets are protected from a deficiency judgment. These include your homestead (primary residence), life insurance policies and annuity contracts, pension and profit sharing plans, IRAs, disability income and prepaid college plans. (see your local attorney for details, do your own research)
One of the things we always ask for when negotiating a Short Sale is a full ‘Satisfaction of Lien’ or that the lender waive its right to pursue a deficiency. If the bank does satisfy the lien, the bank will issue a 1099C for amount of debt forgiven. Example: Mortgage balance: Approved Short Sale payoff: Shortage/Deficiency: $450,000 $300,000 <$150,000>

1099C Amount

In this example, the bank may send the seller a 1099C showing $150,000 as income. In the eyes of the IRS, debt relief = income to seller. The good news is that in 2007, Congress passed the Mortgage Forgiveness Debt Relief Act of 2007 which eliminates taxation on debt forgiveness on owner-occupied homes. It applies to debt forgiven between 2007 and 2012. So in the above example, if the bank sends you a 1099C for $150,000, you would not have to pay income tax on it if the property was your primary residence. You can read the Mortgage Forgiveness Debt Relief Act of 2007 at the IRS.gov website here: http://www.irs.gov/individuals/article/0,,id=179414,00.html South Florida Short Sales 6538 Collins Ave #67 – Miami Beach, FL 33141 305-390-0574 Main - 786-398-4614 Fax

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Our Short Sale Process Diagram
Seller considers a Short Sale (SS)

SFSS Attorney creates SS Package with a payoff Offer to the mortgage company.

Seller meets with SFSS to discuss options. Seller determines SS option is best.

SFSS agent markets property to find end buyer while Short Sale is being negotiated.

SS package sent to the mortgage co. Seller has time to find a new place to live. Seller has better options with no foreclosure on credit report.

Agent compiles list of interested buyers, while SS is being negotiated.

Lender reviews file for completeness. Orders additional docs as required.

0 – 30 Days

30 – 60 Days Lender orders appraisal or BPO to compare with SS offer. 60 -120 Days Title company receives Short Sale approval and performs title work. Seller and Buyer come to closing. Closing Docs signed, property is SOLD and CLOSED.

Sales contract signed with highest and best buyer. Property is SOLD.

Attorney negotiates SS with lender to get lowest possible price to get property sold.

120 - 180 Days Short Sale successfully negotiated with lender. Obtain written Short Sale approval from lender. SS approval must be signed by the seller.

Seller escapes Foreclosure. Mortgage debt is settled. Seller can move on with life….

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Frequently Asked Questions

8.1 What does your company South Florida Short Sales (SFSS) do exactly?
SFSS is a Short Sale negotiation company, affiliated with a real estate brokerage. SFSS will set an initial phone consultation with you to make sure you’ve explored all of your options (ie. loan modification). If you decide that a Short Sale is for you, we‘ll set an appointment with you to discuss the process in detail. We will guide you through all of the necessary paperwork and what is required. We will submit an offer to your lender from one of our transactional buyers with a completed Short Sale package. We will market the property and secure an end buyer, while we are negotiating with your lender to accept a Short Sale. Once we have a written Short Sale approval from your lender, we pay off lender(s) and close with the end buyer. The Short Sale negotiations and closing will be handled by a local attorney owned title company at NO COST to the Seller.

8.2 How much will this cost me?
SFSS does not charge any fees to the Seller. Our commissions and fees will be paid by the lender. All seller closing costs will also be paid by the lender. No one should ever charge a Seller to do a Short Sale.

8.3 How long does the Short Sale process take?
On average, from the time of the initial Short Sale package to the lender to the time of closing, the Short Sale process can take anywhere from 3 to 6 months. The process is lengthy and will depend on the cooperativeness of the mortgage lender and homeowner. It is important to be patient during the process.

