The Short The Short Sale ProcessSale Process

Explaining the Process to the Explaining the Process to the Seller Seller

The First Phone ConversationThe First Phone Conversation

What are our goals?What are our goals? Let the seller know what we do.Let the seller know what we do. Confirm that you are going to do Confirm that you are going to do

business.business. Get their email address, fax Get their email address, fax

numbernumber What do we want to do?What do we want to do?

Save timeSave time Save energySave energy

Outbound Call ScriptOutbound Call Script

Put Together Seller EmailPut Together Seller Email

Put all of your paperwork in a Put all of your paperwork in a single documentsingle document

Write an explanation of the Write an explanation of the paperwork and use as a cover paperwork and use as a cover pagepage

Convert to a .pdf fileConvert to a .pdf file Send .pfd or word document to Send .pfd or word document to

seller as an attachment.seller as an attachment.

Email to Perspective Sellers

As per our conversation, I have attached a file with all of the paperwork that we discussed. Please be sure that you read the package in its entirety. I have included a brief explanation of all of the documents as the first page. If you should have any questions please do not hesitate to contact our office. Sincerely, Robert Marshall The Reid Group LTD LLC 336-995-3527

The Reid Group LTD LLC 1625 Pembroke Ave

Winston-Salem, NC 27103

To Whom It May Concern: Thank you for choosing the Reid Group LTD LLC. In order for us to process your file, and start the short sale process we will need the following information. ___ Complete Financial statement form. ___ Copies of last two (2) pay stubs for all borrowers. ___ Copies of last two (2) years Federal Income Tax Returns, including all schedules

for all borrowers. ___ Copies of all bank statements for the last three (3) months for all borrowers. ___ Letter explaining the hardship, including copies of all relevant documentation to

substantiate your explanation. ___ Copy of recent Appraisal If you have any questions please call out office at 336-577-9414.

THE PAPERWORK

We are going to go over some paperwork that will allow us to help your situation.

1. The authorization to release information: This is a form that allows our company to talk to your mortgage company on your behalf. When we call your mortgage company they will not speak to us until they have received a copy of this document. This is to protect the confidentiality of you, their customer. We will fax this document to your mortgage company.

2. The Purchase and Sales agreement:

This is a standard purchase contract. This is what is called a meeting of the minds. You, the homeowner, can not convey interest in your property to our company unless there is a meeting of the minds. There are two copies of the contract. There is one for you the homeowner to keep, and there is one for our company records.

3. The Agreement and Understanding:

This is a form that my attorney helped our company write. We use this form so that there will be no misunderstanding of what our company plans to do with the property. Again, there are two copies, one for the homeowner’s record, and one for our company’s record. This form will be read out loud to you word for word.

4. The General Warranty Deed:

This form was created by the North Carolina State Bar Association. It conveys the property form you, the homeowner to our company. We will let our attorney fill in the correct legal description when we go to record the deed. Thus, at the bottom of this from we write the physical address of the property. This is a safeguard to the homeowner. If the homeowner has more than one property it protects against changing the deed to a different property address. This document needs to be signed and notarized.

5. The Limited Power of Attorney:

This form allows us to expedite the process. It at sometime may be necessary for our company to sign the homeowners name. For example, the bank may send our company a form that needs to be signed by the homeowner. If anything is signed by the company that is not legal, then the person who signed the document is legally responsible for the repercussions.

THE PROCESS

Day 1: Visit the house to gather all of the necessary paperwork. Our company

will put a for sale sign in the front yard. Day 2: Our company will call the mortgage company, find out the name of the

person who is handling the account, and fax the Authorization to Release Information. Depending on the mortgage company, this may take 1-3 business days for the Authorization to be updated into the system.

Day 3: Homeowner should have finished gathering all of the necessary

documentation that we have requested. This needs to be either mailed or faxed to the company.

Day 4: Our company will contact the Mortgage company to see if they have

uploaded the authorization to release and ask them to send all of the necessary documentation to conduct a short sale on the property. At this time the Mortgage Company may order and appraisal or an BPO (Brokers Price Opinion) of the house. Depending on the company this will take between 5 to 10 business days to gather this data.

Day 10-15 Our company will conduct market research to determine the value of the

house and begin to line up investors. Our company will also put together any and all other information that the mortgage company may request. This may or may not include a mock HUD statement, home repair estimate, and a short sale request.

The HUD statement is a receipt for an Real-Estate transaction. It shows

who is paying what and who is receiving how much money. It will show our company paying all expenses i.e. attorney’s fees, appraisals, taxes, recording fees etc. It will show the homeowner receiving no funds from the sale. The HUD will also show the banks how much they should expect to NET from the sale.

A Short Sale request is a request by the company for the Mortgage

Company to take less that what is owed on the property. Day 16 Our company will submit a short sale request to the Mortgage Company.

Depending on the Mortgage Company, this process takes 5 to 15 business days to get a answer. Once we have an answer, we will know how we can proceed.

