Keller Williams Realty



To all of my past, present and new short sale clients:

Effective immediately; I am extremely pleased to offer you my new and improved short sale negotiation process. I am now able to considerably shorten the short sale process (usually receiving an approval within 60-90 days of package submission). I can also negotiate a high percentage of “liability language” off of the approval letter, preserve the realtor commission and eliminate most promissory notes.

My new process requires some additional information from the listing agent. This information is used in conjunction with software to package the transaction in an easy to understand way that ensures quicker processing. The streamlined package together with tried and true escalation techniques enables me to eliminate most of the problems with short sales and significantly shorten the approval time frame. Note: this is not escalation as we presently know it – that is asking the processor to escalate the file because nothing is happening and after escalating still nothing happens.

I am including with this letter my new short sale negotiation package. Do not hesitate to call me with any questions and/or concerns.

As always negotiation is complimentary if the purchase price is $60,000.00 of above and I close the transaction and issue title insurance. Communication is key to customer satisfaction and our system allows you 24/7 web access to your file(s) history so you can better respond to your clients concerns.

Let us process your next short sale and experience the difference!!

Karen R. Spell, Esq.

Required Items from LISTING AGENT

1. Copy of MLS printout

2. Copy of fully executed contract

3. Completed HOA Letter

4. Estimated repairs form (if applicable)

5. Residential Listing Agreement

6. Proof of Funds for a cash transaction or preapproval from a lender for financing offers.

7. 3 Comps SOLD

a. Within 1 mile of the subject property

b. Sold within the last 6 Months

c. ½ or less Bathroom Differential

d. 1 Bedroom or less Differential

e. 15% or less square foot differential

8. 2 Comps ACTIVE

a. (follow a,c,d end e as above)

b. Price History

c. Days on Market

PLEASE NOTE!!!

Submission of these documents as well as the seller(s) COMPLETED short sale package are necessary in order to submit a short sale package to the lender(s)

Required Items from the SELLER(s)

1. Client Information Sheet – completed

2. Authorization and Release Form

3. Hardship Letter

4. Financial Statement

5. Copies of last two months Pay Stubs*

6. Copies of last two months bank statements (all pages) *

7. Copies of last two years tax returns (first TWO pages) *

8. Completed DO NOT CALL Letter – if desired

Date 1st Mortgage last paid: ______________________________

Date 2nd Mortgage last paid: ______________________________

Date HOA Last Paid: ___________________________________

*If you do not have a job, or a bank account, or if you have not filed taxes let me know and I will send you an explanation form to be filled out

I will NOT submit your short sale package until all of the above has been received. Do not hesitate to call myself or Kathy in my office with any questions and/or concerns.

Sincerely,

Karen R. Spell, P.A.

Realtor Info Sheet: For Short Sale Package Submission

Property Address: __________________________________

__________________________________

Borrowers: ________________________________________________________

Commission: ____________% Split (L) __________ (S) _____________

Transaction Fee: _________ (L) ___________ (S)

Listing Agent

Company Name: ____________________________________________________

Agent Name: _______________________________________________________

Email: ___________________________________________

Direct Phone: _____________________________________

Selling Agent

Company Name: ____________________________________________________

Agent Name: _______________________________________________________

Email: ___________________________________________

Direct Phone: _____________________________________

Special Instructions:

______________________________________________________________________

______________________________________________________________________

______________________________________________________________________

______________________________________________________________________

HOA Letter (Information)

It is vital to the short sale negotiation process that accurate HOA information is on the original preHUD presented to the short sale lender(s).

It is the obligation of the listing agent to obtain HOA contact info from the seller and provide it to my office for us to initiate an HOA payoff request. In many cases there is an upfront charge for the HOA to release the necessary information. In the event that there is an upfront fee you will be notified and can obtain the necessary fee from the seller. There is no master list of all the HOA’s to obtain this information from.

I have seen too many times where the HOA fees are only estimated and the final figures when ascertained upset the approval letter numbers and the short sale lender will not renegotiate the deal.

It is best to order the HOA information as soon as the listing is taken as it may take some time to obtain especially if it has gone to the attorneys for the association.

Name of Association: _________________________________________________

Contact info:

Name: _____________________________________

Email: _____________________________________

Phone: ____________________________________

Fax: ______________________________________

**If there is a Sub Association

Name of Association: _________________________________________________

Contact info:

Name: _____________________________________

Email: _____________________________________

Phone: ____________________________________

Fax: ______________________________________

****The Short Sale Package Will Not Be Submitted without this Information****

Bank & Financial Information Authorization &

Release Form

I hereby authorize Kathy Gallagher, Nicole Schmidt & Carol Giddens with the Office of Karen R. Spell, P.A., Closing Agent, to request, obtain and verify any and all mortgage loan information, including but not limited to, payoff, arrearage, and reinstatement amounts as well as financial history. The information obtained is to be used for the purpose of facilitating the resolution of my foreclosure.

