Short Sales Handbook

Day 1: Preparing for Success
The Basics:
What, Why, Who?

Before we hit the accelerator, let's review the basics-the what, why,
who of short sales.
What Is a Real Estate Short Sale?

In the world of real estate, a short sale refers to the sale of real property
for a sum less than the amount owed on the property. Said in different
words, a short sale is a solution for homeowners who are "upside down"
on their mortgages. If a homeowner meets a series of criteria, their
mortgage lender may agree to (short) sell the property to a qualified
buyer, accept less than the full balance due on the loan, and forgive all or
a large portion of the difference.
Upside Down
A tenn used to describe borrowers who owe more on
their loan than their property is currently worth.
A real estate short sale is based on the simple concept of a settlement.

Have you ever allowed someone to repay you less than the full amount
he or she owes? Maybe after you hear the person's honest explanation,
you realize that something is better than nothing. So, you settle: 'Just
give me twenty bucks, and we'll call it even." This is the concept behind
a short sale.
Real estate short sales are typically initiated to help homeowners or
property owners in financial distress avoid foreclosure. Let's look at
where short sales fall along the foreclosure timeline.
7 Days to Success with Short Sales
The Foreclosure Timeline
If the seller
An insolvent
cannot reinstate
property owner
the loan and has
receives notice
not sold the
from their lender
property to repay
that they are in
the debt, the
default of their
lender will initiate
loan and havce a
certain number of ; the 1~<>aI
I
foreclosure
days (typicaly 30
to 45) to cure the
process and set a
date to sell the
default. If the
property at public
property owner
must sell and can
auction. The
demonstrate a
property and title
will. pass to d,e
hardship, the
highest bidder.
lender may agree
to (short) sell the
property to a
qualified buyer
for a discounted
loan payoff
i
i
Foreclosed
property not sold
at auction
becomes real
estate owned
(REO) by the
lender. Because
this property is a
liability (versus an
asset) to the
lender, they are
ea"er to sell the
property and dear
it from their
balance sheets.
They will often
hire REO sales
agents to list an.d
sell the properties
for them.
"
amOlillt.
Note: Foreclosure procedures vary from state to state and ate governed
by state laws and statutes. Take time to get educated about the process
in your state.
Legal foreclosure is a costly and risky process that both sellers and
lenders typicaly wish to avoid. For this reason, it makes good economic
sense to pursue other options when it is cleat that full repayment of the
debt is an impossibility. So, as one strategy to mitigate their losses, banks
will often accept a short sale settlement for less than what is still owed
on the note.
Why Are We Hearing So Much About

Short Sales Now?
While the real estate short sale transaction has been around for decades,
the current foreclosure crisis in America has brought new attention to
the strategy. In 2008, approximately one million homes were lost to
foreclosure. Distressed properties (short sales and foreclosures) comprised nearly 40% of all U.S. home sales. Looking at 2009, the Federal
Reserve estimates that lenders will likely initiate 2.25 million foreclosures
this year. This doubles the number of foreclosures seen before the crisis.
In addition, other 2009 estimates suggest that as many as 15% to 20% of
all mortgages are "under water."
Under water
A term used to describe an asset (such as real
estate) that is currently worth less than the
outstanding balance on the loan it originally secured.
like no other time in real estate history, mortgage lenders are willing to
consider short sales as an alternative to foreclosure and a way to mitigate
their mounting losses. Banks are becoming increasingly convinced that
their tactics of yesteryear will not work in today's troubled times.
Mortgagors once used the mere threat of foreclosure to motivate
homeowners to comply with the terms of their loans. A simple letter
hinting at foreclosure was all that was needed to send most homeowners
scrambling for cash. In panic mode, they would beg, borrow, or even
steal to keep their homes and protect their credit.
No more.
Unprecedented numbers of homeowners today are in so much debt and

hardship that they are numb to threats of home foreclosure, repossession, or negative credit reporting. Millions of homes are under water and
their homeowners are drowning fast. These are the people who need
short sales the most.
Who Really Benefits from a Short Sale?

Now, let me say that I believe in finding ways to help homeowners keep
their homes if this is what they desire. Home retention is always the first
option I discuss with prospective clients. In fact, this is the philosophy
underpinning the Obama Administration's homeowner affordability and
stability initiatives. These plans focus on strategies to help homeowners
retain possesslon of their primary residence-low-cost refinancing, loan
modifications, and low mort"oage rates. For eligible individuals, the
banks are offering inaedible deals-such as mortgage payments down
to 31% to 38% of the individual's gross monthly income. J[ see it as my
responsibility to encourage homeowners to exhaust these options, if
keeping their home is what they desire and if it feasible for th= to do
'So.
UnifoJrtunately, a large number of the homeovmers facing foreclosure
have hardships that leave them no altematiV'e but to liquidate their
properties--divorce, death of a spouse, medkal illness, job los'S, job
transfer, and other challenges. These are homeowners who must sell. As
you will learn, pre-qualification is an essential step to determine if
homeowners desire and are in a position to stay in their homes or if they
are forced to sell. The latter become my short sale clients.
The short sale is clearly a win for these distressed homeowners. But
more than this, the short sale is a true win-win solution for all parties.
Ii:] Homeowners Win!-Homeowners are able to sell their property

and avoid foreclosure.
Ii:] Buyers Win!-Buyers are able to acquire a property at a good

pnce.
Ii:] Lenders Win!-Lenders mitigate their loss by getting the majority

of their money back on a loan that is facing default.
Real Estate Agents Win!-Agents are able to earn a commission
for their role in the sale of the property.
~'"
':"'';Y
"c.
Sh()hSal~~
<' .: ,,",,"::::,,'i
. J1.r~~
Win.;Win!
Lenders are willing to settle with a short sale because the alternatives for
them are to
Incur the cost of eviction and repossession
Carty the cost of the property during the foreclosure

process
Incur the expense of repairs and improvements in order to

make the property marketable
In addition, because the short sale helps stop foreclosures before they
happen, this solution ultimately helps the economy and the real estate
market. Studies suggest that just one foreclosure in a neighborhood can
result in an additional drop of approximately 9% in property value and

home equity for neighboring homes. When you get into the short sale
business, you are helping to prevent foreclosures that can further
depress home values in your market.
Clearly, the short sale is a win-win for all parties involved. Let's dig
down further into the opportunity short sales offer real estate agents.
Notes
Owner owes more than

house is worth
Seller submits a Short

Sale Package to Lender
A Buyer makes an offer

that is less than the
mortgage (market value)
Lender approves or
denys
Seller aceepts offer /

offer is contingent on
Lender's approval
If approved, the sale

may proceed
29
Overview of
the Short Sale Process
The gJ'eat thing I have discovered about short sales is that they are
basically all the same in their structure. They progJ'ess in a linear fashion.
They are predictable. This also means that they can be monotonous. For
this very reason, many agents working short sales quickly become bored
with them. But, to me and to many others, the fact that short sales are
structured and routine is a supreme blessing.
When it comes to work, I am highly project- and task-oriented. I like to
begin a project, work it, finish it, and check it off. That's the way I
approach real estate, and that's what attracts me so much to short sales.
Because you will be following the same steps over and over, you can, in
time, absolutely master the art of short selling-and create your own
success.
"I neClr of ClgeV\,ts wno stvvcggle ClloV\,g wLtn CI SOfa

svcc,c,ess vClte wLtn snort sCiles. M!::J svcc,c,ess rCite Ls
ovev35'[0. TViLs c,oV1A.es wLtn V1A.Clstev!::J' bvct Lt Ls Cllso
CI C{Lvec,t vesvclt of tne s!::JsteV1A. tnClt 1follow."
30
Steps in the Short Sale Process

In the days that follow in 7 Dqys to Success with Short Sales, we will look at
each step in the short sale process in careful detail. We'll move along the
flow of the process model below.
The Short Sale Process
Notice that Steps 1 tlttough 5 are perfo=ed by the short sale agent.
Then, as the seller's lender is completing Steps 6 tlttough 9 with the
short sale file, the agent is running parallel with their own set of tasks.
Then, both sides close the file and get paid in Step 10.
1.
2.
3.
Bank acknowledges receipt of the file. This can take 10 days to a month
A negotiator is assigned. This can take 30 to 60 days.

A BPO is ordered. The bank probably will refuse to share the results of the
BPO.
A second negotiator may be assigned. This can take another 30 days
The file is sent for review or to the PSA. This can take 2 weeks to 30 days.
The bank may then request that all parties sign an Arm's-Length Affidavit.
The bank issues a short sale approval letter.
After all this, the Buyer may still decide to cancel
22
2. Administrative and Organizational Skills

Any agent who aims to master short sales must be organizedsupremely organized. Gathering the information and documentation for
the short sale package requires administrative skills and great efficiency.
One of the goals of the 7 Dqys to Success with Short Sales program is to
teach you how to build a volume business that runs like a well-oiled
machine. In these 7 Days, you will learn how to implement a proven
short sale system and leverage tools for greater efficiency.
In addition., short sale transactions carry more liability. The environment
is more litigious. Strong administrative and organizatiollill skills will help

you stay on top of the process and avoid potential legal challenges.
I often share with people that short sale processing is a lot like
processing a health disability claim. Insurance companies demand
thorough documentation to justify paying on a disability claim. "Who
are you? How did nhe injury occur? "What steps did you take to prevent
injury? "What is the extent of the injury? ... " And in many cases, there is
back-anel-forth negotiation about what must occur if the claim is
awarded---the terms of the payout, which physicians you will see, the
rehabilitation plan, and so forth.
When we say you must have administrative and organizational skills,
imagine that you'll be working with individuals who think and operate
much like these disability claims officers.
3. Negotiating Skills, Patience, and Tenadty

Processing short sales requires negotiaring skills, patience, and tenacity.
Once the short sale package has been submitted to the lender for
approval, there are many steps that must be managed. As a short sale
specialist, you will need to demonstrate an in-depth knowledge of these
steps. You will need to know this stuff as well as (or better than) the loss
mitigators working at the banks. The more you know, the better you will
be at negotiating the details and getting more files approved.
23
As you already know, short sales typically run on a longer timeline than
other real estate sales transactions. Sometimes, it feels like the plan is to
"hurry up and wait." The short sale process can take from as little as
three weeks to several months. I have had some take a year! Patience is a
virtue and a requirement for the successful short sale agent.
As you will learn, short sales require the ability to stick to it. Many agents
give up on short sales because they don't have the perseverance or the
patience. What they lack is a system to help them manage the details and
streamline the processing activities. Once these are in place, short sales
are more than worth the effort!
~-------(l--------~
Do you possess these critical skills?
The good news is that you don't have to take on all
short sales tasks by yourself. There are a number of
ways to run a short sale business.
34
Welcome to Day 2
Welcome to Day 2 of 1 Days to Success with Short Sales! In this chapter, we
begin the process.
As you will learn, Step 1: Pre-Qualify the Prospect is the most

important step in the process. If you thoroughly and diligently prequalify your prospective short sellers using the system we teach you,
everything else will fall into place. In other words, your success is
determined by this step.
You will learn about the four key criteria that determine a seller's
eligibility and how lenders view the qualification process. In addition,
Day 2: Pre-Qualifyingthe Short Sale Prospect
35
since government-insured loans are handled a bit differendy, we'll spend

time discussing how to qualify sellers with those loans.
Your best support tool in this step of the process is the Short Sale PreQualification Questionnaire. This document will save you time up front
and potential hassles that could develop later. We'll walk through how to
use this questionnaire during the interview with your prospect. In Day 2,
you will also find tons of scripts you can use with homeowners to help
them understand the process and to demonstrate your knowledge and
your compassion for the situation.
Notes
36
Start the Process with

Careful Pre-Qualification
The first and most important step in the short sale process is to prequalify your prospect. This initial interview will tell you whether or not
the prospective seller will qualify for a short sale. As you will learn as
you work towards mastery of short selling, this is the step in the process
that will determine your success.
Where 00 You Find Short Sale Prospects?

For this chapter, we are going to assume that you have identified at least
one prospect :md you are ready to learn how to pre-qualify them for a
short sale. However, you may be asking, ''Where do I find short sale
prospects?"
Lead generation is critical to any business, and the short sale business is
no different. Becoming a skilled lead generator is necessary for the
success of a short sale ",,<>ent. For this reason, we have devoted an entire
Bonus section of 7 Days to Success with Short Sales to the subject of
building your business through lead generation and team growth..
At this point in your learning, howeveil:, lead generation is not the first
priority. Your first goal should be to get educated about the steps in the
short sale process. Once you feel confident about your ability to follow
the process and successfully work two or three deals through to
approval and closing, you can develop a marketing strategy that works
for you.
Day 2: Pre-Quafifying the Short Sale Prospect
37
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vefevvClLs fVOViA 20 eiLffeveV\,t ClgeV\,ts wc,n uwv.
ThClt's iOO snort sClLes cl Uwv!"
The Purpose of Pre-Qualification

Pre-qualification means that you will be screening your seller prospect
against a series of criteria to determine if they will likely qualify in the
lender's eyes for a short sale of their home. We refer to this step as "prequalification," since it is the lender's role to actually "qualify" the seller
or not.
The pre-qualification step is the most important step in the short sale
process because it determines your success or failure. With a 20-minute
phone call, you will know with a 90% degree of certainty whether your
seller is a solid candidate for a lender's short sale program. It is
important to note that, in this step, success is defined as an approval,
not a closing. A closing is different; other factors are involved in closing
a file.
When I was less experienced with short selling, my pre-qualification step

was more like a hope and a prayer! I was not always certain about the
outcome for my sellers. Now, we are so confident about our 7 Day
Systems pre-qualification process that if a lender denies one of our short
sale proposals, the next step is to investigate and possibly even dispute.
In most cases, the loss mitigator has missed something or there has been
38
a miscommunication or an oversight. This is particularly true for short

sales involving government-insured FHA mort"o-ages (see "FHA Short
Sales" later in this chapter).
Notes
Day 2: Pre-Qualifying the Short Sale Prospect
39
The Four Most Important

Short Sale Qualification
Criteria
Lenders require that homeowners meet the following four criteria in
order to be considered for a pre-foreclosure short sale:
1.
The homeowner must be experiencing a hatdship.
2.
The homeowner must owe more than the home is worth.
3.
The homeowner must be in arreats (past due) on their

mortgage account.
4.
The homeowner must be able to show that they can no

longer afford the property or afford to bring money to
closing. They must be financially insolvent.
Typically, if your seller meets all four criteria, the short sale proposal will
be straightforwatd, and you should experience a greater than 90%
success rate for getting these short sales approved, provided that your
short sale proposal package is prepated and presented correctly.
When interviewing a prospective short seller, it is best to use an
interview questionnaire-such as the one offered by 7 Day Systems-to
sequence your questions and gather the most relevant information.
Before we discuss how to use this pre-qualification questionnaire,
however, let's review the four qualification criteria in greater detail so
that you will understand what you are listening for in the interview.
40
Criteria #1: Hardship

Hardship is typically something beyond a person's control, an external
situation causing a person to no longer be able to meet an obligation.
While tbere are several reasons a homeowner might experience a
hardship, tbe following are tbe most common.
1. Loss of Income
..
Loss of job
..
Temporarily out of work for any reason
II
Wages cut
..
New job tbat pays less
1. Increased Expenses
III
Mort"oage payment increases
III
Property tax increases
III
Family emergency
III
Additional family members in household (new baby,

parents, in-laws)
l1li
Overextended credit; high minimum payments
..
Other unforeseen expellSes
3. Medical Problems
II
Medical bills
..
Medical condition resulting in decreased income
..
Medical condition preventing homeowner from living

alone/unassisted
..
Mental healtb issues
41
4. Death in the family
Death of a spouse or other family member-typically,

results in loss of income and/or increased expenses
5. Divorce/Absolved Relationship
Division of marital home
Forced move/sale
Loss of income
Increased expenses
6. Job Transfer
Forced move/sale
Criteria #2: The Homeowner Is Upside Down

In order to qualify for a short sale, a homeowner must owe more than
their home is currently worth. A homeowner must be facing "negative
equity."
Early in my career, I listed a property for a homeowner who was in
financial distress and behind on their mort,,<>age payments. I worked
through the steps in the short sale process-only to discover that the
homeowner was not "short"! In other words, the homeowner was
indeed experiencing hardship and facing foreclosure, but they had equity
in their home. They could sell their home and make money on the sale.
They did not qualify for a short sale. It was a tough but important early
learning lesson for me!
42
Negative Equity
A term used to describe the situation in which the
outstanding balance of a loan is greater than the
current value of the asset originally
used to secure the loan,
For example, if you owe $15,000 on your car loan, but
your car is currently worth only $10,000, you have
$5,000 of negative equity,
Properties with negative equity are said to be
"under water," Borrowers with negative equity are
said to be "upside down,"
The Seven Most Common Reasons a Seller Is Upside Down

(or Has Negative Equity in their Home)
Negative home equity can ~esult from several different factors, The
follo"",-ing are the most common :reasons:
1,
Person bought at the height of the market and the market

illts now declined,
2.
Person paid more than the property was worth,
3.
The area has become less desirable for any number of

reasons, so property values illtve declined.
4.
Person purchased the home 'with little or no money down

and wants to sell within a few years of purchase, and the
property value has not increased during that time,
Therefore, the costs associated with selling the property
may create a balance due at closing,
5.
Person refinanced the home (with a high appraisal value)

or took out a home equity loan and now has little or no
equity,
6.
Person bought in a very new subdivision or recently

developed area has not appreciated (or has depreciated) in
value,
7.
43
The market is soft because there is too much builder (new

home) inventory or too many existing homes on the
market (buyer's market).
How to Confirm that the Homeowner Is Upside Down

Initially, during the pre-qualification interview, you are really just taking
the homeowner's word for what they own on the loan. To move
forward with the short sale, however, it is essential for you to verify
what the homeowner actually owes on their mortgage so that you can
confirm that they are upside down and how many months in arrears
their account is.
The best thing to do is to order a payoff statement from

their lender as soon as you take the listing.
Ask the homeowner for a copy of their most recent

mortgage statement, since this will also be very revealing.
Do a comparative market analysis (CMA) on homes in the

area to detertnine selling price.
Run an estimated net sheet (HUD-l Settlement Statement)

to account for all costs of selling the property. If the
homeowner doesn't at least break even after paying all
seller closing costs, they are short.
It is important to note that if the homeowner owes exactly what the
home is worth, they are still short-for example, if they owe $250,000
and their home is currently worth $250,000, they are still technically
upside down because closing costs will cause them to fall short.
If you detertnine that the homeowner is not actually upside down on
their mortgage, you don't have a short sale client, but you still have a
new listing and now you know how to proceed!
44
Criteria #3: The Homeowner Is in Default

Most banks are looking for a homeowner to be in default on their
mortgage before they will consider doing a short sale. If the homeowner
is 60 days or more in arrears, banks typically operate with a greater sense
of urgency in processing the short sale.
Interestingly, being in default is not a hard and fast qualification
criterion. I have successfully negotiated many short sales for
homeowners who were not behind on their mortgage payments-not
yet, anyway. For example, maybe these homeowners are dipping into
their savings accounts or getting their family's help. If you can prove
that the homeowner has had a recent hardship and that default is
imminent, the bank may still agree to do a short sale. In my experience, I
ha",e assisted sellers who were transferred to jobs in other cities or
states, and this forced them to leave and sel:l the property.
Now, these short sale cases are much more difficult to work and can
take longer to process. The ~ender will consider these cases a much
lower priority than those with accounts that are several months in
default. The longer the account sits in default, the higher the priority the
short sale proposal will be to loss mitigators. So, it may seem tempting
to tell your clients to just stop making payments, go into default, and get
the attention of the loss mitigaror. But, remember, your job is simply to
infonn the homeowner about how the process works. They will need to
make their own decisions and weigh out the importance they place on
preserving their credit or on short selling their home in a timely fashion.
Short Sale Agent: "Well, you know, Raymond,

these lenders are dealing with several hundred
short sale files. They have to assign a priority to
each. The files that are not in default (and the
ones that are only a few months behind on
payments) will get a lower priority.
45
The lender wants you to keep making your

payments because they want to mitigate their
losses. That's their job. But the reality is that
when you make your payments, you are preserving
your credit-but you're not helping your situation.
You're probably hurting it. You may be making
payments, but you are likely not bringing down
the principal on your loan, so you will still owe
more than the value of your home in this current
market.
You will need to weigh out these choices for
yourself. I just want you to be educated about
how this all works."
Criteria # 4: The Homeowner Can't Afford

the Home
Again, initially, you will be taking the prospective short seller's word for
it that they are financially insolvent. But, as you move forward in the
short sale process, the Personal Financial Statement you ask them to
prepare will establish whether or not they can afford to keep the home.
In this document, homeowners will list their income and their expenses.
When the lender reviews the Personal Financial Statement, they will look
to see whether or not the homeowner's expenses exceed their income.
In addition, the homeowner must provide information on their other
assets--checking and savings accounts, retirement and investment
accounts, and so forth. This information will establish whether or not
the seller has funds to bring to closing.
46
Short Sale Qualification

from the Lender's
Perspective
Many real estate agents who decide to pursue the short sale market
segment are surprised and frustrated to learn that each and every lender
has their own info=ation requirements for short sales! Each lender will
ask you to complete and submit a package of info=ation to
demonstrate your client's candidacy for a short sale. If there are fifty
lenders in the game, there will be fifty different short sale packages.
Some short sale training systems advise you to call or to visit the website
of each individual lender's loss mitigation department to request their
unique short sale package. We have a berter wayl
The beauty of the 7 DtlYs to Success with Short Sales system is that I have
suocessfully incorporated all of the various lender requir=ents into one
comprehensive short sale package. "More is better" is my motto. "When
you begin using this comprehensive package, you will understand that, in
some cases, you may be submitting slightly more info=ation than a
particular lender requires-but it will never be less. For example, the
Personal Financial Statement format that I have developed and that I
ask my clients to complete is more detailed than that required by some
lenders, but this ensures that you won't have information gaps and
oversights.
Day 2: Pre-Qua1ifying the 5hort Sale Prospect
47
"I elttrU)!,{te VV\,!,{c,h of vv\,u s!,{c,c,fSS to the

c,ovv\'-preheves~ve shorr sClle s!,{bvv\'~ss~ove -PClc,RClge 1
hClve olevelo-peol. Less thelve i~ of the leveolers 1olenl
w~th ever ~ves~st ove the~r !,(ve~q!,{e shorr selle
-PClc,Relge vers!,{s vv\'~vee! 1 l~Re those oolols."
Most short sale packages contain more than 50 pages of information

about the homeowner's situation. The essential elements of the
submission package include:
Hardship Letter
listing Agreement
Letter of Authorization
Financial Statement
Recent Bank Statement(s)
Recent Paycheck Stub(s)
Fully Executed Purchase Contract on the Property
Buyer's Pre-Approval Letter from their Lender
HUD-l Settlement Statement (also called HUD-l

Estimated Net Sheet)
Comparative Market Analysis (CMA) (optional)
48
FHA Short Sales

The process for handling government-insured mortgage loans is unique
enough in the short sale business that it deserves additional explanation.
In 1994, the Department of Housing and Urban Development (HUD)
introduced the Pre-Foreclosure Sale (PFS) Program. The pw:pose of this

program is to help homeowners with FHA loans-that is, loans insured
by the Federal Housing Authority (FHA)-to avoid foreclosure and find
a way to transition to more affordable housing.
Before 2000, all FHA loans in default were mitigated through HUD. In
early 2000, HUD decided to pass the responsibility of loss mitigation on.
to the individual HUD-appro"ed lenders (mortgagees). HUD began to
train and encourllcge these lenders to offer sellers facing foreclosure the
PFS Program as a loss mitigation option. Historically, banks have often
opted to foreclose on properties-even when a short sale would offer a
better option for the homeowner, buyers, and community---"because of
the complexity and time involved in the short sale process. So, to
incentivize both sides of the transaction, HUD began offering $1,000
per file to loan servicers for each completed short sale and a $750 to
$1,000 incentive per transaction to homeown.ers. (As a sidebar, the
problem with this model is that the incentive is given to the loan
servicing company (the bank), not to the individual loss mitigato:tS
processing the files. So, the historical challen.ge and the bottleneck at the
loss mitigator levd remains.)
In February of 2009, the Obama Administration released the Making
Home Mfordable (MHA) program to offer assistance to an estimated 7

to 9 million homeowners by reducing mortgage payments and preventing avoidable foreclosures. The Foreclosure Alternatives portion of the
MHA program is meant to help prevent costly foreclosures by providing
incentives for HUD-approved lenders and for borrowers to pursue
short sales and deeds-in-lieu-of foreclosure. Under this program, lenders
may receive up to $1,000 per completed short sale file, and borrowers
may recetve up to $1,500

expenses.
ill
49
compensation to assist with relocation
Deed-in-Lieu (OIL) of Foreclosure

Term used when a borrower voluntarily transfers all
ownership and interest of a property back to the
lender (mortgagee) in order to satisfy the
loan that is in default.
Dealing with FHA short sales, for me, is particularly rewarding because
they follow some very specific and documented criteria-whereas
conventional loans are not as standardized. For this reason, FHA short
sales are much easier for me to pre-qualify.
Rules, Guidelines, and Criteria that Differentiate FHA Loans

The following are the rules, guidelines, and criteria (as published in the
FHA Guidelines revised in December 2008) that differentiate short sales
with FHA loans from those with conventional loans:
1.
The loan must be in default. At the time the short sale is

closed, the loan must be in default (which HUD defines as
delinquent more than 30 days). Lenders may exercise their
discretion to accept applications from borrowers who are
facing imminent default (and who are not yet in default),
but by the time the short sale is completed, the loan must
be in default.
2.
The seller must occupy the property as a primary

residence. HUD does authorize lenders to grant
reasonable exceptions to non-occupant borrowers when it
can be verified that the need to vacate was related to the
cause of the default (e.g., job loss, transfer, divorce, death).
3.
The property cannot be used as a rental for more than

18 months immediately preceding the short sale
approval.
50
4.
Seller must complete an Application to Participate

HUn Form 90036. This form is available from HUD's
website at www.hud.gov or at www.sevendaysystems.com.
5.
You (the listing agent) will receive from the lender an

Approval to Participate HUn Form 90045 when they
have approved the short sale file. This document will spell
out the details of the approval.
6.
The seller will be paid a consideration fee of $750 to

$1,000 from HUD for a successfully completed short sale.
This amount is typically paid at dosing. This incentive is
designed to keep the seller motivated and to reward them
for completing the process. In reality, however, much of
this incentive will likely go toward any closing costs that
HUD won't pay (e.g., unpaid HOA dues). So, the seller
may see very little, if any, of this incentive.
Day 2: Pre-Qualifyingthe Short Sale prospect
Application to Participate
Pre-foreclosure Sale Procedure
~,
51
OMS App",vo] No. \'S0Il041l4
u. S. Department of HDII5ing
an.d Urban Development
(.,.".O7'l:l1~009)
Office of HOWling
Fedaral Housil,S Commissioner
Public r.pCIrling burdo~ for Ill;> colloctlon oIl"lo~ Is _llIIId \CI """rogt':;O "I"utlli po< ""'pon.., inOWdlo; tho limo I",. ' .... ~II1III"oItucIIo" .. ~ ... "'"Ing
~D&O~~~:"~':'I~r=:.~~':O~~~';,'iOCl, ~:.o:="ga~=.In"g":.~~I"" ofal~~~~~":; ~':'~~0CI10 obl4l 1
~:'=~llr:~~
:~=~::I;':
~I
-,
Privacy Act SI4IO"'Ont.

Marne,dod. TM Houoiog
... d . . . bool.todOlO",,1
tionto FciOolUl. Stato,..-.d
OUlOldoOT HUD, """"pi""
~I
Approval to Participate
Pre-foreclosure Sale Procedure
Property Sales Information
Property OCl:Ilpancy & Maintenance
U. S. Department of Housing
and Urban Development
OMBAJ>PfIW'IlNo.2S0:2..1)464
(""1'~7.'31120(t9)
Offic:eofHousing
F<!d=l H""slnlt Commi"iooO\"
l'ublit ... pomnt burdon fur Ihl~ conttion ofinftmnooon;' cstimoo:d 1<1 .\'Crogo 9 minu1C$ p",. rooponoo. ",eluding the IOn<: for
"",'ewing i,,_.!ian., """"'hleg ~~l'''''g dam ""om"" S'lth""ns ond mnlntai"",s the d:tt.a~ ond oompleting ond n:vi.win;; tho cotl""'lon of
inform.ti"", Thi. ",ronnotion 1~t1::qnired "'obuill benefllS. HUD may 110(00110<:1 this Infoanation, ""d you an> not,.,,<;IlitOO to compleJO this
f<>nll. unl= it di,;ploy. a oum::n~ ""tid OMS 0<llUrQl1!\llJl\><:r.
Section. 2()4 of\he Nu1ioo.al li....rng Act!i.llthori:-:<.~", S=Iory 10 p"y OIl I""""",co doim !hot hridg<o<!b. gop botweon the folt market
proeotlk from lb. ffUD-aJlpf<Wod lhird l"'Itf;ol. ofa p"'porty. n", ""'P<>Od",,!'. maybe [""d... (fl1<)J"\(:'Igo!O")' """1<>10'" umI
I)OIl\O<lI\.U',.. wlto Ole otternpt",<: 10..,lllhoit propolll.. priort" fcreel",=- nePrivn<:y ACt of 1974 "lodge!; ... =oes of >nii.denOOlity to"'<p"ndoOl>. HUD S,,,,,,,,,lly disci","", tlli. dlila"nly;" 1<:>1"''''"' to aFm>lem oflnfonnation. roqui1:'t.
''lIl''''
-,
Homoownor. Nom.:
ControINurnb<r.1 FHA CnooN.."ber:
lOa\<;:
F'11o'O:i"',lud roo.OO<Iol
(dayt<mol
[k.oo"""""ijO'''"Pl'Mm
DYasONo
~,
~a:Ii)~CO bolow. pta.

Usa other sid. fot contin
Homeol"Rer(5):
Ple:as~ R~lld
TbisInfontlQtlQn CQrdnDy.
Appro''al to P~rtId\HIte
other COSts nonmtUy paid by the buyer. you must pay for these
Y<lut ;p!<=nl'iI w participule in the HUD Pro--fon:~IOS\1n) Il);Pemle:s.. You must also pay promli:d real estate laxes and
Sale prooedure bas b= npproved. By sij;rlingthls furm and
assessments lit closi~!l. Yonr mo~ c:J.1l cx:plain wbich saI<:s
remming to die above referenced mortgage\: wil1tin 7 da)'li. y<l~
COsts mQy be deducted from HUD's silo proceeds.
agreeing to olbide by the foJlowing COnditi<lDS of lheprogrnm.
Relocation Services
Property Sal~. Jnformation
A ",location ~ a.lIiliatc:d with your employer rnay
"The property mw.11x: lis1ed f<lts:!le with n llcen.'ed
contribute a flXcd sum towards the proceeds of the PFS, without
R""IIPI unrelated to you within 7 dny~ ofyoUl' receipt "fthis
altering dlcann's length naturcofthcsnlc. This contribution
letI~r for a list price ~l ,>r n= $ _ _ _ which i~ the 'AS IS~
simply reduc.m the shortfuU be!W= th~ proceeds and W
vulue indicated on th~ upproisaJ <lfY<lnr proper!)'. The listi.og
amount ow~'Ii On the motlgngc nolC. As with any other PFS,
BgrecIllCIlt must include the foU""ing "Pedfic ""n<::cllation
such a =attion must result in. the outright sale of die property
clullS(: in the event die terms of n ""l~ arc ooucccptlblc to
Qod c:mcellution of the FHA mortg:Igc ins=e.
HUO: ~Sel1er mny cancel this ngremnmt prior to the ending daw
Occupancy and Property MIIlnterumc:e
ofth<: listing JlI'riod without udvan~ no~ce to the broker, and
You are responsible for property rnaullenanre and
\\'ithout payment ofa commission or any other coosidcrJtion If
repair umil olosing. This indudes but is nOllimili:d to cutting
th~ propcrt)' is conveyed to the martgage insuJcr or the mortgage
the gross, IlIlOW removal. n:gular interior and exterior cle:rning,
holder." The sale completion is subjectto upprovtll (under HUD
imm<'<llate repair ofbmken doors;md windows. and p:lying
guidelines) by the mtll"tg:tgec.
utility bills as tb~ become dU1:. If the property is \'aCantor
'(<lut d=itin~ to (lbtain a signed Contr:lct ofSlllc from
bocomes vacnm: during markctiJlg, you mWll inform your
a qu:tlifi~d beyctV;
If you !)ave not been oble
mortga.gct: immediately and ensW"t: that the property is protIletcd
!(l obtain an :lCcept;lhle con!t;lct by that date, yoormortg:lgee
from fte=ze d:imDge by "winteri:ciog' plumbing pipes. You may
must recommence foreclO;<llI"<: or accept a deed.ill.lieu of
nmmge with yoor :Sal~ agellt!(l provide property ll1.Iliolen;mo:
foreclosure.
but you will continue !(l oe responsible forthe cottdition oftbe
Acceptable Term. ofSal~
b(}mc until it is sold. Onmage;md repai:r <:lqlenses resulting
Program crileria require that "!leI" amount payable to
from fire. flood Or other natnml ~a= must be reported
HUD as a result of this sile. after nllow:tble expcn:<cs "ill be ~
imm<'<liatoly to tbe insurance company and to your mortgagee.
1= $
,(ou must ""hmit yoor proposed
Borrower's lDcentive Compl!llSlItIoo
Ccmtrm:\ ofSal~ far approval to the MortS:tSce Cont:lct nmtl~d
If you mlcces.rul1y cl05e a sole of your home under this
above. The sile = t be an """n!m's length~ trnIlsaetion; th~ buyet
procedure. )'{)U Wlll be pnid compensation ofS750 a! dosing.
cannot be a member ofyour family, business associale, or oth<=l"
Y<IIlt C<lmp~(}n Wl11 increase to $1.000 iftbe,.,1e of yow:
favO!"Cd P"rty. No hldd<!rll.ctJ1u or special OJIdCl"Stllndings cnn c:cist propt:T!y closes on orbcforc
Yoo may clcc( to
bt,tween )'lu, die ooycr. upprai"~r. ~t"" Qgent or~ee. If
receive casll or apply rome or all of the campem!a~OIl to sales
yoo ncgoti:lle with a blIY<=l"!o P"Y for dii<COWlt points, a home
coom: nOl paid by HUO, for =pJe, discount points. or hmrn:
warranty, rep:tin< notl"llqUircd for a new mortgage, tnlnSfcr tllws or wnrruntj plans. Y(Ill m:.y also ur.e it to pay offjunior liens.
~=,;:,~1;!~
",ti,",,,,,,,,,,hmny",,"clu
.. tl>, rno.dcio~ .f)'Otlrr~
mnko "''''''''If 1")'monUl
~ there a'. any se<:ond II
w""I~lll<ol<>ooJlunc!o'tl>
(U""odditionlll.M'*' I
By~un..ppli~,""
ookn<>wIlilO obol "';;.:::':

"ddfti.",),,~=og>:;n~
~=,:i'~~f.~~
~'_I.alll,p
...r"'l.
Homoow""(.SI~",.t
Qu..tlo"" <:oo.....uru: .oilY "rtbb Informutloa, oryour respn"';;bWtleo la th~ ('r..reredos= Salel'""""dure. mm'! b. direeted til
th. eonll&ct p.,wn nI VOIn" mortg.g<. om"" nI lb. abo td.JIh<Io< ."""bet.
r"""Ht1p.<JU(I.1S(lMr.IOO3)
",C Htm.lbook4);lO.!
Approval to Participate HUD-9004S

Application to Participate HUD-90036
52
The HUD Mortgagee Letter

and How to Use It to Your Advantage
As you likely know, on an FHA loan, the government will protect all or
a large portion of the lender's investment in the loan against default.
These HUD-approved lenders, however, have a responsibility not to
lose money for the government. They have a responsibility to mitigate
loss on the government's behalf. (And, as we mentioned, these lenders
also receive financial incentives to complete short sales.)
So, to explain the Pre-Foreclosure Sale Program and encourage their
approved lenders to offer this program as a loss mitigation option, HUD
aeated a document called the Mortgagee Letter. The Mots,o-agee Letter
is written as a memo, but it is really a short training manual on how to
do a short sale from the FHA loss mitigator's perspective.
Sadly, the number of foreclosures in the U.S. now necessitates that more
lenders organize whole departments dedicated to loss mitigation. WhiJ.e
many banks are inexperienced with loss mitigation, an even greater
number of individuals serving as loss mitigators are inexperienced and
poorly trained. Most have not even read the BUD Mortgagee Lettereven tho~h it is the definitive mMlual for processing govemmentinsulOed short sales.
As an agent interested in pursing short sales, it is critical for YOU to
understand the control wielded by the Mortgagee Letter.
..
Loss mitigators processing FHA loans must comply with

the rules outlined in the Monz,aagee Letter.
..
Individual lenders cannot insert their own criteria or

processing preferences into the FHA short sale process.
Day 2: Pre-Qua\ifyingthe Short Sale Prospect
~,
~,
U.S.DEPARTMThT OF HOUSING ~1) URS.m DEVELOPMENT

W~croN,.DC:ll!4l1J.$OO1l
~,
=A.'lTsuJ\Jn\lJI.l'rgllll'ot~
n.:n.m~"':UIO=~
CBWM:'lStUIl'll'Jr.
December 24, 2008
~I
~,
-,
~,
~,
MORTGAGEE LETTER 200843
TO:
ALL mm~APPROIJ};D MORTGAGEES
ATTENTION:
Single Family Servic1ngManagers
SUBJECT:
Pre-Foreclosure Sale (PFS) Program - Utilizing the PFS Loss Mitigation

Option to AssistFamilies Facing Foreclosure
Hlgh foreclosure rates continue to have devastating effects on families and neighborhoods.
The Federal. Housing Administration (FHA) remains committed to taking actions to help families
avoid foreclosure. Since being introduced as anationalprogram in 19941> the PFS Program has
helped thousands ofmortgagots in default to avoid foreclosure and transition to more affordable
housing. The PFS Program can help many families who today are: facm,g foreclosure. The PFS loss
mitigation option allows a mortgagor in default to sel! bis or her home and use the sale proceeds in
satisfaction of the mortgage debt when the proceeds are less than the amount owed
'This Mortgagee Letter (MI.) serves to remind mortgagees of the relieftbal: tbe PFS Program ~an
bring to borrowers with FHA-insured mortgages. To fucilitate greater use oftbis program, FHA has
cocsolidated in this ML the requirements of the PFS Program that have been issued over the yellfS,
andhas updated and clarified those requirements where needed, to better address the problems aced
by mortgagors today and provide greater .flexibility in ~ocsiderio.g a mortgagor's candidacy for
participation in tltis program.
Key Fe~$ oftlJ.e PFS Program

Establishing Market Value Mortgagees are retcinded to ensure tbatpropemes in the PFS
program. are sold at Of Ilearfair market value as established by an independent appraisal.
prepared by an appraiser on the FHA Appraisal Roster.
~!
lJinimum List Price Requirements - Properties offetedfor sale under the PFS program are to
be listed for sale atno less than the ~as-is" appraised value as determined by a ~urrent FHA
appraisal. obtaioed and reviewed by the mortgagee.
Negative Equity The ratio of 6~/& for the fair market .. ruue (FJl.fV) to the outstanding
mortgage ba.1an~e (mc1udmg unpaid principal and accrued interest) has been. updated to
address events in the current housing market, and replaced with tiered net sales pro~eeds.
1 The regulatials for1he PFS Program ere codifiediD24CFR203.310.
Page 1 of18
FHA Mortgagee Letter 2008-43
53
54
All of this is great news for you the short sale agent! If you learn the ins
and outs of the Mortgagee Letter, you will know exactly how to get your
FHA short sales approved! You'll know exactly what the lenders will
expect from short sale candidates. So, pre-qualification will be a snap.
The Mortgagee Letter explains HUD's position on financial analysis,
property value, property condition, contracts, sales period, inspections,
closings, and more. Once you learn the directives of the HUD
Mortgagee Letter, you'll find that you will be the one educating loss
mitigators! You'll know the rules of their business better than they do.
Information is power!
I'm seeing more educated loss mitigators these days, but I can remember
that, on a regul.ar basis, I used to have this sort of conversation with loss
mitigators about denied files:
I<inoUy: "Carla, I understand what you';re saying

about this file, but this is nat the way it should be
done .... "
Loss Mitigator: "What do you mean? That is the
way we have been doing it for years."
l<inoUy:"WeU, I understand, but on page 30 of bhe
Mortgagee Letter, it e)qplains that ..."
Loss Mitigator: "What Mortgagee Letter? What are
you talking about?" <escalation to supervisor... >
Loss Mitigation Supervisor: "Yes, iKnoHy, you're
right. You know, we reaUy haven't taught our
people that section of the Letter. That's a nuance
that we really haven't gotten into with them ....
But, you're right. We'll approve the file."
Download a free copy of the latest FHA Mortgagee Letter (rev. Dec.
2008) from www.sevendaysystems.com or from the U.S. Department of
Housing and Urban Development's Homes and Communities website at
http://www.hud.gov/ offices/ adm/hudclips/letters/ mortgagee/.
55
Prepare for the

Pre-Qualification Interview
Now that you understand a bit more about tbe criteria you are listening
for, let's discuss how to approach tbe pre-qualification interview witb
your prospective short seller.
Streamline Your Process with

a Phone-Based Listing Appointment
When I first began short selling, I approached my short sale listing
appointments just as any otber listings-face-to-face appointments at
tbe property and a five-page glossy presentation to showcase my business philosophy and my marketing plan. I even had a PowerPoint
presentation I forced my clients to sit through! Over time, I began to
realize tbat my sales presentations and elaborate marketing plans were
not required for tbese pre-foreclosure properties. I learned tbat I could
be even more successful witb a 20-minute, phone-based listing appointment.
~,
I've had agents ask me, "Honesdy, Knolly, are you trying to say I don't
have to view tbe property and meet tbe client in person before I work
witb tbem?" Yes, tbat is exacdy what I am saying! Let's look at tbe time
otber short sale agents might spend on tbeir short sale presentations and
compare it to tbe time required witb my system:
Talking to tbe client on tbe phone (initial discussion)
30 minutes
Travel time to and from tbe client's home:
1 hour
Explaining tbe short sale process to a client:
2 hours
56
That's up to 3% hours per listing! A phone-based appointment (with

email followup)willsaveyouupt02t03hoursperlisting.At 50 listings per year, you will save about 150 hours of your life-almost a full
month of workdays!
You may be asking yourself, "What will the seller think of this
approach!?" The prospect will follow your lead, so it will be important
for you to educate them on why a face-to-face meeting is not necessary
initially.
Prospect on the Phone: "So when will you be

coming out to see my home?"
Short Sale Agent: "You know, Caml, it sounds like
you have a wonderful home. My team is eager to
see it. Howeer, the bank doesn't reatly care what
,I think about the value of your home. What I mean
is, once I 00nvince the bank to agree to do a short
sale on your horne, they wiU hire their own
independent appraiser who will come out and view
your home and set a va'luation based on its
condition. So for right now,1 wiU need to focus my
energies on getting your short sale approved.
In order to get the process going quiddy, !I wiH
need to send you my short sale package and get
that information back from you first, before my
team member goes out to put up the sign and
Lockbox and take some photos."
Prospect on the Phone: "Okay. But who will let
me know what I need to do to the home to get it
ready for sale?"
Short Sale Agent: "That's a great question, Carol.
We won't be recommending that you do anything
to the home that will cost you money. The truth
is, since you won't be netting anything from the
sale, the last thing you probably want to do is
spend more money on a home you no longer can
57
afford. For that reason, we will be selling your

home 'as-is.' My only suggestion is to clear out as
much clutter as you can. Other than that you're _
okay."
Prospect on the Phone: "That sounds good to me.
What kind of marketing do you guys do?"
Short Sale Agent: "Carol, our team has an
extensive marketing plan for homes we list.
However, with short sales, marketing is not what
sells the home. Short sales are price-driven. Our
marketing strategy will be to price the home very
well so that we can quickly generate a contract
and get the bank working on getting your short
sale approved."
~,
~,
Gather Preliminary Information on the

Property
Before you conduct the interview with a prospective short seller, you
need to gather as much preliminary information as you can about the
property and the neighborhood/market.
Obtain the complete property address.
Look up the tax records for the property.
Do a CMA, if possible, to research the trends in the area.
Prepare your Short Sale Pre-Qualification Questionnaire.
Expect to receive some inbound calls off of your marketing.

