Short Sale Offer

SHORT SALE COMMUNICATION NOTICE 1. All parties agree to contact the listing agent for information or assistance no more than once weekly. 2. All parties also agree to return calls from Listing Agent and/or Negotiators within 2 hours of receipt and provide any documentation within 24 hours of request. 3. The seller’s negotiation team is often up at 5:00 AM on hold with these lenders. They work weekdays until late waiting on calls from them and you.

Please be

courteous and understanding of their time restraints. No amount of yelling, screaming, whining or crying, addendums or demands will make the lenders move quicker. Be patient! We will contact you only when there is new news or we need your help in the negotiation process. You’re welcome to call once in a while for an update, but no news usually means NO news. Believe me, we want answers as quickly as you do and we do know how difficult it is for those waiting with us. Save your strength for the closing and leave the rest to us. 4. No matter what happens, all parties understand that negotiators, investment company, the real estate agents and brokers involved in this transaction are not liable for the failure of the lenders to approve the short sale or the Sellers’ failure to close the loan. We are good at what we do, but we do not have control of every lender or distressed seller. All we can do is THE VERY BEST we can do…and that is what we do! Thank-you in advance for your help and cooperation.

5. Our goal is to close this escrow in the shortest possible period of time with the least amount of trauma and drama to all. With your cooperation, we will work together toward a GREAT DEAL for your buyer and a mutually beneficial outcome for all.

Thank you in advance for your help and cooperation. Buyer Acknowledges Receipt By Signing Below:

Disclosure of Short Sale Issues to Buyer REFERENCED PROPERTY: When making an offer to purchase property, Buyer may be asked by Seller to execute a contract that must be approved by Seller's lender(s) or other third party. Such a condition may indicate that a "Short Sale" circumstance exists. A Short Sale occurs when (i) the purchase price of a property is not sufficient to satisfy all liens encumbering the property and to pay for seller's costs of sale, including real estate commission, and (ii) due to hardship or financial inability the seller is unable to pay the balance of such liens or costs. In such circumstance: 1. You may not simply "walk away" from an executed contract that is subject to lender or third-party approval. You will become obligated to perform under the terms of the contract from the date of execution until the lender or third party disapproves the contract, or until other event covered by the terms of the contract occurs permitting either seller or buyer to terminate. 2. The lender or third party is under no obligation to consider, respond to, approve or disapprove the contract within any specified period of time. 3. It is possible the lender may elect not to approve the contracted sale, in which case you will not be able to buy the property at the listing or contract price. 4. At the time the seller enters into a contract with you, the seller may not have been informed by the lender: a. what an acceptable purchase price might be, or b. that the lender would participate in or consider a potential Short Sale offer. Receipt of the above disclosure is hereby acknowledged. Buyer

Date

Buyer

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Buyer Agent(s)

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Short Sale Offer Purchase & Disclosure Addendum Property Address: Buyer(s): Purchase Price: 1. Financing:

Offer Date: BUYER MUST PROVIDE PROOF OF ABILITY TO PURCHASE VIA LENDER PRE-

QUALIFICATION LETTER OR CERTIFIED BANK STATEMENT. If buyer is obtaining a mortgage, mortgage pre-approval letter and loan officer contact information will be attached to this addendum. If Buyer is unable (or unwilling) to perform, for any reason, then the earnest money shall be forfeited to Seller as liquidated damages. Buyer will make application for financing within three (3) business days of the date of this Addendum and will, in a timely manner, furnish all financial data to their lender that their lender may require. The loan commitment must be obtained within ten (10) calendar days after application has been made. If written loan commitment is not obtained this contract may be terminated by Seller. In the event Buyer is denied, Buyer will reapply (if requested to do so by Seller) to a financial institution of Seller's choice or of Buyer's choice with Seller approval. Seller also has the option but not the obligation of substituting itself as an alternative financing source upon first loan denial. The loan commitment must be obtained within ten (10) calendar days after the second application has been made. If written loan commitment is not timely obtained, Seller shall have the right to terminate this Agreement and retain the earnest money as liquidated damages. 2. Third Party Approvals: All offers are contingent on Seller's third-party approval(s), which include all recorded lien holders and parties with recorded interest in property. 3. Acknowledgement by Buyer: Buyer acknowledges that the Lender is not a party to the Contract and therefore is not obligated to approve the Contract. Buyer further acknowledges that Seller and Broker are not liable for delays caused by Lender, failure of the Lender to approve the Contract, failure of the Lender to complete the Short Sale after approving the Contract or any costs and expenses (such as payments for loan applications, inspections, and appraisals) associated with the delays or Lender's failure to approve the Contract or complete the Short Sale after approving the Contract. 4. Multiple Offers: Unless otherwise agreed by Buyer and Seller in writing, Seller may continue to market the Property for sale and accept other offers and submit those accepted offers to the Lender. 5. Buyer Credits. Many lenders will not approve a buyer's credit towards closing costs but the SELLER maybe able to make some allowances depending on property or Buyer circumstances. Offers requiring credit to buyers for financial assistance are deemed as less qualified by the lender and Seller so they may decide, at

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its option, to accept a lower offer without buyer credits. Offers requiring 100% financing, FHA/VA financing, down payment assistance and/or credit for closing costs are less likely to be accepted. 6. Proof of Funds: Proof of Funds for down payment (bank or brokerage account statement, letter from banker or CPA verifying deposits) due upon Binding Agreement Date. Earnest Money shall be delivered to ________________________________________________________________________within 48 hours of receipt of addendum via electronic or facsimile transmission. 7. Timeframe: A minimum of 20-30 days is required for a response to all offers. DO NOT SUBMIT AN OFFER IF YOU CANNOT WAIT AT LEAST 20 DAYS. 8.