Property Address: ______________________________________________

______________________________________________

1st Lender: _____________________________________________________

1st Loan Number: ________________________________________________

2nd Lender: _____________________________________________________

2nd Loan Number: ________________________________________________

______________________________________________

Borrower Signature

_________________________________________ _______________________

Print Name Date

Social Security Number: _________________________________

Date of Birth: __________________________________________

______________________________________________

Co-Borrower Signature

_________________________________________ _______________________

Print Name Date

Social Security Number: _________________________________

Date of Birth: ___________________________________________

Client Information Sheet

Date: ______________________________ MLS#:_________________________

Seller: ____________________________________ SS#: _______________________

Co-Seller: _________________________________ SS#: _______________________

Property Address: ______________________________________________________

______________________________________________________

Mailing Address: _______________________________________________________

_______________________________________________________

Home #: ________________Cell: ________________Co-Seller Cell: _____________

Email: _______________________________ Co-Seller Email: ___________________

Employer: _______________________________ Phone: _______________________

Address: ______________________________________________________________

Co-Seller Employer: _______________________ Phone: _______________________

Address: ______________________________________________________________

Liens:

1st Lender: ___________________________________ Acct#: ___________________

Phone #: _____________________________ Fax#: __________________________

2nd Lender: ___________________________________ Acct#: ___________________

Phone #: ______________________________ Fax#: __________________________

Other Liens: ___________________________________________________________

Additional Comments:

______________________________________________________________________

______________________________________________________________________

Listing Agent: __________________________ Phone: _________________________

Hardship Letter Guidelines

Remember to state the following items in your HANDWRITTEN hardship letter:

1. Hardships – What are your hardships (current and past) For example – unemployed, car accident, medical problems (personal or family), etc. Go into a little detail about each hardship. The following are the most important messages to get across to the Lender:

a. Why you will not be able to be current again on your loan

b. We do not have enough income to make these payments

c. We are leaving the property

2. Your Assets – Explain that you have no assets with which to continue paying

3. Any signed exemptions of documents – If you do not have bank statements, pay stubs or tax returns, you will need to explain the reason in more details in your letter as to “why” you cannot provide those documents. (i.e. I’ve been unemployed for six months and have not been able to find work) Note – realize that if you don’t have tax returns, then the bank will ask for Extension-Fillings. So, if you don’t have Extension-Fillings either, explain why in this letter. (i.e. “ I haven’t worked in over 2 years and so I haven’t filed taxed nor extensions”, or “I haven’t filed my taxes for the past two years and I failed to file extensions as well”)

4. Bankruptcy – You could also mention “I do not want to have to file bankruptcy”.

Sample Hardship Letter

(Remember, you MUST handwrite your own Hardship Letter to the Lender(s))

To Whom It May Concern:

I have been unable to make my payments on my house, and I am now facing foreclosure. My inability to keep up with the monthly payments is the result of (loss of job, illness, accident, death or disability of a wage earner – describe in detail what your hardship is)

In spite of my current financial difficulties, I expect that it will only get (better/worse). I am not in a position to continue making my mortgage payments. This was not at all what I intended but I have to come to the conclusion that this is my only option.

Your help and consideration in this matter are very much appreciated.

(Signature) (Date)

(Printed Name)

Please Do Not Contact Me by Phone

First Lender: ______________________________ First Loan #: __________________

Second Lender: __________________________Second Loan#: __________________

Property Address: ______________________________________________

______________________________________________

According to the Fair Lending law, I have the right to request that you, my lender, not contact me by phone regarding my loan being in default. I do not wish to speak to any collection agents about this account. Please make any future communication with me in writing or if you must speak to someone regarding this account, please talk to my Real Estate Agent with _____________________________________ or Karen R. Spell, negotiator whom are assisting me in selling my home. The information obtained by my agent/negotiator is to be used for the purpose of facilitating the resolution of my foreclosure.