Respectfully address the caller, but stay on track with your plan to get
prepared before the fortnal pre-qualification interview with a new
prospect.
Prospect on Phone: "Hello, Knolly? This is Carol

Carter. I was referred to you by Maureen Jones.
She told me you might be able to help me. I think
what I need is called a short sale."
58
Short Sale Agent: "Carol, I am so glad you called

and that Maureen sent you my way. I am
absolutely going to be able to help you! Now,
what's your address? ... "
Prospect on Phone: "I'm at 123 Oak Street, here
in Austin ... "
Short Sale Agent: "Fantastic. Now, Carol,
Maureen told me you were going to call. I've got
something going on right now, and you deserve my
complete attention. I need to talk to you about
this. Are you going to be available around 3:00?
We can do this by phone. I'm sensitive to your
time, and I want to make this as painless as
possible for you. So, I'U just caU you at 3:00,
then. Okay? ..."
For outbound calls th2.t you make to short sale leads, you will be "bie to
p~epare in advance =d roll right into fie questions on the Short Sale
Pre-Qruilification Questionruilre once you get the seller on the phone.
Get into the Short Seller's Frame of Mind

As you Me discovering, short sales are ver), different from traditional
listings. This is also true about the sellers tbemselves. The short seller's
emotional fnme of mind puts them in a very different place.
Before you speak with a prospective short seller, it is ctitical that you
appreciate their fume of mind and prepare for it appropriately. Typically, agents come into listing appointments with high energy-read), to
sell their prospects on their services and capabilities. Drawing on both
facts and feelings, listing agents give sales presentations-almost perfotmances-to persuade the homeowners to select them over their
competitors. Sellers are eager to sell their home for top dollar and move
on to the next phase of their lives, and they're eager to find the most
talented salesperson to help them do this. As a traditional listing agent,
),ou might say something like, "You know, Joe, I am so happy you called
me. As one of the top ten listing agents in the city, I use the latest tools
59
and techniques to get my clients' home sold for the most money in the
least amount of time ... "
Short sellers, on the contrary, are In the middle of a crisis. Due to
hardships and financial challenges, they are being forced to sell their
homes. Regardless of whether they qualify for a short sale, these
homeowners are still distressed and facing challenges that they cannot
handle on their own. For those sellers who have only negative equity in
their homes (i.e., they are upside down), they cannot sell for a profit or
even a breakeven. They are desperate to get out of their situation, and
they need help. Typically, these sellers have sought you out for your
short sale expertise, and you may not have any competition for the
listing. As these sellers see it, you are their only hope for turning the
situation around.
Sellers who are distressed and/or upside down are typically facing a
myriad of financial problems. It is important to have a thorough understanding of exacdy what the homeowners are facing, so that you will be
well-informed and prepared to interact with them throughout the short
sale process.
Some sellers simply need to sell because they have been transferred to a
job in another location. Others are facing a death in the family, medical
problems, or divorce. Some of these individuals are just a heartbeat away
from foreclosure or even bankruptcy, and they're scared of what the
future might hold.
Build Rapport and Trust

So, instead of going in selling, your objective with short sellers is to
listen to their story and build rapport and trust. You are going to need
total access to information and details regarding their situation, and they
need to know they can trust you. It is essential that your clients open up
to you and lay everything on the table. This may be difficult for them to
do. Human beings are very slow to trust one another.
88
Welcome to Day 3
Welcome to "Day 3: Gathering Infonnation for the Short Sale Package."
In the previous chapter, you learned how to conduct the critical prequalification interview to gather a preliminary set of details about the
homeowner's situation. In this Day 3 of learning, we will focus on the
next step in the process-how to collect the key documents that will
help you to verify this information and to move forward with the
homeowner.
YO" a",
he",!
Day 3: Gathering Information for the Short Sale Package
89
It is dw:ing this phase of the process that yow: "prospect" officially becomes yow: "client" with a signed listing agreement. And, furthermore,
if their situation qualifies, they will become yow: "short sale client."
As we mentioned earlier, new short sale agents are often surprised and
frustrated to learn that each lender has a unique set of requirements for
short sale documentation! In this chapter, you will learn how to gather
and prepare a documentation package that will satisfy the requirements
of all lenders across the board. It is a rare occasion for lenders to request
their unique format after receivillg a package that follows the format
developed by 7 Day Systems .
.-----~-"I c,oVl-sLcler tnLs step LVI- tne proc,ess to be C'lVl-
ex.teVl-sLoVl- of tne pre-q"wLLfLc,C'ltLoVl- step. The

LVl-tevvLew Ls 'RolA.Vl-cl oVl-e/ C'lVl-cl LVI- Lt 1 gC'ltner sOVVl.e
preLLVVl.LVl-C'lr1J lA.Vl-verLfLecl LVl-forVVl.C'lHoVl-. Now, 1 WC'lVl-t
to see Lf tnese prospec,ts C'lre goLVl-g to pC'lSS 'RolA.Vl-cl
TWO.' wLLL tneLr C'lc,tlA.C'lL cloc,lA.VVl.eVl-tC'lHoVl- VC'lLLclC'lte
tnC'lt tne(j C'lre eLLgLbLe for C'l snort sC'lLe?"
Notes
90
'-
Documentation Necessary
for a Short Sale Package
In order for a lender to consider offering a settlement on an under water
property, they must be provided with thorough documentation
explaining the homeowner's situation.
The Checklist
A complete short sale documentation package must contain the followingitems:
61
Hardship Letter
Listing Agreement
61
61
61
Financial Statement
Recent Bank Statement
Fully Executed Purchase Conttact on the Property
o
o
61

~,
Additional Documents for VA Loans:
The most recent two years' tax return
Additional Documents for FHA Loans:
o
o

Application to Participate HUD FORM 90036
Immediately after you complete the pre-qualification

interview, send your short sale client a follow-up
email with a checklist of the documents they will
need to gather for the proposal package. Include in
this email a link to your website FAQs.
91
92
I~
Email
From: Knolly@knolly.com
To: client@clientsemailaddress.com
Subject: Short Sale Info - 123 Main Street
Hi Porcia,
Good talking to you today. Based on your situation, the short sale is likely
your best option. Also, we will get an offer over to CiliMorlgage to postpone
the loreclosure. Can you emaH or send the payoff info you have (or your
most recent mortgage statement) along with any leiters you have received
i_
kom your lender?
You can also get more information about the shortsa'le process, along with
oommonquestions and answers at: www.8hortSa:leSite.com. Keep in mind
that appl1ing for a short sale is like appl1ing for a loan, so the lender asks
for lots of documents. However... it is well worth it when you get into the
program, since they wiill forgive the balance owed. And they will also pay my
fee and the diosing costs.
I have attached an information sheet and a checkl,ist of the documents we
I need. We basically do all the work-so you'll be in good hands!

Thanks again!
Knolly
Sample Follow-Up Email

I
~
KELLER \\'ILLLJ\MS REALTY -
x:.:.,\l):l:r:,W,iUi,~s,
Phone: (512) 206-0060 - Faz: (512) 53::':-0626 -
93
Listing Specialist
;l-Jl9U::.@f...,"1.<;>.ll..v.,~p)!),
ISHORT SALE INFO

Many sellers in today's market have little Of no equity; that is, the seller owes close to
Of more than the property is worth. In these
situations~
lenders
~re
often willing to
accept less than the full amount due, commonly rsferred to a ''short pay" or
~short
sale."
Many homeowners who are "upside down" on their mortgage opt to simply walk Ciway
from their home and allow it to foreclose. The short sale cffers a much better option and
provides a win-win for the lender and the homeowner.
from the lender's perspective a short ssle sS!V9S many of the high costs 35figciated wjth
the foraciq:;.llre process attomey fee's, the eviction process, delays from borrower
bankruptcy, damage to the property, costs associated with resale, etc. 11"1 a short sale
scenario, the lender gets their money faster and is able to cut their losses.
Once you are approved for.a short sale, the lender will order an appraisal of your
property to determine the market value. Once the value is determined, the lender will
allow KnoJJy to sell your property at market value. Once sold, the remaining debt is
usually forgiven. The lender often expects to collect 90% or more of the appraised
value, so you may still accept an oftSr [ower than the appraised value.
The bottom line is... If your home is worth less than you owe, you can still sell it via a
short sale-without bringing ;,ny money to closing! Knolly Williams is one of Austin's
premier short-sale listing specialIsts.
Short Sale Checklist

In order to be considered for;, short soI!Ile, you must provide the following ..
AUTHORIZATION 8: HARDSHIP LETTER (included in this package, if loan
number and last 4-digits of Social Security number are missing, fill in and sign
and date)
FINANCIAL STATEMENT (included in this package, fill out sign &: date)
RECENT BANK STATEMENTS for past 2 months
RECENT PAYCHECK STUBS for past 2 months
COPY OF CURRENT MORTGAGE STATEMENT
COPY OF YOUR PROPERTY SURVEY - Thll5'.ll'ey is <I drawn map of tne properly shOl'ling fmce
~nes and hew the home sits on the let. Thl!f& wiD b$ ~ Stete ri Te:<2ls Se4I sbmped on the ~ ~Ion!l w~h the
Mme of ~ ,ompany thst perl'orrned the survey.
PLEASE FAX ALL REQUIRED DOCUMENTS TO

Listing Manager: Morris Thompson - Fax #: 512-532-0626
COWT
Sample (Conventional Loan) Short Sale Infonnation Sheet and Checklist
94
Special Note about Timing

In the checklist of items for the short sale package, you may have
noticed that three documents were missing their checkmarks:
o
o
o

These three documents are essential to the short sale package, but they
cannot be completed and added to the package until a buyer is under
contract for the property. Tills means that you will begin the process of
collecting the necessary documentation for the short sale proposal, but
these hst three documents will come a bit later in the process. We'll
discuss these documents both in tills chapter and in "Day 5: Receiving
Otters and Submitting the Short Sale Package."
$pedal Note about Properties with Second

Liens
There is additional work to do when performing a short sale on a
property that has more than one mortgage lien. If the first lien is found
short, the second will be as well. This basically means that you will have
to do twice the work because you will be submitting a copy of your
short sale package to both the first and second lien holders.
Lenders who are in a second lien position must agree-along 'With the
first lien holder-to the short sale in order for you to sell the property.
Most such lenders will readily agree, as they will typically get nothing if
the property forecloses. Indeed, as foreclosures have been on the rise in
recent years, more and more second lien holders are becoming fearful
that they will not make any of their money back. Proactively, they are
offering homeowners special early payoff incentives and so forth to try
I~
I~
I~
95
to recoup their money before the homeowner faces a short sale or a

foreclosure.
Years ago when I fIrst began doing short sales, the fIrst lien holder
would negotiate directly with the second to settle the short sale. This
made my job easier, and the second lien holders were more convinced
that they should act quickly. These days, the fIrst lien holders are so
swamped that they are not willing to take on this additional task.
Be sure you know your numbers!

You need to know exactly how much the seller owes on each mort,,<>age
loan. Order payoff statements from each lender to determine what is
owed.
Next, see if the net proceeds from the short sale (the amount left over
after all expenses are deducted) will be enough to cover the fIrst lien. If
so, the fIrst lien will be paid in full and whatever is left will be offered to
the second. If the remaining proceeds are not enough to cover the
second lien, this lien it is short. In these cases, you will focus your
negotiating efforts on the second lien holder. You won't need to spend
time negotiating with the fIrst lien holder.
If both liens are short, you will offer the bulk of the net proceeds to the
fIrst garger) lien and a nominal amount to the second lien. Typically, the
fIrst lien holder will not agtee to offer any more than $1,000 to $3,000 to
the second lien holder.
Now, be sure not to make this rookie mistake: The net proceeds from
the sale must always be applied towards the primary lien fIrst. You
cannot apply the proceeds to the second lien fIrst and pay it off because
it is a smaller lien amount. It doesn't work that way. First comes fIrst!
So, if you determine that your client's fIrst lien is short, then the second
one is short as well-by default.
We will further discuss the special steps you must take to process a short
sale on a two-lien property in this chapter and again in "Day 5: Receiv-
96
ing Offers and Submitting the Short Sale Package." At this point, as you
read about the specific documents required for a short sale proposal
package, remember that if there are two liens on the property and they
are both short, you must prepare and submit a separate package to each
lender.
Notes
97
o The Hardship Letter

The hardship letter is one of the key components in the short sale
package. This brief letter explains the hardship the homeowner is
experiencing and helps the lender determine whether this homeowner is
worthy oflender assistance.
Strategies for Success

Don't ask your clients to write their own letters!
Some agents ask their clients to write their own hardship letters. While
it's critical to get accurate information from your homeowner client, it's
not the best idea to ask them to author the actual letter. The hardship
letter must be professionally crafted, sttategic, and persuasive. As a short
sale specialist, you are in a better position to determine which
information is relevant and which will be disttacting or unconsttuctive.
After you compose the letter, you will, of course, present it to your
client for their review and signature. Another option would be to allow
your client to compose a first draft-that you then revise, following the
format that we recommend in this chapter.
Keep it short!
Avoid the temptation to create a long, drawn out, two-page document.
In most cases, the hardship letter should be between three and six
sentences. I have learned from experience to keep it brief. I tell the
banks only what they need to know to make a decision. Typically, I take
three sentences to explain the unique elements of the homeowner's
situation, then one to two standard closing sentences. (See samples.) I am
cautious not to inadvertently give lenders ammunition that they can use
to disqualify the short sale.
98
There's no need to exaggerate or dramatize the situation.

I have found that it is unnecessary and ineffective to exaggerate or
dramatize the situation. There's no need to "lay it on thick"! Your
objective should be to present an unvarnished, honest statement of yom
client's hardship.
''-
Don't send "supporting documentation," unless requested.

Some agents recommend sending various supporting documentation
along with the hardship letter. I have rarely had a lender ask for copies
of death certificates, pink slips, hospital bills, and so forth to back up
claims made in the letters. My policy is to send this documentation-if
requested. Don't ask your clients to spend their time and energy
collecting these documents until needed.
Don't overthink itl

Don't ovel1:hink the hardship letter! Don't try to figure out ways to get
into the mind (or heart) of the loss mitigator working the case. State the
facts of the case simply and succinctly, focus on the reasons for default,
and that's it.
'''-
'-
Day 3: Gathering Infonnation for the Short Sale Package
Sample Hardship Letters
FINANCIAL HARDSHIP LETTER

Date: _ _ _ _ _ _ _ __
From: James Martin
To: Wells Fargo Loss Mitigation
Property Address: 109 High Tail Loop, Cedar Park TX 78630
LOAN Account #: 0182533521

Last 4-digits SS#: 4432
To Whom It May Concern:
I recently had a change in jobs and am now working in another city. r have just placed
my home for sale; however I have tried to sell it before with no success. My area has a
high number of foreclosures and property values have dectined.
Unfortunately due to my hardship, I have to move and can no longer afford to keep this
home. I have to sell my home and based on the market conditions I have no alternative
but to seek a short sale.
Sincerely and Respectfully Submitted,
x
James Martin
Sample Hardship Letter 1
99
100
FINANCIAL HARDSIDP LETTER

Date: _ _ _ _ _ _ _ _ _ __
From: Mindy Karmi
To: COUNTRYWIDE
Property Address: 12813 BOBBYSOCK DiRIVE, AUSTIN, TX 78748
LOAN Accoul1t #:
Last 4-digits SS#:
152104687 ad 152104607
6674
To 'Whom It May Concern:
Due to circumstances beyond my control, 1 was (!tut ,of work for three months this y.ear; between
April. 2008 and June 2008. In order to .continue making paymeflts on ,this home 1 had to deplete
my savings and borrow money. With my new jo.b~ my expenses are roug:h.:ly SI,200 per month
more 1itaJll .n: make.
Unfortunatdy I can no longer afford to make my mortgage payments. I have to sel1 my home and
have no alternative bru: to seck 'a short.sale.
SincereJy and Respectfully -Submitted.
x
Mindy Karmi
101
FINANCIAL HARDSIDP LETTER

Date: _ _ _ _ _ __
From: DARINMINERANDJENNIFERMINER
To: COUNTRYWIDE
Property Address: 907 YASMINE, AUSTIN TX 76574
LOAN Account#:
Last 4-digits SS#:
2287647331
4677

Our property taxes have gone up by over $4,200 per year since we purchased this home. We also
have incurred many additional expenses including gasoline and other costs of living. We now
owe the IRS over $7,000. Also, Jennifer is pregnant and facing increased medkal expenses,
Unfortunately we can no longer afford to make our mortgage payments. We have to sell our
home and have no alternative but to seek a snort sale.
Sincerely and Respectfully Submitted,
x
Darin Miner III Jennifer Miner
102
A Loss Mitigator's Take on a Sample

Hardship Letter
Take a look at this sample hardship letter and the comments that a loss
mitigator might make about the statements. In other words, notice how
many holes can be punched in this short sale request.
From: Heather Homeowner

Re:
Hardship Letter/Short Sale for 555 Oak Terrace, City,

State 78577
To 'VI'hom It May Concern:

I'm a single mom who purchased our home at 555 Oak Terrace
in October 2005. At that time, I had just started my own business as a
cosmetics sales consultant. I had great hopes for generating an income
to support my mortgage and lifestyle with my daughter.
Unfortunately, sales were very slow the first SL'C months, and this put me
into a desperate situation with my mortgage and my credit cards. To
supplement my cosmetic sales, I began to wait tab!es at a local restaurant
and my parents loaned me $4,000, which didn't last long. After struggling
for months to make my expensive mortgage payments, I had no choice
but to put my house on the market. In April of 2Cl06, I put my home up
for sale as a For Sale By Owner. I set the original asking price as
$240,000. I didn't get any offers at this time because most buyers were
concerned about the water damage in the living room-caused by roof
damage the house suffered duting a storm in late 2005.
e I could not
make the repairs, so I lowered the asking price, but still had no offers.
'~
Over the next couple of months, I lowered the home price three times,
(continued ... )
103
finally settling at $170,000. This price was the lowest I could go and still
cover final costs. I am not anticipating any profit. The home still has no
offers. I have now decided to list the house with a real estate agent,
instead of as a FSBO. I think this will make a difference.
I realize that I can no longer afford the home I am in. I have
given up on the cosmetics sales business, as it seemed too competitive in
my area. ., I am waiting tables full time. In my current situation, I

cannot support a mortgage payment of $2,200 per month. I fear that
foreclosure is around the corner, and that would have a devastating effect
on my credit. I am requesting assistance in avoiding foreclosure action.
I deeply appreciate your assistance and understanding. If you
have any questions, or need anything further from me, please contact me.
Best r""""rds,
Loss Mitigator's Thoughts
"Are you saying you purchased a home at the same time as starting a
new business? Do I smell loan fraud? Did you purchase the home on
speculative income? Sounds like you deceived us about your employment."
49 "So, did you have prior experience with cosmetic sales? What do you
mean 'hopes'? Did you do your research about the costs for this start up?
Sounds like you were gambling with our money. This doesn't sound like a
hardship to me. You took a risk (with our money) and failed."
.~.
C) "What's going on here? In the documents you signed to get your

mortgage, you promised to maintain the property. Are you not keeping
your commitment?"
., "Did you not do your research on the market before you entered this
business?"
'-
104
o Listing Agreement
As soon as you complete the pre-qualification call, begin preparing the
listing agreement. Set a goal to send the agreement to your client by fax
or email the very next day. The bank will require that a copy of the
signed listing agreement be a part of the short sale package you submit.
From: KnollY@knolly.oom
Subject: Listing Agreement - 123 Main Street
, Hi Porcia,
I've attached a copy of the 'listing agreement that we discussed. This is the
i
dooument that will aJllow me to Illst your home for sale. Please print, sign,
I and fax the signed document to my 01lice: {5121532-0626.
If you have any questions, be sure to calill me!

Once I receive the sligned agreement, my assistant will! schedule a time to
come out and take photos, place the slign, and instal'l thelookbox on your
home.
Thanks again,
Knolly
Sample Email Requesting Signed Listing Agreement
Day 3: Gathering Information for tile Short Sale Package
105

For the most part, the short sale listing agreement is the same as a
traditional (non-short sale) agreement. There are, however, a few unique
strategies you can implement.
Add a special provisions statement.
While formats may vary for listing agreements, all typically include a
section used to explain any special provisions. To this section, we
recommend you add a statement such as:
This listing agreement is subject to seller's lender approval

of a short sale.
This statement protects the seller and makes them feel more
comfortable knowing that they are not "locked in" if they are not
approved for the short sale.
Consider adding a statement about price instead of a
dollar amount.
In the sales price section of the agreement, we recommend that you not
state a dollar amount, but rather add a statement such as:
Sales price to be determined by lender.
This will give you maximum flexibility and will allow you to adjust the
price as necessary, without having to go back and get your client's
permission each time. Again, because the seller cannot make any money
from the short sale transaction, they are likely much less interested or
engaged in the pricing strategy or potential price reductions. However, if
they are concerned that this statement will somehow mean that their
home will be sold at a cut rate, reassure them that their mortgage lender
will want to get the highest price for the house. Lenders have an
investment in this and they want to mitigate their loss.
106
'-
Some states may not allow a statement to be added instead of the price
in a dollar amount. Our team has not heard of any challenges to this
strategy, but you will want to be educated on your particuhr state and
local guidelines.
If your broker takes particular issue with this strategy, you could add a
listing price of market value or slightly under and a statement such as:
III
Seller grants listing agent the permission to adjust the list

price as stated in paragraph X as market conditions dictate.
Set a long ,contract term/length.

The length of your listing contract should be based on your market, but
we recommend that you make it at least a six-month contract to cover
all possible issues and delays in the transaction pmcess.
Set the (lommission at 6%.

In my experience, it typically works best to simply put "6%" for the
agents' commission. Some shol"1: sale specialists advise stating a
commission of ''7%'' or "8%," so that there will be room to negotiate
the bank down to 6%. I believe banks can easily see through this
tactic-making it ineffective and unnecessary. If they're going to offer
6%, then that's what they will do. If they're going to offer 5%, then
that's what they will offer. They're not going to look at a listing contract
with "8%" noted and suddenly up their offer to meet the agent halfway.
-'
Day 3: Gathering Infonnation for the Short Sale Package
107
o letter of Authorization
As first discussed in Day 2, you will need written authorization to speak
with your client's lender(s) about their financial information. To make
this request from the lender, you will need the last four digits of your
client's Social Security number and a signed authorization statement.
Remember that it may take up to 72 hours for the lender to process the
Letter of Authorization and give you access to the client's account. If a
foreclosure date has already been set for your client, every day counts!
Note: If your client has mortgage loans from two different lenders and
both loans are short, you will need to complete (and your client will
need to sign) a Letter of Authorization request for each lender.
108
November 10, 2008
From: Joseph Caters
To: Wells Fargo - LOSS JlI.ITTIGATION

Property Address:
lCJJ$ ..Q.uj,t!!.t.w..~w.J,~!!,~..e.~ ,';l';,1(.~'2;
Last4-digiuSS#:
4763
LOAN Account#:
7874432231
WRITTEN AUTImRIZATION TO DISCUSS ACCOUNT
[ authorize ~ r.eail. estate ageBl: KnoB! '\iW.mrJ:s and his associates B'~bam
Riorilanand Mmrls ''I'homp.ron ,ofThe KDoRy 'If.eam!Kdler "'"illi.ams Realty
amd escrow 'officer ''!racy Jrute.S @fEla"'T.lfJ.e to:discuss!lbis account on my
_Iilf'
'-
Please add them to my account ,as p,a:dies ,3l!tthQrizoo to receive information. P.lease
, owect ,all cGmrmmications T~Cfu:tg my short sale ilransacti@nto them. 1 also
aathC!lme the use of any incentiv<e toward '~mses mcmred on ,my behal:t:
"lie1: 512-294-2143
Fax: 512-532-0'626
Sinee.n>ly -andRespectfully Submitted,
Joseph 'Cater.s
Date
Sample Letter of Authorization
109
Cover Sheet and Request for Payoff

Information
With your authority to discuss your client's account, the first thing you
will want to do is order a payoff amount for your client's loan(s).
On the Knolly Team, we submit the Letter of Authorization simultaneously with a request for the loan payoff amount. Our fax cover sheet
explains the request.
Note that the Letter of Authorization will often need to be faxed to a
different fax number from the loss mitigation department's number (the
number you will use for the rest of the short sale package). Check with
the lender to make sure your authorization letter gets to the right place.
You can obtain the telephone and fax numbers of the lender's
authorization department by calling the lender's customer service
number and requesting them.
Start building your database of bank contacts! Checkout

the 7 Days to Success with Short Sales Toolkit CD!
You'll find more than 250 unique contacts for lenders
and their loss mitigation departments. More than 40 of
the top lenders are included in this instant database!
110
THE
Knolly Williams, Realtcr
KNf7LLY
MORRIS THOMPSON
TEAM
ShortSaIie US'TlNG MANAG:R

Direct: {512J 234-21.43
Fax: (512) 532--0826

www.KncUy.cam-mornfS@lmOBrj.com
fma
Loss M"rtigaficm Dept

Arm: JobnSmib
~~
~-
'f.BGS..35S4915
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'-
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Morris Thompson
Short Sam 'tlsting 'Manager2 wicoV\l!ir
N~12,2EOB
LGAl'1 PA'I'Off REQIlI:5f
AdriTe:ss: 11Z11B Quiet Water Lane. AI::IS'fion, TX 7S332:

Oje:Jll1Name: Joseph Caters
:t.G:intifulnlbEr. 7874432231
i.ast.4-dUgits SS#: 41SS
on:taIaII Ilftur:mu!'ila}ooent.l.affi ~the~ ~to>::a:rJeG:a ~Mm~ 3DG'R pn:psty.

7/lB ~~t5lIl21e.goOO'tt:mI.lgllJ: Dei::ember17,2Ooo
':nsIl~'1cD~AM:lurL
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ony
'lpil';tom;, ~ tb I'm nEGlJa'le- 1:1 ca3 me- ~ -dt S!2-2i4-Zl43 Of erna:
'!3lW!I?llWlsl!wm
'-
'-
Sample Fax Cover Sheet Requesting Loan Payoff Information
'-
111
o Financial Statement
All lenders require a financial statement from homeowners applying for
a short sale. Think of the fInancial statement as your client's financial
budget. On the financial statement, your client will list their expenses
and their income along with assets and liabilities. Whereas the pre-qualifIcation step relied on your client's recollections, opinions, and perspective, the financial statement is gtounded in the factual realities of the
situation and will validate (or invalidate) the client's initial statements.
Much of the lendet's decision to approve a short sale rides on the financial statetnent and the hardship letter.
Your clients should be able to complete the financial statement with few
challenges. It's essentially a simple budget statement and should be selfexplanatory. As a short sale agent, however, you need to be very
confIdent and knowledgeable about this document so that you can
effectively analyze the data and draw conclusions.
~
..
Again, I have spent years processing short sales, and I have learned a
gteat deal about what lenders are looking for in the financial statement.
The 7 Day Systems Personal Financial Statement represents a
comprehensive document that will more than satisfy the information
requirements made by the major lending institutions. There is only one
important instance in which I recommend using the bank's own
financial statement format if it's going to serve your client best. We'll
discuss that exception later in this section.
112
PERSONAL FINANCIAl.. STATEMENT
Sample 7 Day Systems Personal Financial Statement
113

Let's look at a few key sections and points on the Personal Financial
Statement form.
Be strategic (and accurate) about listing Borrower and

Co-Borrower information.
Make certain that you understand your clients' situation so that you can
properly counsel them on how to complete the Personal Financial
Statement form.
On occasion, you may find that two borrowers are formally listed on the
mortgage loan, but one of the borrowers is not currently honoring their
responsibility to make payments. For example, you might have a client
who is going through a divorce, who has just been widowed, whose coborrower has just walked out, or something similar. In these cases where
only one borrower now lives in the home and is struggling to make
payments alone, you should ask your client to complete only the
''Borrower'' side of the Personal Financial Statement. You want to
advise your client to complete the form so that it accurately reflects the
income that is being conttibuted to the household and being used to
make loan payments. (Remember, that all parties listed on the mortgage
note(s) must be in agteement about selling the home.)
If such circumstances need to be futther explained for the lender (loss
mitigator), you may add a simple statement to the hardship letter.
Now, if both borrowers still live in the home, but only one is employed
(earning) and conttibuting to the loan payments, both the Borrower and
Co-Borrower portions of the Personal Financial Statement should be
completed. The non-conttibuting borrower's income would be listed as
"$0."
114
Thoroughly capture all monthly expenses.

What is great about the 7 Day Systems Personal Financial Statement is
that it captures approximately 30% more expense line items than most
other forms. In other words, your clients will be asked to document
every little thing that costs them money. This will only help in building
the case for what a month-in-the-life looks like for this homeowner.
When your clients fill out the Monthly Expenses portion of the financial
statement form, they should enter actual expense amounts (i.e., their bill
amounts) instead of the partial amounts they may be paying towards
these bills. For example, I've had clients enter "$0" for the monthly
mortgage payment because they were not currently making paymentsI
Instead, they shoul.d have listed the amount of their monthly mort,,~e
bill. For the credit card monthly expenses, ask your clients to put either
their monthly minimums or the monthly payment amounts if they aim
to payoff the balar>ce in 12 month s.
Once you receive your client's completed Personal Financial Statement,
review the document thoroughly and "nitpick" over the details. Look
for more expenses that your clients may have missed. Host a phone
conference cail with your client and ask questions to probe and jog their
memory. For example,
( Scr.i.Pk!)
. . '.. Agent: "Have you had any car repairs thjs year?
_._, ..... .... No? Ok, but what do you typically budget for car
.
maintenance each year?"
Agent: "You noted $0 for dental expenses. Do you
not go to the dentist? What about your three
children? Let's figure out what two cleanings a
year would cost for your whole family. Then we'll
divide that by twelve."
Agent: "Did you say your husband has already
started his new job in the other city? Is he paying
rent on a place there? We need to add that to the
rent line item."
115
I had one client who failed to note that she had more than $60,000 in
school loans. She had not been making loan payments for months, so
she just forgot to add those payments as an ongoing monthly expense.
Compare the expenses to the income.

To qualify for a short sale from the lender's perspective, the homeowner's total monthly expenses must be more than their monthly income. (Or in some cases, proposals will be accepted when the income is
just slightly more than the expenses.) I do not share this rule with my
clients. I don't want them to manipulate the data or be dishonest in their
documentation. I don't want them looking for ways to pad the expenses
total. Their objective should be to capture the facts as accurately and
thoroughly as possible.
You, as the short sale specialist, however, should know what you are
looking for in the financial statement. If monthly income greatly exceeds
monthly expenses, then you need to go back and recalculate or find out
why your client cannot make their mortgage payments. The document is
telling you that they will not qualify for a short sale settlement.
r-----f)-----,
"If !jO['( deterVlA.~""e tViClt Cl cl~e""t's VlA.o""tVil!j ~""coVlA.e
ge""['(L",,el!j exceeds tVie~r VlA.o""tVil!j expe""ses b!j Cl
co""s~derClble ClVlA.O[,(""t (~500 Cl VlA.o""tVi or VlA.ore),
tVie"" !jo['( VlA.Cl!j ""eed to co ['(""sel tneVIA. Clbo[,(t WCl!jS
to ~eep tne~r nOVlA.e. Tne!j VIA.~gnt q[,(CllLf!j for Cl loCl""
VlA.od~f~CC!tLo"", for eXClVlA.-ple. If tne!j stLll VIA.['(st sell,
tne!j wLll ""eed to follow tne trCld~tLo""Cll -process
~""steC!d of req ['(estL""g Cl snort SCl leo n
116
Use the lender's own financial statement form when ...

The 7 Day Systems Personal Financial Statement should serve you and
your clients well with all lenders. However, if you have a case in which
your client's assets and liabilities are presenting a conflicting message,
you may opt to use a less detailed form-such as the ones used by some
lenders.
For example, I had a client who was struggling to make mortgage
payments, and he owed more than the market value of his home. But,
when he submitted his financial statement to me (using the very detailed
7 Day Systems form), he listed a 401K retirement account as an asset
with a balance of $300,000 and another IRA account with additional
money. This presented a very different message about his financial
position. So, we decided to take a look at the financial statement form
used by his specific mortgage lender. Their form required less
information about assets and liabilities. So, we submitted the pacb.ge
with all information required by the lender's form, and no other
questions were asked.
My recommendation is to always begin with the 7 Day Systems form
because this will require that your client provide very detillled
information about expenses. Even if you switch to the lender's unique
form, you "'W-illeasily be able to transfer the total expenses that you
gathered in detail on the 7 Day Systems form.
117
o Recent Bank Statement

The lender will want a complete and recent copy of the homeowner's
bank account statement. If the homeowner uses online banking, most
lenders will accept a statement printed from this online source. We
recommend obtaining two-months-worth of statements from your
client.
Notes
118
o Recent Paycheck Stub

The short sale proposal package should include a recent copy of your
client's pay stub---if employed. If your client is self-employed, the lender
may want to see a copy of the previous year's tax return. If two
borrowers are on the loan and both are living in the home and
contributing to mortgage payments, both will need to submit pay stubs
and/ or tax returns. We recommend obtaining two-months-worth of pay
statements &om your client(s).
Notes
119
o Fully Executed
Purchase
Contract
This component of
the package will
be added later.
At this point in the process, you may not have identified a buyer for the
property. However, the final short sale package should include a fully
executed purchase contract signed by all parties. Most banks won't
consider doing a short sale without a contract on the property.
Under the Special Provisions section of the contract, we recommend
you add the following statements:
.-,
"This contract is subject to and contingent upon seller's

lender approval of a short sale."
''Property is being sold as-is."
Note: Some Multiple Listing Services (MLSs) and local boards have
specific addendums that they require to be included with a short sale
offer or contract. Make a point to familiarize yourself with these fottns.
,-,
-,
We'll discuss the guidelines for buyer contracts in "Day 4: Listing and
Marketing the Property," and we'll discuss how to review offers and
prepare the contract documentation in "Day 5: Receiving Offers and
Submitting the Short Sale Package."
120
D Buyer's
Pre..Approval
letter
This component of
the package will
be added later.
Along with the executed buyer's contract, you will also need to submit a
buyer's pre-approval letter as part of the short sale package. This
informs the seller's lender of the buyer's approval to finance and
purchase the home without complications.
We'll discuss the buyer'S p:re-"'pprovalletter further in ''Day 5: Receiving
Offers and Submitting the Short Sale Package."
Notes
121
o Estimated HUO-1
Settlement
Statement
This component of
the package will
be added later.
Once you have an offer on the property, you will be able to move
forward with an estimated HUD-l Settlement Statement (also called
"estimated HUD-l net sheet") to add to the short sale package. This
settlement statement is extremely important because it shows the bank
how much they will net out of the transaction.
A.
Settlement statement
U.S. Dipartment of Houslng

and UrtNln [)QlII!lopmllt'lt
~I
Sample Portion of a HUD-l Settlement Statement
122

Make sure you are working with a settlement agent who
understands short sales.
The HUD-l Settlement Statement IS a complicated document to
complete for a traditional real estate transaction-try a short sale
transaction! Even though the settlement agent (an escrow officer or
attorney) will be working under your direction, it is critical for this
individual to understand how to draw up HUD-l Settlement Statements
for short sales.
Consider developing a training document to help

settlement agents (esorow officers/attorneys) draw
up HUD-1 Set~.lement Statements in the manner that
will be necessary for short sale processing.
Check out the sample training document on your
7 Days to Success with Short Sales Toolkit CD!
As a standard requirement of their job, a settlement agent knows how to

enter in the "settlement charges" such as commissions, fees, taxes, and
so forth. The challenge comes in accurately documenting the summary
of the seller's side of the short sale transaction.
At this point in the process, you have already been authorized to speak
with your client's lender(s) regarding their accounts. If your client has
two liens on their property, you have ordered payoff statements from
both lenders. These payoff statements will help you determine whether
one or both of the liens are short. Again, it is possible for the sale of the
home to generate enough net proceeds to completely payoff the first..
Day 3: Gathering Infonnation for the 5hort Sale Package
123
lien holder, but not the second. Other times, you will need to request
approval for a short sale from both lien holders. Every market is
different. In my experience and in my market, I have found that in 75%
of the cases with two property liens, both liens will be short.
In a traditional real estate sales transaction, the payoff amount for the
loan(s) would be noted on the seller side of the document (lines 404 and
405 of the HUD-l). In a short sale, "payoff amount" is an irrelevant
factor in the settlement equation. A short sale means, by definition, that
the lender will be accepting an amount that is less than the loan's actual
payoff amount. So, what does this mean for the HUD-l form? As the
short sale agent, you must carefully direct the settlement agent to enter
figures that will (hopefully) satisfy the settlement positions of both lien
holders. The figure on the next page, illustrates how the bank(s)' net
proceeds would appear on the HUD-1.
We'll discuss the details of completing the HUD-l Settlement Statement
further when we reach "Day 5: Receiving Offers and Submitting the
Short Sale Package." At this later point in the process, you will have the
remaining puzzle pieces necessary to complete the HUD-l-sales price
and dollar amounts that should go to each lender (if more than one lien).
124
Sample HUD-1 Settlement Statement Showmg Seller's Side
o Comparative
(
Market Analysis (CMA)
125
OPTIONAl.
While optional, the Comparative Market Analysis (CMA) is highly

recommended. Yes, the bank will order their own appraisal or broker's
price opinion (BPO). However, you can help inform the bank's thinking
early on by including your own CMA in the short sale package you
submit.
Some short sale training systems teach agents how to get the bank to
agree to a low ball listing price (lower than market value)-when they
know that the property will quickly and easily sell for more (with little or
no improvements). These strategies appeal to investor agents who will
buy-and-flip or buy-fix-and-flip their short seller's property. These
strategies also appeal to agents who know they can find a buyer who will
pay market value or higher--allowing the agent to pocket the difference.
These strategies are not the strategies of 7 Dqys to Success with Short Sales.
We recommend that you practice the same CMA strategy you would
with any seller-short sale or traditional sale-who needs to sell within
30 to 60 days. In fact, my rule of thumb is to price the property at an
amount that would create an offer within 15 to 30 days. Price the
property to move. Price it right; price it correctly. Price the home at the
best price within reason for a quick sale with active marketing.
The CMA format recommended by 7 Day Systems is short and sweet.
It's a synopsis document that can be assessed at a glance. We find that
this format works to our advantage-particularly when banks say they
don't want to see the listing agent's CMA. They will look at this short,
concise, persuasive document.
126
MARKET ANALYSIS FOR

1016 W JUNIPER S1; LEANDER, TX 78640
Average price per square foot $58.69
per foot
Square footage of subject property: 2376 Square Feet.

Average days on market 76 to 120 days
Notes: There is a definite downward trend toward a lower price per square foot compared to sales from
several years ago. There are many foreclosures and pre-foreclosures in the neighborhood.
BASED ON THE CURRENT MARKET, THE SUBJECT PROPERTY VALUE IS

ESTlMATEO TO BE $139.400 ($58 per sq foot)
Kn:olIIy ~nams, Associate Bro'ker
KEllERWlLUAMS REAlTV
J:OIP tl) AUSTI:NI.AREAlRIEAl TOR
AUSTIN'S 11 SHORl"SAlE1'EAM
THIS PROPERTY IS A PRE,fOREClOSI5RiE. WHEN DOING A CMA ORBPO,

PLEASE ONLY USE COMPARAELES THAT TOOK 6DDAYS OR I.!ESS TO SEll.
Sample Comparative Market Analysis
127
o Additional Documents
for Government-Insured
Loans
When you are processing a short sale on a property with a governmentinsured loan, you will need to submit additional documents in the short
sale package.
For VA Loans:
IiI
For FHA Loans:
IiI
IiI
Application to Participate Form (HUD-90036)
Recent Two Years' Tax Return

Both VA and FHA lenders will require homeowners to submit copies of
their tax returns for the two years prior to the short sale-regardless of
the homeowners' employment status.
Application to Participate Form (HUD-90036)

For clients with FHA loans, HUD requires homeowners to complete an
application in order to be considered for a short sale. The Application to
Participate (HUD-90036) must be completed by the homeowner. You
will submit this completed and signed form with your short sale package
to the seller's lender. The lender, in turn, will be responsible for
submitting this document and other pertinent information to RUD.
(Note: This application form is for FHA loans only.)
128
ApplIcation to Parliiclpale
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-I
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129
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-I
Additional Documents for

Your Client's File
In addition to the list of documents that must be formally submitted to
the lender in the short sale package, you will need additional research
documents to do your work. Collect the following documents and add
them to your client's short sale file:
-I
-I
-I
0'
Recent Mortgage Statement-preferred, not required
0'
Homeowner's Association Statement-preferred, not

required
0'
Loan Payoff Information-requested from lender(s)
0'
Property Survey-requested from homeowners (or from

the settlement agent used at their closing)
0'
Property Tax Information
0'
Title Search-requested from title company/title attorney
-I
-I
-I
-,
130
Email
Subject: Property Survey - 123 Main Street
Hi Porcia,
We need a copy 01 the survey plat of your property. The survey is a drawn
map of !he property showing fence :lines and how the home sits on the lot.
: There wlll be a state seal stamp on the survey along with the name of the
company that performed the survey.
Please fax the sUlVey to us at (512) 532.0626. If you cannot find a copy
of the survey, please check with the litlecompany that you used when
you closed on your home.
We willi need Ihis surv,ey document in order to close the sale on your
:property. 11 helps to have a copy of the survey in our fi'le now, rather than
waiting until the lasl minute before closing.
Than'ks again,
Knolly
Sample Email to Client Requesting Property Survey
LETTER TO HOME OWNERS

There may be options
to help you stay in your home or
avoid foreclosure.
Please read this letter carefully.
Titanium Solutions
3023 HSBC Way
Fort Mill, SC 29707
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RUSSELL & KIM DUANE

5209 Fawn Valley Ct
Antelope, CA 95843-6401
v\.)
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September 28, 2011

Dear RUSSELL & KIM DUANE
Loan Number: #####4865
As your home loan servicer, we want to work with you to determine what options may be available to help you stay in
your home or avoid foreclosure. Please read this letter carefully.
We will be sending a representative to meet with you at your home to collect documents that will help us conduct a
review of your loan to determine if there are home retention options or foreclosure alternatives available for you.
The representative will be from Titanium Solutions. When our representative visits you at your home, you can expect
the following:
You will be shown the representative's identification and, to protect your privacy, our representative will
verify your identity by asking to see photo identification such as a driver's license.
You will be provided a copy of this letter without the enclosures.

