Private Investor Short Sale Packet. Thank you for contacting ( Financial Freedom ) regarding a potential Third Party Short Sale. Enclosed you will find the information necessary to request a Third Party Short Sale. A checklist is also enclosed, which you may use to confirm that your Short Sale request package is complete prior to submission. It is important that you and/or your designated agent review this packet in its entirety. This introduction provides general guidelines for Short Sale consideration and explanations for several of the documents needed to consider your offer. Short Sales may take up to 90 days to complete. It is always recommended that potential buyers be aware of the processing time so there are no misconceptions. Once ALL of the required items are complete, please submit the Short Sale Packet to the fax number listed below. All requests will be received in the order in which they are received. FAX: 1-866-557-1224 Attn: Short Sale Department If you have any questions please contact our Short Sale team at 1-866-727-4303 for assistance. Submitting a Short Sale request or receipt of an approval of your request will not stop foreclosure proceedings or postpone the initiation of foreclosure unless prohibited by law. Sincerely, The Short Sale Department This is a communication from a debt collector attempting to collect a debt. Any information obtained will be used for that purpose. However, if a bankruptcy petition has been filed and there is either an automatic stay in effect in the bankruptcy case, or the debt has been discharged pursuant to the bankruptcy laws of the United States, this communication is intended solely for informational purposes. If your debt has been discharged, this letter is for the sole purpose of protecting a lien interest in the underlying mortgaged property and is not an attempt to recover any amounts from you personally. The foregoing notice has no effect on any bankruptcy plan, and you should continue to make any payments thereunder. If you have any questions about this notice, you should consult with your bankruptcy attorney and/or your bankruptcy trustee. Page 1 of 5 *FF80495*
Private Investor Short Sale Packet PRIVATE INVESTORS (SASCO, CIT Bank, Nationstar, Gonzalo Trust and Greenwich) APPRAISALS An interior appraisal is required as an exterior appraisal cannot be accepted to determine the fair market value of the property. The appraisal must be ordered by Financial Freedom and it is valid for 120 days from the effective date of the appraisal. Please refrain from ordering an appraisal as it cannot be used to consider the offer. If an appraisal is required, the contact information provided on the Short Sale Checklist will be used to schedule an appointment for access to the property. An appraisal will not be ordered until the required documents listed below have been received by Financial Freedom. DOCUMENTS A complete Short Sale Packet will include the following documents: The completed Short Sale Checklist Letters of authority if the borrower is deceased The completed and signed Authorization form for your designated agent A signed purchase or sales agreement/contract A preliminary HUD-1 Settlement Statement or Closing Disclosure, if applicable HUD-1 Settlement Statement or Closing Disclosure - Approved Deductions and Guidelines: The purchase price must be a minimum of 100% of the appraised value The property must be listed for sale for a minimum of 30 days and a copy of the listing history of the property must be included in the Short Sale Packet Real Estate Taxes due up to the date of closing Real Estate commission subject to investor guidelines Title Search Closing Fee, settlement fee or escrow fee will only be considered up to 50% of the total cost Owner s Title Insurance Local State/City/County Deed Tax Stamps or Transfer Tax Any State/City/County specific fees will require additional documentation to show the expense is the seller s responsibility and the amount of the expense Attorney fees will only be considered in areas where it is mandatory or customary for an attorney to facilitate the closing in a real estate transaction. To consider attorney fees, the following documents are needed for review: Itemized invoice Supporting documentation (i.e., ordinance or state statute to show the mandatory or customary practices of your area) HOA/Condo Fees may be considered according to State Statute. In order for HOA fees to be considered, a recent itemized invoice is required. The Estoppel Letter will not be necessary or accepted to consider association dues. Utilities: municipal utility fees are the responsibility of the borrower and/or their estate and will not be considered as deductions unless they are recorded liens against the property. A copy of the recorded lien must be provided for review. The recorded document must include the recording stamp. Page 2 of 5
UNAPPROVED SHORT SALE DEDUCTIONS Listed below are examples of fees, which are not allowed as deductions from the proceeds of the sale. If any of these items are shown on the HUD-1 Settlement Statement or Closing Disclosure and are deducted from the sales proceeds, the Short Sale offer will be denied.. The fees listed below will not be considered and this will cause the HUD-1 Settlement Statement or Closing Disclosure to be rejected which will delay the approval process. This list is not exhaustive. Buyer s Credits Lien Search Closing fee Notary Courier fee Origination fee Document Prep fee Probate costs* Escrow fees Recording fees** Express Mail Release fee HAFA/Homeowner Incentive Program Repairs Home Warranty fee Seller Concessions Inspections Settlement fee IRS liens Survey fee Junior liens Title Company fees Lender fee Utilities Wire fee * Probate costs: Fee for recording a death certificate, trust affidavit fees, filing fees and any other costs associated with the estate or trust. ** Recording Fees: Financial Freedom will execute and submit for recording the release of mortgage at no cost to the seller or buyer. HUD will do the same for their release of mortgage. Page 3 of 5
SHORT SALE CHECKLIST **Use this page as the coversheet of your Short Sale Packet** This checklist has been compiled to assist you with submitting a complete Short Sale Packet. Send complete packets, even if only revising documents, as incomplete packets will not be reviewed. Below is the list of documentation needed for review on any Short Sale offer. All complete Short Sale Packets will be reviewed in the order they are received. Thank you. Short Sale Checklist (please use this as Page One of the Short Sale Packet) Letters of Authority The completed Authorization form which is enclosed in the packet Signed sales contract/purchase agreement Preliminary HUD-1 Settlement Statement Itemized Invoices/Bills for all deductions on the HUD-1 Statement, where applicable Appraisal contact (this is the person who will allow the appraiser access to the property Name: Phone: Please send the Short Sale offer to: FAX: 1-866-557-1224 Attn: Short Sale Department Financial Freedom Borrower(s) Name: Last First Middle Last First Middle Property Address: Financial Freedom Loan Number: Page 4 of 5
AUTHORIZATION I hereby authorize Financial Freedom to discuss my request for a Short Sale with the individual(s) that I have identified below as my designated agent(s). Further, Financial Freedom is herby authorized to negotiate the terms of the Short Sale with my designated agent(s) and deliver documents to my designated agent(s) related to my request for a Short Sale. I understand that I will be fully responsible for reviewing any information that is sent by Financial Freedom to my designated agent(s). This authorization will remain effective until I specifically notify Financial Freedom in writing that this authorization is no longer valid. NOTE: If you would like Financial Freedom to discuss your account with a third party (e.g., a friend, realtor, attorney, etc...) you MUST complete this form. Please fill out one form for each designated agent/third party. My Designated Agent is: First Name: Last Name: Company: Address: E-mail Address: Phone Number: Fax Number: Relationship to you: Borrower or the Borrower s Authorized Representative Signature: Name: Signature: Date: Financial Freedom Loan Number: Page 5 of 5