Presents Short Sale Option www.lotusrealtygroup.com Agent Listing Packet
400 S Sierra Ave. Suite 102, Solana Beach, CA 92075 SUPPLEMENTAL COMMISSION AGREEMENT WITH LISTING BROKER/AGENT ( Listing Broker/Agent ) and Lotus Realty Group ( LRG ) hereby agree as follows: 1. Seller has engaged Real Living Lifestyles as their agent to market and sell the subject property. Real Living Lifestyles has engaged LRG as a short sale negotiator/facilitator in the transaction whereby ( Seller ) has agreed to sell real property located at ( Subject Property ) to ( Buyer ), subject to the approval of Sellers lien holder(s) of the transaction as a short sale ( Short Sale Transaction ). In this capacity, LRG will interface with the seller s lenders/lien holder(s) in an attempt to obtain their consent to reduce their respective loan and lien balances by an amount sufficient to permit the proceeds of the Short Sale Transaction to pay the reduced balances, encumbrances and closing costs without requiring the seller to place any funds in escrow. 2. As compensation for the service enumerated in paragraph 1 above, LRG will receive a fee equal to.90% of the purchase price for the 1 st transaction referred by agent and.85% of the purchase price for all other transactions thereafter with a minimum of $1500.00 with a purchase price of $177,000 or less. 3. Listing Broker/Agent agrees to pay LRG the fee by reducing its own commission by an amount equal to the fee and directing the Short Sale Transaction s escrow holder to pay the fee directly to LRG at the close of escrow. Listing Broker: Lotus Realty Group: Signature Date Signature Date Listing Agent: Signature Date
400 S. Sierra Ave. Ste. 102, Solana Beach, CA 92075 Short-Sale Negotiator Representation Agreement The terms of this Short-Sale Negotiator Representation Agreement ( SSNRA ) are hereby incorporated in and made part of the California Residential Purchase Agreement ( RPA ) dated:, On property commonly known as: ( Property ) in which is referred to as Buyer and is referred to as Seller. Buyer and Seller are sometimes collectively referred to in this SSNRA as the Parties. 1. The Seller and Buyer are aware the Listing Agent has hired Lotus Realty Group ( LRG ) as a short-sale negotiator. LRG is a real estate brokerage licensed to do business in the State of California. 2. LRG is not acting as a Foreclosure Consultant within the meaning of California Civil Code 2945, et seq. 3. Buyer and Seller are represented by their own real estate agent(s) and broker(s). While LRG will be performing certain activities for the Seller s Listing Agent, as a real estate brokerage, these activities will be limited to those real estate services necessary in negotiating the lender s acceptance of the Buyer s short-sale offer. a. For the Seller: LRG will not i) actively market the Property for sale; ii) hold or attend open houses at the Property; iii) list the Property in any Multiple Listing Service; iv) negotiate the terms of sale between the Seller and any prospective buyer or purchaser; v) visually inspect the Property and render a written report of any findings that a visual inspection would yield; vi) ensure the delivery of any disclosure form or contractual document to the Buyer or his/her agent. b. For the Buyer: LRG will not i) negotiate the terms of sale between the Seller and Buyer; ii) visually inspect the Property and render a written report of any findings that a visual inspection would yield; iii) ensure the delivery of any Seller disclosure form or contractual document to the Buyer; iv) address any red-flag issues with the Buyer that do not pertain directly to the short-sale negotiation process. Buyer: Buyer: Seller: Seller: Date: Date: Date: Date: The Lotus Group 400 S. Sierra Ave Suite 102 Solana Beach, CA 92075 (858) 764-7300 Fax (858) 755-7544 www.lotusrealtygroup.com
400 S. Sierra Ave. Ste. 102, Solana Beach, CA 92075 Listing Agent t s Quick Questionnair re Sheet Listing Agent, please answer these quick questions to get us acquainted with your file. Please answer each question to the best of your ability at this current stage in the listing. 1. We always recommend that you advise your client to speak with a RE Attorney and a CPA regarding a short sale at the beginning and end of the transaction. Have you done this yet? If so, when? 2. Do we have permission to use our team of experts at Real Living Lifestyles for Title & Escrow? If not, who are you requesting we use (name, company, & contact info). 3. What stage of the short sale process is this file currently in: About to or just met with client Just listed/ gathering documents Submitted package to lender Have submitted before Please elaborate briefly and help catch us up on this file: 4. Do you use a TC for your transactions? If so who and how much do you pay them? **Please keep in mind lenders do NOT usually pay for this, but if we order the HUD we add it on, so Escrow is aware of the fee. The Lotus Group 400 S. Sierra Ave. Suite 102 Solana Beach, CA 92075 (858) 764-7300 Fax (858) 755-7544 www.lotusrealtygroup.com