Our representative will gather the required financial information, as described in the enclosed checklist.
Please have copies of the required financial information ready for our representative to take with him/her. It
is important that you have all the documentation ready when the representative comes to your home.
If you have recently sent information to us, our representative will confirm that we have received it and if it
is complete.
Once we have all of your necessary financial documentation, we can evaluate your options and we will
contact you to explain those options.
To schedule the visit on a day and time that is most convenient for you, please call Titanium Solutions at
1.877.803.0039 Monday through Friday from 9:00am to 7:00pm EST. If you do not want a representative to
visit your home, please let us know by calling that same number. If we do not hear from you, our representative will
attempt to visit your home over the next 7 to 10 days.
We urge you to provide the requested information to Titanium Solutions so we can work to determine if assistance is
available to help you avoid foreclosure. If you have any questions about this program or the documentation that we
need, please call 1.877.803.0039 from 9:00am to 7:00pm EST.
Home Loan Team

Bank of America, N.A.
Enclosures:
Checklist
Request for Modification and Affidavit (RMA)
Household Expenses and Liabilities Worksheet
Dodd-Frank Certification Form
Authorization and Acknowledgement Form
Third Party Authorization Form
In order to expedite this process Bank of America, N.A. is working with a third-party company, Titanium Solutions. Federal law requires that we communicate to
you that Bank of America, N.A. and Titanium Solutions are debt collectors. However, the purpose of the communication is to let you know about your potential
eligibility for programs available to help you avoid foreclosure.
Mortgages funded and administered by an Equal Housing Lender.
Protect your personal information before recycling this document
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B~~~!~QnO~~Closurerescuescams. Help is free from your mortgage servicer, Bank of America, N.A
,
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:~>T~is:~r~gr~n1JS()nlyavaiiable to you through Bank of America, N.A
J'-~~~~~j~:l)everafe~togetassistaRce or information about the Federal Housing AdministratiOn-HOmeAffOrd~bleMOaifI6~ti6h. .>
'.'~rpg;'~r:\lfrpn:'\xourr:\lortgage servicer or a housing counselor approved by the U.S. Department of Housing and Urban Develppment,
(HUQ};Visithttp://hud.gov/offices/hsg/sfh/hcc/fc/ to find a HUD-approved counselor
.... ......
-~~~l~re()f~~y.~;rsonor
organization that asks you to pay a fee in exchange for housing counseling services or rn()ificatk)n'~h
'.
. .. . ... , .
';delinqueRt;loan~
_Be~~reof.any()neWh()SayS tney can "save" your home if you sign or transfer over the deed to your house. D()nqt'sil~;~,ovel'th'~;deed
." to ypur propirty t6any organization or individual unless you are working directly with Bank of America, N.Ato for~iv:e your.de~t:
:-~ev~r make your mortgage payments to anyone other than Bank of America, N.A without our approval.
LENDER'S LIST OF REQUIREMENTS
o
o
o
o
o
Complete and sign (by all borrowers) the enclosed Request for Modification and Affidavit
and Household Exoenses and Liabilities Worksheet.
2. Copy of the last year's e-filed or signed tax retl:lrns for all borrowers. Please include all
and schedules even if blank.
3. Complete the Dodd-Frank Certification Form.
4. A current utility bill showing the borrower's name and property address.
5. Fill out and sign the Authorization and Acknowledgement Form.
6. If the property is subject to homeowners association or condominium fees, a copy of a
current bill or assessment.
7. Return the required income documentation. This documentation includes:
For each borrower who receives a salary or hourly wages
Copy of most recent pay-stubs showing at least one month of compensation and year to date
earnings (for all jobs)
For each borrower who is self employed
Most recent quarterly profit / loss statements (with year to date profit)
Two most recent bank statements showing receipt of such payments (all pages)
For each borrower who has income such as social security, disability or death
benefits, pension, adoption assistance, public assistance or unemployment
Copy of benefits statement or letter from the provider that states the amount, frequency and
duration of the benefit, AN D
For each borrower who is relying on alimony, child support or separation maintenance
as qualifying income
Copy of divorce decree, separation agreement, other written agreement filed with the court, or
decree that states the amount and period of time over which it will be received, AND
For each borrower who has rental income or if you are current on your mortgage
payments
Copies of the most recently filed signed federal tax return with all schedules, including the
Schedule E - Supplemental Income and Loss
If no Schedule E is available because the property was not previously rented, then please provide a
current lease agreement and two most recent bank statements or cancelled rent checks.
For each borrower who has non-wage income (part time employment, bonuses, tips,
and investment income)
If the non-wage income is more than 20% of total income, copy of documentation describing the
nature of the income (for example, an employment contract or printouts documenting tip income)
If you have questions about the paperwork required please contact us at 1.877.803.0039.
Important Information
Keep a copy of aI/ documents for your records. Do not send original income documentation.
Continue to the next page if your house is listed for sale or you also wish to be evaluated for PreForeclosure Sale (Short Sale) or Deed-in-Lieu of Foreclosure Programs as other alternatives to foreclosure.
If you do not wish to be evaluated for Pre-Foreclosure Sale or Deed-in-Lieu programs please check and sign
here 0
To be evaluated for Pre-Foreclosure Sale or Deed-in-Lieu of Foreclosure Programs; please

provide the following information in addition to documentation requested on the prior
page of the checklist.
Documents requested in pOint 10 apply if you have your home listed with a real estate
agent.
Documents requested in points 11, 12, and 13 apply if you have a valid and signed
purchase contract in hand to be evaluated by Titanium Solutions.
The originals of the enclosed documents, signed by all borrowers on the loan:
I
I
8. Third Party Authorization Form