“AS IS” Sale Notice: Property is offered "As-Is". Offer should be on "As-Is" contract or use "As-Is" addendum. Offer has no inspection contingency. Offer may include a “First Right of Refusal” clause.

9. Utilities: Seller is unable or may become unable to maintain the property, including utilities. If Buyer wishes to conduct inspections and utilities have been disconnected, Buyer may, at Buyer's cost, turn on and pay for such utility services. 10. Rights of Assignment: All offers must be closed in the name of the Buyer(s) on the contract. Contract is not assignable. and/or its subsidiaries are a Principal in

11. Disclosure: Buyer understands that

and

this transaction and all parties understand that some members and employees of its subsidiaries are also licensed real estate agents.

12. Earnest Money: SHOULD THIS OFFER BE ACCEPTED AS THE PRIMARY CONTRACT FOR THIS PROPERTY, all parties understand that this transaction is a short sale process. The short sale process depends

on

the

lenders

successfully

negotiating

a

net

price

with

a

3rd

party

(__________________________ and/or its subsidiaries) contracted with the Sellers for the management and execution of sale of the property. The lenders must accept less than they are owed on the property and they have to approve the short sale in writing before it can close! While our goal is 60 days or less to close, all parties acknowledge their understanding that the short sale process may take 90 days or longer, depending on the situation and the lender’s case load. All parties hereby agree to remain in said escrow for a minimum of 60 days or until either close of escrow, foreclosure or written approval occur, whichever comes first. Earnest Money must be a minimum of $1,000.00 and held in escrow at ____________________________________________________________.

Should buyers choose to

forfeit prior to that 60 day timeframe, their deposit is automatically forfeit and shall be delivered to Seller. 13. TITLE AND CLOSING. Tile will be conveyed by means of a General Warranty Deed or similar appropriate deed. Seller has already incurred costs to examine title prior to listing the property for sale. This property is in pre-foreclosure and liens on title are being negotiated by a 3rd Party. The 3rd party negotiator is working

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directly with the lender(s). Buyer and buyer’s representative agree that they will not attempt to contact any of the lien holders. This closing is contingent on a short sale approval in writing by the lien holders that is satisfactory to the seller. This contract is also contingent upon a short sale that must close to the seller's satisfaction. As a result of which, the closing, title and escrow must be handled by ________________________________________________________ the same entity handling title and escrow in the short sale. The earnest money shall be held in the trust escrow account of __________________________________. Buyer/Seller understands that the amount of time necessary to negotiate a reduction in payoff amounts from each secured lien holder is unknown, that the closing and title transfer dates stated in the offer to purchase may require an extension of time. 14. Approvals by 3rd Parties: This Contract is contingent upon: (a) the Seller's lender(s) (collectively the “Lender”) and/or other lien or equity holder(s) approval of the purchase price, terms of the Contract and the HUD-1 settlement statement (b) the Lender's agreement to accept a payoff which is less than the balance due on the loan or other indebtedness and (c) the Lender's release and satisfaction of the mortgage(s) and/or other lien(s) upon receipt of discounted payoff (d) the execution of the lender approved sale of property to _______________________________ and/or its affiliates. If Seller does not deliver written notice to Buyer that Lender has approved the purchase price and contract terms within 60 days from Effective Date (“Approval Deadline”), either party may within five (5) days thereafter cancel the Contract by delivering written notice to the other party with a return of Buyer’s Earnest Money unless otherwise specified. 15. COMMISSIONS. Commission for selling agent will be paid on sales price less any seller concessions. 16. LISTING STATUS. This listing will remain in active status in the MLS. Back up offers can be taken, in second position to this offer due to the timeline of the foreclosure process and/or in the event the buyer cannot, or does not, meet dates and deadlines. Property will be kept active on the MLS until all contingencies are removed including but not limited to seller's lender(s) written approval. 17. PROPERTY CONDITION. ______ (initial) Buyer understands that the property is offered for sale in "as is" condition and Buyer assumes full responsibility for any defects in property and/or structure. Seller will make no repairs to the Property. The Buyer acknowledges that he has made a satisfactory inspection of the property and is accepting it in its existing condition. OR ______ (initial) Inspections and appraisal will be at buyer’s cost. To avoid unnecessary costs they should not be performed until written notice is received from seller. Buyer is responsible for the costs of

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dewinterizing and winterizing at the time of inspection. Notice of at least 48-hours is required before the property is to be de-winterized by seller’s agents. Seller is not obligated to pay for any property or pest inspections; to turn on the power or water; or to pay for any appraisals or repairs. If the water service is not active, water will not be turned on for inspection. Pipes may be tested by air pressure test. Buyer’s failure to meet any of the following terms or contingencies will render this Agreement, in its entirety, null and void. In the event of conflict between this addendum and the offer to purchase contract, this addendum shall control. By signing this disclosure you acknowledge that you have READ and FULLY understand and AGREE to the statements above. Buyer Signature:

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Buyer Signature:

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Seller Signature:

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Selling Agent:

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Broker Firm: Listing Agent: Broker Firm:

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