400 S. Sierra Ave. Ste. 102, Solana Beach, CA 92075 Document ts for Listing Agent to Co ompile: Supplemental Commission Agreement (Lotus SS package) Residential Listing Agreement Comps for the subject property: 3 active, 3 pending and 3 sold A Quick CMA for the property The MLS sheet for the property (continue to send updated sheets if you do price reductions) Property Value Worksheet (Lotus SS package) Short Sale Addendums and Counter. Only after you have a buyer and have them executed by all parties. (Lotus SS package) Seller Questionnaire (Lotus SS package) Order a statement of information Please make sure we have HOA information, if applicable EMAIL COMPLETE SHORT SALE PACKAGES TO: INITIATE@LOTUSREALTYGROUP.COM The Lotus Group 400 S. Sierra Ave. Suite 102 Solana Beach, CA 92075 (858) 764-7300 Fax (858) 755-7544 www.lotusrealtygroup.com
4000 S. Sierra Ave. Ste. 102, Solana Beach, CA 92075 Seller Interview Questions * Please be sure to answer ALL questions on this form to the best of your ability. 1. Is your property already on the market? Is it listed with an Agent? If so please what is your Agents name? 2. Has an NOD (notice of default) been recorded on this home? If so when? 3. When was the property purchased? 4. Your original purchase price? 5. Who is on Title?(Please list all names) ) 6. Is there MI (mortgage insurance) on this loan? 7. Who is on Mortgage? 8. What kind of mortgage do you have? Conventional/VA/FHA? 9. How many mortgages do you have on this property? 10. Do you have a government loan, Fannie Mae or Freddie Mac? 11. Who is the Lender/s? 12. Was there any false information put on your 1003 form (loan application) when you got the loan? 13. If you have taken out a 2 nd on the home (Home Equity Line of Credit) what was the money spent on? Examples would be home repair, expenses, new car, boat, etc. 14. Are you living in the property? If not, where are you living and is the property being maintained? 15. What is the current condition of the property & what repairs are needed? 16. If you are relocating when do you have to move? 17. Approximately how much do you owe on your home today? (please include 1 st & 2 nd ). 18. Are you current on all your mortgage payments and will you be able to remain current? If No, how many months are you delinquent? 19. Are you up to date on your Condo or Homeowner s Association payments? If not, how many payments are you behind? 20. Do you owe back taxes and/or are there any liens on your property? If yes, please list. 21. Have you considered or are you considering declaring bankruptcy? Please explain. 22. What lender correspondence have you received? 23. What is the situation that caused you to miss or will cause you to miss your payments? (if NO payments have been missed, why do you need to sell?) 24. What are your current payments including taxes and insurance? $ 25. What is your household monthly income? $ 26. What are your estimated monthly expenses, besides mortgages? $ 27. Do you hold any kind of Security Clearance? Additional Notes & Comments: The Lotus Group 400 S. Sierra Ave. Suite 102 Solana Beach, CA 92075 (858) 764-7300 Fax (858) 755-7544 www.lotusrealtygroup.com
400 S. Sierra Ave. Ste. 102, Solana Beach, CA 92075 LISTING ADDENDUM BROKERAGE: Listing Date: Property Address: Seller: Seller: This addendum will serve to modify the listing agreement dated entered into by the parties above for the property above. List Price $ Scheduled Price Reductions the sale price of the property will be lowered as follows: $ on $ on $ on $ on Each price reduction whether noted here or otherwise, shall extend the term of this listing agreement by 30 days for each adjustment. The listing period shall also be extended for the time with which the property is under contract should the transaction not close. Commissions In the case of a short sale it is understood that the seller is experiencing financial hardship and that the commission if approved by the lender will be paid from the short sale proceeds. Listing Termination It is understood that in the case that the seller's mortgage company will not cooperate with a short sale, this listing agreement can be terminated by the broker without further notice. It is further understood that in the case the seller will not provide necessary documentation, communicate with lender or lenders, communicate with lien holders or in any other way not participate in the short sale process, this listing can be terminated by broker without further notice. By signing this disclosure, you acknowledge that you have read and understand this addendum. Seller's Signature Date Seller's Signature Date The Lotus Group 400 S. Sierra Ave. Suite 102 Solana Beach, CA 92075 (858) 764-7300 Fax (858) 755-7544 www.lotusrealtygroup.com