Only sign and return if you would like Bank of America, N.A to discuss your
request for a Pre-foreclosure Sale of your property with a third party acting on your behalf
such as realtors or attorneys.
9. Please provide us with the lead contact name and phone number for us to be able to gain
access to the property to perform a FHA property appraisal. We require that all utilities to
the property be on so that the appraisal can be completed.
10.lf applicable, please provide a copy of the current Listing Agreement with your
Agent/Broker. The Listing Agreement must contain the following verbiage: "Seller may
cancel this agreement prior to the ending date of the listing period without advance notice
to the broker, and without payment of a commission or any other consideration if the
property is conveyed to the mortgage insurer or the mortgage holder."
11.lf applicable, please provide a copy of the Purchase Contract signed by the buyer and
seller that contains language that the sale is contingent upon the seller obtaining approval
from Bank of America, N.A. Also when participating in a FHA Pre-Foreclosure Sale, the
maximum seller concession that HUD will allow is 1% only if the buyer is getting a FHA
loan. If there is more than one purchase contract, the seller may submit ONE offer to Bank
of America, N.A for review.
12.lf applicable, a copy of the statement of the seller's closing costs or HUD-1 settlement
statement. The figures in these statements must be accurate because Bank of America,
N.A approval will be based, in part, on the figures submitted with the package. The
maximum commission paid on a pre-foreclosure sale is 6% with the exception of the State
of Washington which may be less.
13.lf applicable, all other lien holders must provide written notice of their willingness to
release their liens before Bank of America, N.A will issue an approval letter for the FHA
Pre-Foreclosure Sale. In most cases, no proceeds will be given to any of the other lien
holders to release their lien.
APPLICATION
~~~
MAKING HOME AFFORDABLE.GOV

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Social Security number
Date of birth
Social Security number
Date of birth
Home phone number with area code
Home phone number with area code
Cell or work number with area code
Cell or work number with area code
o Keep the Property

o Primary Residence
o Owner Occupied
Iwantto:
The property is my:
The property is:
o Sell the Property

o Second Home
o Investment
o Renter Occupied o Vacant
Mailing address
E-mail address
Property address (if same as mailing address, JUS Wrl e same

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Is the property listed for sale? DYes DNo

Have you received an offer on the property? DYes DNo
Amount of offer $
Date of offer
Agent's Name:
Agent's Phone Number:
For Sale by Owner? DYes D No
Have you contacted a credit-counseling agency for help DYes DNo

If yes, please complete the following:
Counselor's Name:
Agency Name:
Counselor's Phone Number:
Counselor's E-mail:
Who pays the real estate tax bill on your property?
Who pays the hazard insurance premium for your property?
Dido
D Lender does
Dido
D Paid by condo or HOA
Are the taxes current? DYes DNo

Condominium or HOA Fees DYes DNo
Paid to:
t
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Have you filed for bankruptcy? DYes DNo

Has your bankruptcy been discharged? DYes
DChapter 7
If yes:
D Lender does D Paid by Condo or HOA
Is the policy current? DYes

Name of Insurance Co.:
Insurance Co. Tel #:
DNo
Filing Date:
DChapter 13
Bankruptcy case number
DNo
Additional Liens/Mortgages or Judgments on this property:

Lien Holder's Name/Servicer
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I (We) am/are requesting review under the Making Home Affordable program.
I am having difficulty making my monthly payment because of financial difficulties created by (check all that apply):
D My household income has been reduced. For example: unemployment,
underemployment, reduced payor hours, decline in business earnings,
D My monthly debt payments are excessive and I am overextended with

my creditors. Debt includes credit cards, home equity or other debt.
death, disability or divorce of a borrower or co-borrower.

D My expenses have increased. For example: monthly mortgage payment
reset, high medical or health care costs, uninsured losses, increased
utilities or property taxes.
D My cash reserves, including all liquid assets, are insufficient to maintain

my current mortgage payment and cover basic living expenses at the
same time.
o Other:
Explanation (continue on back of page 3 if necessary):
page 1 of3 ~
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The following information is requested by the federal government in order to monitor compliance with federal statutes that prohibit discrimination in
housing. You are not required to furnish this information, but are encouraged to do so. The law provides that a lender or servicer may not
discriminate either on the basis of this information, or on whether you choose to furnish it. If you furnish the information, please provide both
ethnicity and race. For race, you may check more than one designation. If you do not furnish ethnicity, race, or sex, the lender or servicer is required to
note the information on the basis of visual observation or surname if you have made this request for a loan modification in person. If you do not wish
to furnish the information, please check the box below.
o
o
o
o
o
o
o
BORROWER
Ethnicity:
Race:
Sex:
I do not wish to furnish this information
CO-BORROWER
o I do not wish to furnish this information
Hispanic or Latino
Ethnicity:
o Hispanic or Latino
o Not Hispanic or Latino

o ~merican Indian or ~Iaska Native
o ~sian
o Black or ~frican ~merican
o Native Hawaiian or Other Pacific Islander
o White
o Female
Not Hispanic or Latino

~merican
Indian or ~Iaska Native
Race:
~sian
Black or African ~merican

Native Hawaiian or Other Pacific Islander
White
o
o
Female
Sex:
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This request was taken by:

D Face-to-face interview
D~ail
o Telephone
o Internet
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Name/Address of Interviewer's Employer
Interviewer's Name (print or type) & /D Number

Interviewer's Signature
Date
Interviewer's Phone Number (include area code)

page2of3 ~
, 'BfiJ21lJ.lfi~lllt@B. fS)l@~1E11(\i~1l!!'ll!1*t&)l ~lt~UJEt~'iXlll (~M1i,\i) 'Ii~ge:g"
"J,' ",': ',/,'" ;',/:'~,N\1&~plliEi,~rn~lli!'11B.Bfi,i?i~fi~'~mllllg ~~R~~;,>' ;" ',' '"
ACKNOWLEDGEMENT AND AGREEMENT
In making this request for consideration under the Making Home Affordable Program, I certify under penalty of perjury:
1. That all of the information in this document is truthful and the event(s) identified on page 1 is/are the reason that I
need to request a modification of the terms of my mortgage loan, short sale or deed-in-lieu of foreclosure.
2.
I understand that the Servicer, the u.s. Department of the Treasury, or their agents may investigate the accuracy of my
statements and may require me to provide supporting documentation. I also understand that knowingly submitting false
information may violate Federal law.
3.
I understand the Servicer will pull a current credit report on all borrowers obligated on the Note.
4.
I understand that if I have intentionally defaulted on my existing mortgage, engaged in fraud or misrepresented any
fact(s) in connection with this document, the Servicer may cancel any Agreement under Making Home Affordable and
may pursue foreclosure on my home.
5. That: my property is owner-occupied; I intend to reside in this property for the next twelve months; I have not received
a condemnation notice; and there has been no change in the ownership ofthe Property since I signed the documents
for the mortgage that I want to modify.
6.
I am willing to provide all requested documents and to respond to all Servicer questions in a timely manner.
7.
I understand that the Servicer will use the information in this document to evaluate my eligibility for a loan modification
or short sale or deed-in-lieu of foreclosure, but the Servicer is not obligated to offer me assistance based solely on
the statements in this document.
8.
I am willing to commit to credit counseling if it is determined that my financial hardship is related to excessive debt.
9.
I understand that the Servicer will collect and record personal information, including, but not limited to, my name,
address, telephone number, social security number, credit score, income, payment history, government monitoring
information, and information about account balances and activity. I understand and consent to the disclosure of my
personal information and the terms of any Making Home Affordable Agreement by Servicer to (a) the u.S. Department
of the Treasury, (b) Fannie Mae and Freddie Mac in connection with their responsibilities under the Homeowner
Affordability and Stability Plan; (c) any investor, insurer, guarantor or servicer that owns, insures, guarantees or services
my first lien or subordinate lien (if applicable) mortgage loan(s); (d) companies that perform support services in
conjunction with Making Home Affordable; and (e) any HUD-certified housing counselor.
~
Borrower Signature
Date
Co-Borrower Signature
Date
. . . '~~.95~HQP{r
Homeown~r'sH()PE"
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Be advised that by signing this document you understand that any documents and information you submit to your servicer in connection with the Making
Home Affordable Program are under penalty of perjury. Any misstatement of material fact made in the completion of these documents including but not
limited to misstatement regarding your occupancy in your home, hardship circumstances, and/or income, expenses, or assets will subject you to potential
criminal investigation and prosecution for the following crimes: perjury, false statements, mail fraud, and wire fraud. The information contained in these
documents is subject to examination and verification. Any potential misrepresentation will be referred to the appropriate law
enforcement authority for investigation and prosecution. By Signing this document you certify, represent and agree that:
"Under penalty of perjury, all documents and information I have provided to Lender in connection with the Making Home
Affordable Program, including the documents and information regarding my eligibility for the program, are true and correcf'
If you are aware of fraud, waste, abuse, mismanagement or misrepresentations affiliated with the Troubled Asset Relief Program,
please contact the slGTARP Hotline by calling 1-877-sIG-2009 (toll-free), 202-622-4559 (fax), or www.sigtarp.gov. Mail can be sent
to Hotline Office ofthe Special Inspector General for Troubled Asset Relief Program, 1801 L st. NW, Washington, DC 20220.
page 3 of3
Dodd-Frank Certification
The following information is requested by the federal government in accordance with the Dodd-Frank Wall Street
Reform and Consumer Protection Act (Pub. L. 111-203). You are required to furnish this information. The law
provides that no person shall be eligible to begin receiving assistance from the Making Home Affordable Program,
authorized under the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5201 et seq.), or any other mortgage
assistance program authorized or funded by that Act, if such person, in connection with a mortgage or real estate
transaction, has been convicted, within the last 10 years, of anyone of the following: (A) felony larceny, theft, fraud,
or forgery, (B) money laundering or (C) tax evasion.
Ijwe certify under penalty of perjury that Ijwe have not been convicted within the last 10 years of anyone of the
following in connection with a mortgage or real estate transaction:
(a) felony larceny, theft, fraud, or forgery,

(b) money laundering or
(c) tax evasion.
Ijwe understand that the servicer, the U.S. Department of the Treasury, or their agents may investigate the accuracy
of my statements by performing routine background checks, including automated searches of federal, state and
county databases, to confirm that Ijwe have not been convicted of such crimes. Ijwe also understand that knowingly
submitting false information may violate Federal law.
This Certificate is effective on the earlier of the date listed below or the date received by your servicer.
Borrower Signature
Date
Co-Borrower Signature
Date
Supplemental
Account No: ______________________

Borrower Name: __________________
FHA Case#: ___________________
Property Address: ____________
AUTHORIZATION AND ACKNOWLEDGMENT

I have described my financial condition in the enclosed Financial Statement and certify that all information
presented therein as well as all attachments are true, accurate, and correct to the best of my knowledge. I
understand that submission of this information in no way obligates Bank of America, N.A, the investor or the
Mortgage Insures to provide assistance to me.
By sending this Financial Statement to Bank of America, N.A, I hereby authorize Bank of America, N.A, the Investor
and the Mortgage Insurers to:
Order a credit report from any credit agency

Order a title search from any title agency
Verify the accuracy of the information contained in this Financial Statement, including without limitation, any
current or previous employment information.
I agree that I will notify Bank of America, N.A immediately of any material change in the financial information that I
have provided herein. If I fail to do so, or is determined that the financial information provided herein has been
misrepresented by me, and Bank of America, N.A, the Investor or the Mortgage insurers make decisions which would
not have been made had the true facts been known, then (1) I shall be liable for all costs incurred or damages
suffered by Bank of America, N.A, the Investors or the Mortgage Insurers, and (2) Bank of America, N.A shall have
the right, in its sole discretion, to terminate any arrangement or agreement that has been extended to me based, in
whole or in part, on the inaccurate or incomplete information that I have provided.
Submitted this
, 20 _ _ _ _ '
day of
BORROWER:
CO - BORROWER
Signature
Signature
Name (please print)
Name (please print)
AUTHORIZATION FORM
Account No: ___________________
I Hereby authorize BANK OF AMERICA, N.A ("BANK OF AMERICA, N.A") to discuss my request for a Short Payoff with
the individual(s) that I have identified below as my designated agent(s) (hereinafter the "DeSignated Agent").
Further, BANK OF AMERICA, N.A is hereby authorized to negotiate the terms of a Short Payoff. I understand that I
will be fully responsible for reviewing any information that is sent by BANK OF AMERICA, N.A to my Designated Agent.
This Authorization will remain effective until I specifically notify Bank of America, N.A's Workout Department in
writing that this authorization is of no force and effect.
My Designated Agents are:
(Insert name)
(Insert name)
(Insert name)
Date:
1 __
Borrower
Date:
1 __
Co- Borrower
Bankof1\n1~rica4'"~
Borrower Name' _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
Loan Number_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
HOUSEHOLD EXPENSES WORKSHEET

BALANCE DUE
MONTHLY PAYMENT
A.
HOUSING EXPENSES
FIRST MORTGAGE PAYMENT (PRINCIPAL & INTEREST & ESCROW IF INCLUDED)
SECOND MORTGAGE PAYMENT
OTHER MORTGAGE PAYMENTS
PROPERTY TAXES (IF NOT INCLUDED IN MORTGAGE PAYMENT)
PROPERTY INSURANCE (IF NOT INCLUDED IN MORTGAGE PAYMENTI
HOMEOWNERS ASSOCIATION DUES
SPECIAL ASSESSMENT TAXES (COUNTY' CITY' TOWN)
HOME MAINTENANCE (HOUSE KEEPER, LAWN MAINTENANCE, FURNISHINGS)
$
$
SUBTOTAL HOUSING EXPENSES

B.
ALIMONY' CHILD SUPPORT' MAINTENANCE

GARNISHMENTS' COURTORDERED STIPULATION PAYMENTS
(CHECK IF PAYROLL DEDUCTED.:I)
LOCAL, STATE, OR IRS TAX LIEN PAYMENTS
$
$
$
MONTHLY PAYMENT
LIVING EXPENSES
FOOD'MEALS
BALANCE DUE
SUBTOTAL COURT-ORDERED OR MANDATED EXPENSES

C.
$
MONTHLY PAYMENT
COURT-ORDERED OR MANDATED EXPENSES
BALANCE DUE
PERSONAL CARE (CLOTHING' DRY CLEANING' HAIR SALON OR BARBER)
CHILD CARE' ELDER CARE' AFTER SCHOOL PROGRAMS' CHILDREN'S ALLOWANCE
EDUCATION (TUITION & RECURRING MONTHLY EXPENSES including student loans)
MEDICAL' DENTAL' VISION' HOSPITAL BILLS
PRESCRIPTIONS , TREATMENTS
UNION DUES
HEALTH INSURANCE (CHECK IF PAYROLL DEDUCTED.:I)
CHARITABLE DONATIONS (including church tithe)

LIFE, DISABILITY' ACCIDENTAL DEATH INSURANCE (CHECK IF PAYROLL DEDUCTED
.:I)
ENTERTAINMENT' MEALS OUT
PET CARE
OTHER MISCELLANEOUS EXPENSES
SUBTOTAL LIVING EXPENSES

D.
TRANSPORTATION EXPENSES
AUTO LOANS, LEASES
$
MONTHLY PAYMENT
BALANCE DUE
AUTOMOBILE EXPENSES (GAS' MAINTENANCE' DMV REGISTRATION'

INSPECTIONS)
AUTOMOBILE INSURANCE
PUBLIC TRANSPORTATION' PARKING' Tolls
$
$
SUBTOTAL TRANSPORTATION EXPENSES
BALANCE DUE
MONTHLY PAYMENT
E.
UTILITIES
ELECTRICITY
$
$
HOME HEATING GAS' OIL
WATER 'SEWER
TRASH COLLECTION
TELEPHONE'INTERNET
CABLE' SATELLITE
CELLULAR' WIRELESS SERVICE
OTHER DEBTS I CREDIT EXPENSE

OTHER INSTALLMENT LOANS
(CHECK IF SECURED BY RENTAL OR OTHER REAL PROPERTY.:I)
CREDIT CARDS OR REVOLVING LINES OF CREDIT (ENTER THE TOTAL OF THE MINIMUM
MONTHLY PAYMENTS)
PAYDAY ADVANCES OR LOANS
MONTHLY PAYMENT
F.
OTHER PERSONAL LOANS
BALANCE DUE
SUBTOTAL OTHER DEBTS I CREDIT
GRAND TOTAL (ADD LINES A, B, C, 0, E & F)
SUBTOTAL UTILITIES
$
$
$
$
Borrower Name' _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
BankofAmerica4"~
Loan Number_ _ _ _ _ _ _ _ _ _ _ _ _ _ __
HARDSHIP INFORMATION
Are you currently employed?
yes_ _ __
Is your home currently vacant? Yes ___

Is your home currently being rented? Yes
No_ __
No _ __
If your home is vacant, how many months has it been vacant? _ _ _ _ __
No _ __
If you have tenants, how long have they been in the home? _ _ _ _ __
Generally, financial hardship includes a number of factors involving a reduced income and/or increased expenses. Please check the reasons why you are currently unable to pay your mortgage or bring your mortgage
current.
Reduced Income
See comment about checkboxes.
Increased Expenses
Check the item(s) below that describes your current situation:

Death of wage earner
Check the item(s) below that describes your current situation:

One time increase - situation that caused increase is no longer an issue)
IJ
IJ
IJ
Illness / Disability of wage earner (receiving disability)
IJ
Unexpected or unplanned expenses, lasting less than 12 months - i.e.: car repair
IJ
Illness / Disability of wage earner (not receiving disability)
IJ
Unexpected or unplanned expenses lasting longer than 12 months - i.e.:

Ongoing health expenses
IJ
Military Duty (Reducing or interrupting income)

IJ
IJ
Reduction of Pay (Cut in hours, overtime, salary, commission, bonus, etc.)
Increase in housing expenses (Need for relocation or duplicate housing caused by divorce,
job transfer, or other necessary relocation)
IJ
Unemployment with payments (layoff, termination, shutdown, etc.)
IJ
An excessive amount of debt
IJ
Unemployment with no unernployment benefits
Please provide any additional detail you want us to consider when reviewing your application jor assistance:
Borrower Signature : _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
Date:
134
Welcome to Day 4
Welcome to Day 4 of 7 Dqys to Success with Short Sales!
You've started collecting the documentation you need to submit a short
sale package for your property. In this next step in the process (Step 3:
List & Market the Property), you'llleam how to move forward with
the property sales process.
The Short Sale Proc;ess
YOIl are
Ihere!
In "Day 4: Listing and Marketing the Property," we will discuss the

techniques for posting the short sale listing on the Multiple Listing
Service (MLS). And we'll get into the details of one particular document
Day 4: Listing and Marketing the Property
135
that will make your life a lot easier: the Short Sale Disclosure and Agent
Guidelines.
Your approach for marketing a short sale listing will be very different
from the approach you typically follow with traditional listings. We'll
discuss why this is so. And before we end this day of learning, we will
discuss why it is important to contact the title company or attorney to
open a file and initiate a title search on the property.
Notes
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136
Pricing the Home
r------Q-------,
Do I need to wait for the bank to run their
appraisal/BPO before I set the price of the
home and list it on the MLS?
1%
,.
Even though the lender will ultimately determine what they will accept
for the sale of the home (the settlement), they want to wait until further
in the process to declare this amount. This means that the short sale
agent should move forwa~d with a standard Comparative Market
Analysis (C]'v1A) roevaluate the best price for the home. It is only after
the price has been set and the home attracts a buyer with an executed
offer that the lender ",-ill begin the process of negotiating for their final
settlement figure. The lenders want the buyers to "tip their hand first,"
so to speak
As first discussed in "Day 3: G<tthering the Information for the Short
Sale Package," your pricing strategy for a short sale property should not
differ drastically from your strategy for any other home that needs to sell
within 30 to 60 days. Price the home as you would for a highly
motivated client with equity. Price the home to move. This typically
means that you will price the home right at market value or slightly
lower.
137
,------,,-~I
t1llve t1llo( ple~ttl of Ilge~ts Il~o( M~-lLc,e~seo(

L~vestors IlS~ vvce t10w to vvcll~LpV<.lllte Il C-MA, t10w to
L~fLV<.e~c,e tt1e bll~~'s 1;PO Ilge~t, Il~o( t10w to o(ec,eLve
loss vvcLHglltors. T11etl ~~ow tt1llt tt1e o~ltl WlltJ to bV<.tI Il
st10rt sille for c,t1ellp Il~o( fLLp Lt for Il sV<.bstll~tLlll profLt
Ls to c,o~vL~c,e tt1e bll~~ sovvcevlOw tt1llt tt1e properttJ Ls
wortt1 less tt1ll~ Lt llc,tV<.lllltJ Ls. Tt1Ls Ls wt1tJ bll~~ te~o(
to O(LstrV<.st Ilge~ts Il~o( L~vestors. I o(o~'t pllltJ tt1Ls
gllvvce. I belLeve vvctJ stlstevvc waL t1elp people leilr~ tVie
bV<.sL~ess Il~o( t10w to vvcll~e vvco~etJ tt1e rLgt1t WlltJ."
HI
A solid, well-researched CMA is your key. When you run your

comparatives, make sure that you pull 30- or 60-day reports. That is, you
should compare your client's property to homes that have sold in less
than 60 days on the market (DaM). Your client's neighborhood may be
averaging 200 DaM, but the lender is not going to wait 200 days for a
sale!
Now, when I say to use comps of homes that took 30 to 60 days to sell,
what I actually mean is, I use comps for houses that took 30 to 60 days
to sell once they were priced correct!J. Many times I will use a comp on a
house that technically took over 100 days to sell. However, when I
research the sales history, I can easily see that the price was adjusted
and the home then sold within 30 to 60 days of the last price
adjustment. Such comps are also usable. By using 30- or 60-day comps
for your pricing, you are pricing the home cortectly and setting yourself
up to generate an offer quickly.
Once you have completed your CMA, stand behind it and communicate
to the other parties in the process. As we discussed in Day 3, even
138
though banks say they don't want or need your CMA, make sure that it's
a part of the short sale package you submit. This will help prevent
unreasonably high lender appraisals.
like any industry, there are many opportunities for corruption. I have
heard of BPO agents who intentionally value properties too high so that
the homes will not sell and will go into foreclosure. Of course, this
doesn't really benefit their bank clients, but their strategy is to be there
(i.e., be the trusted agent) when the bank needs to engage an agent to sell
the property as an REO foreclosure property. Sneaky, huh? This is not a
regular occurrence, but this is another reason you want to communicate
your CMA and pricing to the banks and to the BPO agent.
Notes
139
Posting on the MLS

Over the years as a short sale specialist, I have worked to perfect my
system for listing and marketing distressed properties. Many of the
procedural steps for posting a short sale listing on the Multiple listing
Service (MLS) are similar to the ones you would follow for a traditional
listing. We'll focus on what makes the process unique.
Agent Comments
When listing a short sale on the MLS, I always disclose to other agents
that the property is a short sale. For example, I add the following
statement in the Agent Comments section (not viewed by the general
public):
Short sale subj ect to seller's lender approval.
There are different schools of thought on whether or not you should

disclose the fact that the property is a short sale. It may be true that
some buyer's agents will be less motivated to show a home that is a
short sale (due to the longer-than-average close time). However, I
believe full disclosure of the fact that the property is a pre-foreclosure
short sale is the most ethical practice and it is, indeed, required by many
real estate boards.
You can also regularly update your comments in the MLS to alert agents
about the current status of the short sale. For example:
Short sale subject to seller's lender approval. Package

already submitred to the lender.
Short sale subject to seller's lender approval. BPO already
ordered.
140
Short sale subject to seller's lender approval. Almost

approved.
Short sale is already APPROVED by seller's lender at list

price. Quick close!
Short Sale Disclosure and

Agent Guidelines Document
I can remember a time in Texas when we were not required by our
boards to disclose a property's short sale status, nor were we required to
disclose the procedure and expectations to the buyer's agent. Because I
knew it would ultimately benefit all parties, I made extra efforts to
disclose the status of the property and inform buyer's agents of the
process. In fact, for each new buyer'S agent, I would devote at least 30
minutes expla.ini1l.g the process. [ sounded like a broken record. Then, I
evolved my system and developed acomprebensive document to
educate both buyer'S agents and their clients about how to mal,e an offer
on a short sale property: The Short Sale Disclosure and Agent
Guidelines.
Each MLS system is different. Some systems will allow you to upload a
document for other agents to access and download. Because this is the
case in my area, I simply upload my Short Sale Disclosure and Agent
Guidelines document to the MLS for each of my short sale listings.
Another strare"oy wonld be to add a comment to the MLS stating that
buyer's agents must email you for a copy of this document before
submitting an offer.
141
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"As CI snort sCile s-pec,LCllLst, (joO{. snoO{.loi

O{.vcoierstClvcoi tnClt (joO{. wGll be, Lvc effect, eoiw)Clhvcg
otner Clgevcts wno -plw)e offers ovc (joO{.r snort sCile
lLshvcgs. Tne Snort sCile DLsdosO{.re Clvcoi Agevct
yO{.LoidLvces oiOC,o{'V1Aevct wm nel-p (j 00{. eoi O{.wte CI vcoi
set ex.-pec,tCltGovcs for bO{.(jer's Clgevcts
Clvcoi tneLr dLevcts."
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On our team, we require that the Short Sale Disclosure and Agent
Guidelines be signed by both the buyer's agent and their buyer client
before we will submit a short sale offer or ,executed contract to the
lender. I ask that the buyer'S agent read the document first and then call
me with questions. This streamlines the process.
142
Having explained this, we also understand this ",reates an obligation for the buyer to provide the
co~
"',
b,
Short Sale Disclosure and Agent Guidelines

TO:
Real estate agents and buyers looking to make an offer on a short sale listing
'Y
I IMPORTANT: This signed document must be returned with the offer. I
1,
What is a short sale? A short sale rarers to the sale of real property for an amount less than the
amount owed on the property. The lender (FHA, VA, Of Sank) agrees to accspt less than the full balance
duE' on the debt and usually "forgives" all Of a large port101'l of the difference.
PLEASE BEAR IN MIND THE ,FOLLOWING fACTS WHEN ivlAKING AN OFFER!

1. CLOSING DAre.:
'Sf)mt Slrlw:
if
tKlWly laM 30-69 -dt''t5 to e!n:;e They can take longer, and the
final cl~mg dabs is contingent 1:IpOn the 'lender. If Ithe ibuyer must 'be in the .home SOONER t:hn
this time firame~ OR cannotto~r~ deklys beyond 60 days.,. they should NOil"m.!Ike lin offer.
This time frame is dependant on where the file is in ~he oShort 'Sale proceS"s- For example, Jf 11na) S"hort
sale CIlproliai has been .gr:,mted, tloe.m the prOc:ss5 call take, .as few.as 20 days. W,e .nac:tImmend a
closing t'late tlf::ro :days bey.oml1:ile -o&r l>I!lbmission daw. When on ,mffer is recejyru;\ AErfB
$hart sa'\e a.pproval, an ~frer wlll take '5-10buslness 00% for aP)llrovaV11!eniak
2. COMMISS10NS: Ca.rnmissUlm 'I'r0y ",ot exceed '6% on FHA Hens-Split is SO/58. For
~vent"i@n~
prol.'icre
Ttens". lJhe ;!ender may only ,pay
4-~split
5-0/SC. W.e won't koow L!11til they
.a 'rour1ter~ftier.~ 'P.lease :etteck Ml.!S ,listing um:Ier BUYERS "'"GENT PERCEmA-CE.
3. SPECIAL .PlROVISIONS1 A:II .offers MUST include :the follO'wing .contimgetTIcies~

'?r<wert't' is be'in:g sOld 1 IS. (DUE! to severe -Icrrss -being ~;:_ikem Iby tbe lem!hu, rep.<!Lr.s cannot
H
Ibs rni3l!ls by ~hese1ler'or"ti1B ,lender.}

=t!Iye!!?!Wl!mnt <ifgle !S'ClD-!!Iditionn! "-I!!\'9n1jn-aJ ,"pnrM/a! gf'Sellgr's Igndcrtmrllnr'H! 10 "
f\!!!!t'er ",,;0 Jm '.grmnt,ed e 'lQ-dlW !i!lswdjipn 'Mr;od gt ...9 plu....1" j,he

'irl5psdt:ian :perWd will COlITImerrtee 'I.ll1lCe tr.e <!irllYsrs agent rec,eilJ;eS 'written :nctific:ation fum, ~hs
ltrtillg agE!m: t:hat the short sale fll.e.is sppr:01!edby the seller's 'lender. DurirLg the inspCtion'pSl'k,d,
buyar Ima}' terminate the 'c:ontr.!ct for<lny rElasoJ:l arml i'in)' -ea-rnest moroie~ will be rslease-d b8ck to
~~ Pfl~irn!'
thebu9r."
4.. a..OSING COSTS: 1.ende.r will pay typical <100 ,eustom.ary closing costs such as title policy,
~ent
c:ommiissians, ,stc.
FHA 'Shor1: SalB' BOO 'Wi~ alfow 'Up to J:% of the b\:lyer's mortgage amount for closirtg cost-to
be ,included In the "Seller's Cos:!:" on the HVD~l for ali trao-rzaetions that mvclll>'i 'NEW FHA-insured
mrJ rtgages.
,0.,. C(!II'.MENT,IOI!I.!Al Short Sale: SeHer's ,[anrlsr 'M,'!'Y OR 'lolA), INOT f:-AV :em'l buyer's ciQS;rlg-CCls:t
or ass:ist3nce Prtl'9roams. Yau ar-e welcome to SUbmit ')-our 1!lfffi::or, on C0NY 'liens, with th~ =s:ts
inclutWd a11td we will fJJrw.ard tlil the sellar's ,Iender-they will make iJb-e (!ecision em whetharto pay.
Qg
5. SURVEY:"11tre se'lleramnot be abligallerl,to pay fora SJ.:IlVi8y~ end,the sell-er's ~eJ)derwill Rot
'p.ay for '!he survey ,Olil the se!De-r':s IbShlillff. ,"here ,ear:. ilia no "OI:mgabioJ:l ClaLl$9'u t!loi'it 'lEquests the
se'l1er toO 1l'ay the cmt of ip1"-OV,ldirlg a $lll'ltey, ATTIiElR :EXPENSE, because -rille short sale leiWer (sener's
mortgage :company) WIlli 't.10T pl.ay that a-perrse ,under aray ocir=lrru7t-=, and the seller ,[5
.prolWited from c-orntribu.tillg fina,1cJa!I'1i to t!:l-e transaC'tion. In ,other warcis, 'jfj:h9 sener fails to ,proviOe
the SUnray and/or sl'\}' AIf.td&vlt.in! the :presc!lib~d UJIIl9 period, s/he '1>'rould 'bEl in breach cefcontract. The
document woulD co-nta"in a promfse that the Stllier cannot fulfill-thus forcil1'2l- ,breach ofcontraec.
7 Day Systems Short Sale Disclosu:<e and Agent Guidelines
"
143
A Closer Look at the Short Sale Disclosure

and Agent Guidelines
The Short Sale Disclosure and Agent Guidelines document that I have
developed is more comprehensive and detailed than any document I
have seen used by other agents or real estate boards. The purpose of the
document is to get helpful information into the hands of the buyer'S
agents to make their life easier-=d, in the process, make YOUR life
easier. When you prepare and implement a document like this, it will
also demonstrate your knowledge and expertise in the business of short
sales.
Note: You will need to develop your own version of the guidelines
document that complies with the rules of your MLS. Use the version on
the Toolkit CD to help you get started.
Our 7 Day Systems document begins with a brief definition of a short
sale. The remainder of the document highlights the policies and
guidelines for specific sections of the purchase contract:
1. CLOSING DATE
Short Sales usually take 30 60 days to close. They can take longer, and
the final closing date is contingent upon the lender. If the buyer must be
in the home SOONER than this time frame, OR cannot tolerate delays
beyond 60 days, they should NOT make an offer. This time frame is
dependant on where the file is in the short sale process. For example, if
final short sale approval has been granted, then the process can take as
few as 20 days. We recommend a closing date of 30 days beyond the
offer submission date. When an offer is received AFTER short sale
approval, an offer will take 5-10 business days for approval/denial.
2. COMMISSIONS
Commission may not exceed 6% on FHA liens-split is 50/50. For
Conventional liens, the lender may only pay 4-5'%--split 50/50. We
144
won't know until they provide a "counter offer." Please check MLS
listing under BUYERS AGENT PERCENTAGE.
.-----~-"Mtj -poLLc,tj Ls to s-pLLt tne c,ovvcvvcLssLovo SO/SO wLtn tne

butjey's Clgevot. you vvcust tJec,LtJe tj0UY owvo -poLLc,tj j ust
be ClWClye tnClt LevotJeys ttj-pLwLLtj WClvot to see Cl SO/SO
s-pLLt, iAvotJ Lf tnetj see ti-lClt ovoe iAgevot Ls iAc,c,e-ptLvog Less
tniAVO sOfa (Let's SiAtj, Cl 2'(0 wvvcvvcLssLovo), tnetj wLLL
iAutovvciAtLc,iALLtj stClvt ClskLil'vg wntj botn [lgevots wovo't
iAC,c,e-pt tnLs Lowey c,ovvcvvcLssLovo. AvotJ thetj vvcLg nt just
tJedde to c,oV1A;eclowvo fyo,VVC ClLLowLvog Cl totiAL sfo
c,ow.;vvcLssLovo ovo tne sClLe to iA 4'(0 c,oVlA.vvcLssLovo, foy
eXClvvc-pLe. It's iALWClk:JS best to nClveCl SO/SO s-pLLt yLg nt
tJowvo tne vvcLtJtJLe."

3. SPECIAL PROVISIONS
All offers MUST include the following contingencies:
II
''PropertY is being sold AS IS." (Due to severe loss being

taken by the lender, repairs cannot be made by the seller or
the lender.)
[Note: even if your state uses an "As Is" contract, lenders
will want to see this statement in the Special Provisions
section.]
''The contract of sale is conditional upon final approval of

seller's lender andlor HUD."
"Inspection Period: Buyer will be granted a 10-day

inspection period at no charge. The inspection period will
commence once the buyer'S agent receives written
145
notification from the listing agent that the short sale file is
approved by the seller's lender. Duting the inspection
period, buyer may tenninate the contract for any reason
and any earnest monies will be released back to the buyer."
4. CLOSING COSTS
Lender will pay typical and customary closing costs such as title policy,
agent commissions, etc.
On FHA Short Sale: HUD will allow up to 1% of the

buyer'S mortgage amount for closing cost to be included in
the "Seller's Cost" on the HUD-l for all transactions that
involve NEW FHA-insured mo~<>ages.
On CONVENTIONAL Short Sale: Seller's lender MAY

OR MAY NOT PAY any buyer'S closing cost or assistance
programs. You are welcome to submit your offer, on
CONV liens, with these costs included and we will forward
to the seller's lender-they will make the decision on
whether to pay.
5. SURVEY
The seller cannot be obligated to pay for a survev. and the seller's lender
will not pay for the survev on the seller's behalf. There can be no
"obligation clause" that requests the seller to pay the cost of providing a
survey, AT THEIR EXPENSE, because the short sale lender (seller's
mortgage company) will NOT pav that expense under any circumstances, and the seller is prohibited from conttibuting financially to the
transaction. In other words, if the seller fails to provide the Survey
and/or any Affidavit in the prescribed time period, s/he would be in
breach of contract. The document would contain a promise that the
seller cannot fulfill-thus forcing a breach of contract.
Having explained this, we also understand this creates an obligation for
the buyer to provide the cost of a survey. It must be understood that the
146
short sale lender sees the survey as a "buyer expense," since it is a

document that is required by the buyer'S lender. As a professional
courtesy, we will work diligently to obtain an existing survey from the
seller and will provide it to the buyer'S agent, but we make no warranties
or claims as to its accuracy or validity. The survey provided will NOT be
accompanied by an Mfidavit.
6. RESIDENTIAL SERVICE CONTRACTS! HOME WARRANTY

The lender will not pay for any residential service contracts or home
warranty on behalf of the buyer.
7.. HOA FEES

We recommend a SO/50 split for the BOA Transfer Fees. This makes
the cost equitable between buyer and seller.
8. MULTilPLE OFFERS
We only work with the bank on one offer or contract at a time. In the
event that we receive multiple offers on this property, we will not
counter for your best and final offer. Our policy is to select and submit
the best offer, so bear this in mind when submitting your offer.
9. PRE-APPROVAL LEITER
TI,e offer must include a pre-approval letter from the buyer's lender if
3rd-Party Financing is being accomplished. NOTE: if the offer is a
CASH offer, the lender will still want to see a document that shows
proof of funds available.
10. PROPERTY UTILITIES

In many cases, the property is being sold at a reduced price and the
seller is in a hardship situation and cannot afford to have utilities turned
on. Once the file is approved, our standard procedure is to ask the
buyer(s) to tum the utilities on in their name if they wish to do an
inspection. Since the file will close in several weeks and the utilities will
147
be in the buyer(s) name anyway, this is our standard protocol. In the

event that the buyer chooses not to move forward with the transaction
by exercising their termination option or the short sale lender does not
go forward with the contract, the I(nolly Team will reimburse the
buyer(s) for costs associated with turning on the utilities .
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nlAssLe IAVeo! IA vtsR lAS I LLsteo! VOLore IAVeo! VOLore snovt slALe
pwpevtLes. Ac,tLve 14HLLHes lAre Veec,esslArk:) for tne
LVespeC-HoVe, IAVeoi tne LVespec,HoVe tk:)pLwLLk:) nlAneVes IAfter
tne snovt slALe nlAs beeVe IAnroveoi bk:) tne LeVeoier. It Ls rlAre
tnlAt Lt w014LoI Veeeol to nlAneVe before. So, Ltj14St VOLIARes
seVese to nlAve tne b14k:)er go IAnelAoilAVeo! t14rVe oVe tne
14HLLHes LVe tneLr VelA VOLe IA Veo! pIA k:) for tne LVespeC-HoVe. If tne
b14k:)er o!ec,LoIes (oI14rGVeg tne LVespec,HoVe perGool) Veot to
p14rc,nlAse tne propevtk:), VOLk:) telAVOL wLLL reLVOLb14rse tneVOL for
tneLr 14HLLtk:) set14p c,osts. n
CLOSING PARAGRAPH
The Short Sale Disclosure and Agent Guidelines document closes with a
summary statement to help set expectations for the buyer'S agent and
their client:
In closing, the short sale program offers the buyer an excellent
opportunity to get a great deal-provided the buyer is patient. For those
of us accustomed to fast-paced real estate sales, the short sale process
can be particularly frustrating, aggravating, and slow. In the end,
however, the short sale process is a win-win program. Investors/Buyers,
Lenders, Mortgagees, and Agents all benefit from the successful short
sale. Investors/Buyers can purchase the property at or below market
148
value. Lenders get the majority of their money back. Sellers get the relief
they need and are able to sell their property and avoid foreclosure. And
Real estate agents can facilitate the transaction and receive compensation
(commissions) from the sale of the property.
Signatures
Make certain that along "With any offer, the buyer's agent and their buyer
client submit a signed Short Sale Disclosure and Agent Guidelines
document. This "Will help protect you against potential liability. Indeed, if
issues arise, you may need to refer to the document and remind the
buyer's agent and buyer that they signed and agreed to these terms.
Notes
149
Listing Marketing
Sellers of traditional (non-short sale) properties have high expectations
for your marketing plan. They want to know the details of how you
intend to sell their home for the highest price in the least number of
days. The reality is that price sells homes-not marketing. But
perception is reality. These sellers perceive that heavy marketing is
always necessary.
Sellers of short sale properties are ill a different mental place with
different expectations about the sale of their home. As discussed before,
they want to turn the entire process over to their agent and wash their
hands of the details. And, because you have already educated them
about the process and how the lender will ultimately determine the
settlement amount, they are not likely to be interested in the details of
how you will market the home to sell.
I really rely on talented buyer's agents to recognize a good deal when
they see one and bring it to their client's attention. I do not devote a lot
of budget to heavy marketing. Virtual tours, for example, are well worth
the effort and the expense for traditional listings, but not necessary or
cost-effective for short sale listings.
Note that your short sale clients may not want their neighbors to know
that they are in a short sale situation. So, you must be respectful of this
and ask for your client's pennission to disclose the situation when
developing any publicly displayed marketing materials for the property.
On the other hand, you may have other clients who have already
relocated out of the neighborhood, for example, and who don't mind
publicizing the fact that the property is selling as a short sale.
When you formulate your strategy for marketing the short sale property,
never forget that listing marketing is always a great way to generate
additional listings and buyer leadsl
150
Title Search
After you have posted the new short sale listing to the MLS, send an
email to the title company or attorney to open a file and begin a title
search for liens on the property.
Note that the title company or attorney that you will use is negotiable.
However, it is customary for the party paying for the title policy to
choose who will perform the title work. In the case of short sales, the
seller's lender will pay for the title policy. Regardless, it makes sense for
all parties to work with an experienced escrow agent.
, From.: Knolly@molly.com
To: Trac",@thetitlecompany.oom
Subject: Open Title for Short Sale on 123 Main Street
Hi Tracy,
i
We need to open a @e file for the property :Iisled below, which willi be a
: short sale. I have attached ~he lax information and a copy of (he property
survey.
i
PROPERTY ADDRESS: 123 iMain Street

OWNER NAME: Ben Johannsen
As soon as 1receive the offer, I will forward a separate request for the
HUD-1 Settlement Statement.
Thank you,
Knolly
Sample Email Requesting Title Search on Property
151
IRS Tax Liens

One very important reason for performing a title search is to identify all
outstanding liens on the client's property.
In cases where the homeowner has not paid their income taxes, the IRS
may place a federal tax lien on the property. Actually, the lien covers all
of the person's property including the home. Typically, you can
convince the IRS to remove the tax lien (from the house) by requesting
a Certificate of Discharge of Property from Federal Tax Lien
(publication 783) with the IRS.
The reason the IRS has placed the lien on the person's home is so that
they will get paid whenever the person sells their property. If you can
convince the IRS that the homeowner is upside down and that there will
be no resulting proceeds from the sale, the IRS may agree to release
their lien. Along with your request, you will need to include some
supporting documentation such as the purchase contract, the payoff
statement from the bank, and so forth.
I have had to deal with IRS tax liens on several occasions, and they are
not fun. However, there is no way to move the short sale transaction
forward until the IRS tax lien has been removed.
This entire process should be coordinated in conjunction with your title
company or attorney. Make certain that you are working with a title
agent who knows the ins-and-outs of the partial release of lien process.
For more information and complete instructions, go to www.irs.gov and
search for "Publication 783."
152
Day 4 Wrap Up
Congratulations! You have completed Day 4, and now you are more
than halfway through 7 Dqys to Success with Short Sales.
This day of learning focused on steps you follow once you have taken a
short sale listing and you are ready to market it for sale. In particular, we
shared tips and tricks for posting this unique type of listing on your MLS
system.
In order to work efficiently and see the greatest success in short sales,
you must help others around you understand the rules and the process.
For this reason, I developed the Short Sale Disclosure and Agent
Guidelines document to educate buyeis agents and their clients about
how to make an offer on a short sale property. This document (which
should be customized to comply with your state and local board and
MLS) provides an explanation of and guidelines for the closing date,
commissions, special provisions, closing costs, the survey, the home
warranty, HOA fees, multiple offers, the buyer's pre-approval letter, and
what to do about property utilities.
You won't believe how much time you will he saving by implementing
this Short Sale Disclosure and Agent Guidelines. Let the document do
the work for youl
Once you have priced the home coxrectly and posted the new listing on
the MLS, you've done most of the work you need to do in terms of
marketing this short sale property. Aggressive, high-exposure marketing
plans are not necessary for these properties. They are priced to move
and competent buyer's agents should be able to help spot these deals for
their clients.
Before going much further in the process with this new short sale listing,
you need to get all of the "cards on the table." Contact the title company
or attorney and initiate a title search immediately to identifY all
153
outstanding liens on the property. Cross your fingers that the

homeowners aren't facing tax liens from the IRS. But if they are, you
will know what to do to clear the path for the short sale transaction.
Day 4 Action Items

1.
2.
Familiarize yourself with the local board and MLS

rules for posting short sale listings.
Open the Short Sale Disclosure and Guidelines
document on the 7 Days to Success with Short Sales
Toolkit CD. Review the document and customize it to
reflect your business policies and the guidelines of
your state and local boards.
In Day 3, we began the process of collecting the essential documents for

the short sale package. Then in Day 4, we took a break from the package
prep work in order talk about how to get the property on the market
and how to start attracting buyers. Things will heat back up again with
the next day, "Day 5: Receiving Offers and Submitting the Short Sale
Package." In this day, the remaining puzzle pieces will fall into place,
and you'll be ready to submit your expertly prepared short sale proposal
package to your seller's lender.
Let's do it!
154
Notes
II Welcome to Day 5
II Working with Buyers and Buyer's
Agents
~
II
Reviewing Offers
II
Preparing the Final Short Sale

Documents
II
Submitting the Package to the

Lender
II
Day 5 Wrap Up
156
Welcome to Day 5
Welcome to "Day 5: Receiving Offers and Submitting tbe Short Sale
Package"! In this day of learning, we'll talk more about working witb
buyer'S agents and tbeir clients.
V;ou are
here!
You will want to be very systematic about reviewing purchase offerswhetber you receive one or multiple offers for your short sale listing. As
we discussed in Day 4, tbe Short Sale Disclosure and Agent Guidelines
document outlines your expectations and requirements for tbe purchase
contract. Tbis document will become important once again, as you
review each offer against your criteria.
Day 5: ReceMng Offers and Submitting the Short Sale Package
157
We will also discuss how to prepare the final documents and submit the
entire short sale proposal pacbtge to the lender. At this point, you
should be ready to add the last outstanding documents-the purchase
contract, the buyer's pre-approval letter, and the estimated HUD-l
statement-to the pacbtge. We'll teach you the 7 Day Systems tips and
tricks for organizing the pacbtge, preparing a coversheet, and sending
the documents to the lender.
You have been asked to absorb quite a bit of detailed instruction thus
far in 7 Dqys to Success with Short Sales. Hang in there! And let me remind
you that your careful pre-qualification work and the your attention to
detail during the pacbtge preparation will payoff immensely when you
see that you have laid the path to a successful short sale approval!
Notes
158
Working with Buyers and

Buyer's Agents
Obviously, you need a buyer to close the short sale deal, but what you
must remember is that you need a buyer (their offer) to even start the
process with the lender! Banks won't "work the package"-that is,
banks won't begin reviewing a seller's short sale proposal-without a
buyer offer on the property. Technically, FHA short sales can be
approved without an offer in place, but most banks are in the habit now
of waiting for an offer.
Educating Buyers and Buyers Agents

As discussed in "Day 4: listing and Marketing the Property," the Short
Sale Disclosure and Agent Guidelines document goes a long way in
educating buyers and buyer's agents and setting their expectations for
the uniqueness of the short sale. Your website F AQs are also a helpful
.resource.
Day 5: Receiving Offers and Submitting the Short Sale Package
159
~-.--,
"I oV\,c,e hCld Clv\' ClttorV\,etJ C,OV\,tClC,t V1A-e VLCl wtLfLed Letter
wLth the th reClt of Cl LClWSkLt. The LV\,tLV1A-LdCltLV\,g Letter
c,LClLV1A-ed thClt I hCld treClted hLs dLeV\,t kV\,fClLrLtJ bec,Clkse
hLs dLeV\,t nCld skbV1A-Ltted Cl ()Clsn offer oV\, Cl prD"perttJ.
IV\, ClC,tkClLLttJ, we hCld rec,eLved three offers oV\, thLs
properttJ Ilv\'d hLs dLeV\,t's c,Clsn offer WClS the Lowest of
tnese offers. AppClreV\,tLtJ, tne prospec,tLve bktJer Clv\'d hLs
bktJer's ClgeV\,t hCld fClLLed to LV\,forV1A- tne ClttorV\,etJ of tne
Short sClLe DLsdoskre Clv\'d AgeV\,t CikLdeLLV\,es. After
c,oV\,skLtLV\,g wLtn V1A-tJ broRer, we seV\,t tne ClttorV\,etJ Cl c,optJ
of tne gkLdeLLV\,es, sLgv\'ed btJ nLs c,LLev\'t. NeedLess to SCltJ,
tnllt WClS the eV\,d of tne stortJ, Cl v\'d we V\,ever hell rd froV1Atne ClttorV\,etJ ClgClLV\,."
Why Buyers Walk

The number one reason buyers walk out on a short sale is because they
aren't educated on the process. They get frustrated with the length of
the process, and they are unfamiliar with the negotiations common to
this type of sale.
My friends Fred Weaver and Kevin Kauffman, agents in the Phoenix,
Arizona area, have pioneered a strategy to help mitigate their risk when
working with buyers. They ask their prospective short sale buyers to deposit non-refundable earnest money with the title company or attorney.
As they explain it, "our seller only commits to one buyer and we expect
the same commitment level from the buyer."
Here's how this technique works. As the listing agent, you ask the buyer
to sign an agreement stating that you the listing agent will work to get
7 Days to Success with Short SaIes
160
the property's short sale approved within 90 days. Along with the
purchase contract, the buyer will deposit a non-refundable earnest
money amount (say, $500) with the title company or attorney. If the
buyer walks on the contract before the 90 days are up, this money will
be released from the title company or attorney to you the listing agent.
On day 91, the buyer has the option to terminate the contract and get
the earnest money back. As the listing agent, you do not have to close
on the property in 90 days, but you are committing to doing your best to
get the short sale approved in this time frame.
You might, in fact, opt to add a statement such as the following to your
Short Sale Disclosure and Guidelines document
III
"Buytt agrees that $500 of the earnest money deposited

shall be non-refundable within the first 90 days of the date
of the contract. If 90 days from the contract date. have
passed and the seller's lender has not issued a short sale
Approval Notice, the earnest money will convert from
non-refunGbible to refundable."
Investor Buyers
As we have discussed, the 7 Dqys to Success with Short Safes system is most
appropriate for investors who wish to buy-and-hold. Most buy-and-flip
investors want to make at least 10% off a deal. Because most short sales
(versus foreclosures) are priced at or very near market value, the only
way for the investor to make close to 10% on tlle deal would be to
somehow influence the bank and its BPO agent. I know from my own
years of experience, I have never seen a lender knowingly settle for 30%
less than the property valuation, for example.
While I still think that short sales are a wonderful investment
opportunity, investors will typically not get a "steal." They will be able to
buy properties at or slightly below current market value. These deals are
a great opportunity for investors who wish to purchase a property, hold
and rent it for a few years, and then sell. This buy-hold-sell strategy can
161
be particularly effective in areas that have experienced a significant

decline in property values due to a market over-correction.
For investors who prefer to buy-and-flip, shott sales may not be the best
opportunity, since lenders are trying to actively mitigate their losses by
getting the highest price they can for the properties.
"At-Arms-Length" Rule
Another point to remember when working with buyers is that the lender
will require the transaction to be made "at arm's length." In other
words, the buyer cannot be related to the seller or be a close business
associate.
Notes
162
Reviewing Offers
We recommend that you follow a very systematic process for reviewing
buyer offers. The steps that we follow in our system help us save time
and avoid errors.
Compare Offer to Agent Disclosure

and Guidelines
When an offer comes in from a buyer, we first check to see that it
complies with the directives we outlined in our Short Sale Agent
Disclosure and Guidelines document.
II
Closing Date
II
Commissions
:111
Special Provisions
As Is
Conditiorul upon seller's lender's "'pproval
Inspection period
Earnest Money
'III
Closing Costs
II
Survey
III
Residential Service Contract (Home Warranty)
II
HOAFees
III
Buyer' s Pre-Approval Letter
163
What If the Offer Is Not Properly Structured?

The buyer'S offer (purchase contract document) must be structured and
completed in the way that the banks expect to see it. When my team
receives an offer on one of our short sale properties, we immediately
review it against the Short Sale Disclosure and Agent Guidelines
document. In nearly 90% of the offers we receive, some section of the
buyer contract has been completed incortectly or left blank.
You have at least three different approaches to addressing this situation:
1.
You can go through the document and make the

appropriate changes yourself, send it to your seller for their
initials, then send it back to the buyer's agent and ask them
to have the buyer initial the changes or edits and resubmit.
2.
You can create a Review Sheet with a checklist of your

criteria items pulled ftom your Short Sale Disclosure and
Agent Guidelines. Use a check, "x," or asterisk system to
denote to the buyer's agent which sections of the offer
need revision.
3.
You can use a set of boiler-plate emails to communicate

with the buyer's agent about the ettors in the offer.
On the Knolly Team, we follow this third option. We send a "try-again"

email to the buyer'S agent, reiterating specific guidelines and asking the
agent to submit a revised offer. In fact, we typically copy and paste
passages directly from our Short Sale Disclosure and Agent Guidelines
document. Rather than calling the buyer's agent or marking up the
document, we just send this email. Agents who have prepared offers for
foreclosures will be familiar with this "try-again" approach. Banks
require that agents submit offers on their REO properties a certain way.
They won't correct the documents or give lengthy explanations; they will
just reject the offer/contract and ask for a revision. We follow this same
model because it saves times and it is effective.
164
Email
To: Linda@LindaTheBuyersAgent.com
Subject: 907 Country Lake Drive-Short Sale Offer
Linda,
After reviewing all offers, we have selected your buyer's offer to submit to
the seller's lender to begin their short sale review process. There are,
however, a few necessary updates per the Short Sale Disclosure and
Agent Guidelines.:
Page 2 Sect '6-C: Survey-You have Box 1 checked. You must,

instead, oheck Box 2. The seUer'slender will not accept the conlract
wffih Box 1 checked for Ihe following reason:
Q. 'IUhe seller allready has aneJ<iisting survey, and is agreeable
rih providing it, can't we just check Para 6-C-(i)?

A. No. On a short sale, 'Para 6-C-(2) must ALWAYS be ehecked.
Para 6-C-(1) includes a default remedy that the sel'ler is unable to
agree to. The end of the paragraph reads, "If Seller fails to furnish
the existing surveyor Affida",it within the time prescribed, Buyer
shall obtain a new survey at Seller's expense no later than 3 days
p:rior to Closing Date." This dlause creates andbligation that Ihe
se'llercannol fulfill because the short sale lender (seller's mortgage
company) will NOT pay this expense under any circumstances,
(continued ...)
Sample "Try Again" Email Sent to Buyer's Agent

(Note: Some language here is based on Texas Resale Contract.)
165
and the seller is usually prohibited from contributing financially to

the transaction. In other words, if the seller failed to tum in the