8.4 What are the seller’s responsibilities in a Short Sale?
There are 4 main responsibilities of the seller in a Short Sale transaction: 1. Gather the required short sale documents required by the lender and give to SFSS. The SFSS attorney will prepare a Short Sale package and send to the lender to start negotiations. 2. Gather any additional documents required by the lender throughout the process. Many times the lender will request updated financial records. 3. Make the property available and presentable for showing. 4. Show up to closing and sign all closing docs at the title company.

8.5 Can I receive any proceeds from the Short Sale?
Since you owe more than the property is worth, the lender will not permit you to receive any proceeds from the sale. South Florida Short Sales 6538 Collins Ave #67 – Miami Beach, FL 33141 305-390-0574 Main - 786-398-4614 Fax

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8.6 Why pursue a Short Sale?
In a properly negotiated Short Sale, a homeowner can avoid a credit-destroying Foreclosure on his/her credit report and have the mortgage balance forgiven by the lender with NO COSTS to the homeowner. Short Sales are a NO COST alternative to avoid foreclosure when all other alternatives have been exhausted.

8.7 I’ve already received a foreclosure notice, is it too late for a Short Sale?
It is not too late to do a short sale if you have received a foreclosure notice. Plus, there are ways in which we can help you extend the foreclosure timeline. A Short Sale can be approved and completed up to the date of the bank auction. However, time is always of the essence and there are never any guarantees.

8.8 Can the bank come after me for the balance, after the home is sold?
We will always request that the lender “settle the debt in full” as part of the Short Sale. In most cases the bank will “waive its right to pursue a deficiency” as part of the written short sale approval. That means that typically they won’t come after you for the remaining balance. Instead, they will issue a 1099C in the following year for the amount of debt forgiven (not taxable if property is your primary residence). Unless the homeowner has significant assets worth pursuing, most lenders will not pursue the deficiency. Realize that we can never make any guarantees, as all lenders have different guidelines. However, lenders are very much aware of homeowners’ inability to pay, so they often see further collections as fruitless. The lender will disclose the terms of the Short Sale approval in writing, and give you the opportunity to agree or disagree with any of the conditions prior to the sale of the property.

8.9 I’m ready to get started, what’s the next step?
1. SFSS will set an initial phone consultation with you to make sure you’ve explored all of your options and have decided that a Short Sale is for you. We will need you to fax us the BORROWER AUTHORIZATION LETTER, (see next page 18) so that we can communicate with your lender and confirm what documents they will require for the Short Sale. We will also send you our SHORT SALE WELCOME PACKAGE. 2. We will then set an appointment with you to discuss the process in detail, and collect all of the required paperwork. We will assemble the Short Sale package to forward to our attorney to start the negotiations with your lender. 3. We will begin to market the property for sale, and will ask for your cooperation in the process.

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JEANETTE HERNANDEZ-SUAREZ, P.A. ATTORNEY AT LAW 11400 NORTH KENDALL DRIVE, SUITE 205 MIAMI, FLORIDA 33176 Telephone: (305) 596-1044 Facsimile: (305) 596-0981

BORROWER AUTHORIZATION LETTER
Date:_____________,2011 Lender: ______________________________ LOSS MITIGATION DEPARTMENT To Whom It May Concern: Property Address:___ ___________________ Loan Number: ___________________________ Dear Sir/Madam: I/WE hereby authorize the law office of Jeanette Hernandez Suarez, P.A. and its legal assistants (Jeannette M. Hernandez and Max Hernandez) to inquire about my mortgage and obtain information in reference to same and negotiate any and all issues pertinent to our mortgage, including for negotiation of a short sale. I hereby agree to indemnify and hold harmless, The Law Office of Jeanette Hernandez-Suarez, P.A. and or each of their respective assigns, associates, employees or agents from any liability for actions taken by the lender or as a result of this contemplated short sale transaction. Should you have any questions, please do not hesitate to contact me directly. x_________________________________________ Borrower:__________________________________ SS#:__xxx-xx-_______________________________

x__________________________________________ Co- Borrower (if applicable):____________________ SS#:__xxx-xx-________________________________

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