400 S. Sierra Ave. Ste. 102, Solana Beach, CA 92075 Property Value Worksheet Page 1 of 3 ( Warning: Agent is not an appraiser. This is only the agent s opinion. ) This document provides information in support of the listing price which we have discussed regarding this home. A very common problem is this: The agent (not us) who is completing the BPO for the lender may have very little knowledge of the subject area (or even the market area for that matter, as some BPO agents are brand new to real estate). We all know that good value approximations can only be accomplished by having both of the following things: (1) Good market data. AND (2) Good market knowledge! If a person lacks the knowledge, the wrong market data will be used, and the BPO will come in too high (especially in our market where values are correcting downward). Sold Comparables List 3 comparable homes that have sold: $ Date Sold: DOM: $ Date Sold: DOM: $ Date Sold: DOM: The BPO agent will primarily be looking at solds. Are these too high? Another common problem that we are experiencing in the current market is there are not enough current comps. In many areas the solds are too high and do NOT accurately reflect current value. An inexperienced person will say: These are the current solds; therefore they are an accurate indicator of current value. In so many of our markets this is completely and utterly false. Even though they may be recent solds they are not accurate because of how quickly our markets are correcting. The word recent has a brand new definition in today s market (right now a 6 month comp is OLD data). Here is where your knowledge of the market enters. Regardless of what the recent solds say, you know what the true story is, and below we will dig into building a case for defending what the current value truly is. Do Not stretch the numbers. If you stretch the numbers, the lender will see the real numbers later and you will have wasted your time on this file. Simply give a very accurate and blunt determination of value. Keep in mind that this is a foreclosure property that must sell quickly (14 day guaranteed price). Also, if your MLs tracks Seller Concessions make sure you subtract those to arrive at a net sales price.
Property Value Worksheet Page 2 of 3 ( Warning: Agent is not an appraiser. This is only the agent s opinion. ) When the solds don t tell an accurate story, the first thing that we do is investigate on the market comparables (homes that are currently listed for sale and have NOT sold yet). On market comps tell a much more accurate story of current value. List 3 comparable homes that are currently on market : #1 Current Price: $ DOM: Original list price (OLP): Price has been reduced times (how many) for a total reduction of $ (OLP minus Current listing price) #2 Current Price: $ DOM: Original list price (OLP): Price has been reduced times (how many) for a total reduction of $ (OLP minus Current listing price) #3 Current Price: $ DOM: Original list price (OLP): Price has been reduced times (how many) for a total reduction of $ (OLP minus Current listing price) Based upon this current on-market data, the subject s property may have a current listing value in this range: $ to $
Property Value Worksheet Page 3 of 3 ( Warning: Agent is not an appraiser. This is only the agent s opinion. ) If we want to obtain an offer on the home quickly (within 14 days), we should list the home at this price: $ The home would be likely to sit longer than 30 days at this list price: $ The home would be likely to sit longer than 60 days at this list price: $ The home would be likely to sit longer than 90 days at this list price: $ Other detrimental Factors All homes have detrimental factors that make a home more difficult to sell than other homes. What do you feel are the detrimental factors on this home that will make it more difficult to sell?
400 S. Sierra Ave. Ste. 102, Solana Beach, CA 92075 Property Value Worksheet Page 1 of 3 ( Warning: Agent is not an appraiser. This is only the agent s opinion. ) This document provides information in support of the listing price which we have discussed regarding this home. A very common problem is this: The agent (not us) who is completing the BPO for the lender may have very little knowledge of the subject area (or even the market area for that matter, as some BPO agents are brand new to real estate). We all know that good value approximations can only be accomplished by having both of the following things: (1) Good market data. AND (2) Good market knowledge! If a person lacks the knowledge, the wrong market data will be used, and the BPO will come in too high (especially in our market where values are correcting downward). Sold Comparables List 3 comparable homes that have sold: $ Date Sold: DOM: $ Date Sold: DOM: $ Date Sold: DOM: The BPO agent will primarily be looking at solds. Are these too high? Another common problem that we are experiencing in the current market is there are not enough current comps. In many areas the solds are too high and do NOT accurately reflect current value. An inexperienced person will say: These are the current solds; therefore they are an accurate indicator of current value. In so many of our markets this is completely and utterly false. Even though they may be recent solds they are not accurate because of how quickly our markets are correcting. The word recent has a brand new definition in today s market (right now a 6 month comp is OLD data). Here is where your knowledge of the market enters. Regardless of what the recent solds say, you know what the true story is, and below we will dig into building a case for defending what the current value truly is. Do Not stretch the numbers. If you stretch the numbers, the lender will see the real numbers later and you will have wasted your time on this file. Simply give a very accurate and blunt determination of value. Keep in mind that this is a foreclosure property that must sell quickly (14 day guaranteed price). Also, if your MLs tracks Seller Concessions make sure you subtract those to arrive at a net sales price.