Survey and/or Affidavit in the prescribed time period, s/he would
be in breach. In the event of breach, the document would contain
a promise that the seller cannot fulfill.
Having explained this, we also understand that para 6-C-(2) creates
an obligation for the buyer. It must be understood that the short sale
lender sees the survey as a 'buyer' expense, since it is a document
that is required by the buyer's lender. As a professional courtesy,
The Knolly Team will work diligently to obtain an existing survey from
the seller and will provide it to the buyer, but makes no warranties or
claims as to its accuracy or validity. The survey provided will NOT be
accompanied by an Affidavit.
I have attached a copy of the survey which is attached to the MLS
listing.
Page 2 Sect 6-E-(2) Property HOA-You have checked that the

property is NOT subject to mandatory membership, but it does have
a mandatory membership.
Special Provisions-There are no problems with the provisions

(seller's responsibility) you have listed. In addition to these, we need
the following per the Guidelines and per the requirements of the
seller's lender:
'Property is being sold AS IS.'
'The contract of sale is conditional upon final approval of
Seller's lender and/or HUD.'
And we recommend the following be added, to ensure the buyer
knows when the "option" period begins:
'Option Period will begin once the contract of sale is 'approved'
by the Seller's lender and/or HUD.'
(continued ...)
166
Once we get these updates back, we will have the seller execute the offer
and forward it along with their short sale package to the seller's lender to
begin the review process, Note that we have changed the listing to "PB,"
and will only take back up offers until your buyer contract is approved or
countered,
If you have any questions, please let me know!
Thanks!
Knolly
On the Knolly Team, we attempt to respond to offers within 24 hours

and email the buyer's ."oent a notice of any necessary chilllges, We know
that if the buyer's agent does not make the <:hanges now, they will have
to make them later-when the lender discovers the errors, Lenders ",;n
typically allow themselves a minimum of 1(l business days to review and
respond to a short sale package and an offer, on<:e the file has been
assigned to a loss mitigator. Some lenders take up to 3{) days! If they
kick back the buyer contract and it's resubmitted for a second review,
they will again take, at minimum, 10 business days to review and
respond. Now you've lost 4 or more weeks in this cycle!
When lenders receive a short sale package and an offer that have been
prepared according to our strict 7 Day Systems guidelines, they know
they have the real deal on their hands. They know they won't be able to
shove this package off to the "needs revision" pile!
Review for an Acceptable Price Offer

When we receive offers on our short sale properties, we are looking for
an offer price very near to the CMA or list price. The lenders are not our
clients, but we have come to anticipate how they will react to certain
offers. We know they are looking for reasonable offers.
167
I recommend you advise your clients not to countersign low-ball offers.

This is the script I use with a buyer's agent who submits a low-ball offer
on a short sale property:
Knolly: "This offer is so low-based on our market

research on the property's value-that we do not
believe the bank will accept this offer. We will go
ahead and submit this as an offer [i.e., an
unexecuted contract], but we will continue to
market the listi ng for a better offer. If we receive
a more reasonable and acceptable offer, we will
submit that forward as an executed contract."
This strategy is another time-saver for us. If we submit a low offer as an
executed purchase contract, we will set ourselves up for more
complicated negotiations, as the bank will counter to try to get a price
that is more in line with their BPO.
Some investor buyers will intentionally submit very low offers, and they
are not surprised or concerned about the strategy to send forward their
offer unexecuted.
You might wonder if it is a waste of time to send the lender an
unexecuted offer. As we discussed earlier, the lender wants the buyer to
"tip their hand first." They want to see what kinds of offers are possible
before they spend time working the short sale package. We have learned
through experience that lenders will go ahead and start working a file
(i.e., reviewing the proposal package) with just an offer. They will move
forward and order their BPO to assess the value of the property, and
they'll reach a determination about what they will take as a settlement
for the short sale. The lender will ask for an executed contract when
they are ready to approve the file.
Meanwhile, the unexecuted offer allows us to continue marketing the
property for a more acceptable offer.
168
What about Multiple Offers?

It is not uncommon to receive multiple offers on your short sale listing.
There are three things I want you to remember about taking multiple
offers:
1.
Establish a policy on multiple offers and publish it.
2.
Submit only one offer or contract at a time.
3.
N ever take multiple contracts without appropriate backup

addendums.
Your Policy
Be prepared for how you will handle multiple offers. If you do not
establish a firm policy and communicate it, you will set yourself up for a
lot of grief and unnecessary conversations with frustrated buyer's agents.
I have defined my policy and published it in my Short Sale DisciosW'e
and Agent Guidelines document. Let's look at that policy ",,"2in:
III
Multiple Offers: We only work with the bank on one

offer or contract at a time. In the event that we receive
multiple offers on this property, we will not counter for
your best and Enal offer. Our policy is to select and submit
the best offer, so bear this in mind when submitting your
offer.
One-at-a-Time
You see, my strategy is to get the lender working on only one offer at a
time. This means that even if the lender is working on an unexecuted
offer and my office receives a better offer, we will wait until the lender
has processed the package on their desk. I find that it is most effective
to allow the lender to do their job without confusing them with two or
more offers.
169
Multiple Contracts
Now, what you need to avoid at all costs is multiple executed contracts-a very different situation than multiple offers. Some agents just
getting into the short sale business make the mistake of assuming that
short sales follow a different set of rules regarding the legal contracting
process. I recently consulted with an agent who made the mistake of
sending two buyer contracts forward-the second contract offered
$50,000 more for the property. When the lender saw the higher one, of
course they want to take it, but they were legally bound to continue
working the current executed contract to completion. So, the lender
countered the first contract and raised them $50,000. When the prospective buyers were unable to pay this higher sales price, the lender rejected the contract and began working the second-more appealingcontract. This messy and time-consuming situation could have been
avoided if the agent had submitted the first offer as an unexecuted contract.
As in traditional real estate, once your have an executed contract, you
may take backup offers, with the appropriate addendums and so forth.
Again, just remember that traditional real estate rules regarding offers
and contracts apply to short sale transactions. Be sure to utilize your
local and state :MLS protocols when handling multiple contracts.
Submitting a New Offer after a Buyer Walks

I have consulted with many listing agents who have gotten themselves
into a jam with the lender because they were not certain what to do
when the buyer of their short sale listing walks out on the deal.
My advice is to allow the lender to continue to process the package that
they have through to approval. Then once you receive word that the
short sale has been approved, you simply thank the lender for the
approval and let them know that they will need to change out the names
of the buyer on the contract because a different buyer will actually be
purchasing the property. Also, if any financial terms have changed, you
170
will need to submit a revised HUD-l statement for approval, since the
net proceeds may be different.
The mistake that you want to avoid is telling the lender that you have
lost the buyer midstream. The lender will halt the process and wait for
you to resubmit with new buyer information. In most cases, they will
close the file. To re-start or re-open the file could cause a delay of 30 to
60 days or more! Again, simply allow the lender to process and approve
the seller's information and the short sale request using the buyer
information that they originally received. If this buyer does not follow
through on the transaction, that's okay. Simply inform the lender that
different buyer information will be used for the final purchase
documentation. As long as the purchase offer is the same as or better
than what you had originally submitted, the lender will move forward
with the file.
.-----.,-----,
"IV\, Vel1LLttl, I see tne fi-yst offey I vec,e~ve lAS a 'guv\'eI1 "p~g'
offev. Tnts w..alj oy IM;lAtJ Mt be tne offer tnat IM;IAR.eS t to
tneevwt of tnt pyocess. -gut, tVie [w..portlAY\-t tVivcg Ls tVilAt
tl1Ls Ls tne offer tn&lt gets tVie baLL voLLLvcg! Qu~te oftevc I
get t0e snort s&lLe rYo"posaL 1A"p"pYDved wt0 oV\,e offer, but
theY\- closed wtn dLffevevct fLv\'&lL offev."
Day 5: Receiving Offen; and Submitting the Short Sale Package
171
Preparing the Final

Short Sale Documents
We began the process of collecting the required short sale documentation back on Day 3 of 7 Dqys to Success with Shori Sales. At this point, you
are ready to prepare the final documents and fax the entire package to
the lender. When you submit the short sale package, it is imperative that
you include all required documentation at that time. Leaving documents
out or having pages out of order will delay the processing of your file.
The Checklist
A complete short sale documentation package must contain the
following items:
o
o
o
o
o
o
Hardship Letter
Listing Agreement
Financial Statement
Recent Bank Statement
Buyer's Pre-Approval Letter from theit Lender

Additional Documents for VA Loans:
Additional Documents for FHA Loans:
o
o

Application to Participate HUD FORM 90036
Remember, if your client has two mortgage 'liens on

their property and both are found to be short, you
will need to prepare and send a short sate package to
each lien holder. ilf the first lien is not short, you will
not need to send a package to this Uen holder.
If, by chance, both liens are held by the same tender
and both Hens are short, you only need to submit one
package to this lender. Just make sure to put both
lien numbers on the package documentation.
Ii! Fully Executed Purchase Contract

on the PrQperty
We've already discussed the steps you need to take to review a buyer's
offer and to detennine whether to send the offer to the lender in an
executed or unexecuted state. If the lender begins work on the short sale
package with just an unexecuted offer in place, they will contact you for
a final executed contract before they grant approval for the short sale.
Once you are ready to submit a fully executed buyer contract to the
lender, you will send the offer to your seller client for their signature.
Then, you will send this signed document to the title company or
attorney to be receipted. Next, you will forward the receipted copy back
173
to the buyer's agent. Then, you will include a copy of this fully executed
buyer contract with the other documents of your complete short sale
package.
o Buyer's Pre-Approval Letter from

Their Lender
Lenders require documentation to demonstrate that the buyer will
receive the necessary funding from their lender/third party. They will
not proceed with the process without knowing whether this buyer is
ready, willing, and able to complete the transaction. Even if the buyer
makes a cash offer, the seller's lender will still want to see a document
that shows proof that funds are available.
Note that you will still need to submit a buyer'S pre-approval letter even
if you ate only sending the buyer's offer up as an unexecuted offer
(versus an executed contract).
o HUD-1 Settlement Statement

Once you have a buyer offer on your short sale property, you can
formally request an estimated HUD-l Settlement Statement (also called
a HUD-l Estimated Net Sheet) from your title company or attorney. In
our system, we simply send an email to the settlement agent to make this
request. Our email includes the key information for the HUD-l form
and a copy of the buyer contract.
174
Email
To: Tracy@thetitlecompany.com
Subject: Request for Short Sale HUD on 1022 W South Street

Hi Tracy,
Please prepare an estimated HUD-1 on the following property, which will be
processed as a short sale:
Liens:
ONE
Sal,es Price:
$238,000
Commission:
6%
Pre-Forediosure Fee:
$980
Processing Fee:
$495
Estimated HOA Fee:
$500
Closing Date:
Aug 20, 2010
Sel!ler:
Dalilene Moses
Buyer.
James Gergin
I have attached a copy of ~he buyer's purchase contract

If you have any questions, please contact me or one of my team members.
Thanks again,
Knolly
Sample email requesting HUD-l Settl.ement Statement (One Lien)
Day 5: Receiving Offel5 and Subrnittingthe Short Sale Package
175
Email
To: Tracy@thetitlecompany.com
Subject: Request for Short Sale HUD on 10700 Bella Mar Circle
Hi Tracy,
Please prepare an estimated HUD-1 on the following property, which will be
processed as a short sale:
Liens:
TWO
Sales Price:
$400,000
Second Lien Amount
$9,300
Commission:
6%
Pre-Foreclosure Fee:
$980
Processing Fee:
$495
Estimated HOA Fee:
$500
Closing Date:
Aug 20, 2010
Seller:
James Thomas
Buyer:
Michelle Ingram
I have attached a copy of the buyer's purchase contract.

If you have any questions, please contact me or one of my team members.
Thanks again,
Knolly
Sample email requesting HUD-l Settlement Statement (Two Liens)

Note that in the sample emails shown here, I have added a ''PreForeclosure Fee" and a ''Processing Fee." We'll discuss these fees
further in Day 7 when you learn strategies for supplementing your
commission.
176
Even though the title company or attorney has researched the title and
you have obtained a purchase offer with purchase details, the HUD-l
statement that you request will still be an "estimate" because it will not
yet show the buyer's side of the transaction. The buyer has not yet
received the specifics of their loan and so forth. The reason that the
lender wants an estimate at this point, however, is so that they can see
the net proceeds they will receive from this sale.
The title company that I use processes approximately 5 to 7 HUD-l
requests for us each week. They guarantee to have the HUD-l back to
us within 24 hours, but oftentimes they return it the same day. For your
short sale business, make sure that you work with a title company or
attorney who can process your HUD-I requests quickly and accurately.
Who Should Prepare the HUO-1 Statement?

You certainly have the option to prepare the HUD-l Settlement
Statement yourself, and you may choose to use some of the software or
online tools that are being marketed for this purpose. (Remember to
check with your broker and your MLS guidelines!)
In our system, we al.ways prefer to work with an experienced title
company for this step in the process. ] have learned from e]"-pe11ence
that it pays to have a knowledgeable settlement agent run the title search
and identifY all outstanding unpaid taxes, additional liens, and so forth
tied to the short sale property. The worst thing to have h.appen is to
submit an HUD-I to the lender, only to find out later that the numbers
are all wrong because there was an outstanding lien (e.g., delinquent
HOA charges) not accounted for in the settlement.
Sample HUD-l Settlement Statement Showing Seller's Side
1n
178
As I stated, I prefer to work with a title company rather than preparing

the HUD-l statement on my own. Furthermore, I prefer to work with
knowledgeable and capable settlement agents. To help everyone get
educated and on the same page, I have developed a training document
that explains how to draw up HUD-l Settlement Statements in the
manner that will be necessary for short sale processing.
July 27.2009
Knolly WHUams
ASSOCIATE 8ROKER
SHORT SP.i.E AND USTING SPEClPlJST

THE #'I 'SI'iORi SAI.:E TEAM 'IN CCNTRAL TEXAS
'lConsidar i-t $OI..D!~
KELLER WILLIAMS RE.A:l.lY

1,sm s. 'MO-PAC EXP.RESSlN.D.,Y, Sl:.IlTE rDl!l, AUsr:rN, IX 7:8746
Offic-e: .(512) 732-3'888 FaX'. ,,(512) 532-0526

w.vw.Koony.1:Om
-kno'liy@knoUy.cllrn
INSTRUCTIONS FOR. TITIE/ESCIlDW COMPANY

CTeatinga 'HUD-l for aShort Sale T:cansaction
"'Thzik yru for~-with 'as .onthis transact:iun. Because ,short ~ are quite differ.ent: than st:.uld.3fd
1:'e2ii,estate1c:lru:actinm, 1 hmre ,putto-gctbct' 'Ibe followinginf1lt'Dati on , "I'Iobith rou =1 find help:fu1.
Wb:atiis a shnrtsa1e? A$hol!!: .:\ale.rr.fers !ethe sale of ~t'otl property for i\.!\ :l.mouw.les'~ thm the amount O":.>erlon
the po;:pecty. The tender: '(Ma, VE-., or lB3nl0 ::t~ .to accept:l.es-i; than the ful1. b:il:l..t1<le due on 'the debt :md.
usw1ly "f~,eS" iIl-o!'a~ p:>rtion ofthe.diff=nce.
Prelimiw:ty Estii.J:nal:ecI. HUD-ll.. OIl Shol;t sale twlsa.ctions, the scl1e1"s leo.det !tquiU's ,tb:ll. we submh iI.
~"E::t:imlIted HOD-l Settle=t St:aremem:a:J.ongwitb. h wnw.ct/offet: "Thqwi!J. usethisdocumeJIl:tc.
~howroucl:l~xeceiv.efrom1:hett:msa.diion.$:hcirIl.etproceeds).
Li:nc.5@O.. P.aydiOflirst~<r:e.ln2a...lll thoee'il'entth2ttbe &stHenis sbott, tllereh no.need fOl:Yro to order

.a ~.fffrom.:the le:nder. 1'll of the: seIler oosts 'Will. be st2:tod on th.~ iF.ruD-l ill thcir appl'Opli:It~ fields,. and th~
{after::ill oth<er 'o:osts bmr~ b~el'l w'btmcted} "This is the It::OO.er'~
~ net ~.1lhis w.iII. be ,tfu, amOWll: stmd in li:n~ 3'04 Please do not put 1h.e net p!:~ amoontin
!me -Gre, astbis knoti:l:l.uppro.ved fbnn:l!:.ofthe short sale lend,er.
kndu'Wlil!l thtll. reoci~ w~ is ~d
J..in.e 3OS. ~:Of secaa:d~-e 103D.:iEr.t tJb.,e evem tlW: t.heze i~ a second lien on ,the propel:ty, there is.DO
need foryou to arl.u lly.tyefffrom the secondb :bolder. We~mjn!:trud: you on:the 'Settlement llm<:l<Int Ito phce
on this line. Jl:'s typioilly $1,OOOto $'5,000.
I..ine613. line 603 must:m:ooot; $0.00
Onpo:!perties with two liens mere the &stli.cnis NOT shart lin the event thst onlytbe seoondlien i$ sl:Jort,.
then the fuIl. payoff =ou:.U: to the Jmt lien holder 'w:iD. be p1ace:l. o.n line 504. 'We 'wiI1 otl:l.er the p:ayo:ff amount
from. the first lien holder 2nd send tt to YOIl. .AlI of the other seller o:>$tSwill ~ ;Wed on the HOD-l, in their
appropriate fields. The seoondlien hclderw:ill then
whilteuerislefl
This =ntwill beplacci in line
ncern:
505.
'Iharlk ynuin advaru:e! Please crmt:act!he Knolly Team:at 5:122J6.oooo if you have :any questions or email
1X1J 1istiogmanager, Morris "lhompson:mOIris@k:uoJly.c::om
@2009KnollyWllllams'7 Day Systems
Training Document for Tide/Escrow
179
Submitting the Package

to the Lender
Once you have gathered all necessary documentation, you are ready to
submit the complete shott sale proposal package to the seller's lender
(Step 5).
Follow Up
Relentlessly
Gather Info
for the Package
Negotia!e&
Counter
You are
here!
180
Prepare a Coversheet for the Short Sale

Package
As part of ow: system, we send each short sale package with a coversheet that lists the items included within the package. This coversheet
helps the lender easily see what documents we are submitting, and it also
serves as a final preparation checklist for us. We have found that this
simple coversheet helps to speed the review process with the lender and
illustrates to them that we are organized and knowledgeable about their
requirements.
The des>gn of yow: coversneet should be intentional. If you don't
already have one, develop a logo for yow: business. Create a design that
will help set your documents apart visually from the many others on a
loss mitigator's desk. A memorable logo ",'ill payoff over time.
Start marketing yourself as a "Short Sale a: Loss

Mitigation SpedaUst." Put this descriptive title on
your fax ooversheets, your business cards, your email
signature block, and other malMketing materiails. This
gets the attention of lenders, seUers, and buyers al1d
helps them feel more conftdel1tthat you know what
you are doing within this unique area of rea!l estate.
181
THE
KN.LLY
Knolly Williams, Associate Broker

KELLER WILLIAMS REALTV
LISTING & MARKETING EXPERT
TEAM
Specializing in REO, SHORT SALES & LOSS MmGATION
1801 S Mo-Pac, Suite 100, Austin, TX 78746

Direct (512) 906~2882 Fax: (512) 532-0626
KELLER
WlLLIAMS
www.Knolly.com
*
* www.ShortSaleSite.com
knollY@knoUy.com
REALTY
*** URGENT SHORT SALE REQUEST ***
.,
Knolly Williams, REALTOR

Associate Broker
rom:
ATTN:
=
iPhone:
Pases=
w/cover
Date,
SHORT SALE REQUEST and EXECUTED CONTRACT
"""
o Urgent 0
For Review
Please Comment
Please Reply
LOAN NUMBER: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
Address: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
Client Name: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
Last 4-dlgits SS#: _ _ _ __
On behalf of our mutual client, t am submitting the following docs for short sale approval consideJation. Having
reviewed the lnfonnation, the client appears to me to meet the hardship requirements for short sale approval.
In addition please find a Short Sale Executed Contract on the above property.
Documents Submitted:
Hardship Letter
Recent Bank statement
o
o
Listing Agreement
Recent Pay Stub{s)
o Financial statement
o Comparative MarketAnalysls (CMA)
Purchase Contract
0 Estimated Net Sheet - HUD 1
Buyers Pre-Approval Letlerfrom Lender
ContractArnount $ _ _ _ _ __
Your Estimated Lender Net: $ _ _ _ _ _ _ __
Closing Date: _ _ _ _ _ _ _ _ _ _ _ __
Short Sale Coversheet (for package with executed contract)
182
Note that our fax coversheet design also clearly identifies the package as
an "**Urgent Short Sale Request**." In the current foreclosure crisis,
mortgage lenders are processing an unprecedented number of loan
modifications, short sales, and foreclosures. If you don't take care to
send your short sale package to the correct person and clearly identifY
your documentation, you're sunk.
Depending on the documentation I am sending, I reference the package
as a "Short Sale Request and Executed Contract" or a "Short Sale
Request and Offer."
Organize the Documents

ill
Organize the documents in the package according to the

list of items on your coversheet.
III
:Make sure you have me loan number at the top of every

page of the package. The easiest way to do this? Create a
bibnk docmnent with your client's loan number printed in
the very top margin. Then run the pages of your short sale
p"ckage through your printer to print the loan number at
the top of every page. jLook on your 7 Dqys to S uceers with
Short Safes Toolkit CD for a document with a sample page
header prepailJed for this task.]
183
Fax the Package

Once you are confident that your package is complete, simply fax the
entire package to the lender's loss mitigation department.
,------ T~
. . 1p------,
and their loss mitigation departments on your 7 Days to
Success with Short Sales Toolkit CD! More than 40 of
If the lendet you need is not on your 7 Dqys to Success with Short Sales
Toolkit CD, you may obtain the telephone and fax numbers of the
lender's loss mitigation department by calling the lender's customer
service number and requesting them. To find the lender's customer
service number, refer to the seller's mortgage statement or search for the
lender online.
It is certainly frustrating that facsimile (fax) is still the lender's preferred
method for receiving these lengthy packages. Digital upload would make
more sense, but that's not the standard at the present!
Fax Do's
1.
Do include a coversheet
2.
Do include the client's loan number on every page
3.
Do make certain the pages are in order
184
Fax Don'ts
1.
Don't fax your package to the wrong depru:tment! Make

sure you are using the fax number for the Loss Mitigation
Depru:tment of your seller's lender.
2.
Don't overload your fax machine. Some fax machines

cannot handle documents of this length. You may need to
"babysit" your machine and feed it individual pages. Or
you may need to upgrade your machine.
3.
Don't fax your package in batches as you recelve the

documents from your seller or the title company. Wait
until you have a complete set of documen.ts, and fax the
en.tire package at one time.
Notes
192
The Mitigation Process

Once you have submitted your short sale proposal package to your
seller's lender, you cannot rest on your laurels. The next steps in the
process will require the negotiating skills, patience, and tenacity that we
spoke of on "Day 1: Preparing for Success with Short Sales."
We'll look at what happens to your short sale file from the moment it's
submitted to the moment it's approved-and yes, we mean "approved,"
because we're not going to have a file "declined"!
..
Setup
.
.
An appraisal or BPO is ordered
II
Counters and negotiations
..
File is approved
Loss mitigator is assigned
Note: As you are learning the techniques in this chapter, t=ember that
if your client has two mortgage loans that are both found short, you will
need to follow the same set of activities for both lenders.
Relentless FoUow-Up
Throughout this chapter, we will remind you of the importance of
follow-up and the importance of a call schedule. Timeblocking is critical.
..
Wait 4 to 7 days-After you fax the package documentation to the lender's loss mitigation department, wait 4 to 7
days for them to receive the package and upload it (scan it
in) to their system.
Call 2 times per week-Once you have given them this
initial grace period, start calling 2 times per week to inquire

about the status of the file. We'll talk more about the key
questions to ask.
Day 6: Processing the Short Sale
193
Call once per week-Once the file has been assigned to a

loss mitigator, plan to call once a week to get updates on
the progress of the file.
,...------Tlp-----.
and their loss mitigation departments on your 7 Days to
Success with Short Sales Toolkit CD! More than 40 of
Notes
194
The Setup
Lender Receives and Sets Up File
The first step in the loss mitigation process is for the lender to receive
the faxed file and begin to set it up for processing. This is a preparation
step and is typically handled by a very small group of administrative representatives in the lender's loss mitigation department. Even in the
largest banks, Loss Mitigation will be a small department, and within it,
an even smaller group will handle the file setup process-possibly 2 to 6
people. For example, I recall that when I was working short sales back in
2005, Wells Fargo had just one lady responsible for setting up all short
sale files-that is, all short sale files for all of Wells Fargo! Ca:n you
imaz,oine? She was the gatekeeper, and I got to know her very well!
The shift in the housing market has likely made many of the larger banks
inc~ease their staff in these departments, but it is still a very specLalized
activity for banks. Just remember that when you submit your Shollt s.ale
package, you will be sending it to a very small number of people...An~
over time, they will start recognizing YOUR package, and you will sw.:
devceloping a relationship with these key individuals.
As we mentioned on Day 5, most banks require that you fax all documentation to their office, but a few banks will receive short sale p,;:kages by mail. Many, many banks are moving to an electronic fax '(ef,",,)
system that will allow them to receive your faxed documents ms PDF
files attached to an email. This most surely is a times aver on their end.
Regardless of the technology used, it will typically take the setup agent
up to 7 days to enter the documents into their system and prepare the
short sale file for processing.
This setup agent's job is to perform a compliance check on your package
to determine if it meets the lender's basic format and criteria.
195
After you fax the short sale package to your client's

lender, wait 4 to 7 days before placing your initial
call to the loss mitigation department. This will allow
them time to set up the file. The minimum time the
bank requires for setup is 72 hours, but I find that if
there is no critical urgency (i.e., imminent
foreclosure), it is fine to wait up to a week.
Lender Performs Initial Review of

Finandals and Hardship Letter
The lender's setup agent will review your client's financial documentation and hardship letter to make sure that the short sale proposal meets
the very basic criteria for the program. For example, if the fInancial
statement indicates that the seller has enough monthly income to cover
their expenses, the short sale claim will be denied, or if the hardship letter does not indicate a legitimate hardship, the claim will be denied. If
both the financial statement and the hardship letter look good, the setup
agent will move to the next step.
Lender Reviews Package Contents

The setup agent's next step will be to review the short sale package for
complete contents. Are any required documents missing? Is some key
number or bit of infortnation missing from the package? Is the loan
number indicated on each page? Are the documents (or pages) out of
order enough to suggest an incomplete package?
If the setup agent determines that the ille is incomplete, they will set it
aside--<Uld they will not tell you! There will be no courtesy phone call
to you. I've even had a setup agent return a package by mail to the seller
196
-who is typically avoiding all mail from their lender. (That could have
cost us quite a bit of time in the process!)
To the setup agent, an incomplete file indicates a waste of time, and they
will move on to other assignments. If you don't call their office for a
month, let's say, they will let the file die. It is essential for you to
proactively investigate the status of your file.
Plan to call the loss mitigation department

2 times per wee,k (i.e., every 2 to 3 days) to
inquire about the status of the file. There is a
delicate balance between catling too often and not
enough. This is the call frequency we have found to
be effective in our system.
Occasionally, the setup agent wiU teU you when to
caU back for an update. 'It is courteous to ask them
when they would like for you to caU back. If the
answer is vague, faU back on 2 times per week.
The Five Key Questions You Must Ask

Once you begin calling the lender's loss mitigation department, your
objective is to ask key questions to establish the status of the file.
The questions you ask of the loss mitigation

department's setup agent are critical! On your initial
phone call, begin to ask the 5 key questions that will
inform you of the status of the file.
In my career as a short sale specialist, I have successfully worked more

than 450 short sales. I have trained my team to follow my system, ask
197
these key questions, and commit themselves to relentless follow-up. This

system has been highly effective for us and it will be for you as well.
1. "Will you verify that you received the file?"

First and foremost, you need to determine if they received your package.
The fax transmission could have gone to the wrong department, been
misplaced, or gotten lost in cyberspace! Or, your package may simply be
in a stack of other transmissions that still need to be scanned or
uploaded into the loss mitigation department's computer system.
2. "Is the file complete?" and "Is anything missing?"

Next, determine if they consider the package to be complete. "Are any
documents missing? Is there anything else you need from me or from
my client?"
Again, if a required document or piece of information is missing from
the shott sale package, the entire file will be set aside, rejected. While it
may seem appropriate and courteous for the setup agent to notify you of
the problems with the file, they will not. It will be your responsibility to
ask proactively because they will not volunteer any information. If you
don't ask, they won't tell!
The setup agent will also be checking to ensure that the package is in
order. This is why it will be critical for you to include your client's loan
number on each page of the package. Consider how many short sale
proposals some of these lenders are receiving. If you do not identify
your faxed pages and they accidentally get shuffled into another client's
file, you're sunk!
198
.------Tiip-------,
Above all else, you need to remain patient with the
bank. Be nice, courteous, and respectful. You will
gain nothing by being rude, abrasive, or
discourteous.
3. "Has a foreclosure date been set for this property?"

When you speak to the loss mitigation setup agent, be sure to ask if a
foreclosure date has been set for your client's property. Don't assume
that you aiready know the answer, and don't assume that your client
does either. Your client may not be paying attention to their mail or they
may have miscalculated how many mortgage payments they have already
missed. You must find out if your client's property has been placed on a
foreclosure rimeline. This -will tell you how much time you have to
process the short sale-in other words, how urgent the situation is. For
example, I have called a loss mitigation department and asked this
simple ,question only to learn that the property has a foreclosure date
just two weeks out! Obviously, I immediately requested a postponement,
but it was not a fun exercisel
As an aside, you should know that you can request a postponement right
up to the day before foreclosure. Lenders may not be eager to make this
adjustment for you, but it can be done. The postponement (new date)
can be keyed into the computer up to the day before the foreclosure-if
you can demonstrate that the seller is working with you (a short sale
specialist) and the property is being actively marketed for buyers. Some
lenders -will only postpone the foreclosure date if a complete short sale
package with a conttact or offer has been submitted.
199
Why are you calling the setup agent as often as

2 times per week?
If your file must be re-sent, if you must provide some
missing information, or if a foreclosure date has been
set, you need to know this immediately! You need as
much time as possible to react. In addition, you
should be prepared to keep on top of this calling
schedule. Your short sale file could get tied up in the
setup step for 30 or even 60 days-even if the file is
complete and ready to process.
4. "Has the file been assigned to a loss mitigator?"

The next big question to ask will determine how fax yow: file has gotten
within the department. If the lender has assigned a loss mitigator to the
file, you know you have gotten past the gatekeeper and passed through
to the next step! If possible, ask for the loss mitigator's contact
information:
Name
Direct phone number
Direct fax number
Email addres s
If a loss mitigator (or "negotiator," as they axe sometimes called) has not
yet been assigned, be patient and make certain you have asked yow:
other four questions. Tell the setup agent that you understand that the
file has not yet been assigned, and that you will call again to inquire
about the status of the file. At some point, the setup agent may know
which loss mitigator is likely to receive yow: assignment. Try to get this
name if possible.
200
.-----__ T. irrip,,' _ _--,

I'
-cZ
~"Y'
,)
When you call a loss mitigation/short sale

department, be prepared to wait on hold for a long
time. They're swamped.
When I'm making my weekly calls, I typically call
from a separate phone. While I am on hold with the
lender, I am conducting my regular daily business on
my other phone. When the lender comes to the
phone, I quickly hang up on the other call (sometimes
mid-sentence!) and give the lender my
undivided attention'!
5_ "WiI'l you please update the notes in the file to show

that I caned ... "
At the end of each call, ask the setup agent to update the notes in their
system to reflect the key points of your conversation and the action
items you have discussed. If you don't ask them to do this, they often
won't, and you need cO develop a history in the lender's notes. Since
most calls are typically monitored or recorded, they will add the notes if
you ask them to.
201
Sample Script: Calling a Loss Mitigation

Department about a New File
Review the sample script below. The 5 key questions you must ask the
loss mitigation department's setup agent are underlined in the script.
Variations of the script follow at the end to account for different
responses.
Script!
LM Dept: "Hello, this is Saxon Mortgage, Maria

speaking. Can I have your loan number please?"
Knolly: "Hi, Maria, this is Knolly Williams. I'm the
real estate listing agent on this property, and I
have authorization to discuss the account. The
loan number is 2348879874."
LM Dept: "Okay. I do see here that you have
authorization on file. Can you verify the property
address for me?"
Knolly: "Yes, the property address is 211 South
Main Street, Austin, Texas 78747."
LM Dept: "Can you verify the name on the
account?"
Knolly: "Yes, the names on the account are James
Sandifer and Carol Sandifer."
LM Dept: "Can you verify the last 4 digits of the
primary borrower's social security number
please?"
Knolly: "Yes, it's 3868."
LM Dept: "Okay. Thank you. What can I do for
you?"
202
KnoLly: "Thanks, Maria. I submitted a short sale

package on this file last week-on September 21st.
Can you please verify that you received the short
sale package?"
LM Dept: "Okay. Hold on ... I'm looking at the
notes here ... hmmm ... Yes, I do see that we
received the package. It was updated into our
system on September 23rd."
[If they have not received the package, see variation
below.]
KnoUy: "Thanks Maria. 1submitted a complete

package. Can you verify that you have everything
you need?"
LM Dept: "Uh ... hold on ... let me see here."
KnoUy: "No problem, take your time."
LM Dept: "Okay, thanks, KnoHy. Yes, I do see that
we have a complete file here. We don't need
anything else at this time."
l[If mcomplete, see vwtion below.]
KnoUy: "15 there a foreclosure date set on this

property?"
LM Dept: "Uhh, wait a minute here ... No, there is
no foreclosure date set."
KnoLly: "Fantastic, Maria."
[If a date has been set, see variation below.]
KnoLly: "So, has the file already been assigned to

a loss mitigator?"
LM Dept: "No, it hasn't been assigned yet."
203
[If mitigator has been assigned, see variation below.]
Knolly: "Okay. Can you tell me, Maria, when it

will be assigned?"
LM Dept: "No, I don't know when that will
happen."
Knolly: "Okay, I understand. So, it sounds like you
have a complete file, but you don't know when it
will be assigned to a negotiator, right?"
LM Dept: "Well, yes. That's what I show as of
right now."
Knolly: "Okay, great. Do you happen to know
which negotiator it will be assigned to? I've
recently worked with Charles Wells and Sandy
Newton on files."
LM Dept: "No, I don't know who will be getting
this one."
Knolly: "Okay, I understand, Maria. If you can, I'd

like to see if Charles can get this one, if possible.
[laugh] When should I call back for an update?"
LM Dept: "I would say to try back this time next
week."
Knolly: "Great. So, I need to call back on October
5th. Now, will it be assigned to a negotiator by
then?"
LM Dept: "Well, I really don't know for sure."
Knolly: "Okay, Maria, thanks again. One more

favor ... Can you please update the notes in the
file to show that I called inquiring about the status
of the file today, and that you indicated that the
file is complete, and that you asked me to call
back on October 5th?"
204
LM Dept: "Uh ... Well, sure. I can update the notes

on the file."
Knolly: "Thanks so much for doing that, Maria. I
will be updating my notes as well."
LM Dept: "Okay then. Is there anything else I can
help you with?"
KnoUy: "That's it, Maria! You've been very
helpful. "
Sample Script Variations

If the p.ackage was NOT received:
CSc~~P1!Q Knolly:"nanks, Maria. I submWted a short sale

- ....}; package on this file last week-on September 21st.
Can you p'iease verify that you rec:eived the short
salle package?"
LM Dept: "Okay, hold on ... I'm looking at the
notes here ... hmmm ... No, I don't show that we
received anything."
Knolly:"Thanks, Maria. I submitted a complete
package. 'How long does it usuaUy take for the file
to update into your system?"
LM Dept: "Well, it usuaUy takes at least 72 hours,
but right now our scanning department is running
a little behind schedule."
Knolly: "Okay, I understand. Can you verify the
fax number I should be sending the package to?"
LM Dept: "Yes, it should be faxed to 866-9880099. "
Knolly: "Yep. That's the number I have on file.
'Hmmm ... So, do you think I should give it a few
more days?"
205
LM Dept: "Yes, I recommend you give it a few

more days to roll over into our system."
of the file today, and that I faxed a complete
short sale package on September 21? You
indicated that the short sale package has not yet
been updated to the system, and you have asked
me to call back on October 5th , to verify that the
package has been received."
on the file."
help you with?"
Knolly: "Just one more thing-has a foreclosure
date been set on this property?"
[Continue standard script from here.]
If they received an incomplete package:
I!0
(SCriP
....
Knolly: "Thanks, Maria. I submitted a complete

. ' package. Can you verify that you have everything
you need?
LM Dept: "Uh ... Hold on ... Let me see here."
Knolly: "No problem, take your time."
LM Dept: "Okay, thanks, Knolly. Well, I do see
that we are missing the hardship letter and page 8
of the listing agreement. We also need the
Sandifers' most recent pay stubs. We don't need
anything else at this time."
206
Knolly: "Okay. Those pages must not have come

through on your fax. What number can I fax these
missing documents to?"
LM Dept: "Fax them to: 8669880040."
Knolly: "Okay. To whose attention shall I put it?"
LM Dept: "Put it to my attention: Maria at
extension 11323."
Knolly: "Okay Maria, I'll fax that to you in just a
bit. "
[Continue with standard script. Ask remaining key
questions.]
'If there is a foreclosure date set:
C~!fi) ~~o~Zr~i~ there a foreclosure date set on this

LM Dept: "Uh, wait a minute here. Yes, it looks
like we have a sale date of October 6th."
KnoUy: "Oops! ... Okay, we need to get that
postponed right away. l1he short sale package I
submitted is going to net Saxon much more than a
foreclosure would. Maria, can you put a rush on
reviewing this file and put a postponement on the
foreclosure or do I need to speak with a supervisor
about getting the foreclosure postponed?"
LM Dept: "Well, I can try to discuss this with a
supervisor and see what we can do."
Knolly: "Awesome, Maria. Can you place me on
hold while you talk with your supervisor about
this?"
LM Dept: "Uh ... well ... Let me discuss this with
the supervisor and call you back."
207
Knolly: "Okay, Maria. What's your supervisor's

name?"
LM Dept: "Sarah Reed."

Knolly: "Okay. Also, can you put a rush on getting
this one assigned to a loss mitigator?"
LM Dept: "Yes, I'll work on that as well. What

number can I call you back at?"
Knolly: "Call me back at 512-448-4111 or call my
cell at 512-999-9999."
LM Dept: "Okay, I sure will."

file is complete, and that there is a foreclosure
date set for October 6th ? You also indicated you
would discuss with Sarah Reed about getting the
foreclosure date postponed, and that you would
try to put a rush on getting this file assigned to a
negotiator. Can you update your notes to include
all of this please? Let me know if you need me to
repeat anything."

on the file."
will be updating my notes as well so that I'll have
everything I need in case I need to speak with
Sarah directly."

help you with?"
Knolly: "Yes, when should I listen for your return
call?"
208
LM Dept: "Uh, well ... I can call you in a few

days."
Knolly: "Great, Maria! You've been very helpful.
I'll look forward to your call in the next few
days. "
If a negotiator has already been assigned:
Script!
KnoUy: "So, has the file already been assigned! to

a loss mitigator?
LM Dept: "Yes, it looks like the file has already
been assigned to a negotiator."
KnoUy: "Great. Can you tell me, Maria, who it has
been assigned to?"
LM IDept: "Yes, it was assigned to Jack Smalls."
,Knolly: "That's great. Can you give me Jack
Smalls' direct contact information?"
LMOept: "Yes, his number is 604-778-9989."
KnoUy: "Great, does Jack have an extension?"
LM Dept: "No, that's his direct line."
KnoUy: "Okay, good. What's his fax number?"
LM Dept: "Uh, let's see here. It's 604-778-9963."
Knolly: "Fantastic, Maria. And what's Jack's email
address?"
LM Dept: "Uh, well, we're not allowed to give
that out. You can call him, though."
Knolly: "Okay, thanks, Maria. I want to give Jack
time to review the file. Can you tell me when he
received the file?"
209
LM Dept: "It looks like he just got it a few days

ago. "
file is complete, and that the file was assigned to
Jack Smalls on September 24th?"
on the file."
help you with?"
Knolly: "That's it, Maria! You've been very
helpful. "
r-------Tlp---..
Sometimes you will be working more than one
unassigned file with the same lender. In this case,
when you call the loss mitigation department, you
can ask about multiple files while you are on the call.
This will cut down the overall time you are
spending on hold!
210
A Loss Mitigator Is Assigned

If everything looks good with your client's short sale file, the file will be
assigned to a loss mitigator. Be prepared, however, it could take 30 days
to 60 days for the file to get assigned. These time frames are a factor of
our curtent market. Before this market shift, I had never heard of a file
taking 30 to 60 days to get assigned. Times have changed. Banks are

overwhelmed with pre-foreclosure and foreclosure files. Don't forget
that patience and diligence win out.
The Short Sal,e Process
You are
her~!
Moving to a loss mitigator means the setup team has performed their
preliminary review, and your file seems acceptable or "do-able." They
reviewed for blatant disqualifications, and your file passed the test.
211
How Files Are Assigned

The lender assigns short sale files to individual loss mitigators according
to what appears to be a round-robin system. You may request that a file
go to a specific mitigator, but the lender may not consider your request.
It depends on the lender. I have always wondered, as well, if I am
drawing unwanted attention to a particular loss mitigator if I regularly
request them by name. Will others wonder why I want to work with one
person and not others on staff?
Occasionally, a short sale file will go to a supervisor before it goes to the
individual loss mitigator. This step really does not affect the processother than adding a review and a signoff for quality control.
Countdown to the Loss Mitigator's Review

The loss mitigator has typically 7 to 10 days to review the file once they
receive it as an assignment. They will likely devote approximately 20
minutes to their initial review.
Mitigators (also often called "negotiators") will review files in an order
based on the file's priority level. During the setup agent's review of the
file, they will assign a priority level based on the foreclosure date set for
the property. If, for example, the property's foreclosure date is set for
within 30 days of the time the file is entered into the system, it is
considered urgent and the setup agent will escalate it as such.
As you will recall, in on the Knolly Team, we draw attention on our fax
coversheet to the urgency of the short sale package. Because we have the
authority to call on the seller's behalf, we typically call the lender to ask
about the foreclosure date. So, if we know in advance that the file
requires expedited processing, we will draw attention to this on our
coversheet.
212
Package Review
Now, it is time for the assigned loss mitigator to perform their review of
the short sale file. They will review the package details to determine
whether the package is "approvable" prior to ordering an appraisal or
BPO. Here is how the loss mitigator reviews the file:
Hardship Letter-The loss mitigator will review the

hardship letter to verify that there is a legitimate hardship.
It should be noted that many hardships may appear to be
self-inflicted (i.e., simply a result of the homeowner's own
choices). Perhaps the homeowner bought more home than
they could afford, they were fired from a job (due to
incompetence), they switched careers resulting in lower
income, they relocated for personal reasons, they started a
risky bu.sinessendeavor, and so forth. If your short sale
client elaborates in too much detail on the hardship letter,
the loss mitigator may find cause to reject the file. (Review
our discussion on Day 3.)
..
Listing Agreement-The loss mitigator will review the

listing agreement to examine when the home was listed
and how long it has been on the market. They will also use
the agreement to detennine the current list price. They will
check to make swce that the listing agreement is fully
executed.
..
Letter of Authorization-The loss mitigator will review

the file to make sure a current Letter of Authorization is
on file. Many lenders require the authorization to be dated
within the past 90 days, or else they may require an
updated letter with a more recent signed date.
..
Financial Statement-The loss mitigator will review the

financial statement to make sure that the client is bringing
in less income than they have in expenses. (Review
discussion of this on Day 3.) They will also verify the
213
stated income by reviewing the seller's bank statements

and pay stubs.
Recent Bank Statements-The loss mitigator will review

the most recent bank statements to compare them to the
financial statement. If a person's deposits are more than
their stated income, this will be questioned, unless the
homeowner recently experienced a reduction in income
(i.e., job loss, pay cut, etc.). The loss mitigator will also be
looking for any large recent withdrawals or surplus funds
in the account. For example, if your client recently
withdrew $8,000 from their bank account, this will be
questioned. Also, if the statements show a large surplus of
funds (enough to make at least two or more mortgage
payments), this will also be questioned.
Recent Pay Stub(s)-The loss mitigator will review the

seller's most recent pay stubs and compare them to the
financial statement and bank statements to verify the
homeowner's income.
Fully Executed Purchase Contract on the PropertyThe loss mitigator will review the purchase contract and
notate any changes to the contract that they may require. If
an unexecuted offer has been submitted, the lender may, at
this time, require that the offer be executed before they
move forward. If they move forward with the unexecuted
offer, they will require an executed contract prior to issuing
an approval on the file.
Buyer'S Pre-Approval Letter from their Lender-The

loss mitigator will make sure that this important document
is in the file.
HUD-l Settlement Statement-The loss mitigator will

review the HUD-l to see if there are any items that they
will not pay. They may not tell you what expenses they will
not pay until after the BPO or appraisal has been ordered.
214
Seller's Credit Report-The loss mitigator will occasionally order a copy of the seller's credit report. They will use
the information on this report to detertnine if the seller is
telling the truth about their situation. If they can see that
the seller is up-to-date with all of their payments except the
house, they may determine that the seller is simply trying
to sell their home and get the bank to pick up the tab for
the deficit. On the other hand, the seller's credit report will
typically present a telling tale of woe. Many accounts will
be in artears and the lender will be able to see that the
seller is truly in trouble.
Once the loss mitigator has completely reviewed the seller's file and
cross-checked the various documents against each other, they will
determine if they believe the hardship story that is being told. 1 they
don't quite believe the story, they may decide to do some further
investigation. This can lead them to attempt to contact you for some
additional information or they may try rocontact your client directly.
Be aware of one particular strategy used by some loss mitigators. On
occasion, a loss mitigator might contact your seller client directly to
obtain more information, verify information, ask questions, or discuss
the possibility of a loan modification as an option.
I do not recommend that your seller (the homeowner) correspond
directly with the lender at all. Here's why. Inadvertently, your client
could rWsstate some information or give an inaccurate impression of the
situation and put the short sale proposal at risk.
For example, I once had a client who received a call from their lender's
loss mitigation department. They inquired about my client's situation,
and they asked if he was currently living in the property. (Mind you, I
had already told them that my client was indeed living in the property.)
My client answered, "No." Because the loan was an FHA loan, this
information immediately disqualified the seller from the short sale
program. When I asked my client why the short sale suddenly went from
"Approved" to "Declined," he told me about the call he had received. I
215
asked Illm, "Why did you tell them you had moved out?" He said, "Well,
I'm working in Houston every week." I asked Illm, "But where are all of
your things? Where do you still receive mail? Where do you live when
you come back to Austin at the end of each week?" He answered, "In
my house." "So, Carl," I said, ''You're commuting to work. You haven't
moved out of your home. There's a big difference."
The sad conclusion to this client's story? He had ruined the short sale
proposal, so he had to sell his home in a traditional sale and bring $8,000
to the closing table. This was a terrible lesson learned.
I recommend that my clients use the following script (or something like
it) when they receive a call from their lender:
I!0
(SCriP
"I am.ment~ll~ and emotiona~ly incapab.le of .
~..., .. , handhng thlS nght now. I am m a place m my llfe
.
where I can't handle this. I have hired Knolly

Williams and his team to be my representatives.
Please contact Knolly Williams."
Another solution would be to host a three-way call with the seller client
and the lender. Once the call starts, I announce, "The seller has hired me
to represent them." And I will jump in and rephrase questions if I
believe my client may be confused or misled by the lender's questions.
Ofrentimes when the loss mitigator contacts the client directly, they will
ask the seller what their hardship is, and they will ask the seller to verify
their income and expenses. Why would the loss mitigator ask the seller
these questions when they already have the answers? The loss mitigator
may be digging for any information that they can use to decline the file
or they simply may want to verify that the seller is telling the truth.
The seller should always stick to the hardship letter and the financial
statement. If the seller ever speaks directly to the loss mitigator, they
simply should recite the information right off of the hardship letter and
the financial statement. The seller should not elaborate and delve too
216
deeply into a conversation with the lender without having you on the
call with them.
As previously stated, the lender may try to entice your client to do a loan
modification. You should have already covered this (Day 2) with your
client. So, if the issue of a loan modification comes up, your client
simply needs to reiterate what is on the hardship letter-no more and
no less. They simply need to tell the lender that they have "no alternative
but to seek a short sale."
Your Mindset Is Key!

When you interact with. loss mitigators and other members of the
lender's staff, you must adopt the right mindset ",bout the short sale
request and the approval process.
II
Put yourself in their shoes!
II
Act like a parmer, not an adversary!
III
Remember: They hold the cards!
You are going to need to befriend the loss mitigator. Approach them
with the right mindset and start building a relationship. The worst thing
that you can do is make them feel that you do not respect how hard they
.are working on your file and other files at the same time. These are
people with feelings. You want them to know you care and you respect
the work they are doing.
217
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WV'v't beLLeve VM.lj
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Tnelj C,C1V'v't c,oVM.e LV'v rksnLV'vg C1V'voi oieVM.C1V'voiLV'vg tnC1t tne
bC1V'v~ settLe for Less tnC1V'v wnC1t Ls rLgntfkLLlj oweoi.
[V'voieeoi, tnese nOVM.eowV'vers snokLoi be beggLV'vg
for forgLveV'vess.
[ ofteV'v see C1 sLVM.LLC1r nostLLe C1ttLtkoie froVM. snort sC1Le

LLstLV'vg C1geV'vts. c.OVM.e OV'v, foL~s! rtkVM.LLLtlj C1V'voi respec,t
snokLoi be ljokr C1pprOC1c,n wLtn tnese LeV'voiers."
So, you should know that going into it, many loss mitigators are going to
be reserved, defensive, or even adversarial towards you. If your opening
line is, "Have you even looked at my file?" the loss mitigator is going to
immediately put on their fighting gloves. Now you have upset them, and
guess whose file is going to the bottom of the stack!
In addition to dealing with hostile short sale agents, loss mitigators often
have to deal with inexperienced and uninformed agents. I have had
some mitigators share with me that they feel like they are constantly
educating agents. It takes time and energy to explain the steps of the