*Days are considered business days not calendar days. *This process is accurate but not guaranteed.

The Purchase and Sales Agreement that you plan to use!

• This gives the seller the opportunity to look at the document.

• This gives the seller a chance to have a trusted advisor to look at the file before you arrive.

Authorization To Release Information

I/We hereby authorize you to release to Your company name here and all information requested for the purpose of a credit transaction or loan transfer. You may reproduce this document to acquire reference from more than one source. Thank You. _____________________ _________________ _____________ Signature Soc. Sec. # Date _____________________ _________________ _____________ Signature Soc. Sec. # Date

Agreement and Statement of Understanding

As owner of the Real Property located at __________________________________________ _____________________________________________________________________________ and, concerning its transfer and conveyance to _Your Company Name Here on this date ______________, I am aware of, understand and agree to the following statements of fact and terms:

1) The mortgage on this property contains a due on sale clause. The lender has the right to call the note due and payable when title is transferred.

2) The mortgage will stay in owners name until it is paid off in its entirety or

assumed by a future known or unknown purchaser.

3) The party named above accepting this conveyance has no intentions of assuming the loan. No promises have been made to the owner stating that the loan will be paid off or otherwise assumed or that payments will be made in a timely manner.

4) The party accepting this conveyance has agreed to pay any back payments, if

any, to remove this property from pre-foreclosure, only upon the re-sale of this property. There have been no promises to do so prior to that time.

5) If the party accepting conveyance is unable to negotiate an acceptable short sale,

or sell the property in a timely fashion, the owner understands that any amounts in arrears will not be paid to bring the note current, and it may still go into foreclosure.

6) The owner holds the party accepting the conveyance, and/ or their heirs and

assigns, or future acceptor of this conveyance, harmless and blameless from any debt, action, suit, payment or any liability whatsoever that may be associated in any way with this agreement or of notes, deeds of trust or other liens on this property.

On this ____ day of _________, 20___, we the owners have set our name and seal.

___________________________Seal ___________________________ Seal Signature Signature ___________________________ ___________________________ Print Name Print Name ___________________________ ___________________________ Social Security Number Social Security Number

Financial Statement

Financial Statement Cont…

NORTH CAROLINA Limited Power of Attorney FORSYTH COUNTY KNOW ALL MEN BY THESE PRESENTS, that We, __________________, and ________________ have made, constituted and appointed and by these premises make, constitute and appoint ______________________ our true and lawful attorney-in-fact, for us and in our name, place and stead and on our behalf, to do and perform for us THE FOLLOWING ACTS. (1) To contract and sell and borrow against the property listed below at such times and in such manner and upon such financial terms as to her may seem proper, as well as the specific power to execute all deeds, notes, deeds of Trust or such documents in connection therewith as may be required to effect or assist the transaction and closing of said loans, sale or sales. Address:_______________________________________________________ More specifically described in Exhibit “A”, Incorporated herein. We hereby ratify and confirm all that the said _______________________________ as our attorney-in-fact, shall lawfully do or cause to be done by virtue hereof. This Power of Attorney is a durable Power of Attorney and shall continue even in the event of incapacity of any principal. IN WITNESS WHEREOF, We have executed the foregoing Power of Attorney this ___ day of ____________, 2003. (SEAL) Home Owner __________________________________(SEAL) Home Owner STATE OF ____________________ ______________________ COUNTY I, _______________________, Notary Public, in and for said County and State, do hereby certify that ___________________________________ personally appeared before me this day and acknowledged the execution of the foregoing instrument. WITNESS, my hand and notary seal, this the _____ day of _______________, 2002. __________________________________ NOTARY PUBLIC My Commission Expires:_____________________

Visiting the seller at the Visiting the seller at the propertyproperty

Confirm meeting timeConfirm meeting time Call before leaving to the Call before leaving to the

propertyproperty Bring all of your paperworkBring all of your paperwork

Blank Ready FileBlank Ready File Bring equitmentBring equitment

Flashlight, notepad, ect.Flashlight, notepad, ect. ““The Box”The Box”

Property EvaluationProperty Evaluation

Make sure that you complete Make sure that you complete this while you are at the this while you are at the property!property!

Take lots of pictures for the Take lots of pictures for the bank!bank!

Angell Road:Angell Road: Foreclosure Foreclosure

Angell Rd:Angell Rd:Picture Sent to BankPicture Sent to Bank

Angell Rd:Angell Rd: Picture Sent to BankPicture Sent to Bank

Homeowner Needs and Homeowner Needs and Wants…Wants…

I want to get cashI want to get cash I want to stay in my houseI want to stay in my house I want you to refinance my I want you to refinance my

mortgagemortgage I need to find a new place to liveI need to find a new place to live I need to feed my familyI need to feed my family

Homeowner ConcernsHomeowner Concerns

How will this effect my credit?How will this effect my credit? What are my neighbors going to What are my neighbors going to

think?think? What are the possible tax What are the possible tax

implications?implications?

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