Property Value Worksheet Page 2 of 3 ( Warning: Agent is not an appraiser. This is only the agent s opinion. ) When the solds don t tell an accurate story, the first thing that we do is investigate on the market comparables (homes that are currently listed for sale and have NOT sold yet). On market comps tell a much more accurate story of current value. List 3 comparable homes that are currently on market : #1 Current Price: $ DOM: Original list price (OLP): Price has been reduced times (how many) for a total reduction of $ (OLP minus Current listing price) #2 Current Price: $ DOM: Original list price (OLP): Price has been reduced times (how many) for a total reduction of $ (OLP minus Current listing price) #3 Current Price: $ DOM: Original list price (OLP): Price has been reduced times (how many) for a total reduction of $ (OLP minus Current listing price) Based upon this current on-market data, the subject s property may have a current listing value in this range: $ to $
Property Value Worksheet Page 3 of 3 ( Warning: Agent is not an appraiser. This is only the agent s opinion. ) If we want to obtain an offer on the home quickly (within 14 days), we should list the home at this price: $ The home would be likely to sit longer than 30 days at this list price: $ The home would be likely to sit longer than 60 days at this list price: $ The home would be likely to sit longer than 90 days at this list price: $ Other detrimental Factors All homes have detrimental factors that make a home more difficult to sell than other homes. What do you feel are the detrimental factors on this home that will make it more difficult to sell?
Counter Offer #1: 1. Buyer acknowledges that: (i) Subject Property is being sold As-Is, subject to Buyer s rights under the Purchase Agreement, Counter Offers, and/or Addendum; (ii) no expenses will be incurred by Seller(s) unless said expense is expressly agreed to by Seller s Lien Holders, to be paid for out of Lien Holder s net proceeds; (iii) in the event any expense is disallowed by Lien Holder(s), Seller s obligation to pay or provide them are deleted and of no effect in this Agreement. 2. Escrow service provider to be Centennial Escrow. Title services to be provided by Fidelity National Title. Continue on Addendum #1 Addendum #1: 1. Within one Day after Acceptance Buyer to provide lender DU approval letter and proof of funds necessary and sufficient for Buyer's performance of Buyer's obligations in this Agreement. 2. Seller shall select all service providers for which Seller is contractually obligated to provide to Buyer, including any Wood Destroying Structural Pest Control requirements under the agreement. 3. Seller shall have no obligation to pay for or deposit money with Escrow Holder to pay for any services or closing costs associated with this transaction. 4. Closing costs shall be split between Seller and Buyer as approved by Seller s Lien Holders. Buyer is aware that the fees lenders, and/or other lien holders will approve for payment often times do not include: NHD report, Structural Pest Control Inspection and/or corrective work, Home Warranty, HOA dues or arrears, Transfer fees, and Settlement fees. If Lien Holder does not cover all or some of these fees, Buyer acknowledges and agrees that they are responsible to pay these expenses. 5. Buyer and Seller understand that in addition to lender s secured by the property, there may, or may not be other lien holders who s permission is required in order to obtain the releases necessary to convey title to Buyer as agreed (e.g. income tax liens, judgments, or the like). 6. Upon Sellers receipt of written approval from each Short Sale Lender, Seller, or Seller s Agent, shall provide a copy of the approval letter to Buyer no later than 2 days thereafter. Buyer and Seller agree to approve or disapprove, in writing, each Short Sale Lender s approval terms within 2 days after their receipt of same. 7. Buyer agrees to close escrow no later than thirty (30) days after Buyer's receipt from Seller of written notice of Short-Sale Lender's consent, or as stipulated in said letter, whichever occurs sooner and from receipt of seller s written approval of the short sale lender s consent and terms thereof.