process over and over again to new and untrained agents. This is one
reason why many loss mitigators don't answer their phones!
On the 7 Dqys to Success with Short Sales Toolkit CD, we have provided
you with a list of numerous bank contacts. As you begin processing
short sales, you will add the contact information of your favorite loss
218
mitigators to this list. As time goes by, you will learn that you can
sometimes go through the "side door" when you have a new short sale
file.
For example, you can easily contact a loss mitigator you recently worked
with on a file and ask if you can fax the complete package directly to
them and have them walk it over to the setup team. This can be very
helpful when you have a short timeline and the foreclosure sale date is in
the near future. This side-door strategy is particularly effective at smaller
banks, but my team and I have even used this approach at the largest
ones. By the same token, if a file is taking too long to get through the
setup process, I sometimes contact a loss mitigator or supervisor I've
worked with in the past and have them look into the situation.
As you are building rapport with the loss mitigator, you want them to
understand that you-with your knowledge and expetience--are going
to make their life much, much easier. Your goal is to let them know that
you are different and that working with you will be a smooth and easy
process. You want the loss mitigator to enjoy working your file and to
work it as quickly and efficiently as possible. Building that relationship is
key. In fact, just this one technique can save you wee'ks in the process!
And, the more time you can save, the more money YOllcan maketaking more listings and closing more deals.
Before the file goes to a loss mitigator, you will want

to call the department 2 times per week (every 2 to
3 days) to find out if the file has been assigned.
Once it is assigned, however, you will want to back
off your calling schedule to once per week. This
schedule shows your eagerness, but also your respect
for the hardworking loss mitigator and their efforts.
219
Sample Script: Initial Call to Loss Mitigator

As you will notice in the following sample scripts, it is important to reverify some of the information you received from the setup agent. The
setup agent could have missed something in the flle that the loss
mitigator has now found. For this reason, it is best practice to repeat
some of the key questions asked earlier.
C~~~i~j) Loss Mit: "Hello, this is Jack Smalls speaking."

Knolly: "Hello, Jack, this is Knolly Williams. I'm a
short sale specialist and listing agent with the
Knolly Team in Austin, Texas."
Loss Mit: "Hi."
Knolly: "Jack, I'm calling for a status update on a
file you're working. I do have authorization to
discuss the account."
Loss Mit: "Okay Knolly. What's the loan number?"
Knolly: "The loan number is 2348879874."
Loss Mit: "Okay ... hmm ... Can you hold a second?"
Knolly: "No problem."
Loss Mit: "Alright, I see here that your
authorization is on file, Knolly. Can you verify the
last 4 digits of the primary borrower's social
security number, please?"
Knolly: "Yes, it's 3868."
Loss Mit: "What can I help you with?"
Knolly: "Can you please verify that you have a
complete file?"
220
Loss Mit: "Yes, I do see that we have a complete

file here. We don't need anything else at this
time. "
Knolly: "Is there a foreclosure date set on this
property?"
Loss Mit: "A sale date? Hold on ... Wait a minute
here ... No, there is no foreclosure date set."
Knolly: "Fantastic, Jack. That's good to hear. You
know, Jack, you won't have anything to worry
about with me. I'm a short sate specialist and my
team has closed over 42 short sales so far this
year. I only work with clients who quaUfy for a
short sale, so you won't have to spend your
vatuable time educating me on the process."
Loss .Mit: "Wow, KnoUy. That sounds good, man."
i(;noHy: ''Well, thanks again, Jack. Oh, by the way,
have you already orde'~ed the BPO?'"
loss Mit: "No, the BPO hasn't been ordered yet."
Knotty: "Okay. Can you tell me when it will be
ordered?"
Loss Mit: "Uh, !let me see here. Well, I'll need to
just review bhe fille one final time, andl'U
probably order the SPO by the end of next week."
KnoUy: "Okay, great! Do you already know who
will be assigned to do the BPO?"
Loss Mit: "No, not at this time."
Knolly: "Oh, I see. Well, can you note that I will
be the point of contact for the BPO agent?"
Loss Mit: "Sure thing."
221
Knolly: "Great. The BPO agent can call my office

number at 512-448-4111 or my cell at 512-9999999. "
Loss Mit: "Okay. I've got that noted here. Looks
like that's alii need for now."
Knolly: "Okay, thanks again, Jack. When should I
call back for a status update?"
Loss Mit: "I would say to try back in two weeks."
Knolly: "Great. So I need to call back on October
18th then. Will do. Do you think you can have the
file approved by then?"
Loss Mit: "Well, [laugh] I really don't know for
sure. I'll see what I can do!"
Knolly: "Thanks, Jack. I know you've got so much
on your plate right now, so I really appreciate you
taking the time to speak with me. I'll call you
back on October 18th. Shall I call you at 10 a.m.
or is 2 p.m. better?"
Loss Mit: "Uh, well ... I'm here all day. Just call
me at 2 p.m. That's better for me."
Knolly: "Okay, Jack, thanks again. One more favor
... Can you please update the notes in the file to
show that I called inquiring about the status of the
file today, and that I will call again on October
18th to see how the BPO turned out?"
Loss Mit: "No problem. Will do."
Knolly: "Thanks so much, Jack. I will be updating
my notes as well. You've been super helpful. Talk
to you then!"
222
Sample Script: Initial Voicemail Message for

Loss Mitigator
If you cannot reach the assigned loss mitigator on the phone, just leave a
message stating your questions and your contact information.
Script! . "Hello Jack, this is Knolly Williams. I'm a short

. sale specialist and listing agent with The Knolly
Team in Austin, Texas. I'm calling for a status
update on a file you're working. I do have
authorization to discuss the account. The loan
number is 2348879874 and the last 4 digits of the
social are 3868.
Jack,1 just need to verify that you have a
complete file. Also I want to make sure that there
is no foreClosure date set on the property.
:t'm a short sate specialist, and I only work with

dients who quailify for a short sale, so you won't
have to spend your vatuable time educating me on
the process.
I aliso want to see if you've already ordered the
SPO on this one. I'U be the point of contact for
the BPO agent.
Anyway, can ),Iou please ca'll me at 512-448-4111
or ca'lt my cell at 512-999-9999. I won't take much
of your time. You can also email me at
knol'ly@shortsatesite.com.
Thanks again Jack. I know you've got so much on
your plate right now, so I really appreciate your
taking the time to speak with me. I look forward
to hearing from you!"
223
An praisal or BPO
Is Ordered
In the next step in the process, the lender orders an appraisal or a
Broker's Price Opinion (BPO) of the property to inform them of the
property's current market value. This is the beginning of the lender's due
diligence phase. The lender will use their own appraisal/BPO report to
establish what the home is worth, so they can decide if the offer
submitted is acceptable.
Follow Up
Relentlessly
Gather Info
for the Package
List& Market
the Property
.
Order AppraIsal
Negotiate &
Counter
Youare
here!
224
Some lenders will order a BPO and others will order an appraisal. As a
rule of thumb, when lenders are processing a conventional loan, they
will typically order a BPO, and when they are processing an FHA or VA
loan, they are required to order a full appraisal. A BPO is more akin to a
comparative market analysis (CMA), although it's a bit more expanded.
A BPO will typically be 1 to 4 pages in length (including photos, etc.),
while an appraisal can be 20 or more pages. The purpose of both
documents is to arrive at a market value of the property.
r----------,d6-----------,1I
'CJ
"wheV\. the LeVl-oiev ovders (lVl- (l"FP~'(lLs(lt ov -g,PO, (jov~

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tViVlt the(j have evev(jthLVl-g the(j Vl-eeol fvow.. (jovl, VlVl-d
thel::j have deci.deDi to w..we fOVvviiVd wLth tVie short sViLe.
TlrIe(j vl(lve yevtewed the ?Vlck(lge VlVl.-d detev.w..LVl.-td tViVIt
!jouv seLLey qVi.(lLLfLes fov tVie shorr sViLe ?vogriiw..."
Working with Appraisers or BPO Agents

Be the Point of Contact
When the lender orders an appraisal or BPO, they will typically ask you
who the point of contact will be. In other words, "Who should the BPO
agent or appraiser contact for access to the property?" You want to be
the point of contact. This will ensw:e that the BPO agent or appraiser
contacts you prior to physically going to the property to perform the
valuation. As you noticed in the call scripts, it is important that you give
the loss mitigator your contact information and let them know you are
the point of contact for the appraiser or the agent doing the BPO.
.~
Ii
'\
;,1'
'\.
225
Do Your Best to Ensure a Correct Appraisal

Appraisers and BPO agents may appraise the home incorrectly for one
of the following reasons:
The BPO agent may only do an exterior BPO. While

the home may have good curb appeal, it may be a wreck
on the inside, or it may be very dated. If the appraiser or
agent does not take into account the interior condition of
the home, the property valuation will be skewed.
The appraiser or BPO agent may not be familiar with

the area. A high valuation may be rendered simply due to
the agent's lack of experience with the area, part of town,
subdivision, or current market conditions affecting the
area.
The appraiser or BPO agent may be using the wrong

comps. When there are several comparable properties to
choose from, it is imperative that the appraiser or BPO
agent select the right ones as comparables.
For example, some subdivisions have sections that are
valued higher than others, and this may be overlooked
when the appraiser or agent pulls their comps.
Or, an overvaluation may result if the report considers
properties that took longer than 60 days to sell (as
discussed in Day 3).
In addition, the appraisal or BPO may be assessed using
comparable properties that were completely remodeled,
updated, or in far better resale condition than your listing.
And, considering the fact that BPO agents typically make
around $50 for doing a BPO, the faster they can get it
done the better. Sometimes, they will delegate the task of
performing BPOs to an agent with less experience.
12.6
The BPO agent may have the wrong ulterior motives.

Most agents are honest, and I don't see this scenario
happening very often. However, when a property
forecloses, it typically becomes a bank's REO (real estate

owned) property. This means that if the property does go
into foreclosure, the BPO agent or someone from their
company or team has the potential of getting the property
as an REO listing to sell on the bank's behalf. A BPO
agent may use higher priced comps in order to prevent the
short sale from getting approved so that they can get the
foreclosure listing later.
For these reasons it is imp=tive iliat you get your information into the
hands of the BPO agent or appraiser before they go out and do their
valuation! If they do not cont"ct you first, they will not be afforded the
insight that your infolTIlation can bring, and you may find yourself with
an overpriced approved short sale that no one will buy.
Share Your Analysis with the Appraiser or BPO Agent

When I am contacted by the appraiser (or BPO agent) who will be doing
the appraisal, I 'will !lSU~y give them a politeearfuJ:! I ask the appraiser
for their fax number or email address, and I send them the following:
The hardship letter
My own comparative market analysis (CMA)
The first page of the oontract, which shows the sale price
III
A list of repairs needed and a repair estimate (optional)
This information helps them know what I am thinking-my starting

position. And this lets them know iliat I am on top of my game, and I
know how this property should be valued.
My other objective is to get to know the appraiser/BPO agent-but stay
at arm's length. I want them to be educated about how I arrived at my
CMA numbers, but I do not want to appear that I am trying to coerce
127
them or tamper with the process. I want to stay close enough, however,
to assist and to facilitate the process whenever possible.
Sample Script to Use with Appraiser or BPO Agent

: BPO Agent: "Hello, Knolly, this is Pauleen with
,"=-~~4' Homelite Realty. I've been asked to do a BPO for
your listing over on Sagebrush."
Knolly: "Hey, Pauleen. That sounds great!"
BPO Agent: "Well, Knolly, I need to get into the
property. Is it still on lockbox?"
Knolly: "Yes, it's still on lockbox, and it's vacant.
When are you going out to do the BPO?"
BPO Agent: "Uh, I'll probably get out there
sometime tomorrow afternoon or so."
Knolly: "Great! When do you need to turn in the
BPO?"
BPO Agent: "They gave me five days to do it. I'll
have it back there by Wednesday of next week."
Knolly: "That sounds awesome, Pauleen. That
property is a very interesting. My office has sold
several properties in that subdivision. I need to
send you a few pages of information about the
property that you may find helpful. Can I fax that
to you or do you prefer me to email it?"
BPO Agent: "Oh, well, just email it to me. My
email ispauleen@homeliteteam.com. "
Knolly: "I sure will. What's your phone number,
Pauleen?"
228
BPO Agent: "It's 512-977-9922."
Knolly: "Thanks again, Pauleen. I promise I won't

call you since I know how busy you are. I'll just
keep it here in the file, just in case."
BPO Agent: "No problem, Knolly!"
Knolly: "Okay, Pauleen! I appreciate you."
Notes
129
The Lender's Decision:

Three Possible Outcomes
Once the property valuation is completed, the appraiser/BPO agent will
tum the report in to the bank. The loss mitigator on the case will
typically have 7 to 10 days to review the report and compare it to the
purchase offer you have in your package. When they have reached a
decision, it will be one of three possible outcomes:
1.
Decline
2.
Counter and Negotiate
3.
Accept and Approve
Let me offer a word of clarification before we move forward. At this

point in the process, the focus is on the buyer's offer and on the house
value, as determined by the bank's BPO. The short sale proposal has, for
the most part, been "approved" at this point. So, if the deal is declined
or negotiated, it will be because the structure of the purchase is
unacceptable or undoable in someway. If the offer is accepted, you can
celebrate because this is the final approval you need to close this deal!
1. Decline
Let's first talk about Decline as an outcome, since this is the least likely
scenario you will experience. A straight "decline" is rare. Typically, the
file will be tossed back to you with a counteroffer.
Unacceptable Price
The lender may decline the short sale contract due to an unacceptable
price. About 15% of the time, the lender will simply decline the deal and
not present a counteroffer. Furthermore, they may not even let you
know how the BPO came in-that is, they won't let you know what
230
value their agent or appraiser gave to the property. This is a tough

situation.
One of the larger lenders in the nation starting following this practice
not long ago. Now, when they decline an offer based on price, they
won't give you advice on how to counter. Typically, they just simply say,
"Have your buyer submit a revised offer." When you inquire, they will
not disclose to you the price that they want. They may, however, let you
guess at their price requirements! In a couple of cases, I have felt like
that I was playing the classic "High Low Clock Game" on the Price Is
Right television show!
KnoUy: "WHit you accept an offer of $300,000 to

$310,000?"
Loss Mit: "Not likely. "
Knolly: "Will you accept an offer of $310,000 to

$320,OOQ?"
Loss Mit: "il don't think so. "
Knotty: "WiU you accept an offer of $320,000 to
$330,000?"
Loss Mit: "Probably so."

You will recall that I have a fondness for FHA and VA loans because
they follow rules. For these loans, lenders will always order a fuJI
appraisal (not a BPO), and they are required to give the homeowner (or
you as their listing agent) a copy of the appraisal if you ask for it.
FHA and VA lenders are looking for a minimum of 88% of the
appraised value of the property. That's a rule. You can count on it. And
they are required to tell you the minimum amount they will accept on an
offer. (See the section is this chapter titled "The Approval Process for
FHA Short Sales" for more information.)
231
Lenders SetvlC1ng conventional loans don't follow these same rules.

They may be looking for 88% of the appraisal, or maybe 92% of the
appraisal, or maybe 90%. It's a guessing game each time. And when a
conventional lender gives you no insight into the results of their BFO,
you are at an even further disadvantage.
If the contract is declined and you know with certainty that the offer is
priced right at market value, you will need to dispute the appraisal or
BFO (see discussion below).
2. Counter and Negotiate

A straight Decline is rare and a straight Approval is rare. The more
common practice is for lenders to negotiate the terms of the contract via
counteroffers until both parties are in agreement.
BPO/Appraisalls Too High

If the lender makes a counteroffer based on an appraisal or BFO that is
too high, you have a problem. Getting the right value on the property is
absolutely critical. Many short sales die because the valuation comes in
too high. In these cases, the lender is essentially asking for more than the
home is worth. This could force you into a situation where you have an
approved short sale, but no willing buyer. When this happens, you will
need to write a formal letter of dispute, challenging the high appraisal or
BFO.
232
1:SI1.QIIYWiIJi~m!!
USTNGSP"","J
"Consider it SOL~.;3
Office: (512,,) 206-0Q60 Fax: (512) 5~.062~
www.Knoll... comknollu6)knollu.com
January 23, 2009
Tu:
GMAC LOSS MITIGATION-LOAN #iOSD1B56001
Attn.:JU.sthi M)'19 r$
Fax;: 666-675-8471
RE:
Address:
1825 -King Fish, Round Rock, Texas 786E4
Dear Jl,lstin.
'neen ma~ketil'l,g ,Has propem for 'Some timewitb '(j list .pric.e: of $134,000. ~he present crffer ls the BEST
oJ;te we l:ial'B received.. Your m~ssag-e me!1licned that I'he bank would ~kB n-o ~es$ than $140;000,
UnfortI.ll'l3t,etY,1he appraisal'came in too HIGH
J hal/e
am oertain that the agent who dicllhe 8Pa ;knuws his business weI!, -and it is not my lntemtion to cMlerl,gB
him. I :feel, :hOlll<ever, that 'Something mtlSt'have ibe.en ove!'lookedl.
.j
As 'Or.le of the top 10 RlEALTORS fuAugtln .(oot of almost 9;500 agents). Ili81 and se~-ne.,.r~ 1m homes per
rear. Pait M mil abrrt:y to sell these- Iwme.s, $ my salel's wiUingness to pricr; their homes >fflihin what the
maJ'ketwi~ 'be;ar.
Please. see 'nIy Market Analysis attachC!'tL
The C'r..Irl'lmt market lfaiUB ofthis'home)S' -$133;900 - $135,000.
me ;buyer has counterea Willl {heir1l.est and final offer)rru {If'$135,DOO,

Respectli.JllysU'bm"ltteC\,
Kn-oll)' l,'{,jiiiams, HEALTOR
F otmalletter of dispute
Keep in mind that the lender may counter even though they will accept
less. This is old fashioned negotiating. If the buyer counters the lender's
counter, take the new amount back to the lender. You may have to go
back and forth until an agreement is reached.
.-
233
Note that if the lender counters with an amount that the buyer is still
not willing or able to pay, and you can't get either side to budge, don't
despair! You still have an approved short sale. Put the property back on
the market, find an agreeable buyer, and get it closed!
Promissory Note Is Required

Some lenders will absolutely refuse to do a short sale without some kind
of financial contribution from the seller. I recently had a transaction
where the second lien was owed $32,000. This second lien holder
refused to grant the short sale without my client agreeing to a
promissory note of $9,600 (i.e., 30%). The terms of the note were to be
five years (60 months) at 0% interest, for a monthly payment of roughly
$160 per month. I explained to the lender that my client had no future
income prospects and that he could not agree to the promissory note.
This halted the sale, so we negotiated back and forth. Mter weeks of
wrangling, the lender finally agreed to accept $1,600 (i.e., 5%) with
monthly payments of $26.67 per month! The loss mitigator made it
crystal clear that if the sellers did not agree to these final offer terms,
they would foreclose on the home---period. Needless to say, the sellers
agreed and we sold the home.
It has been my experience that lenders will request a seller contribution---a nominal cash amount at closing or a promissory note-in about
one out of every four deals, so be prepared for it. Here are options for
you to pursue:
Your fitst response is to just tell the truth-your client has

no money and cannot agree to a promissory note.
If that doesn't work, negotiate the note down. Negotiate

the terms to the lowest amount you can (5% to 10% of the
lien amount), paid over the longest term (5 years) with a
0% interest rate.
At times, your seller may not understand that the promissory note is the
best option they have and the only way that the short sale will go
through. Signing a promissory for a percentage of the lien amount (paid
234
over time) is certainly better rban facing foreclosure, wbich will result in
long term damage to rbeir credit and may result in a judgment against
rbem for rbe resulting deficiency balance. Your client should keep in
mind rbat even if rbey agree to a 10% promissory note, for example,
rbey will still be forgiven 90% of rbe note through rbe short sale
settlement! That's really good. In cases where rbe lender requires a
promissory note, rbe seller will not be able to sell rbe property wirbout
it. It is imperative that rbe lender remove rbeir lien from rbe home in
order for rbe seller to sell.
Samp:le Script: What NOT to Say to Your Client

Regarding a Promissory Mote
c~~~;tj) ~~::~.~~!, Wayne, I've got some bad news from

Client: "Oh no. What are they doing now?"
Agent: "Weill, they want you to sign a promissory
note'!"
Client: "A promissory note? Wi'lat's that?"
Agent: "Welt, they won't agree to forgive the
total amount'! They want you to sign a note
agreeing to pay $2,000!"
Olient: "What?! Man, forget them. They can just
take back the house! 1'[,[ let it foreclose!"
Agent: "Gosh, Wayne. I don't know why you're
bank is being so stubborn!"
Client: "I'm tired of this whole process! I think
we're just going to walk away!"
Tbis is rbe WRONG, WRONG, WRONG approach-yet, tbis is rbe
approach I see agents take all of rbe time!
235
Sample Script: What You SHOULD Say to Your Client

Regarding a Promissory Note
Here's a sample script for the kind of conversation I have with a client
regarding a promissory note. This is the RIGHT way to approach the
Issue.
(SCriP~) Knolly: "Hi, Jo~n, I've got some really good news
,,~~
...
from the bank.

Client: "Good! Let's have it!"
.-
Knolly: "Well, John, as you know, you owe about

$40,000 on your second lien. The good news is the
bank agreed to forgive 80% of it! So they're willing
to wipe out $32,000."
Client: "Okay."
Knolly: "John, that's still exciting news because
they are willing to forgive most of what you owe.
But since I didn't think 80% was acceptable, I kept
negotiating with them. In fact, it's taken me over
a week, but I've finally gotten them to forgive
95%! That means they are forgiving $38,000 of the
$40,000!"
Client: "Well, that's more like it! Thanks, Knolly!
So, who's going to pay the $2,000?"
Knolly: "Well, John, your bank wants you to pay
it. But hold on! I've got some good news about
that too. I know you don't have that kind of
money, so I did a lot more negotiating and the
bank has agreed to let you pay it AFTER we close
on the house. AND they'll give you 5 years to pay
it at 0% interest. Gosh, John, that's a heck of a
deal. That's only $34 per month to save you from
foreclosure. "
236
Client: "Well, that sounds pretty good, Knolly!

Thanks, man. I appreciate what you've done."
Knolly: "You're welcome, John!"
Client: "But, Knolly... What happens if I decide I
don't want to do a promissory note?"
Knolly: "Well, John, I've thought about that too.
And the ball is in your court. But if you decide not
to sell your home and dedde to let it go into
foreclosure then you will have a foreclosure on
your credit report for the next decade. That can
really tank your credit. Did you know, John, that
many employers now pull a copy of your credit
report when you apply for a job, and many require
you to disclosure if you've ever had a
foreclosure?"
Client: "Oh yeah? Hmmm."
Knolty:"And John, if the lender comes after you
legally and wins a judgment against you, you couLd
be liable for the entire amount plus any resulting
legal fees. If you decide to go the foreclosure
route, you wiU definitely want to discuss this with
al1 attorney to get you some good tegal advice on
how your lender may pursue you after the
foreclosure. "
Client: "Yeah, I guess you're right."
KnoUy: And, you know, John, your legal fees to
an attorney could likely be higher than the
amount of the promissory note! And the attorney
won't give you 5 years to pay! My advice is to take
what you can get and move on. Let's close on the
home so you can get this nightmare behind you."
Client: "You know what, Knolly? You're right.
Let's do it!"
137
This Promissory Note is made on September 10, 2008. For Value received,
and intending to be legally bound, the undersigned individual(s) (the
"Obligor(s)") promise(s) to pay to the Litton Loan Servicing LP, its
successors and/or assigns (the "Obligee"), the principal sum of (U.S.
$2656.80), Two thousand six hundred fifty six and eighty cents, plus interest
at an annual rate of the lesser of 00.0 % or the highest rate permitted by
law, payable in equal monthly installments of (U.S. $22.14). The first
installment is due upon signing of this note, and subsequent payments
are due on the first day of each month, commencing on December 1,
2009, and continuing until the principal sum outstanding and any late
charges or other amounts due and owing under this Note are paid in full.
Obligor will make monthly installments payable to Dyck-O'Neal, Inc. and
deliver them to: Dyck O'Neal, Inc. , P. O. Box 13370, Arlington, Texas
76094 or to such other servicer or such other address as Aron Valderama
may hereafter designate in writing to Litton Lon Servicing (Dyck O'Neal,
Inc.).
Obligor may prepay the unpaid indebtedness hereof at any time in whole or
in part without prepayment charge or premium. Obligee will apply partial
prepayments to the principal; partial prepayments will not affect the amount
or due date of monthly installments, except that the final payment date will
occur earlier and the final installment may be smaller than scheduled.
Failure of the Obligor to pay any installment on or before the first day of the
month in which it is due, Obligor agrees to pay a late fee on such installment
in the amount often percent (10%) of the regular payment, to the extent not
prohibited by applicable law. Installment payments will be applied first to the
longest outstanding installment.
In the event the Obligor fails to make payment of any installment due
hereunder by the thirtieth day of any month, the entire unpaid balance of this
note plus any unpaid late fees and other sums due hereunder shall at the
option of the obligee become due and payable immediately. The Obligee
may exercise this option to accelerate regardless of any prior forbearance,
and shall not by any act of omission or commission be deemed to have
waived any of its rights or remedies hereunder unless such waiver be in
writing and signed by Obligee.
Sample Promissory Note (page 1)
238
The Obligor consents to the Obligee commencing action on this Note at any
time after acceleration in the State of Texas, and the Obligor expressly
agrees to be bound by the jurisdiction of the appropriate court in the State.
In the event the Obligee takes action to collect any sums owing hereunder,
the Obligee may also recover from the Obligor all costs of such action,
including costs of suit and other expenses in connection therewith, including
a reasonable attorney fee for collection, to the extent not prohibited by
applicable law.
The Obligor hereby waives presentment for payment, protest, demand and
notice of nonpayment and agrees that, without affecting ObUgor's liability,
the ObUgee may, without notice, renew or extend the time for payment, or
accept partiail payments.
I
This Note shall be the joint and several obl,igations of all makers, sureties,
guarantors and 'endorsers and shaU be biinding on them and ti1eir
successors and assigns.
Any notice to Obligor sihall be given by maUing such notice by certified mail
addressed to Obligor at the address staled bellow or to sudm other address
as Obligor may designate by written no~ice 10 the address 10 which
payments are made. Obligor shC1lilgive such notice within 30 days of any
change of address.
"'1
the even! anyone or more of the provis,ions conlainedin th,is Note shaH
for any reason be held invalid, illegal or unenforoeable in any respect, such
invalidity, iillegallity orunenforceability shal'l be conslrued as if such ,invalid,
mega! or unenfOfceable provision{s) had never been contained herein.
This Note and thecibligations of the undersigned shaU be governed by the
laws oHme State.
Obligor:
John Ramsey
(Signature)
Sample Promissory Note (page 2)
Day 6: Proces5ingthe Short Sale
239
HOA Dues Are in Arrears (or a Lien Exists)

It is not uncommon to have a client with a large past-due HOA bill. And
as we have discussed, most lenders frown on paying delinquent HOA
dues, so you will need to strongly negotiate for the lender to pay them.
Or, you will have to work with the seller to find creative ways to try to
remove this barrier to the short sale deal.
Final HUD-1 Does Not Match Preliminary

Lenders will request a final HUD-l Settlement Statement when they are
ready to approve the file, but if the final HUD-l does not match the
preliminary, estimated HUD-l, they may reject the deal. Also, if the
HUD-l comes back showing net proceeds to the lender that are less
than the amount previously estimated, then you will need to explain this
to the lender in detail. Often a discrepancy is due to the file being
approved many months after the original proposed closing date, which
means you may have several months in additional tax proration,
resulting in a lower net amount to the lender. We will discuss more
about this in "Day 7: Closing the Transaction and Getting Paid."
You must stay on top of the details of the HUD-l throughout the short
sale process.
Have a knowledgeable settlement agent prepare the

HUD-l for you.
Scrutinize all line items.
Be conservative in your tax proration.
Check the close date on the documentation-as it will

likely change.
240
IRS Tax Lien or Other Liens Exist

A short sale deal cannot go through if IRS tax liens or other liens exist
against your client's property. As we discussed earlier (Day 4), it is
imperative for you to run a tide search at the beginning of the process
and review it thoroughly (or better yet, have an expert do so). This tide
search will reveal all liens against the property.
IRS tax liens (that include a lien against the property) can be removed,
you just need to follow the request process.
PMI Company ~Is S'lowing Things Down

In the event that a loan has Private Mortgage Insurance (PMI), the PMI
company will have to review the short sale file after the lender has given
it theli okay. PMI companies provide insurance on loans in the event of
default-thereby minimizing the exposure and losses incurred by the
lien holder. Because t!he PMI company will take the hit, they also have to
sign off and give their '"pprova} of the transaction.
Since the lender has already reviewed the file, this is mme of a formality,
and the PMI company will almost always agree to move forward with
the short sale, as they realize that this will mitigate their losses. In some
cases, they may request additional information, and they may also slow
down the processing of the file while they are reviewing it.
IT the file is "stuck" with the PMI company, you can request to escalate
the file to a supervisor at the PMI company, but you will rarely be able
to speak clirecdy with someone at the PMI company.
Foreclosure Has Not Been Postponed

As part of your system, you should ask both the lender's setup team and
the assigned loss mitigator about the property's foreclosure date. And
you should check repeatedly for updates to this status.
241
Also remember that even if the foreclosure date has been postponed, it
has not been stopped. In other words, the date is still on for some time
in the future. Make sure you know the date and set a reminder on your
calendat to readdress the issue as the date approaches.
First Lien Is Not Short

The proposed short sale deal could be rejected by the first lien holder
because the first lien, in actuality, is not short. In other words, the debt
on the first lien will be satisfied completely by the sale.
This is an error on your part for not checking the payoff atnounts
earlier. By this point in the process, you should be awate of the status of
both loans, if your client has two mortgage loans. I consider this a
rookie error, and yet I know that experienced short sale agents and
teatns continue to make this mistake--patticularly as they start handling
more and more short sale deals. It's easy to overlook in the details.
If there is a second lien, you will immediately tum your attention and
your negotiations to this lender. And you will continue to work the short
sale with them-and with the funds that will remain after the first lien
has been satisfied.
3. Accept and Approve

Lender Approval Letter
Once the bank is presented with an agreeable contract, they will issue an
official approval letter. Congratulations ate in order! You have
accomplished your objective. The seller can now sell the house. The
bank will get their maximum return, and you will get paid. Now that's a
win-win!
The loss mitigator has a certain number of days-S days for an FHA
loan and 5 to 10 days for a VA or conventional loan-to prepate the
approval letter. To a standatd template, they will add the specific criteria
for your short sale. The letter will typically contain the contract sales
242
price, the minimum net proceeds payable to the lender, and the terms of
the short sale agreement.
Most banks will forgive all or a large portion remaining balance on the
mortgage loan. Others will require that the homeowner remain liable for
the amount forgiven, and some will even want a promissory note for a
portion of the debt forgiven, as we have discussed.
First Franklin
P.o. Box
PittSburgh~
RB: 'Loan
Loan Se-~-ices
~g3S
FA
lS230-~8~S
No~
Property Address
Dear Loan CUstomer ~
This l'e'tter details' t.he 'terms of the conditio..'"'l.al a:-pp:r:ovcd' by ou:r

,company o.f a short pay-oU on the a!bove referenced loan. Please
note t:1b.at this app:r.ov.al is NOT FINAL unt.il the berms of thi.s
approval have :been m.et and we 'receive al~ the ll".ateriaJ.s required.
The ter.ms of approv~. are:
1.
Sal.e Ptic'e:
$400,000.00-
2.
Certified Pay-of Punds no less than:
$3'S;~70.35
3.
Transaction must close on
4~
We must receive ,the funds :by 2 pm ET.:
5.
The real eStat,e commission must be
6.
Seller{s) mus't recei.ve
7~
Final closing' figures must be fa:xed to us' 48 hours prior

to the closing.
S.
Seller(s) ~ write a letter requesting that'al~ rema~g

escrow funds {if applicable) be applied to the indebtedness.
'this includes any tax and/or insurance refunds.
DO
or
before~
:00
O~/l'5/2009
OljlGj:<!OOS
more than
5%
procee.ds from the saJ.e.
Please see the second page for materials that ~~st be,provided after
closing along with mailing and wiring information"
Sample Short Sale Approval Letter (page 1)
243
The following materials MUST be provided immedia't.ely after the closing:
1.
A certified eheck for $356,170.95 representing the pay-off a..-:tount.

If funds are sent hy wire, prov,ide the Fed :refex-enae nUIllber for
confirmation.
of closing.
2.
Wire transfers must be received witliin 24 hours
A copy of the final signed J..1JO-~"

If the final signed mJD-l .
is not available. a true and certified copy of tbe unsigned,
final HOD-l.
-:t;>e provid.ed..
We also request that you send'the fOllo~g:

~
Copy of signed Buyer{s} ana Seller(s) Closing Statement(s), if
*
*
applicable,
:n.ishursement worksheet., and

Copies ,of all'checks issued.
Forward ALL required items to the mailing address listed below:

MAILING ADDRESS
Loan Services
ATTN: LOSS Mitigation, 24-220
150 Allegheny Center Mall
PittsbuxSh, PA 15212 O~ FAX TO:
J:f wiring pay-off funds, please
Bank:
ABA:
Acct:
WIRING INSTRUCTIONS
724-49S-0qS3
~e the following info:mation:
Bar.k of America
026009593
Home ,Loan, Services, !nco
Mortgag~..~:"
.
LoanN~~r:~
upon satisfaction of the .required terms, inclu.4in9', but not limited

to, the receipt of the proceeds and all required material, the
appropriate documents will be sent to release the lien. If you have
any questions, I am. available to assist you at aOO-522~5035, ext. 11'730.
betlleen S am and,S pm, Eastern Time, Monday through Friday.
:fff"t7Ji
I /~:"'::.rv" ~.-......ihci
I I
Loss Mitigation
You should consider this letter as coming'from a debt collector' as we

sometimes actas a debt collector .. Any inormation provided by you
will be used to oollect this debt. However, if you a...""e in bankruptcy
or have received a bankruntcy discharge for this debt, this letter is
not an attempt to collect~the deDt, but notice of possible enforcement
of our lien against the collateral property:
LM902/SAM
Sample Short Sale Approval Letter (page 2)
Approved HUO-1 Settlement Statement

For conventional, FHA, and VA loans, there is one last step in the
approval process: the lender must approve the final HUD-l statement.
As we have mentioned, the preliminary HUD-l may be different from
the final statement. Things can happen--other liens show up, taxes
must be adjusted, closing dates change, and so forth. Typically, the
lender will word the approval letter so that it says you must close by a
244
certain date. Lenders generally allow 21 to 30 days from the date of

approval for the closing. Some allow 45 to 60 days.
In addition, with this final check, the lender wants to make sure other
line items have not been slipped in or changed-affecting their net

proceeds. If the lender's net proceeds are less than the amount they
approved, a revised approval letter must be received from the lender.
The Approval Process for FHA Short Sales

FHA short sales typically follow a three-step approval process and, in
many ways, the approval steps are very similar to the process for
conventional loans that we have been discussing-these short sales just
require more paperwork and they follow a tighter set of rules.
F.irst, the client (selle;:) must be approved into the short sale program.
Second, the purchase contract will be .reviewed and either accepted or
rejected. Third, the final HUD-l settlement statement from the title
company or attorney must be reviewed and approved.
1. The dient(seUer) must be approved into the

short sale program.
Before otdering an appraisal on the property, the loss mitigator will
determine if your client meets the criteria for the short sale program. If
your client is approved, the loss mitigator ",-ill complete and fax or email
you an Appwval. to Participate Form HUD-90045. (Discussed on
Day 2.) TIUs document indicates that your client is officially approved
into the Pre-Foreclosure Sale (PFS) program and eligible to do a short
sale unde;: HUD guidelines. YOut client must sign and you must return
the Approval to Participate Form HUD-90045 within 7 days of the date
you receive the form. TIUs document does not indicate whether or not
the current offer/ contract will be approved.
245
Among other things, the Approval to Participate Fonn HUD-90045

document spells out the following:
"
7
How much you can list the property for. This amount is
the amount of the appraisal.
Your deadline to obtain a signed contract. You will
have 120 day (4 months) to obtain an acceptable contract.
The minimum net proceeds HUD requires. The
minimum net proceeds are 88%. For example, if a home is
sold for $100,000, the minimum net proceeds will need to
be $88,000, after all seller closing costs are paid (i.e., real
estate agent commissions, property taxes, escrow and tide
company fees). Mter the property has been on the market
for 30 days, the minimum net proceeds acceptable is 86%.
After the property has been on the market for 60 days, the
minimum net proceeds acceptable is 84%.
By studying the HUD Mortgagee Letter 2008-43 and applying what you
have learned in 7 Derys to Success with Short Safes, you should be able to get
approval for all of your FHA short sale clients.
2. The purchase contract will be reviewed and either

accepted or rejected.
Next, the file goes to the second checkpoint in the FHA short sale
approval process. The loss mitigator processing the FHA short sale will
review the purchase contract submitted to make sure that it complies
with the ctiteria spelled out in the Approval to Participate fonn. The
mitigator will then complete a Sales Contract Review Form HUD90051 and accept or reject the contract by checking the appropriate box
at the bottom of the fonn. The loss mitigator only has 5 working days
from the receipt of an executed contract to respond back with this fonn.
It will typically be faxed or emailed to you. If the contract is rejected, the
lender will list the reasons why, so that the contract can be resubmitted.
But remember, by applying what you have learned in the 7 Derys to Success
system you won't ever have purchase contracts that are rejected!
246
3. The final HUD-1 settlement statement from the title

company or attorney must be reviewed and approved.
And lastly, the lender must approve the final HUD-l statement to
ensure that no changes have been made that alter the terms originally
proposed. This step is standard for all short sales, but on FHA short
sales, the lender will require 48 hours to review and approve the final
HUD-l statement prior to closing the transaction. This is strictly a
formality. The approvalletrer may state, "final HUD-l must be sent to
us within 48 hours prior to closing." As long as the final HUD-l
matches the approved Sales Contract Review Form HUD-900S1 you
will be fine. More information about this process is discussed in "Day 7:
Oosing the Transaction and Getting Paid."
Notes
247
Additional Tips for

Your Success
Keep the Seller Informed
It is imperative that you keep the seller info=ed about what is happening during the entire short sale process. In our system, we do this by
providing the seller with notes from our phone conversations with the
loss mitigation setup department and the loss mitigator. Our client receives a weekly status update from us via email. We try not to call them
with these updates as the seller typically wants to remain in the background.
If you are not keeping the seller engaged throughout the process, it will
become easy for your client to disconnect from the house and the
transaction-particularly if they have already vacated the property. The
more they distance themselves (because they are uninfo=ed and
uninvolved), the harder it will be to keep them motivated through to
closing. The worst thing I can imagine is to have a file completely
approved and have the seller NOT perfo= (show up at closing) due to
apathy.
Keep the Buyer's Agent Informed

In the same way, we provide the buyer'S agent with a weekly email
update containing the notes from our conversations with the lender. We
are careful not to send the buyer'S agent any sensitive or personal
info=ation regarding the seller. Keeping the buyer's agent info=ed
keeps you proactive, and this results in fewer buyer agent inquiry calls
and emails, and less frustration for the buyer-since they will clearly be
able to see that you are working the file.
248
Get on the Loss Mitigator's Good Side

Some folks make a sport of being discourteous to clerks who work in
customer service. They call with rude and harsh tones and talk down to
people. While most customer service representatives have to grin-andbear-it because "the customer is always right," they can retaliate in other
ways.
Loss mitigators are human beings who have feelings. Most of them
don't seem to particularly love what they do, and that may be due in part
to the way they ate treated.
As I have already stated, it is essential that you are diplomatic, tactful,
and couneous to the loss mitigators working your files, even if they do
not reciprocate. Try your best to keep a level head at all times. If you
ever do blow up, be quick to apologize. You .need to make sure that the
[oss mitigiltor is on your side.
~--------~--------~I
:~
'MtJ t)cpen.tl-'\-c,t hCls beel-'\- thClt the Level of ves-pec,t ClVcOi

"
m-p-povt tJ0H gaLl-'\- wttl-1 Cl Loss W.ttLgiltov wLL'l o!LvectLtJ
LVvCpClC,t how qH~ddtJ tJ0HV ~Le Ls wVIA.-pLeteo!, how wstJ the
:pvoc,ess wLL be, ... Cll-'\-o! the LLlzeLLhooo! thilt the fLLe wLLL be
Cl!p-pvoveol! Do tJ0HV best to wLI-'\- the fClvov of the Loss
VlA.LtLgCltor ClssLg\l\-toi to tJoHvfLLe lN
249
Factor 1: How Quickly Your File Is Completed
Courteous Real Estate Agent: The file will be rotated to

the top of the mitigator's stack.
Discourteous Real Estate Agent: The file will it be
rotated to the bottom of their stack.
Remember, the quicker you get your files approved, the more clients you
will help, and the more money you will make.
Factor 2: The Ease of Working the File
Courteous Real Estate Agent: If something about the

file is wrong or incomplete, the loss mitigator will coach
you on what needs correcting so that they can quickly
stamp your file as Approved.
Discourteous Real Estate Agent: The mitigator will look

for everything they can find that is wrong with your file,
causing delays. They can nitpick the file with such scrutiny
that you will really wonder what hit you. For example, they
may place your file on hold for missing initials on a page.
This causes some agents to push back too hard, which digs
them even further in the hole with the loss mitigator.
Factor 3: The Likelihood of Getting the File Approved
Courteous Real Estate Agent: The mitigator will look

for ways they can get your file approved quickly. Loss
mitigators are typically given parameters and variances that
they can employ when approving files. They may be willing
to use their more relaxed criteria so that your file can get
approved without delay.
250
Discourteous Real Estate Agent: The mitigator will look

for ways they can get yow: file declined. If something
about yow: file is wrong, they can quickly decline (and

close) the file and get rid of you. If a file is closed, you will
have to resubmit the entire short sale package or appeal to
a supervisor to have the file reopened. Either way, the
mitigator will be happy that they are no longer dealing with
you--as someone else will likely get the file the next time
around.
Use these tips to yow: advantage. Ensw:e that you do yow: best to get on
and stay on the loss mitigator's good side throughout the process. You
and this loss mitigator may meet again on a transaction down the road.
rt'5 much better to have an ally on your side.
Notes
256
Welcome to Day 7
Welcome to the last day of our 7 Days to Success with Short Sales! We've
covered quite a bit of ground, from first qualifying a prospect, to
gathering the short sale package, to listing the property and taking offers,
to submitting the package and working it through to approval!
Tlte Short Sale Process
You are
here'!
In Day 7, we will cover the last remaining techniques and tips to help
you reap the fruits of your labor. Let's close the short sale and get paid!
Day 7: Closing the Transaction and Getting Paid
257
The Closing Process

Once the file is completely approved, it can move forward to closing just
like any traditional transaction. After the lender approves the short sale,
the pressure will be on the buyer to close. While the buyer may have
waited for weeks or in some cases months, now they may be the ones
holding up the deal.
It is important that you are as patient with the buyer's agent and the
buyer as they were with you. However, the lender may only grant a 2- to
3-week period for the file to close, so the buyer must be ready to act
quickly once the deal is approved.
The Title Company or Attorney's Role

In our system, we lean heavily on the title company to help facilitate a
smooth closing. The title company we use is responsible for obtaining all
closing documentation (instead of me or someone on my team). I have
trained the escrow officers we use how to work directly with the lender's
loss mitigators to obtain the final approval letter and all other necessary
closing documentation. Besides passing on responsibility, this technique
has another benefit. An escrow offer will carry much more weight or
authority in the minds of loss mitigators. If an escrow officer calls, this
signals to the loss mitigator that the deal is very close to closing and the
bank is very close to getting their money. They will be more inclined to
make things happen.
I consider the escrow officer handling my file an integral part of my
short sale team. That is why I only close with title companies, attorneys,
and escrow officers who are willing to assist with the extra steps
required to close a short sale transaction, with limited involvement from
my team.
258
Once we have a short sale file approved, we basically allow the escrow
company to take over. The escrow company contacts the loss mitigator
and gets them anything they need (usually updated HUD-ls and
contract amendments) in order to close the deal.
~--------~--------~I
~!ij
"OlAe hVvl-e, I hCII;:! 0 Short soLe ClgelAt OIAe! fYielAe! wLL VVle
OIA the e-LosLlAg e!CltJ foy olAe of hLs LLstLlAgs. He WClS veytJ
e!LstrtAught. He hoe!justrwLtzee! tVitAt tneLr wptJ of the
LeIAe!ey's ApcpYOVClL LetterhClDi IAOt buVv ucpe!Cltee! wLtn tne
fLV\-lL, 0ffLe-LClLe-LosLVv6 oIC1te. Tne htle C-DVVljJCllAlj'S htAlAe!s ')
, were t"L-ee! bee-Cluse thetJ e-ouLe! Vvot Cle-t wLth out 0 IA CiCCHyClte '~
e!OCUVI>ttlAt. AlAcI VVltJ f",LelAe! hOld beelA tvtJLVv6 to yetAcVl tne .~
Loss VVlLtLgtAtor tALL c{Ci,'-1-wLth M LucR..!~
I
~1~
'fJE
:~
,,~~
.~
~
!~i
I ~<~
Tne LessolA LeCiYlAee!,.noweve,r, Ls ti1C1t ljou VVlUst stCl(:j OV\.

tocp of tALL Vvee-esstAYt;! fLvvaL oIocuVVle'lAtotLoVl 01' troLIA !::J0HY
title offLcers to clO thLs foy !::J OH."
Necessary Documentation
Final HUO-1 Settlement Statement
Oftentimes, after a file is approved, there are things about the HUD-l
that change. Remember that the lender has been working from an
estimated HUD-l Settlement Statement. The final HUD-l may be
slightly different from the one the short sale lender approved.
Whenever there are changes that will delay the closing date or reduce the
net proceeds to the lender, you will need to get a revised approval letter
from the lender in order to close the transaction.
,\
259
The following are the three most common items that change on a
HUD-1 after the file has been approved:
1.
Net proceeds are reduced due to items on the settlement

statement costing more than estimated
2.
Net proceeds are reduced due to buyer's change in terms
3.
The closing date is delayed beyond the short sale approval

date
Let's take a look at these and see how they can be avoided.
Proceeds Reduced Due to Taxes. Because short sales

take a while to close, the final closing date can vary
substantially from the originally projected closing date on
the original contract. For example, the contract may state a
closing date of May 31, but the file may not actually close
until July 31. This means that there will be additional
prorated taxes applied to the seller's side of the transaction.
In states like Texas, where property taxes can be $500 to
$1000 per month, this can dramatically skew the net
proceeds to the lender.
Proceeds Reduced Due to HOA Fees. Homeowner's
association (BOA) fees can also catch people off guard.
When an escrow officer completes the first estimated net
sheet, they may not have an accurate figure for what is due
to theHOA.
To avoid having to go back to the lender and get a revised
approval on a file, I recommend that you estimate for
worst case scenarios. Have the escrow officer draw up the
settlement statement with a closing date that is 60 days
beyond the contract date Gust to be safe).
You can also pad the HOA fee and other fees you think
may change. When our escrow officer prepares a HUD-1,
we have her charge $1,000 or $1,500 to the HOA fees line
260
item, just in case. If the HOA dues come back as an

amount due of $600, for example, then that's fine. The
lender will never give you grief about getting more net
proceeds than they requested.
Proceeds Reduced Due to Change in Buyer's Terms.

Sometimes buyers will change their terms midstream. For
example, the buyer originally offered $180,000, but now
they want to revise their offer to $175,000, or they want to
roll in closing costs and so forth. When this happens, you
will need to submit a revised HUD-l to the loss mitigator.
Sometimes the buyer drops out of the deal altogether, and
you are now working a new contract! TIus is covered in
Day 5. When this happens and the net proceeds are
reduced, you will need to get a revised HUD-l to the loss
mitigatnL
:111
Closing Date Is Changed or Delayed. Make sure the

loss mitigator working your ille recei,"es a revised HUD-l
as soon as you know the estimated HUD-l will change
(preembly before the Ele is approved). For example, if the
HUD-l in your file runs through September 15, and it's
akeady September 1 and the file still hasn't been. approved,
send a newly revised HUD 'with a closing of October 31 to
the miJ:i"oator.
FHA Sates Contract Review (for FHA Loans)

We discussed the Sales Contract Review Form HUD-90051 in Day 6.
This document pertains to FHA short sales only. If the amount being
paid to the first lien holder on the HUD-l is the same or more than the
amount in the Estimated Net Sale Proceeds column of the Sales
Contract Review form, then you are good to go. The lender will require
48 hours to review the HUD prior to closing, but that's only a formality.
261
If the net proceeds end up being less than the amount required on the
Sales Contract Review form, then you will need to trace down the
discrepancy. As we've already discussed, the culprit for the discrepancy
is probably additional property taxes, HOA dues, and so forth.
The loss mitigator should issue you a revised Sales Contract Review
based on the new HUD-l, as long as the minimum net proceeds are at
least 84-88% (see Day 6) and the additional fees are acceptable seller
closing costs. You will need to submit the revised HUD-l along with a
letter requesting a revised approval.
Final, Final Approval Letter

By following the techniques I've outlined for you in this section, you will
greatly minimize your need to request revised approvals from the lender.
However, the need may arise from time to time.
The technique I have found most effective is to email and/or fax a
formal request letter to the lender. Either you or your escrow officer can
do this. In the request, you should outline the new terms requested (e.g.,
the revised closing date, or new net proceeds), and briefly explain why
the terms have changed.
Having to go back to a lender for a revised approval is time-consuming
and it is never fun. But don't fret-lenders understand that this does
happen, and they will typically oblige when you present the request
properly. Communication is key.
262
Email
To: Charles Smith@BankofAmericaemail.com
Subject: Request for Revised Approval Letter-Loan # 11287035
Charles.
Thanks again for your APPROVAL on this short sale file.
;1 have attached the 'REViISED HUD~. It shows proceeds to Bank of

Amenica in the amount of $163, 188.35. This is a slightly different amount
from Ehe original HUD-1, because the original showed the taxes prorated
thmugh Aug 11; however the closing dale is now Sap 24. The difference is
$457.65.
11'1 order to ctose this transaction, I will need a revised App:roval Letter
with net proceeds to 'Bank of America of $163, 188.35 and a closing
date of September 24.
Thanks so much for your assistance on thiis file, Chaties. Can you please
fax over an updated approval leiter so that we can close Ihis transaction?
Please do nol hesitate to conlact me or the escrow officer if you have any
questions.
I
Humbly and respectfully submitted,
Knolly Williams
Short Sale Listing Specialist
Fax #: 800-555-2345
Sample Email Requesting Revised Armrov,al
263
Closing Day
I highly recommend that you host a private closing-that is, the seller
and the buyer will close separately. My primary reasoning for this is to
protect the feelings of my client, the seller. In a short sale situation, the
sellers are typically not happy about the sale of their home. At this point
in their lives, they are experiencing some life change and hardship that
has necessitated this sale. They usually do not even want to know the
details of the settlement. They are relieved to be at the end of this
process, but they are far from happy about the overall situation. On the
other hand, this is a special day for the new homebuyers. They are
delighted to have purchased the home at a good price and are excited to
take possession of the home today. Two very different sets of emotions.
Closing the transaction with the buyer and seller in the same room can
only be described as extremely awkward and embarrassing for everyone.