__________________________________________

Borrower

____________________________________ ______________________

Printed Name Date

Social Security Number: ____________________________

Date of Birth: _____________________________________

__________________________________________

Co-Borrower

____________________________________ ______________________

Printed Name Date

Social Security Number: ____________________________

Date of Birth: _____________________________________

Contact Information:

Real Estate Office: _______________________ Agent: _______________________

Phone#: _______________________________

Karen R. Spell P: 407-306-0454

FINANCIAL STATEMENT

|Date: |Your Loan Number: |

|Property Address: |

|Is your home listed for sale? YES ______________ No _________________ |

|Agent’s Name: |Agent’s Phone: |

|Borrower Name: |Social Security Number: |

|Mailing Address (#, Street, Apt) |

|Mailing Address (City, State, Zip): |

|Employer’s Name: |Length of Employment: |

|Monthly Net/take Home Pay: |Work Phone |

|Total Number of persons living at this address: |Home Phone: |

|Number of children at this address: |

|Co-Borrower’s Name: |Social Security Number: |

|Mailing Address (#, Street, Apt) |

|Mailing Address (City, State, Zip): |

|Employer’s Name: |Length of Employment: |

|Monthly Net/Take Home Pay: |Work Phone: |

| |Home Phone: |

|Have you ever contacted a credit counseling service? Yes |Reason: |

|______________ No ______________ | |

|Additional Income (not wages) $___________/mo |Please explain: |

ASSETS

|TYPE |Estimated Value |TYPE |Estimated Value |

|Home | |Checking Account(s) | |

|Other Real Estate | |Saving/Money Market | |

|Other Real Estate | |IRA/Keogh | |

|Other Investments | |Stocks/Bonds/CDs | |

|Automobile (#______) | |Other | |

Borrower Signature: ______________________________________________

Co-Borrower Signature: ___________________________________

Monthly Expenses

|CATEGORY |DESCRIPTION |MONTHLY |BALANCE |ESTIMATED |PAST |If yes, # of |

| | |PAYMENT |DUE |VALUE |DUE |months |

| | | | | |Y/N | |

| |Second Mortgage | | | | | |

|Other Properties |Other Mortgage | | | | | |

| |Rent Paid | | | | | |

|Automobile |AUTO 1 / Lease | | | | | |

| |AUTO 2 / Lease | | | | | |

| |Gasoline | | | | | |

| |Maintenance | | | | | |

| |Insurance | | | | | |

|Other Loans |Student Loan(s) | | | | | |

| |Finance Company | | | | | |

| |Installment | | | | | |

|Credit Cards |VISA | | | | | |

| |MASTERVARD | | | | | |

| |DISCOVER | | | | | |

| |Other | | | | | |

| |Other | | | | | |

|Utilities |Electrical/Heating | | | | | |

| |Wtr/Sewer/Trash | | | | | |

| |Telephone | | | | | |

| |Cable | | | | | |

|Insurance |Health/Dental | | | | | |

| |Life | | | | | |

|Medical |Doctor/Dentist | | | | | |

|(Not Covered | | | | | | |

|By Insurance) | | | | | | |

| |Medication | | | | | |

| |Hospital | | | | | |

|Entertainment | | | | | | |

|Food | | | | | | |

|Support |Alimony | | | | | |

| |Child | | | | | |

|Child Care |Day Care | | | | | |

|Other: | | | | | | |

|Specify | | | | | | |

| | | | | | | |

| | | | | | | |

| | | | | | | |

|TOTAL MONTHLY EXPENSES: | |

Borrower Signature: _______________________________________________

Co-Borrower Signature: ____________________________________________

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|I (We) understand that the financial information provided is an accurate statement of my (our) loan financial status. I (We) understand and |

|acknowledge any action taken by the lender of my 9our) mortgage loan on my (our) behalf will be made in strict reliance on the financial |

|information provided. My (our) signature(s) below grants the holder of my (our) mortgage the authority to confirm the information I (we) have |

|disclosed in this financial statement to verify that it is accurate by ordering a credit report and to contact my (our) Real Estate Agent |

|and/or credit counseling service representative if applicable. |

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|Submitted this _________________ day of ________________, of the year ________ |

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|By: ________________________________________ Date: ____________ |

|Signature of Borrower |

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|By: ________________________________________ Date: ____________ |

|Signature of Co-Borrower |

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|Borrower’s Comments: |

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Privacy Act Statement

The FDIC is authorized to request this information from you by 12 U.S.C § 1819 and Executive Order 9397. The main purpose for collecting the information is to determine the financial viability of individuals who seek to influence or resolve their personal liability for any obligation to or claim by the FDIC. Furnishing the requested information is voluntary, but failure to provide the requested information, including your social security number, may preclude any compromise or similar resolution of personal liability for any obligation to or claim by the FDIC. The information you provide may be used according to any of the routine uses described in the FDIC System of Records entitles, Insured bank Liquidation Records, 30-64-0013.

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