Karen R. Spell, P.A.
1802 N. Alafaya Trail
P: (407) 306-0454 F: (407) 306-0354
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 ______No ______/ Reason:
Additional Income (not wages) $______/mo / Please explain:
ASSETS
TYPE / Estimated Value / TYPE / Estimated ValueHome / 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 / MONTHLYPAYMENT / BALANCE
DUE / ESTIMATED
VALUE / PAST
DUE
Y/N / If yes, # of months
Subject Property / First Mortgage / $ / $ / $
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
(Not Covered
By Insurance) / Doctor/Dentist
Medication
Hospital
Entertainment
Food
Support / Alimony
Child
Child Care / Day Care
Other:
Specify
TOTAL MONTHLY EXPENSES:
Borrower Signature: ______
Co-Borrower Signature: ______
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.Submitted this ______day of ______, of the year ______
By: ______Date: ______
Signature of Borrower
By: ______Date: ______
Signature of Co-Borrower
Borrower’s Comments:
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.