Years ago when I used to close both parties together, 1'd have the seller
on the verge of crying, while the buyer was telling everyone what he
planned to do with the kitchen and cheerfully asking about where the
seller was moving, and so forth. Back then, I made a decision to never
close the buyer and seller together.
Should You Attend the Closing?

This is a very interesting question. I think the answer will be different
for different people. Personally, I stopped attending short sale closings
years ago. And consider the time I am saving! It takes approximately 30
minutes to drive to the title company; 30 minutes to close; and 30
minutes to drive back to my office. Add another 30 minutes for
incidentals. That means at least 2 hours per closing. Multiple that by 100
closings and that's 200 hours per year-almost 5 weeks spent in a
closing room!
Some of you will think you absolutely have to attend the closing, and I
can understand that. I thought the exact same way years ago. "What will
my client think of me if I don't attend?" Then I developed a technique
264
that has helped me immensely. I have my clients do what I call a preclose. I explain to them that for their privacy and convenience, I won't
be attending the closing.
Sample Script: Explaining the Pre-Close
(~CriP:!0
Knolly: "Hi, Jane. Wow! I am so excited that we

were able to get your file approved so you can
close on your home and move on with your life."
Client: "Thanks, Knolly, me, too."
Knolly: "Jane,1 know this is a very difficult time. 1
have found from experience that ... for my short
sale clients ... dosing on their home is not a
particu1larly fun experience. ~lthough you're eager
to move on, what you're going through stilt
hurts. "
Client: "Welt ... 1 never thought things would tum
out this way for me. "
Knolly.: "I understand that, Jane. I'm praying for
you."
Client: "I appreciate that."
Knolly: "Listen, Jane, as a courtesy to my cUents,
and to protect your privacy during this difficult
time, I provide what I caU a private pre-close. May
I explain?"
Client: "Sure, what's that?"
Knolly: "Well, Jane, typically when a home
closes, both the buyer and the seller are in the
room together signing papers. 1 have found that
this can be very awkward. Since this is a short
sale, we really don't need the buyers to know any
of your personal details. Also, most of my short
sale clients want to get in and get out."
265
Client: "Yeah .. .1 understand."

Knolly: "Well, Jane, it's up to you, but I've
discussed it with the title company, and they have
agreed to allow you to do a private pre-closing.
This should only take about 15 minutes for you to
zip in, sign the papers, and get on with your life.
The buyers will come at a separate time. If you
decide instead to close alongside the buyers, the
closing could take an hour or more and it won't be
private. Which do you prefer?"
Client: "Well, I'd prefer the private closing."
Knolly: "I agree, Jane. That's what I recommend.
I'll let the title company know, and they'll
arrange a time. Unfortunately, I won't be able to
attend your private pre-closing, but the title
company will have all of the instructions they
need from my office and from your lender."
Client: "Oh, that's no problem, Knolly."
Knolly: "Okay, then. I'll let Stacey at the title
company know you want to do a private close, and
she'll get it scheduled. I wish you the best, Jane. I
know life will get better for you once this monkey
is off your back."
Client: "Well, thanks again, Knolly. I appreciate
all your help."
So, you may ask, what about making a last impression at closing?
Doesn't that help lead to more referrals? Well, yes, it does. But keep in
mind that because you have been keeping in constant contact with your
client, they know that you worked very hard on their behalf. They will
remember you!
But if you really want to go the extra mile, you can try a technique that
my escrow officer taught me. Purchase a gift certificate to a great
restaurant and write a handwritren thank you note to your client. Your
266
escrow officer will present the envelope to yow: client at closing. This
will more than make up for yow: absence!
Sample Script for Escrow Officer to Use at Closing
Script!
Escrow Officer: "Thanks so much for coming in

today and signing, Jane."
Client: "No problem. I'm just glad to get this over
with ... "
Escmw Officer: "I understand, Jane. KnoLly
wanted me to do this private pre-dosing
especiaUy for you. He's not here because he
respects your privacy at this difficullt time. "
Client: "I understand."
Escrow Officeir: ":K:noUy dropped this off [present
envelope] and asked me to give it to you
personally. He knows how difficult this is for you,
and he wanted to at 'least treat you and your
daughter to dinner 'On him."
Client: "Oh, wow. Gosh. WeU, thank you."
Escrow Officer: "You're wekome Jane. He wrote
a tittte note ~or you as welL"
As you can see, with the right technique and scripts, you can provide
yow: client with a private dosing and still give them a wonderful
experience even when you are not present!
You can provide the title company the gift cards and personal note well
in advance of closing. They can hold the envelope in the file.
267
Closing Costs
Seller Closing Costs
The lien holder who is short will typically agree to pay customary seller
closing costs. This includes the real estate commission, property taxes,
title policy, and escrow/closing fees.
They often will not pay for other items such as surveys, home
warranty/residential service contracts, homeowner's association (BOA)
dues, buyer'S closing costs, home repairs, or agent transaction fees.
Property Taxes
If your client owes outstanding property taxes for the current year (or a
previous year), the lender will typically agree to pay them as part of the
seller's closing costs.
Buyer Closing Costs

On an FHA short sale, BUD allows up to 1% of the buyer's mortgage
amount for closing costs to be included in the "Seller's Costs" on the
BUD-I. This allowance only applies to transactions where the buyer is
using FHA financing.
For example, if the buyer is getting an FHA loan of $150,000, then
BUD will pay up to $1,500 of the buyer's closing costs. BUD will still
need to net 84% to 88% of the appraised value. (See the discussion on
Day 6).
If the buyer is not getting an FHA loan, BUD will not allow any buyer
closing costs to be added to the transaction.
268
On conventional and VA loans, the buyer may be able to roll in closing

costs, as long as the short sale lender receives their required net
proceeds. Oftentimes, lenders will not allow any closing costs to be
included, but sometimes they will.
Notes
269
Proceeds from the Sale

Seller Can Not Receive Funds at Closing
On a short sale transaction, the seller may not receive any funds from
the deal. The only exception to this is when the seller has an FHA loan,
in which case HUD may offer them a consideration amount of $750 to
$1,000.
Because the lender is forgiving all or a large portion of the loan balance,
they will absolutely not allow the seller to receive any funds from the
transaction. If the net proceeds end up being more than the bank agreed
to receive, these additional funds will typically go back to the lien holder
accepting the short sale.
Notes
284
1.. Lead Generate for

Short Sales
25 Great Marketing Ideas for Generating
Short Sale leads

I have trained many agents over the years, and the one question that I
get asked over and over is, "How do I get short sale prospects? What
kind of marketing should I be do.ing?"
My philosophy has always been: "first you !earn, tnen you earn."
Therefore, I don't recommend that you go out and try to get a .lot of
bllsmess until YOIl thoroughly understand what you are doing. Now that
you haV'e completed 7 Days to Success with Short Sales, you are ready to
implement what you haV'e learned ",bout the process. Then, you can turn
your focus to marketing that will generate short sale leads.
The national media continues to report that many )\mericans owe more
on their nomes than they are worth. Some of these upside down homeowners want to sell; others absolutely HAVE to sell.. There is business
out there for Y0U-YOIl just need to find it!
There are several ways to generate short sale listing leads. The following
are the 25 that I have found to be most effective.
In reality, I only use about six of these strategies. You can pick and
choose the ones you like-experiment. With these effective marketing

ideas, you
find that you will have more prospects than you can
hand.le!
,,,ill
BONUS: 7 Strategies for Building Your Short Sale Business
285
25 Great Marketing Ideas

1.
Print advertising to local agents for referrals
2.
Email blast to local agents for referrals
3.
Direct mail marketing to local agents for referrals
4.
Yard signs, used in addition to your agent sign
5.
Place an ad in the yellow pages
6.
Take out a classified ad
7.
Say it loud with a billboard ad
8.
Network with some good bankruptcy attomeys
9.
Subscribe to default list service
10. Call on expired listings
11. Send direct mail to expired listings

12. Hook 'em with door hangers
13. Farming to FSBOs (for sale by owner)
14. Online marketing and blogging
15. Take it to television

16. Farming on foot
17. Call agents to help them take their listings from OLD
to SOLD
18. Sphere of influence postcard campaign
19. Write articles (published in print or on the web)
20. Partner with loan modification companies
21. Conduct short sale training classes

22. Back of business cards or specialty business cards
23. "Just Sold!" postcards to distressed areas
24.
Partner with debt consolidation companies
25. Partner with "we buy houses" investors
286
Idea #1: Print Advertising to Local Agents

for Referrals
Short sales are absolutely a niche market. Many agents want nothing to
do with them for various reasons. You can market your services to local
agents and pay them a refertal fee in exchange for feeding you their
upside down sellers.
Since they are out working in the marketplace every day, other agents
could easily become your best source for a steady flow of short sale
listing leads. As these agents are contacted by homeowners who want to
sell but are upside down, you can become their go-to short sale referral
agent.
havce fOUlJ.d print advertising to be very effective. You can place your
print .ads in local trade publications, such as newslerters published by
your boaitd or MiLS, and any other magazine, newsletter, or publication
that is ,circulated to other agents in your area.
J[
In yow: advertisement, you want to identiry YOlli'self as the local short

sale specialist and publish your referral fee. You can also include quotes
from other agents who have used your servioes.
GOT A CLIENT WHO'S

UPSIDE DOWN?
EDollV Williazns
Listing & Short Sale Specialist
"I can negotiate with their lender to

accept less than the full balance due ...
And forgive the difference_ .. "~L.......
~~;;"
'E'f;"E>
512.732.3808
~.
knolly@knolly.com
KNik!:!
Sample print ad advertising your services to other agents
287
Idea #2: Email Blast to Local Agents

for Referrals
Sending an email blast to the agents in your area might tum out to be
very cost effective. I have successfully emailed to agents of my local
board for many years. You can contact your local board for a list of
board members with email addresses.
If you are unable to obtain a list from your local board, you can rent or
purchase an email list from one of several online vendors. Search online
for "real estate agent list," and you'll find several companies that offer
such lists.
Many internet service providers (ISPs) limit the number of emails you
can send out per day or addresses you can include per message (cc and
bee), so you will need to check with your ISP to find out what your
limits are. Larger ISPs typically don't allow more than 1,000 emails per
day and 100 email addresses per message.
If you need to send more than the limits your ISP has set up, I
recommend that you subscribe to an email marketing service. These
services allow you to set up template emails and send hundreds or
thousands of bulk emails at a time.
A Note about Being CAN-SPAM Compliant

In 2003, Congress passed the CAN-SPAM Act. 1bis act was enacted for
the purpose of controlling and regulating unsolicited email. For more
information and to see how you can be CAN-SPAM compliant with
your email campaigns go to www.ftc.gov/spam.
288
THE
.~~f~~mQprJ(g;
KN~LbY
Earn an EASY
25% Refe.. l"r.al Fee!
.
'.,
nUT' teart! dues .all the Wllrk!

mlls.rtt Shnrt Sale.s Prru:es:::;m:l!
Dear F.ellow Agent.
if you have a cHent that owes more than their home is worth, we can negotiate with:their lender to
accept 1ess than the :fW] balance .due... And forgive the difference! Just get us y-o-1:lr .client's.name and
'liIjumber. and well dG .all the rest!
W.e have s1Wcessfufly negotiated hundreds of sbmt sales -itb 'WashID,gt\m Mutual, Chase,. Wells
Fargo, Countrywide, Citi. Mortgage, EMC and many morel.If you ihave a client fu.1t owes more tban
their home is worth ... WE CAN HELP'!
Let my team do an the ~'ork, 'while yon sit back anti collect "an easy 25% Referral 'F~e.
Call Morris Thomp.I>n, The Knolly Team Short Sale Specialist at (512) 294-2143
or .email monis@knoUy.com
Sample iEmail Blast
Idea #3: Direct Mail Marketing to Local

Agents t:or Referralls
Who said direct mail is dead? When I am marketing to business
professionals, such as other real estate agents, I have found that a multitiered approach is best. In other words, to reach the agents effectively in
your market, it's a great idea not only to email and advertise in local
trade publications, but also to send a direct mail piece.
Postcards are very effective for a direct mail campaign because, unlike
letters, they don't require opening. You can design a postcard that is
289
similar to the email or print ad you have and mail it to all of the agents in
yOUl: local board or target area.
You can contact your local board for a list of board member and mailing
addresses. If you are unable to obtain a list from your local board, you
can rent or pUl:chase an address list from one of several online vendors.
Search online for "real estate agent list," and you'll find several companies that offer such lists.
10 lieu of postcards, you can also send a letter that includes yoUl:
business card and any other marketing piece inside the envelope.
It's also a great idea to maintain a database of agents you have worked
with. As you are referred short sales, keep a database of referring agents
that you can market to on a regular basis. You can easily get an
additional 50 listings per year by simply having a database of 10 busy
listing agents who refer you 5 clients per year. If you maintain a high
success rate, agents will be eager to refer their short sales to you again
and again.
Idea #4: Yard Signs-Used in Addition to Your

Agent Sign
In addition to yOUl: regular yard sign, you should consider making some
inexpensive yard signs that you can place on your listed properties.
You've probably already seen this idea at work. Have you ever had a
neighbor who had a roof installed, a home remodel, a new fence, or a
new pool? Oftentimes, these companies will market themselves by
placing a small sign on the property. The marketing sign serves as an
endorsement from the homeowner.
Similarly, you can use these small yard signs to market yOUl: specific
short sale services.
Obviously, many homeowners will be sensitive about putting up such a
sign, and you will need their permission. If the home is vacant, the
290
homeowner will likely be more receptive to such a sign going up in their

yard. You may want to place this sign closer to the home so it doesn't
distract from your For Sale sign.
Also, some homeowner associations frown on having more than the For
Sale sign posted, so you may want to check with the HOA for their
restrictions regarding sign placement.
These signs are a wonderful idea because ofrentimes entire neighborhoods are distressed, and there are likely other homeowners in the area
who need help .
FACING FORECLOSURE? .
NEED TO S:ElL NOW?
FACING AN ECONOMIC HARDSHIP?
BEHI,ND ON YOUR PAYMENTS?
.<CALL KNOLLY!.
5.12.206.0060
Sample Yard Sign
Idea #5: Place an Ad in the Yellow Pages

Advertising in the yellow pages may appear to be an idea whose time has
passed. However, specific target markets still seem to perform well in
this advertising medium. There is still a good-sized segment of the
population not immersed in the internet age.
I have had good results marketing in the bankruptcy and foreclosure
section of my local yellow pages. I recommend you keep your phone
book ad (and ad budget) small, but noticeable and effective.
c~\Knolly
291
Williams bQ
Usting & Short Sale Specialist

<0<
"r will negotiate with your
lender to accept less than
the mortgage balance

owed, and forgive the
difference"
060
Sample Ad for Yellow Pages
Idea #6: Take Out a Classified Ad

Consider running a print advertising campaign targering homeowners
facing foreclosure. I ran a very effective ad in a local classified
newspaper for some time. Now, I stick mainly to the internet, but print
advertising can still be effective.
Almost every town has a small classified newspaper: Greensheet, Thrifty
Nickel, Bargain Book, etc. These publications are widely read, and advertising rates are usually very economical. To be effective, however, you
will need to maintain your ad for a long time. You will need to advertise
consistently for 6 months before you know if your ad is generaring sufficient leads or not.
If it is too costly to advertise weekly, then consider running your ad
every other issue. Once your ad has been running for at least 3 months,
people will begin to rake notice and even refer their friends who are in
trouble.
As I mentioned, being consistent is critical to success with this type of
advertising. Let's say Betty Jones has been seeing your ad for the past 4
months. Then Betty runs into a friend who mentions that they are facing
foreclosure, and they don't know what to do. "Wait a minute," Betty
292
tells her friend, "I think I know someone who can help! I've been seeing
her ad in the Penny Saver. Hold on, I'll go get it."
Idea #7: Say It Loud with a Billboard Ad

Who says billboards are stricdy for soft drinks, car dealerships, and fast
food? In 2003, I moved to Harlingen, a small town in south Texas. At
the time, I had just started selling real estate, and I wanted to do some
BIG advertising to jump start my career.
Just for grins, I decided to inquire about pricing. Upon meeting with the
sales representative, I was surprised to learn that billboard advertising (m
1futt small town) was much more economical than I thought. I prod $500
per month for four well-placed biihoards. It wasn't long before folks all
over town began to recognize me at !ocalrestaurants, the movie theatre,
and so forth. 'Of course, the big cowboy hat I wear didn't hutt either!
In a smaller community, billboards can be very effective. In larger cities,
their effect may become diluted by all of the other marketing (e.g., other
billboards and store signage). In larger markets, billboards may also be
cost prohibitive.
There are so = y homeovmers facing foreclosure today that reaching
them in a big way may make a lot of sense for you.
Idea #8: Network with Some Good

Bankruptcy Attorneys
In 1992, I went to work as an administrative assistant for a prominent
bankruptcy attorney in Austin, Texas. I was blown away by the sheer

number of individuals in financial distress who would come into his
office day in and day out. He had a machine going! He used to place a
quarter-page ad marketing his services in our local classified paper.
There, he advertised a free one-hour consultation. He also had a toll-free
number for individuals to call for a pre-recorded message about how
easy it was to file bankruptcy and how it could wipe their slate clean.
293
During his one hour consultation, I noticed that he was highly

successful at converting these inquirers into clients.
Many of these same bankruptcy clients would actually be great
candidates for a short sale. The reason most individuals file for
bankruptcy protection is because they are in debt way over their heads
and want it wiped away. Some file specifically to stop foreclosure. What
many people don't realize is that bankruptcy treats unsecured debt
differently from secured debt.
With unsecured debt (such as credit card debt), a Chapter 7 Bankruptcy
puts a stop to all collection activity and wipes the slate clean. The debt
and the creditor go away. With secured debt (such as a mortgage or car
loan), the same bankruptcy filing will stop all collection activity;
however, since the debt is secured by collateral, the collateral is typically
repossessed.
So, in essence, although a person can file bankruptcy to put an
immediate stop to a foreclosure of their home, they are only buying
time. As a secured debt, the home can still be foreclosed on once the
bankruptcy runs the legal course. When that happens, the person is left
with both a bankruptcy and a foreclosure on their credit. I call that "the
double kiss of death" to a credit report. Research indicates that the
foreclosure has a far more devastating effect on a person's credit than a
bankruptcy does.
If a person truly needs to file bankruptcy due to the mountain of
unsecured debt they have, it would be far better, in my opinion, for
them to do a short sale first and then file a bankruptcy. This strategy will
eliminate the foreclosure posting on their credit file.
Bankruptcy attomeys are a npe source for financially distressed
individuals and potential short sale clients. Every day, these specialists
deal with individuals who are at the end of their rope. Even if these
people have already filed bankruptcy, a short sale is still their best option
if they can't keep their home and the payoff balance on their home is
294
more than their home is worth. Bankruptcy attorneys can refer these
clients to you.
Idea #9: Subscribe to a Default List Service

As economic conditions worsen, I have seen a rise of companies that
sell the names of individuals who are behind on their mortgage
payments. Here's an email I received recently:
Hi thefe, Knol'ly.
Quiok question ... 1 was
cu~iousif you
might wan! to contact households that
are behind on their mortgage payment?

My company pulls credit data from the bureau on homeowners that are 3D,
60, 90 days la\e on ~helr mortgage. Given some geographical areas, we
send over a spreadsheet wj~hinformation on these highly motivated,
distressed households. ,Induded is a wea:llh of ti'lters such as mortgage
amount, credit score, number of trades, etc.
Ibis data is NOT public record since a Notice of Defau~ has not yet been
: filed. This means you cange! 'in touch with these famUies before your
competition knows Ihey exist.
If there's any interest, please reply back and I'll send over a ralecard and
some filters for you to review,
While I haven't personally used any of these service providers, I have to

admit that a list of individuals who are behind on their mortgage
payments could be very, very valuable. These folks need you and you
need them. I haven't looked into the legalities or legitimacy of these
companies; nevertheless, I know of a few short sale practitioners who do
subscribe to such services and say they are having some success.
295
Several companies also publish NOD (Notice of Default) lists of homes

that are coming up for foreclosure sale. This is public information and is
typically posted on a public website hosted by the appraisal district in the
county where the home resides. Although you can pull this information
yourself, these companies compile the information, saving you rime.
You can make it a point to contact these homeowners and make them
aware of your short sale services. Bear in mind that the homes on the list
may be just weeks away from foreclosure, so you'll have to act fastvery fast!
Idea #10: Call on Expired Listings

Before I made a name for myself in the short sale arena, I worked
tirelessly and fearlessly on expired listings. In fact, I have successfully
marketed to expireds for many years. In my experience, the number one
reason listing agreements expire is due to pricing. In most cases, these
homeowners have tried pricing their homes at break even, but even that
was overpriced for their market and not good enough to generate an
offer.
For those who qualifY, a short sale may be the perfect solution. Many of
my listings come from former expired listings. These are sellers who are
upside down and qualified to do a short sale, but didn't know there was
away out.
I have found that the most effective way to contact these sellers is by
phone. It can be rime consuming, but also very lucrative. There are
basically three different ways to approach these calls.
1.
You can make the calls yourself, one by one
2.
You can hire someone to make the calls
3.
You can use automated calling with a call service
If you make the calls yourself, it's best to rimeblock at least a few hours
each morning and an hour in the evening to make these calls. If you hire
296
someone to make the calls for you, make sure they are GOOD on the
phone.
There are also auto-dial services where you can pre-record a message
and have it "blast" out to a bunch of phone numbers. This is a real timesaver, but obviously not as personal. When calling expireds, I used an
auto-dialer service that could call approximately 250 expireds in a few
minutes time. I told the system to leave my pre-recorded, 30-second
message only for individuals who did not pick up the phone and to
disconnect the call if a "live" person answered. Yes, the systems they
have now can detect if the phone is picked up by a live person or an
answering machine. Next, I pulled the list of the "live" answers and
caiIled them directly, since I knew for sure they were homdWhat a
timesaver! This appmach is very effective.
(~r,!!0 "Hi, II'm looking for
"
"My name is
with The Knolly Team
witjh Keller WiUiams Realty."
"We've gotten severa! calls from potentiall buyers
aoout a home we just SOLD in your subdivision at
,--_-::-_ _ _..,..-. ;1' alike to let these buyers
know about your home on _ _ _ _ _ _ _ _ '
Are you still interested in selling?"
"We are very familiar with your subdivision, and it

took us on!ly
days to sell that home, even
though it had been on the market for months with
another agent."
"If you sold this home, where would you go next?"
"How soon do you have to be there?"
"Our team has worked with hundreds of sellers
who were previously unsuccessful at selling. The
home at
was on the market for
297
days before they called us to come sell it and sold

it in
days."
"We're one of the top 5 Keller Williams teams in
the area. Are you familiar with the techniques we
use to sell homes?"
... If a Short Sale
"I've noticed that many of the folks in your area
want to sell but still owe a little more than the
market is fetching."
"May I email you some more information about
The Knolly Team?"
"For homeowners who qualify, lenders are now
allowing them to sell their home at current
market value and forgive the difference."
"Now, to qualify, you have got to have some kind
of hardship. Lenders are looking for things like loss
of income, increased expenses, medical issues,
job relocation, divorce ... Things like that. Have
you experienced a recent hardship?"
If this prospect sounds interested and has a hardship, transition into
your Short Sale Pre-Qualification Questionnaire (See Day 2) .
... If Prospect Can't Talk Right Now

See if you can send them an email about your services. Get their email
address, and leave them your website address.
298
... Don't Need to Sell and Don't Have a Hardship

"You know,
, based on what I'm seeing in
your subdivision, if you really don't need to sell
right now, you shouldn't. You should wait. The
problem is there are many who really do have to
sell, and those are the ones who should be selling
in today's market."
Idea #11: Direct Mail to Expired Listings

In addition to your call campai"ons to expireds, you may consider a direct
mail. campaign as well. I have found direct mail to be very, very

effective---a1though it can be expensive.
A simple letter with a small survey questionnaire has worked for me. In
the letter, I share with the prospect what I have to offer and educate
them on the option of a short sale, depending on their situation (and
whether or not they qualify).
297
days before they called us to come sell it and sold

it in
days."
"We're one of the top 5 Keller Williams teams in
the area. Are you familiar with the techniques we
use to sell homes?"
... If a Short Sale
"I've noticed that many of the folks in your area
want to sell but still owe a little more than the
market is fetching."
"May I email you some more information about
The Knolly Team?"
"For homeowners who qualify, lenders are now
allowing them to sell their home at current
market value and forgive the difference."
"Now, to qualify, you have got to have some kind
of hardship. Lenders are looking for things like loss
of income, increased expenses, medical issues,
job relocation, divorce ... Things like that. Have
you experienced a recent hardship?"
If this prospect sounds interested and has a hardship, transition into
your Short Sale Pre-Qualification Questionnaite (See Day 2) .
... If Prospect Can't Talk Right Now

See if you can send them an email about your services. Get theit email
address, and leave them your website address.
298
... Don't Need to Sell and Don't Have a Hardship
(~criP(!0
"You know,
, based on what I'm seeing in
your subdivision, if you really don't need to sell
right now, you shouldn't. You should wait. The
problem is there are many who really do have to
sell, and those are the ones who should be selling
in today's market."
Idea #11: Direct Mail to Expired Listings

In addition to your call campaigns to expireds, you may consider a direct
rruill campillgn as well. I have found direct mail to be very, very
effective-although it can be expensive.

A simple lette;: with a small survey questionnaire bas worked for me. In
the letter, I share with the prospect what I have to offer and educate
them on the option of a shan sale, depending on their situation (and
whether or not they qualify).
Knolly Williams, ASSOCIATEIBROKER

SHORTSAlESPEClAUST "Consider It SOW"
KELLER W1LUAMS REALTY

Offlca: (512) 91)G.ua2; Fax: (512) 532..o62ti
www.KnoDy.com*knolly@knoUy.c:om
PleueDeUver To:
Judy Mitchell
1934 Dapple Lo
Austin, TX 78746
"One of Austin's ~ Realtors!"

(out f9,500
loco:! "l,'IlIll) Awtiu au,;n ... Jo=1
January 23, 2009

Dear Judy,
Many sellers in today' s market have little or no equity; that is., the seller owes close to or more than the
property is worth. In these situations, lenders are often willing to accept Jess than the full amount due,
commonly referred to as a "short sale.... Now more than ever, you can take advantage of this option.
I average selling between 6-10 short sale listings per month. I will negotiate with your lender to accept
less than the amount owed and forgive the difference.
J am convinced that, with my approach, your home will sell. With a Shnrt Sale YOll can basically Jist
your home for FREE. since mv fee is paid by the lender - all while protecting vour credit rating! If you
still have an interest in seJling this property, and have not re~listed with another real estate agent, tben fill out
the short sale application below and can me TODAY at 512~9{)6-2882, email knonv@knolTy.com or fax it
QUICK SHORT SALE SURVEY:

Property Address: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
Do you NEED to sell this home? DYes ONo
Do you owe more on your home than it is worth? 0 Yes 0 No 0 Not sure
Are you behind or struggling to make your mortgage payments? 0 Yes 0 No
Are you living in the property now? 0 Yes 0 No
Additional Infonnation:
,Fax this survey to: (512) 532-0626 or emw1 to knolly@knolly.comorcaIl(512)906-2882
For more infonnation, visit my web site: www.shortSaleSite.com
Your Friends In Real E_state,
K!jolly Wi1.li.aJ.t1ll. Listing & Short Bale Specialist
Sample Direct Mail to Expired listing
299
300
Idea #12: Hook 'em with Door Hangers

In some cities, there are certain neighborhoods or parts of town that are
full of homeowners who are upside down and feeling trapped in. These
homeowners bought into a neighborhood where values have since
declined for various reasons. These areas are often riddled with
foreclosures and others who want out.
By regularly farming your short sale services directly to these areas, you
can become the agent that these homeowners tum to when they are
ready to sell.. Phtcing door hangers can be very effective. You can also
slip a postcard.in the door.
In my market, I have contracted with a highly reliable person who will
canvas an entire neighbomood for 12 cents per home. This can add up,
but it's much more economical than mailing.
Ildea#13: Farming to FSBOs
(For Sale By Owner)

Many For Sale By Owners choose not to hire .an agent because they owe
so much on their home that they cannot afford to pay a real estate
COmnlJ[ss,on.
You can awessively market to FSBOs, letting them know that it costs
them nothing to hire you to sell. their home via a short sale, since your
fees will be paid by their lender.
You can reach these potential prospects by phone, in person, or with a
direct mail campaign.
Idea #14: Online Marketing and Blogging

Since many homeowners in trouble often search the internet for a
solution to their situation, marketing your services online is essential to
establishing yourself as the local area expert.
301
You should have a website (or a section of your current site) dedicated
exclusively to your short sale business. This site should educate clients
on what a short sale is and how they can benefit from your services. For
ideas, check out my consumer website at www.ShortSaleSite.com.
Additionally, you will want to have an online contact form (lead generator) for sellers to fill in their information and send it to you
electronically.
Effective online marketing also includes blo&,oing, Craigslist ads, online
articles, and various forms of search engine optimization (SEO). This all
helps establish you as the area expert.
Idea #15: Take It to Television

Another potentially effective way to reach homeowners in trouble is via
television advertising. TV commercials can actually be a lot cheaper than
you think, and I've heard from many agents who swear by them.
Depending on your market, local cable TV ads can be as low as $5 to
$10 dollars per 30 second spot.
An effective ad would be one that is specifically targeted to distressed
homeowners. For example, the ad might say, ''Behind on your mortgage
payments? Facing foreclosure? I have successfully helped folks in our
area avoid foreclosure, and I can help you too. Call me now at 512-9999999 or find out more at www.---.com ...
Idea #16: Farming on Foot

Remember back when salesmen weren't afraid to sell? Okay, maybe
you're too young! Back in those days, salesmen peddling everything
from pots and pans to encyclopedias would go door to door in search of
a ready buyer. Although perhaps looked upon as less than noble, the
successful ones were truly titans of the sales industry. And they did this
not for glory, fame, or rewards. They did it simply to feed their families.
Some were good at it; I mean, really good.
302
These days, many real estate agents are afraid to knock on doors. This
isn't cold calling; it's cold knocking! And yes, it is scary. But let's say you
just sold a home in the area. You could proudly knock on doors with the
following script:
c. sc~"1!0 Agent: "Hi, there ... My name is John Smith, and I

..... ..... /
recently sold the home at 511 Plymouth Stone. It's
just a few streets over. We closed on it
yesterday. "
[Perhaps you can hand them a just-sold postcard
of the home at this time.]
Agent: "I was able to help this fami1ly even though
they owed :more than their home was worth. I
negotiated with their lender to forgive the
difference. Who do you know in the area that is
looking to seU?"
Don't be scared! Getting yourself in front of people is a great way to
hone your crat and pick up new clients (and database contacts).
Idea #17: CaU Agents to He'lp Them Take

Their Listings from OLD to SOUD
~------~------~
"olsatJ. ThLs ~s a yeaLLtJ gODcl Ollle, tJ'aW I LLlse Lt bewv~se
Lt's YeCI'L'LtJ aIII OYLgLIIlJ1L ovce that wViIle to Ville fYOVill Olll
hLgh! No IsLclclLlIlg!n
You already know that other real estate agents are a great source for
short sale leads, right? Why not contact agents who have old inventory
that you have identified as overpriced?
303
Here's how it works:
1.
Let's say you just sold and closed a home via short sale.
2.
Now, look up all the other homes that are currently for
sale (active listings) in the same area and print out the list.
3.
IdentifY the ones that have been on the market for a while
(longer than normal). Then call the listing agent and let
them know you just sold a home in their area via short sale
and, if their client qualifies, you can help them sell their
client's home too.
Referting the listing to you could be a smart thing for the current listing
agent. The listing may be close to expiring and the seller may be ready to
try a different approach. Rather than lose the listing, agents who are not
savvy at short selling could still earn a nice referral fee for handing the
listing over to you.
Sample Script
Short Sale Agent: "Hey, Jim, this is Karen with
the Tallhouse Team. I'm calling about your listing
at 438 Springhill. I noticed it's been on the market
for over 120 days. I just sold one at 418 Springhill.
Based on my client's situation, we had to sell that
one as a short sale. Has you seller considered
doing a short sale?"
Other Agent: "You know, Karen, I'm not sure.
They do owe quite a bit on it, and we've already
priced it at break even."
Short Sale Agent: "Well, Jim, if your sellers would
be willing to consider this option, I can see if they
qualify. I'd be happy to do the short sale, and we
could partner up or you could refer me the listing
and I will handle everything."
304
Idea #18: Sphere of Influence

Postcard Campaign
You aheady understand that marketing to your sphere of influence
(SOl) is critical to your continued survival in the real estate game. In
additional to the slick marketing you are currently doing to bolster your
business, you should consider creating a specialty piece that directly
promotes your short sale business to your sphere of influence.
I prefer jumbo postcards for this. The purpose of this marketing piece is
to create awareness about your short sale business, not necessarily to
solicit the recipients. Your piece could say, "KNOW SOMEONE
FACING FORECLOSURE? I CAN HELP!"
The more you sp~ead the word about your services and how short sales
work, the more folks you will have out in the field helping to promote
you. Every day, the people in your database are :running into friends and
family members who are in trouble. Why not Jet them know that YOU
are the one who can get the job done?
I have observed that referrals from my SOl are more open, honest, and
trusting. Since they were referred by someone they trust, they
immediately put their trust in you.
Idea #19: Write Articles to Be Published in

Print or on the Web
Few things give you more instant credibility than getting something
published in print If you really want to establish yourself as the go-to
person in your field, sharpen your pencil and start writing.
Initially, it will be easier to get your articles published online through
your blog and other online article services. As you begin to hone your
writing skills and style, you will want to begin soliciting newspapers and
magazines to publish your helpful information about short sales.
305
The more you educate others, the more you are seen as the authority in
your market.
Idea #20: Partner with Loan Modification

Companies
These days, banks are really ttying to help homeowners to STAY in their
homes. To encourage home retention, lenders are offering loan
modifications and refinancing options to those who are eligible.
There are many emerging companies that will assist homeowners (for a
fee) in getting their loan modified. While it may be true that homeowners can do this themselves, many homeowners are just too emotionally drained to deal with their lender.
Many of these homeowners will not qualifY for a loan modification, due
to their lack of income. If they cannot afford to make the monthly
mortgage payment, their only likely option is to sell or face foreclosure.
If they are upside down, a short sale is their best option.
You can partner with non-competing companies that offer loan
modification services. They can send you their prospects who can't
qualifY for a loan modification, and you can send them prospects who
want to do a loan modification in lieu of a short sale.
Idea #21: Conduct Short Sale

Training Classes
Once you've done a number of short sales, you can begin to teach other
agents how to do them. ''Why would I do that?" you ask. Well, as you
have learned, short sales are very technical and they take a while to learn.
You can teach a one- or two-hour class and still only scratch the surface.
After attending your short sale class, some agents will siruply not want to
get involved in short sales and would prefer to refer these arduous
transactions to you, the expert.
306
Teaching short sale classes is a very good way to establish yourself as the
market expert and will typically produce lots of leads for your short sale
practice.
Idea #22: Back of Business Card or

Spedalty Business Cards
The back of a business card is a prime marketing canvas. If you are a
short sale specialist, you should use the back of your business card as a
small advertisement. You can also consider printing specialty business
cards specifically for your short sale practice (if short sales are just a
portion of your business). Don't overlook this inexpensive but effective
advertising medium.
Idea #23:" Just Sold!" Postcards to

Distressed Areas
For years, agents have debated the effectiveness of Just Sold and Just
Listed postcards. While the debate continues, a Just Sold postcard
campaign targeting areas that are distressed can prove very efective.
Oftentimes, homeowners wonder how in the world you were able to sell
the home down vhe street, when other homes in the area have been on
the market for months. Why not let them know your secret weaponthe short sale! A targeted Just Sold postcard campaign can do just that.
Idea #24: Partner with Debt

ConsoUdation Companies
Debt consolidation companies are running a brisk business these days.
People buried by debt are trying to do whatever they can to get out ftom
under that mountain. Oftentimes, people who have a lot of debt will
also consider selling their home (their largest debt of all).
307
You can partner with some of these companies, making them aware of
your short sale services. In fact, you can consider that you are both in
the same line of work-hdping folks in difficult financial situations.
While the debt consolidation company is busy negotiating a settlement
on the homeowner's debts, you can be negotiating the settlement on
their home via a short sale.
Idea #25: Partner with "We Buy Houses"

Investors
I have recently partnered with a "we buy houses" investor. This investor
is constantly coming across folks who have to sell, but if the numbers
don't work and if the homeowner is upside down, he refers them to me.
lt's a win-win!
Notes
308
2 . Partner with a Processor

Many agents who have chosen to specialize in short sales ate
preoccupied with the daily duties of running a growing short sale
practice. As a consequence, however, they often begin to neglect the
details and commitment required to effectively process their files. The
processing phase of a short sale is a l~othy one and requires tenacity
and persistence to achieve a satisfactory outcome.
If you fiod that you don't have the time or the patience to process your
short sales on your own, you can easiJ.y partner with a short sale
Pl'ocessor. Here's how it works..
Shott sale processors typic2'lly charge either a fiat fee of $7S() to $l,S()O
per transaction or a percentage (30% to 50%) of the listing agent's
commission. This nee is payable when the transaction closes. In addition
to their fee payabilie at dosing, some short sale processors also cbarge the
seller ~ non-refundable fee of $350 to$50Cl payable up front.
Screening Your
Pro~ectiye
Processor
The most important thing to look for when biting one of these tbirdparty comp~nies is not their fees, but their experience and conversion
rate. Here are some questions to ask a company you may be considering
hiring:
II
How many short sales have you processed? (preferably

over 100)
II
How long have you been processmg short sales?

(preferably over 2 yeats)
What is your success rate? (What percentage do you get

approved)? (preferably over 85%)
309
Your Responsibilities and Their Responsibilities

Your objective when partnering with a processor is to build a fantastic
duo. You do the front end work and the processor does the back end.
Here is what you will be doing:
Generate the short sale lead
Pre-qualify the prospect
Obtain the listing and place property on MLS
Get the home under contract
Here is what the processor will be doing:
Prepares and submits the short sale package
Contact the lender until file is assigned to a loss mitigator
Remain in constant contact with the loss mitigator until file

is approved
Once the file is approved, you will have to decide who will do the final
contract-to-close work. Some processors will do this work for an
additional fee. In this case, the file will remain with the processor until
closing.
As a rule of thumb, I don't recommend that you hire a processor until
you are getting a steady stream of at least 5 or more short sales listings
per month. Once you are getting over 10 listings per month, you will
want to consider hiring a processor as part of your team (See Bonus
section 3).
310
3 .. Build a Short Sale Power

Team
As you begin to take on more and more short sale clients, you should
consider building an in-house power team to handle the processing and
other tasks associated with successfully completing your mounting
supply of short sales.
The most important initial hires to your team will not be other real
estate agents-they will he administrative people. Because short sales are
so heavily administrative, your administrative staff can perform more
than 90% of the processing tasks.
First Hire: Short Sale Processor

My very first hire was Barbara Riordan. I hired her to assist me with the
time-consuming task of processing short sales, thereby freeing me up to
generate more leads. Likewise, your very first hire should be a Short Sale
Processor-thact is, an administrative assistant who can process your
short sales in-house. Tills person will. I:>andle Steps 6-10 in the short sale
process.
The Short Salle PrOGeSSor's Duties

II
Maintain complete short sale file
..
Review entire package for accuracy
Contact lender to verify receipt of complete short sale

package
Maintain constant contact with lender to assist with any

additional documents or information required by lender
Contact title company/attorney, lender, other agent, and

seller to give full introduction, contact information, and
copy of the conttact
311
Make weekly calls to lender to verify the progress and

current status of the file
Keep all parties involved throughout the process
Once file is assigned to a negotiator (loss mitigator),

establish rapport and verify that complete package is intact
Submit any additional documents needed
Contact BPO agent or appraiser to verify when the

property valuation will be completed
Send BPO agent or appraiser a copy of the hardship letter

(if seller approves), the first page of the contract, and CMA
Maintain contact with the loss mitigator to insure that

process is moving forward efficiently, and that negotiator
has everything needed to process the short sale file
Receive approval or counteroffer from negotiator and relay

to buyer'S agent
Obtain short sale approval
Second Hire: Short Sale Listing Manager

I waited until a year and a half after I hired Barbara before I hired
Morris Thompson, my Short Sale Listing Manager. Morris basically is
what I call my "set-up man." He takes the file all the way from the
beginning up to the contract stage. He has allowed me to concentrate on
being the "rain-maker" for the team.
With training, this person will be able to conduct your initial interview
with the client, receive buyer offers, and manage the process all the way
to the purchase contract. This person will handle Steps 1-5 of the short
sale process.
312
The Short Sale Listing Manager's Duties

III
Pre-qualify the short sale prospect. Conduct initial interview with prospect and complete short sale questionnaire
to assess eligibility for short sale
III
Order loan payoff amount from seller's lender
III
Do comparative market analysis (CMA)/intemal BPO
III
Send seller a list of documents needed for short sale
III
Draw up listing documents and email to seller
.111
Send Seller's Disclosure Notice and ail other addendums

to seller
111
Receive and organize complete short sale package
,III
Set listing appointment
l1li
Take photos
l1li
Put up sign
III
Put up lockbox
l1li
Take listing notes; fill out .listing checklist
II
Request copy of seller's survey
II
Input property into l\1LS
II
Input photos into MLS
'II
Input property and client details into contact database
III
Upload Seller's Disclosure notice to MLS
III
Upload Short Sale Disclosure and Agent Guidelines to

MLS
III
Initiate complete listing marketing plan
III
Submit acceptable offers to seller for signature
III
Review contract for accuracy and completion
313
Have contract receipted at the title company/attorney
Change status of listing on MLS to "Pending"
Compile and collate package with conttact and all short

sale documents
Submit (via fax or email) complete short sale package to

lender
Deliver file to short sale processor
Third Hire: Contract-to-Close Coordinator

(optional)
Your third and final administrative bite will be a Contract-to-Close
Coordinator. This bite is optional because, truthfully, you can train your
processing person(s) to complete these final steps. While it looks like a
lot of tasks, the final steps to close out a short sale listing are not very
time-consuming. This is Step 10 of the short sale process.
The Contract-to-Close Coordinator's Duties
Email title company/attorney with seller's mortgage

information, HOA information, payoff amount, social
security number (last four digits), marital status, birth date,
and commission split
Get inspection time and date from buyer's agent and

inform seller and listing agent of that information
Obtain signed seller's disclosure regarding all parties

involved
File any amendments to contract regarding sales price,

repairs, etc.
Remind buyer's agent when option period ends
Get Disbursement Authorization and make sure title

company receives it
314
l1li
Obtain existing or new survey, if applicable, by date due
l1li
Obtain appliance manuals from seller
l1li
Confirm lender has ordered appraisal
l1li
Make sure survey and BOA information has been

obtained and received by title company/attorney
l1li
Find out about if there is a POA (power of attorney)
l1li
Confirm conttact contingencies have been resolved and all

amendments have been received by title company/attorney
l1li
Get all utility information from seller and forward to

buyer's agent
Set date and time of closing
III
Remind seller to bring driver's license to closing
III
Remind buyer's agent to do a walkthrough 2 clays before

closing
III
After closing, change the status on ~fLS to "Sold"
III
Prepare Just Sold cards if applicaJble
Monftor Team Performance

Once you have your complete administrative team up and running, and
closing multiple transactions per month, you will need to assess, from
time-to-time, how efficient they ate as a unit. Processing will be the area
that tequires the most monitoring and the most twealting. This is where
short sale transactions can bottleneck if your team is not running
smoothly. Tweak, tweak, and tweak.
Once your well-oiled machine is operating at maximum capacity, you
may find it necessary to add even more talent. If so, you may simply add
an administrative assistant ot two and cross-train them to assist your
already trained power team.
315
In fact, make sure that each of your team members is cross-trained

(trained to do other team members duties) in case a team member is out
sick, on vacation, or quits. Building a great team can be very rewarding,
once they are all. properly trained.
Administrative Team Pay Structure

Your core team members will be compensated one of several ways:
Hourly: Pay a Processor $8 to $12 per hour or more,

depending on your market area. No compensation per file,
just an hourly wage.
Salary only: Pay a processor a monthly salary of $1 ,200 to

$1,500 (part time) to $2,500 to $3,000 (full time) or so,
depending on the hours they work and the going rate in
your area.
Salary plus bonus: Pay a processor a flat monthly fee, say

$1,500 per month (full time) PLUS $300 to $500 per file
closed.
Per IDe fee only: Pay a processor a per-file-closed fee of

$300 to $500 or more per file closed, depending on the
volume of files you are closing per month and their
income needs.
Notes
316
4 .. Find and Hire a Short

Sale Listing Agent
Hiring a Short Sale Listing Agent (or team manager) means you have
reached a point in your career where you find it necessary to "fire
yourself' and Me someone to run your operation. The difference
between hiring a listing agent and a listing manager (admin) is that tbe
listing agent will be a licensed real estate agent.
Here are some of the situations that may lead you to recruit a short sale
listing agent:
II
You are highly entrepreneurial and, tberefore, too busy

witb other endeavors to properly m=ge and oversee your
team on a daily basis.
'II
You want to focus all of your energles on dollarproductive activities (lead generating and marketing) and
[et others do the rest.
;111
You are ready to retire or semi-retire from the business

and need someone to take over your duti,es.
III
Short sales are just a segment of your real estate practice,

and you need someone to oversee that "department" of
your operation.
As you would expect, finding the right person to take over your short
sale operation may not be easy. You need someone who can uphold
your high standards and move your operation forward.
Your compensation for this person can be a set monthly lncome,
monthly income plus a bonus per closing, or just a percentage of each
transaction.
317
As far as job duties are concerned, your listing agent may do any of the
job duties that the listing manager does (see Bonus section 3), or they
can simply oversee the entire team, filling in where needed.
Ideally, you will f11ld someone who is already on your team and can be
promoted to this position. Otherwise, I highly recommend that you find
someone who has a thorough understanding of short sales-perhaps
someone who is already a short sale listing agent in your market.
Notes
318
5 .. Find and Hire a

Buyer's Agent
Once you have a steady stream of listings and a well-oiled operation, you
will want to consider hiring a buyer's agent. A buyer's agent who has a
good understanding of short sales will be able to educate prospects and
should be able to convert many buyer leads to closings.
Buyers who are drawn to short sale listings are typically looking for a
good deal The fact that you have great deals all the time (and many of
these deals have not yet hit the mmet) will be a great asset to an
enteq>rising buyer's agent.
Sample Script
Buyer: "Hi, this is Jehn.I'm calling abeut yeur
hO'use O'n .Map'le Run ... Is it still available?"
Buyer Agent: "Hi, JO'hn, thanks fO'r caUing! That's
a great home-and it is still available. You iknO'w,
Jehn, based O'n the fact that you catlled me abO'ut
this heme, it loO'ks to me like you want to' get a
gO'O'd deal. NO't enly dO' we have that O'ne, but
because we work with So' many pre-foreclosures,
we are getting new deals in every week. Also, we
have several that haven't hit the market yet. Let
me email you some informatiO'n about those."
Since you are providing the leads, a typical split with a buyer'S agent is
50/50 or 40/60 (that is, 40% to you, 60% to buyer's agent). Tfyou have
a good listing inventory (12 or more listings) and you do not have a
buyer'S agent on your team, you are foregoing a good amount of
potential income.
319
6.. Organize Your Office

for Success
Having an organized office will contribute to the well-being of your staff
and allow you to get more done with less effort.
Office Furniture
I suggest you purchase office furniture from a used office furniture
dealer. Look for these dealers in the yellow pages. Please don't buy new
furniture--except maybe for your chair. New, top-quality office
furniture is expensive and not necessary for your short sale office. Some
people look to express themselves through their office furniture. Don't.
Get something that works, looks decent, and is affordable. If you do
purchase new, look for discount items and assemble them yourself.
That's half the fun!
A Decent Desk
Don't get just any desk, and certainly don't buy one because it looks
impressive. First and foremost, the desk you choose should be practical.
I once purchased a glass desk for my office manager. The desk looked
great, but there was nowhere to store files and paperwork! Make sure the
desk you purchase has a drawer for storing pens, pencils, paper clips,
and so forth. Make sure that the desk has several additional drawers and
preferably a built-in file drawer for handy access to the files you use
daily.
Make sure your desk has enough space for your computer, as well as an
adequate work surface. A desk that is at least 5 feet wide should work
well.
320
A Good Chair
A good chair is essential to working effectively for long periods of time
and will help you prevent long-term back problems. The chair you select
should be comfortable, ergonomically correct, and should offer great
lumbar support.
Personally, I prefer a chair that has arms as opposed to the armless
(task) chair. Make sure that the arms on your chair will slide under the
top of the desk; otherwise you will be bumping them into your desk
quite often. You can sp=d from $300 to $500 for a great chair;
however, try to find one for less than $100 to $200. The right chairs will
give you and your team a comfortable day at the office and could help
prevent chiropractic visits down the road. Besides selecting the right
chair, don't forget to sit up straight and practice good posture when you
are worlring!
TaSk Table
A task tab1e is very important. You v;cilluse this table to setup your short
sale package, mru:keting mailouts, and so forth. Unlike your desk, which
is used for daily work, this table can be used for all kinds of tasks. I
su&,,",,st you purchase a sturdy, 4-foot folding table for these tasks.
FUeCabinet
You will need to keep your files neat and in a systematic order. A
lightweight, metal, two-drawer file cabinet will help you do just that. Use
the file cabinet for active files, not storage. I suggest you archive any files
that have closed over a year ago, and the best practice is to store all files
(preferably in hard copy format) for at least 7 years. You may choose to
purchase a separate filing cabinet for this purpose.
321
Book Shelf (optional)

A bookshelf is a smart purchase if you have a few business books and
no place to store them. You will want to build a collection of reference
books and training materials for your growing team-and inspirational
leadership and sales books for yourself! A small, two-shelf bookshelf
should meet your initial needs. You can also use this bookshelf to store
magazines, printer paper, stationary, and so forth-thereby, allowing the
bookcase to double as an office supply cabinet.
Printer Stand (optional)

A printer stand with storage shelves is useful because it allows you to
store paper, labels, and stationary underneath. I, however, store my
printer on top of a small file cabinet.
Office Equipment
Whether you buy new or used, I suggest you purchase office equipment
from a reputable retailer---one that will allow you to make returns or get
support if something doesn't quite work.
Computer
When it comes to computers, there are many choices out there. And
since technology changes every week, I will keep my suggestions generic.
I suggest you purchase an entry-level computer, which will be the best
value for your money. You don't need any special bells and whistles, just
a good fast, business computer with a good amount of storage space.
AU-in-One Printer/Fax/Scanner
You will be usirg a scanner to create email-able documents to send to
your clients, to the lender, and to other agents. You'll also use the fax
machine quite a bit. Be sure to select a device that supports multi-page
document scanning and faxing.
322
My team uses an all-in-one printer/ fax/ scanner at the office. And each
of my team members has one of these at home too, since they often call
lenders and fax documents after hours.
Telephone
Since you will be spending a great deal of time on the phone, you should
consider investing in a good corded or cordless headset and a
speakerphone. My short sale processor has two phones. She uses one to
call and check status of short sale files and is often on hold for 30
minutes at a time. While she's on hold, she uses the other phone to
Illilke short calls and to receive calls.
You'll also want to ensure that you 2nd your team members can make
long distance calls from yom: office phones.
Good reliable equipment is as important as good systems. Make sure
your equipment is up to date and operating at mmcimum capacity.
Notes
330
Short Sale Q & A

As a short sale trainer and coach, my students send me questions every
day. The following represents a collection of some of these real-world
questions and answers. I think that understanding the issues that these
questions address will help you as you move toward short sale mastery.
Question #1: "Does the bank have incentive to close a

short sale if the loan has PMI?"
"From a buyer'S agent perspective, my thought is that if the loan has
PM} or if it is a guaranteed loan, I should just let that listing go. The
bank will continue to get their money up until auction time, and they will
not be motivated to work out the short sale. Is that true? I would
appreciate your perspective on this."
Knolly's Answer #1:

The bank always bas an incentive to do a short sale versus a foreclosure.
Of the more than 450 short sales I've done, many of these had PMI
(private Mortgage Insurance), and we still haGl a 90+% success rate on
the ones with PM!.
Why? Well, the issue lies with the PM! company. They will NOT want
to be left holding the bag, and they will want to MITIGATE their losses.
We recently bad a seminar at our sales office, and the speaker revealed
that, based on national averages, a lender loses roughly 40% when doing
a foreclosure versus a 19% loss when doing a short sale. Think about it.
In a scenario where there is PMI, who is the loser? The PMI company.
So while there may not be a huge incentive to the bank, there will be one
to the PMI company. The same is true for FHA and VA loans-since
they are government insured, the lender often loses very little. However,
if HUD found out that a bank was not actively mitigating their losses,
that bank could lose its right to do FHA/VA loans and could suffer
other penalties.
Real World Questions and Answers about Short Sales
331
In the case where a loan has PM!, the bank has an obligation to mitigate
their own losses and those of the PM! company. They will be obligated
to disclose to the PM! company their options and the bottom line. The
PM! company will almost always find it better to do a short sale.
Question #2: "How do I make a negotiator understand that

my client cannot afford to sign a promissory note?"
"I was told by the negotiator that my seller would probably be asked to
sign a promissory note because there is PM! on the property and our
offer is more than $100,000 short. However, the offer we submitted is
the market value for the property.
My seller is getting food stamps for groceries right now, the husband is
working two jobs, and the wife has just lost her second job. They
moved away from our area for better jobs. When I spoke to the
negotiator about this, the negotiator said she pulled a credit report and
could tell that my sellers were keeping up with their car payments and
credit card payments Q.ate on one). It appears that she is putting a lot of
weight on this credit report.
I would appreciate any information you could give me. I expect approval
within the next week. I would like to know how I can help negotiate a
promissory should they ask my seller to sign one."
Knolly's Answer #2:

Sometimes a promissory note is unavoidable. What your client needs to
understand is that if they choose NOT to sign the promissory note, it
won't change the fact that they still owe the money per their mort;"aage
agreement.
Currently, the note they have on the property is SECURED by the
property (as collateral). A promissory note is UNSECURED, just like
credit card debt. Depending on the laws in your state, if the home is
foreclosed, your client could end up owing the deficiency amount
Gucigment) PLUS legal fees associated with the foreclosure.
332
Given the choice, I would take an UNSECURED debt versus a secured

one any day.
As it relates to the promissory note, cry and beg if need be. Even let the
bank know your client is willing to allow the home to go into foreclosure
instead of signing the note. If that doesn't work, then your client will
likely be faced with having to accept the promissory note or foreclosure.
On promissory notes, the rule of thumb is "5 for 5"-a 5 year note at
5% intenest. Try to negotiate it to 5% (or 10% ma...,,) of the forgiven
debt. So, if the deficiency is $100,000, try to negotiate a 5 year
promissory note of $5,000 at 0% interest (interest free). This will result
in payments of $83.33 per month. This is a much better option than
foreclosure.
Question #3: "Our short sale has been approved but the
buyer stili doesn't have their financing. What do we do?"
"JI am representing the seller on a short sale. The buyer waited until
AFTER the short sale was approved before applying for an FHA loan.
(The person I hired to process my short sale did not do their job in
edUCl<ting the buyer agent, and I was too igoorant to understand that you
do not wait until then to apply for mortgage.) We went under contract in
October and the bank approved the short sale in late December. It is
now March.
The buyer has already missed the first TWO dosing deadlines and
STILL does not have a mortgage in place. At this point, I don't even
have approval for another extension. The person I hired to process the
short sale has asked for a third extension, but the bank has not
responded. With no approval, there seems to be no point in continuing.
I now have another offer for the same price in front of the short sale
processor, but she is reluctant to release the curtent buyer and deposit
monies to start all over. Help!"
333
Knolly's Answer #3:

It sounds to me like you are being strung along. You are now over 90
days past the approval date! Wow. First of all, the buyer should NEVER
have been given that long to close! Buyers should always be ready to
close within 2 to 3 weeks from the date the bank approves the short
sale. After the BPO / appraisal is ordered, we let the buyer's agent know
they need to get cracking on their loan as we expect approval within
weeks.
Also, if a deal stretches out too long after the bank has approved, the
short sale lender will begin to think they are being misled, and the seller
runs the risk of being foreclosed on, as the bank will likely lose patience
(and trust) in you.
When I have buyers who take more than 30 days to close, I don't
typically extend their closing date. Instead, I place the property back on
the market as an APPROVED short sale.
At this point in your case, make sure that this first buyer can indeed
close. Talk to their lender and be absolutely sure you are comfortable
with them getting the deal done in the next 10 days. Keep the seller's
lender informed at least 3 times per week. If you are not comfortable
(and the buyer's are out-of-contract), you need to get the property back
on the market right away and get a new contract.
Question #4: "How do you go about working with an

expired short sale listing?"
"I am wondering how you go about working with an expired short sale
listing? Would you just have the homeowner switch everything over to
you? Do you have to completely resubmit evetything? 1'd imagine there
would be a proper process in working with expireds, as you don't know
how thorough the previous agent was and you also don't want to irritate
the loss mitigator. Any tips?"
334
Knolly's Answer #4
See if there is some way you can get a copy of what (if anything) was
submitted to the bank to this point. Most of the time, you will find that
a complete package wasn't submitted because the property likely expired
before an offer was received. If an offer and package were previously
submitted, you really need to see the hardship letter and the financial
sratement. If you can't get a copy of the package, send your Letter of
Authorization to the bank and then begin calling the lender to find out
how far along the shott sale process is, and what else (if anything) the
bank needs. If nothing was submitted to the bank, you can pick up the
listing and work the short sale.
Question #5: "What do I do when the bank expects more

than the home is worth?"
"I illive a shott sale that is raking a long tin1e. I do not believe it is
possible to get an offer at the current list price of $448,000. In fact, a
home right down the street just dosed this week for $325,000, and it
W2;S the eX2:ct same floor pl= and in 'excellent condition. The loss
mitigator informed me th2t I was not allowed to list the property for any
less th2t $448,000 or they would proceed willi foreclosure. I have been
extremely professional with her and she has granted two extensions on
the foreclosures.
The lender National City does not have their own foreclosure! short sale
department as they have "farmed" all of their business out to a thirdparty company. Have you ever had a loss mitigator telling you what you
can list a property for? Do you ignore them and reduce the price in
hopes of getting an offer? I have never experienced a short sale like this
before. Thank you for your input!"
335
,Knolly's Answer #5:

It sounds like the BPO or appraisal came in high-which is not
uncommon. This typically happens when you don't have the

opportunity to speak with the BPO agent before they go out to do the
BPO.
At this point, you will need to submit a BPO dispute letter, along with a
copy of your market analysis (including the home down the street),
showing the true value of the home. This should prompt the bank to
reorder a new BPO / appraisal. See the sample BPO dispute letter on the
7 Dqys to Success with Short Sales Toolkit CD.
Question #6: "How can I go around the loss mitigators?"

"Do you have anyone at Chase who will respond? I am dealing with a
negotiator who will not return my phone calls. I have her boss' number
and have left several messages for him, but he does not call back either.
I need to find someone there who cares."
Knolly's Answer #6:

I have worked with several mitigators at Chase. Typically, when you go
"around" a mitigator to their boss, this will prejudice your file, and they
may take LONGER to work it. So there is a delicate balance between
overkill and calling just enough.
Yes, it is true that we oftentimes have to escalate to a manager or
supervisor, but use caution. Exhaust all avenues in contacting the loss
mitigators first. Try faxing a letter (or email if you have their email
address). If you are still not getting any feedback, then go around the
mitigator.
It's also helpful to keep a list of loss mitigators from various banks that
you've worked with in the past. This way, you can contact the loss
mitigators you've worked with directly and see if they can help get you in
contact with their colleague or a supervisor who can help you.
336
Question #7: "The second lien holder says they must

approve the short sale before they will release the lien.
What do I do?"
''1 have bank approval on an offer, after many trials and errors. I started
with an outside negotiator for this short sale, and totally forgot about
the second lien holder, mostly because the seller listed them in his
bankruptcy and they were discharged.
Now at the eleventh hour, -when I am asking them when they will release
the lien, they are sending me guidelines and asking for all the typical
statements and records required by the fu:st lien holder. I fought hard
with the fu:st to get to an approval Must I now submit everything to the
second lien h.older again., and where will the funds typically come from
to offer them? By the way, they want to knock down our commission by
one percent from 6 to 5%. Can they do this?"
Knolly's Answer #7:
When a property has two liens that are both short, you have to submit a
complete short sale package to both lien holders and receive approval
from both of them. It's always best to send the complete package to
both at the beginning.
The second lien holder shouldn't take as long to generate approval as
the fu:st. The first lien holder will be the one offering funds to the
second. But if you didn't include any funds for the second lien holder on
your original HUD-l net sheet submitted, you will have to revise the
HUD-1 net sheet and get another approval from the first lien holder at
this point.
To answer the question about commission, yes, they can cut your
commission. Fight to keep it at 6%.
337
,-
Question #8: "I have an FHA short sale. The buyer has
asked for 3% in closing costs. What should I do?"
"I just received an offer on a short sale listing of mine. The seller has an
FHA mortgage. The buyer asked for 3% in closing costs contribution. I
read the FHA Mortgagee Letter and it states the following:
Change in Allowable Closing Costs - Subject to the stated ratios, HUD allows up
to 1% ofthe buyer's mortgage amountfor closing costs to be included in the "Seller's
Costs" on the HUD-l for all transactions that involve a new FHA -insured
mortgage.
So what happens if the buyer is going conventional? Still a problem?
We are in the middle of the offer right now and I do not want to make
any mistakes and lose this buyer (good offer)."
Knolly's Answer #8:

Back in 2000, when the FHA PFS (pre-Foreclosure Sale) program was
revised, HUD would not allow any closing costs to be rolled in. Now,
they will allow up to 1% IF the buyer is getting a new FHA loan. If the
buyer is not getting an FHA loan, then the buyer can NOT roll in ANY
closing costs.
I know this doesn't make sense, but that's the rule. Since the buyer is
asking for 3% closing costs and going conventional, the conttact will
NOT be approved. See if the buyer is able to re-write the offer with no
closing costs rolled in. If not, you need to shop for another buyer.
The rule simply doesn't make sense to me because many buyers need to
roll in 3% or more towatd their closing costs. On the flip side though, I
suppose HUD is trying to shy away from encouraging folks to put zero
down, which some think perpetuates the mortgage crisis (and short sale
crisis) we are in now.
338
Question #9: "The bank wants my seller to switch to a loan

modification instead of a short sale. Is this common now?"
''1 just had a bank pull back on a short sale because they said that due to
the Obatna stimulus package they were going to be able to offer the
current owner a lower interest rate and make the payments more
tolerable and therefore the owner was no longer interested in
consummating the short sale transaction. I know that the short sale is
subject to the seller's lender approval and that neither party is required
to perform on the transaction up until they get final lender approval. So,
it seems that the bank has the right to do this. I was just wondering if
you have had it happen before. I wonder if this is something that we can
' . "LUe
- near "
expect to go on ill
mture. "
KJnoUy's Answer #9:

YES, sadly, I have heard of this becoming more and more of a common
occurrence-although it happens very rare]y to me. And here's why.
Before we list a home, we make absolutely CERTAIN that the seller has
NO DESIRE (or ability) to keep the home. If they want to keep it, I
make sure they exhaust all opportunities to do so with the bank, and 'will
even assist them in keeping the home (at no charge), since I believe
home retention is always the best option jf it is poss1ble.
I pre-qualifY my clients to make sure they don't want to do a loan
modification. Many banks are getting very desperate to KEEP
homeowners in their home, so they are offering unbelievable options!
Banks can reduce a person's mortgage payment down 31 % to 38% of
their income!
It is very frustrating to put in months of work on a short sale
transaction, only to have the lender come forward at the eleventh hour
with a sweetheart deal. It's great for the homeowner (sometimes), but
it's like a kick in the mouth to the listing agent, buyer'S agent, and the
buyer.
,-
339
,,,-
,-
Question #10: "I have a property that is not moving. Can I

reduce the listing price to below what the lender is asking
for?"
"I have a short sale property ... initially put it on market at $235,000.
Offer accepted 10 days later by seller for $210,000 plus $6,000 towards
buyer's closing costs. Seller's lender came back at $220,000 and paying
no closing costs. Buyer walked .... Property waS put back on the market
3 weeks ago at the $220,000. The house has been shown about 20 times
since, with no offers. Feedback is that house needs too much work. Is it
okay to reduce listing price below the $220,000 figure OR ask buyers'
agents to bring all offers? Seller's loan is conventional. They are getting
out of the house due to divorce."
Knolly's Answer #10:

Congrats! Looks like you've got an unofficially approved short sale! It is
not uncommon for a lender to counter an offer like they did. This does
NOT mean that they will not take less. You will need to INSIST that the
lender accept a reasonable offer by "gently" challenging their counteroffer. Perhaps $210,000 is the magic number.
Contact the loss mitigator and let him/her know that you have had
LOTS of showings and no one will make an offer because of the
condition of the property. Submit proof of the showings if you track
them electronically. Also submit a list of needed repairs. Let the
mitigator know that if they will take LESS--say $210,000, you are likely
to generate another contract.
If they still won't budge, you will need to submit a BPO Dispute Letter.
See the example on my Toolkit CD. Works like a charm.
340
Question #11: "My clients have been through Chapter 7

Bankruptcy, now they want to sell their house in a short
sale. What's your advice?"
''The homeowners want to sell their house via a short sale, but their
bankruptcy attorney squashed that idea without explanation. These
folks, who claim that they still own the house, filed Chapter 7 in
November 2008, and it was discharged in April 2009. I have my own
thoughts on this, but would like to hear what your experience has been
in this arena. The existing loans are 80/20; both conventional Thanks."
Kinolly's Answer .#11:

An active bankruptcy will KILL a short sale (as the lender cannot legally
speak with you while the file is actively going thtoughthe bankruptcy
pmcess). However, since the property is a secured "-Sset, in many states
the bankruptcy itself does not take away the lender's rigbt to forecloseonce the file is discharged from the bankruptcy. So, while a bankruptcy
may discharge the outstanding debt (deficiency) resulting from the
foreclosure, a person will walk away with a foreclosute AND a
bankruptcy on their credit report. That's the double kiss of death to a
person's CUfl'ent and furore credit.
If a person needs to file bankruptcy to wipe out unsecured debt, it just
makes more sense to do the short sale FIRST and then file bankruptcy
for the other debts, that way there is no foreclosure reported on their
credit.
At this point, I recommend they move forward with the short sale to
avoid a foreclosute on their credit report.
341
Question #12: "The first lien holder won't approve the

short sale until my client is officially 30 days delinquent.
What can I do?"
''1 currently have a client who has a first lien with American Loan
Servicing (ASC) and a second lien with Litton Loan Servicing.
Second lender, Litton approved the short sale with no problem.
First lender ASC would not approve the short sale, as the client is not
delinquent. ASC said their investor requires the client to be 30 days
delinquent on their loan before they could be approved for a short sale.
Client does fall into the loss of income, which they proved on their
financial statement to ASC. Client did not qualify for the modification
with ASC. ASC instructed client to obtain a REALTOR and do a
short sale, which is what client did. Now, ASC is not approving the
short sale because client is not delinquent for 30 days. I have spoken to
two different managers in the loss mitigation department and they are
not budging.
Has you ever run into this and is there anything else that could be done
other than wait for the client to be 30 days delinquent?"
Some lenders have adopted the really lame policy of reqwnng

homeowners to be delinquent prior to accepting their short sale
application. To me, the most proactive approach for lenders would be to
ASSIST sellers who mayor may not be currently delinquent but who
can prove that they will no longer be able to pay their mortgage at some
verifiable time in the future.
Unfortunately, unlike FHA and VA short sales, on conventional loans
there are no hard and fast rules (across the board) regarding
delinquency. Each lender has their criteria as it relates to this. If they are
being pig-headed, then you should just have the borrower NOT make
the next payment, since the lender has, in effect, made this a
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requirement. Obviously, the missed payment would ruve a derogatory

impact on your client's credit. Alternatively, the seller could wait until
they truly can no longer make the payments and then apply for a short
sale.
Question #13: "I'm currently processing a short sale for my

client, but the lender is still sending notices about default
and foreclosure. How will this affect the short sale?"
''Weare working with a seller on a short sale with first mortgage ,'lith
CitiMort"aage. We have a fully executed contract (close to our CMA) and
a short sale packet was faxed in 2 weeks ago. (And after several tries,
they acknowledge they ruve the packet.) So far no negotiator has been
assigned to the account. Yesterday, our seller received a letter from
CitiMortgage stating:
This letter will sen~ as n.otice that your mO?tgage is still in default. Al/ reasonable
efforts ajJ(JT:dedyou to .C1fre this default haJJe failed. Your loan has been ref=ed to the
following legaljirm to begin foreclosure proceedings ... (name of attorney's in Tampa
Florida) ... If you haJJe aJZ)i questiotlS regarding .foreclosure proceedings on your
mortgage, please contact the .ahove attorney. '
Does this letrer ruve a direct impact on our short sale status with
CitiMortgage? Should we he doing anything in response to rbi, letter?
Any advioe would be appreciated!"

This is a typical situation. Keep in mind that the loss mitigation
department and the collections/foreclosure departments are typically
operated as separate entities in most mortgage furns. Therefore, the
foreclosure process can be moving forward at the same time the short
sale is being processed. Oftentimes, homeowners are getting letters from
both departments.
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The trick is to get short sale approval as soon as possible in order to

stop the foreclosure. Always verify with the loss mitigation department
that there is no foreclosure date set. If a date has been set, you will need
to get it postponed.
Question #14: "First, what is an 'auction date'? And how do

I help my buyer buy a house that is in pre-foreclosure with
an auction date approaching?"
"My first question is, 'what is the auction or sale date?'
And my second question ... I have a buyer who wants to purchase a
house that is in pre-foreclosure and is pretty close to the auction date.
The property is vacant and is not listed. I'm finding it very hard to locate
the owner-though I have a name that I located in the tax records. I
tried the White Pages & Zaba Search in order to locate a phone number.
Needless to say, I have been unsuccessful. It looks like the owner just
walked away from the property. Do you have any suggestions on how I
can locate her?"

To answer your first question, the auction or sale date is the date the
property is going to foreclose/be auctioned off for sale. Most properties
are not purchased at auction, and end up going back to the bank. They
then become REO (real estate owned ... by the bank) properties.
And to your second question, if you have a title/escrow company you
work closely with, get the address over to them and let them work their
magic and track down an owner. You will need to work quickly! You'll
have to 1) find the owner, 2) convince them to do a short sale (if it's
short) and let you represent them and 3) submit a complete package
along with the contract on the property. You're going to have a busy few
weeks, but this is doable. Get busy!
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Question #15: My buyer is considering a short sale that is

$60,000 overpriced! What can I do?"
"I have a buyer and an executed conttact that was faxed to Countrywide
on Friday. The foreclosure is set for next month. The appraisal from
Countrywide is $360,000. My CMA-and I looked at every property
available to me in the area-puts the home in the $299,000 to $310,000
range. Included with the offer is a dispute letter and a copy of my CMA.
What can I do that will help my buyer with Countrywide? Are there any
other avenues I should be taking and what should I expect from
Countywide?"

Sounds like you are b>tsicaily doing the listing agent's job for him/her!
Since you have already submitted the conttact WlITH the BPO dispute
(good work), you will need to make sme the listing agent contacts the
bank every 1 to 2 days . .A loss mitigator should already be working the
file, so it shouldn't be hard to get them to agree to do another BPO or a
newapprais2l.
Since you don't have authority to discuss the account, you will need to
let the listing agent deal with the bank direcdy. However, since it appears
that you have more experience with short sales, you may have to gently
educate the listing agent to keep things moving in the right direction.
Question #16: "WiU the bank honor a short sate on an

investment property?"
''1 was on your short sale call today, and I have learned a fair amount
already. I'm looking forward to the entire curriculum!
Will Bank of America honor a short sale on an investtnent property? My
clients are heavily upside down and want out. They are afraid that Bank
of America will come after their other assets (401K, etc.) before
honoring the short sale. Any thoughts or suggestions?"
345

Yes, I do many short sales on investment properties. Bank of America
and most other lenders will do a short sale on an investment. You will
have to be careful how you word the hardship letter.
The financial statement and hardship letter will detertnine if your clients
qualify for the short sale or not. Besides examining the financial
statement, lenders also review the borrower's bank account statement,
pay srubs, and their credit report to get a complete picrure of the
person's financial health.
As far as their 401IZ, the lender typically won't go after that-but they
might ask your clients to sign a promissory note. Depending on the
client's financial picrure, some lenders may also ask for the seller to
contribute some funds at closing.
Question #17: "Will the lender in a short sale agree to pay

seller's closing costs?"

YES-the lender will typically pay all customary seller closing costs such
as title policy, commissions, taxes due, and escrow fees.
Typically, they will NOT pay for buyer closing costs such as appraisal or
survey, and they oftentimes will not pay any HOA fees.
Question #18: "When should I submit the package to the

second lien holder?"
"1 just started a short sale with a $480,000 first lien (Aurora) and
$140,000 second lien (WAMU). My current offer submitted is $435,000.
The first lien package has been submitted. When should 1 submit the
second lien package? Thanks again for all of your help."
346

Wow-that's quite short. You should submit both short sale packages to
both lien holders at the same time. The first lien holder will likely only
offer a max of $7,000 (5%) to the second lien holder ... and possibly
less.
Question #19: "My clients are afraid their lender will

pursue a 'deficiency judgment' for the difference on the
short sale. What should I tell them?"
''1 need your professional advice again. I'm working a deal with
Countrywide. It's a first and second. I have approvals for both liens.
Only took 8 weeks to get these! Yikesl My client, the homeowner, is
concerned about the second paragraph in which Countrywide states that
they may pw:sue a deficiency judgment fo~ the difference.
rve asked Countrywide to amend or omit this vtlbiage as we are
requiring Countrywide to accept the short sale and forgive all the
difference. The negotiator said that this is the only document approved
by their legal department. Period. My client is now scared to proceed
with the sale and I'm not sure how to advise her., other than to seek an
attorney's advice. I'm guessing you've come across many short sales
involving Countrywide. Any suggestions?"
KnoUy's Answer #19:

What is your client's recourse? If your client refuses to sign, what will
they do instead? Allow the property to foreclose? If it forecloses they
will still remain liable for the debt. My advice to them is to SIGN the
agreement! Once the property closes, the bank will be left with an
UNSECURED amount. As it is, the lender has a SECURED note for
the full amount. Often, lenders will not amend their boilerplate
language. It's "take it, or leave it." I advise they take it.
Real World Questions and Answer.; about Short Sales
347
Question #20: "Our short sellers are changing their minds

and pursuing loan modifications in the middle of the short
sale process. What can we do to prevent this?"
"It was great meeting you at Masterminds last week! Thank you for
sharing so much of your knowledge on short sales with the group! Your
streamlined syst=s are amazing and your video is great!
I wanted to get your opinion/insight on something ... In South Florida,
we are experiencing about 80% of all MLS sales as distressed property.
Our sales office has well over 400 short sale listings and the balance
REOs. One of the challenges we have run into recendy is loan
modifications.
We had three transactions last week die because, at the eleventh hour
after the short sale was approved and accepted, the seller changed their
mind and decided they would like to attempt a loan modification. That
killed the short sale right in its tracks. The lender closed the short sale
file and opened a loan mod without guarantee it would go through.
Have you had this happen and if so, do you have anything built into
your system to lessen or eliminate it from happening?"

Before we list a home we make absolutely CERTAlN that the seller has
NO DESIRE (or ability) to keep the home. If they want to keep it, I
make sure they exhaust all opportunities to do so with the bank, and I
will even assist them in keeping the home (at no charge), since I believe
home retention is always the best option if it is possible.
If you don't pre-qualify your clients thoroughly, this will continue to be
a probl=! Review what I say about this in Day 2 of 7 Dqys to Success with
Short Safes.
348
Question #21: "How much should we pay the processing

staff in our new short sale processing company?"
"I plan to join a few other partners and start a short sale processing
company. The company would do all the short sale processing and
negotiation of the short sales that I bring and a few other REALTORS
only in my local area. We don't want to get too big.
Can you please share how you structure your short sale processing
company as far as the going rate you pay the negotiator/short sale
processor staff who calls the banks on your behalf? Based upon your
knowledge, do you do an hourly rate or a contact rate/flat fee based
upon each approved short sale?"
I<Jnolly's Answer #21 :

Consider one of two different plans:
Plan #c Pay a processor $8 to $12 per hour or more. No

compensation per file, just an bourly wage. Of course the
going rate is different depending on your area, but that's a
good Texas rate.
Plan #2: Pay a pmcessor a flat monthly fee, say $1,200 to $1,500
per month PLUS $300 to $500 per file dosed.
Each processor should be able to handle 30 to 40 :files, depending on
their hours. Really efficient prooessorscan handle more. Por more
detailed information on setting up a processing company, refer to the
Bonus Section.
Question #22: "Who should I recruit as processors for my

team and how should I pay them?"
"I have several related questions for you ... Wbat type of people do you
find to be your best processors? Out-of-work loan processors, exREALTORS, ex-mortgage broker'S, stay-at-home moms? Do you
have the processors work from a home office or come into your office?
Based upon your experience, which one has worked best: the hourly rate
349
or monthly flat fee plus bonus on closed file? If you pay the hourly rate,
how do you have them track their hours? Also do you have them as
independent contractors or employees?"

"I have had the most success with ex-business professionals who want
to work only about 25 to 30 hours per week. They are very reliable and
can work from home.
Right now, my team works from our sales center's main office, where I
rent an office. I like this option for the synergy. Before that, they worked
from my home office and they've also worked from their home offices.
Any way will work. The same team members have been with me since I
began working short sales.
My short sale admin staff are all "employees," and I pay them hourly.
My folks are on the honor system. They actually work more hours than
they bill me for! If you truly want to "lead with revenue," a "per file"
option is best. However, many won't want to work that way. It takes a
certain type of person to want to work on commission.
I think the independent contractor route is better if you can structure it
correctly and if your setup will legally allow you to do it. Ask your CPA
how you should structure this and how to set things up in compliance
with the IRS!
You can have your independent contractors start their own sole
proprietorship or LLC. Then you will pay their company a transaction
fee per closing. But watch out! You don't want them getting the idea
they can do it on their own (without you!)
Question #23: "The second lien holder wants 10%. How can
I get them to negotiate?"
"I have an approved short sale through the first lien holder (Citi) and
they are willing to give the second lien holder (National City) $5,000,
which I was told is the maximum allowed from Freddie Mac. The
350
second came back and they said they wanted a minimum of 10%, which
is $17,000. How can I get them to move from that position?"

Have the first lien holder (Citi) put in writing that the max they will pay
is $5,000. Then send that letter to the second. You may need to speak to
a supervisor at the second lien holder's department if they don't take it.
Otherwise, your seller may have to accept a promissory note for the
$12,000 difference. Keep negotiating! Get me an update on how this
turns out.
Question #24.: "What do you tell the lender when you lose
your buyer?"
"What do you do, in terms of notifying the lender, when the buyer
withclxaws after the package has been submitted to the lender?"
IKnoUy's Answer #24:

Having worked short sales for more than 6 years, I have come to
ASSUlME that the first buyer will back out. In fact, sometimes, the first
TWO contracts will fall because the buyers get tired of waiting.
If you notify the lender that the buyer has walked, then the loss
mitigator will promptly (and happily) CLOSE the file. Then you will
have to start FROM SCRATCH with a new contract and short sale
package. y:tkes!!!
Therefore, my strategy is to CONTINUE allowing the lender to move
forward with the short sale process based on the contract they have. I
do NOT notify them that the deal has busted. Meanwhile, I promptly
place the property back on the market and attract another buyer. ONCE
the file is approved, I simply inform the bank that the names on the
contract will change. Sometimes other terms will change slightly as well
(sale price, etc), in which case, a new HUD-l is submitted.
351
The bank doesn't care WHO is buying tbe house, so if tbey simply need
to change tbe buyers name on tbe approval letter-it's no big deal.
This strategy is much better tban having tbe bank continue to close and
re-open files. This will save you weeks, if not montbs, of time.
Question #25: "What do you think about allowing buyers to

put in offers with no escrow down?"
''In Florida, often agents do not have tbeir buyers put any escrow down
until tbe bank gives tbeir approval for tbe short sale. Wbat are your
tboughts on this process? Often buyers are putting in offers all over
town because tbey have no skin in tbe game."

If you have a fully-executed contract, you need to collect earnest/ escrow
money. Of course, tbe conttact will be subject to seller's lender approval
of a short sale, but escrow money should accompany tbe contract and it
should be receipted by tbe company or firm handling escrow.
If you are submitting an unexecuted offer, earnest money
required. (See Day 5 for more information.)
1S
not
Question #26: "My FHA short seller never filled out the
Application to Participate Form. What should I do?"
"Regarding tbe Application to Participate for FHA loans ... Wbo sends
tbat to tbe seller? Do we as tbe agent or does tbe lender? The reason I
ask ... I have a FHA short sale and my seller never filled out tbat form."

The Application to Participate Form HUD-90036 should be filled out
by tbe seller and sent witb tbe short sale package (for FHA loans only).
You will need to send your seller tbe form to fill out. You can find tbe
form on tbe 7 Days to Success with Short Safes Toolkit CD or at
www.hud.gov.
352
The seller cannot be approved for an FHA short sale without this form
in the package. Not including the form with your original package could
hold up your package from even being processed-resulting in weeks of
delay.
Question #27: "What documentation is necessary for a Loan

modification?"
"This may be out of the parameter for this course but, if your client
wants to apply for a loan modification with current the lender verses
doing a short sale, what information should they provide to their lender
(for example, financials, hardship, etc)? I would like to be able to advise
them on this issue if possible."
KnoUy's Answer #27.:

If a person wants to do a loan modification, the infoffi1ation they send
for a 10= modification is very sinlllar to that which would be supplied
for a sbort sale. They main difference is that the loan mod info must
prove that the seller CAN afford to keep the home, where-as the short
sale documents will endeavor to prove just the opposite.
The main dUng lenders look at on a loan mod is the nnancial worksheet.
The seller must show that they now have mo~e income than expenses 3n
order to qualify. I've helped several clients (who I thought should keep
their home), get loan mods.
The seller will need to contact their lendcr and let the lender know that
they wish to do a loan modification. The lender will then send them an
application. Many lenders now have a loan modification option on their
website where the homeowner can apply for assistance online.
353
Question #28: "I'm working a short sale on an investment

property and the lender has denied the short sale unless
my client signs a promissory note. What can I do?"
''We had a bad experience with the 30-day delinquency 'rule' for a
Countrywide short sale. Our seller's property was an investment
property. He would 'qualify' for a short sale (according to the
negotiator) once he was 30 days past due. So, he stopped making
payments. Once he was delinquent, we found out that Countrywide had
mortgage insurance on a second loan with them (it was an SO-l 0-10
loan-SO to the first, 10 to the second, and 10 down). The mortgage
insurance company then denied the short sale because it was an
investment property (and they are trying for leverage to get him to sign a
promissory note)."
KnoUy's Answer #28:

Investment properties are typically "trickier" than owner-occupied. I've
had good success with mortgage insurance companies, as they typically
have more of a vested interest in mitigating their losses than the lenders
do. But sometimes they will hold out for that promissory noteespecially on investment properties.
In lieu of foreclosure, I recommend the seller sign a promissory note.

(See Question #2 above.)
Question #29: "What do you think about more and more
lenders reserving the right to pursue deficiency judgments
after the short sale?"
''1 just want your take on something ... It seems as if all the approval
letters I'm getting nowadays are purposefully not specific regarding
deficiency judgments. I have been successful in the past in negotiating
this into the letters. But for the past couple of months, most of the big
lenders I'm dealing with are refusing to change the verbiage. They are
saying, 'we can't change that. It's been approved by our legal
department.' I'm talking specifically about Countrywide/BofA, Chase,
354
and Citi. None are guaranteeing that they won't go after the clients for
deficiency. Are you finding this to be the case nowadays? Are we finding
a new 'status quo'?"

Yes, you've hit on something here. Here's my long-winded reply to your
simple question:
Yes, I have noticed that some lenders are reserving the right to pursue
the client. For example, BofA's approval letter states, "BAC Home
Loans Servicing, LP and/or its investors may pursue a deficiency
judgment for the difference in the payment received and the total due,
uo!less agteed othe='ise or prohibited by law, if the short sale closes on
the loan referenced above."
In practice though, I've never seen a bank go after a client for the
balance after a short sale is finalized. Of course, there isn't anything that
will prevent the lender's pursuit EXCEPT the language (terms) in the
short sale approval letter.
Banks are in a very vul.neraHe position right now. Their hacks are
a"o-ainst the wall amdthey don't Like it. Short sales are becoming more
prevalent and although they do save banks money, no one likes to lose.
While there are many homeowners who are being helped through a time
of crisis, some homeowners aJre taking advantage of the system (and
getting in on the frenzy).
My guess (or theory) is that some banks w:illLikely want to investi"o-ate (or
audit) their files in future years to tty and find any short sales
transactions that they deem were illegitimate (not at arms length). For
example, they can easily look up a property that sold short 4 years ago,
and see who currently owns it, etc. If their investigation reveals that the
owner manipulated the system (perhaps a relative of the homeowner
purchased the home, which is a big no-no), they will probably tty to get
a deficiency judgment.
355
As I stated earlier, banks are being very quiet on tbis issue right now,
and are not pursuing folks currently. But since so many are now
reserving that right, it makes one wonder what their motivation is.
Bear in mind that ultimately the BANK has the power. The reality is that
if the seller does NOT agree to the short sale approval terms and their
home forecloses instead, they will still likely be subject to a deficiency
judgment AND ruin their credit.
Let's say you were to go to your local bank and take out a business loan
for $20,000. After 2 years of paying on time, you fell on hard times. If
you went to your banker and asked him to have his institution forgive
the note, you'd probably be laughed out of his office (or thrown out). If
by some unknown miracle he did agree to forgive the debt, you certainly
couldn't dictate the terms!
In my view, the greatest tbing the bank does in a short sale is release
their lien from the property. Without that lien release, the person could
NOT sell their home. If the bank ever comes back for a deficiency, it
will be an unsecured debt at that time.
Assuming that a person has no other option but to sell their home, my
advice to them is to take what they can get.
Question #30: "Will FHA approve a buyer loan for a short

sale property that needs plumbing repairs?"
''1 showed a buyer a short sale today which needed plumbing repairs.
We know that the bank will not pay for such repairs. The buyer is going
FHA, and said that he believes that FHA will not approve a purchase
where plumbing work is needed. I can't irn"t,oine how that could be
correct. So, I'm just putting tbis out to you for a quick answer."
KnoUy's Answer #30:

This is a great question for a lender (loan officer). Yes, it is true that
when a buyer is getting an FHA or VA loan there are stricter guidelines
regarding the property condition. For example, if a property needs a new
356
roof or foundation repairs, it may not be eligible for these governmentfunded loans.
It would depend on the severity of the plumbing repairs needed. FHA
may not grant a loan on a property needing major plumbing repairs.
They will typically require that major issues be fixed prior to closing.
One alternative is to have your buyer apply for an FHA 203(k) loan,
which will allow the borrower to get a loan amount that includes the
cost of repairs and escrows the funds needed toward repairs. For more
information on this option go to www.hud.gov.
Question #31: "Shou:ldlsend the first lien holder's

approval 'letter to the second lien holder?"
"I wanted to know if you ever send over the first lien holder's approva!
letter to the second lien holder to get the second lien holder to move
quicker for an "pproval. "What is your typical procedure vvith first and
second lien holder letters? I don't want to disclose anything I shouldn't.
'lb.anks."
KnoUy's Answer #31:

You've touched a nerve and opened a wound. Darn you!
Can you believe that in years gone by i[ NEVER had to deal with second
lien holders??? If there were two liens on a property, the first lien holder
did the courtesy of negotiating DIRECTLY with the second. This made
lots of sense because the primary lender has much more power than
lowly or me. That's back when loss mitigators were taking long lunches,
answering every phone call, and waiting for something to do!
How spoiled I was! Okay, enough reminiscing.
Yes, it is always a good idea to send the second lien holder the approval
from the first, and visa versa. Oftentimes, I get the second lien approved
before the first, and I'll send that approval to the first lien holder. Of
course, this is typically only a good idea ONCE the file has been
Real World Questions and Answe~ about Short Sales
357
assigned to a loss mitigator. Otherwise it will confuse the heck out of the
front-end recipient and will end up in the black hole of nothingness.
(That's the place many of our files end up, and we have to fax them over
and over again).
When one lien holder sees that the other has approved the short sale, it
may prompt them to react in kind.
Question #32: "How do I get a federal tax lien removed?"

"We have a short sale with a federal tax lien of $93,000. If there is
obviously no equity in the home, how can we get the Feds to take the
lien off so this can close? The lender has agrees to approve the short sale
if we can get this lien off."

In cases where the homeowner owes federal income taxes, the IRS may
place a federal tax lien on the property. Actually, the lien covers all of
the person's property including the home. Typically, you can convince
the IRS to remove the tax lien from the property so that you can sell it.
(See Day 4 for information on how to get the tax lien removed.)
Question #33: "The second lien holder will not talk to us.
What do we do?"
''1 have a short in progress that has Chase as the first lien holder and
Bank of Florida (a local bank) as the second. The second bank will not
negotiate with us. They will only talk to the seller. We have had many
conversations expressing how the seller has selected us and signed an
authorization for us to represent him. Still they will not deal with us.
We then had the seller deal with them, and he had even offered to pay
half of the loan on a promissory note. They will not deal-it is all or
nothing for them! The second lien is a home equity loan that the seller
took out to payoff his first wife in a divorce for her share of the
home-so it is quite large. Now he is remarried and the second lien
358
holder feels his new wife should help him payoff this debt. Any
suggestions? He was served witb a summons last night for tbe balance of
tbat loan. They are playing bard ball."

Banks view home equity loans quite differently. Essentially a person has
already squeezed tbe equity out of tbe home and used up tbe money.
Therefore, banks take a very different approach and tend to want to
recover as much of the loan as tbey =. Unlike mortgage lenders who
are often eager to settle, home equity lenders operate more like brass
tack~
collections agencies.
When you have seconds that are home equity loans, they are very
difficul.t (or impossible) to deal with. As you know, you need tbe
cooperation of the lender in order to successfully complete a short sale.
If they insist 011. dealing with the homeowner directly, do a three-way ca1!
with you on the phone witbthe seller.
Back in the 80s and! 90s, most banks didn't want to do short sales at all.
They were very reluctant. Thett attitude was "PAY UP or we will
FORECLOSE." It sounds like this hank is stillliviog in tbe past. That's
ashame.
See if you can i:alk to tbe president of tbe bank. The bank will have to be
convinced mat they will lose it all if tbey don't play.
UnfOr1:U!lately, with smaller banks, I have had them foreclose instead of
compromise. Very bull-headed I know, but tbere is notbing you can do
if tbe nut won't crack
Real World Questions and An5We!5 about Short Sales
359
Question #34: "This one sounds too complicated. Can I help

this guy?"
"Knolly, I got the following email from a prospect last night:
I am currently considering selling my home as a short sale but
have a few questions. I have a first mortgage with BofA for
$175,000 and a second with Chase for $50,000. I recently
filed Chapter 7 Bankruptcy and was discharged in March. I
have been on a repayment plan with BofA since the
bankruptcy and have contacted Chase to setup the same
arrangements-however, after faxing my financial information
to Chase's loss mitigation specialist I have not heard from him
in almost two months.
The second loan balance does not show on any of my credit
reports, and I have not been receiving any monthly
statements. Did this loan get written off on my bankruptcy or
is Chase ignoring me? I've emailed the loss mitigation
specialist a number of times and they go through-but still no
response."
Can I hdp this guy? He's already made a deal with his first lien holder to
repay, and I have no idea what happened with the second. Now he
wants to see his home and he is upside down. It doesn't sound like I can
help him from what I understand. I would really appreciate your input
on this as I would hate to give him false information either way. Thank
you so much in advance! Take care!"

Yes, you can help him. As far as the first lien holder (Chase) not
contacting him back, this is VERY common. Homeowners who contact
the bank directly are often placed on the back burner. The lender
considers that the seller is SERIOUS once they hire an agent, and they
are given more priority.
360
Once you get the listing, you can have your title/escrow company run a
title report and see what liens are showing up. It is not likely that the
second has released their lien, but it is possible.
Regardless, since the bankruptcy has been completed (and is not active),
if the prospect qualifies for a short sale, you can do it. NO problem.
Question #35: "Can a short seller's roommate buy the

property? Will banks allow that?"
[Continuation of Question #34J
"Okay, Knolly, I have some more information and yet ANOTHER
question! So, it rums out the guy who contacted me is living in the home
with a friend who owns the home, who happens to be the one that filed
for ronkruptcy. BofA (the first) has set up a payment plan to help the
homeowner get caught up by November, but they also rolled in some
back pmperty taxes so the payments are going to be increasing even
more shortly. And it sounds .like he will not be able to make the new
payment. So doing a short sale is definitely an option. Here is tile tricky
part, the roommate who does NOT own the home wants to be the
buyer! He sounds like he's tryillg to lure me in by saying that if I listed
and sold the home, I would get the full commission.
Okay, sounds great. My concern is how would this fly? I know that
you're not allowed to sell the property to a family member, which they
are not, but I'm assuming the owner would still be living in the home,
just as a roommate/renter this time. So the two friends' mles would be
reverse<i Do banks consider this the same as if a family member were to
purchase the home? And how would this be disclosed ... and what
needs to be disclosed? Should I contact a real estate attorney to find out
what's legal in my state (CA) or are the rules regarding short sales
nationwide for the most part? I know I can definitely pursue the short
sale, I just don't know that it would be proper to allow the roommate to
be the buyer. I don't want to be tticky."
361

Thanks for keeping things interesting!
Banks want short sale transactions to be "at arm's length." The problem
with that is that different banks have different definitions of what that
means. Here's how HUD defines "arm's length":
'The sale must be an 'arm's length' transaction; the buyer cannot be a member of
your familY, business associate, or other favored partY. No hidden terms or special
understandings can exist betweenyou, the buyer, appraiser, sales agent or mortgagee. "
Having said that, it does sound as though this will be an impossible deal;
however, that is only a likely assumption. The bank MAY still approve
this transaction. The issue for you will be whether or not it is worth your
time and effort to pursue, given that such a transaction may not meet
the arm's length definition of the lender, and they may not grant a
vanance.
Rather than seeking legal advice (although this is a viable option), I think
the best and simplest way for you to protect yourself legally is to provide
FULL DISCLOSURE. It's that simple. If you decide to work this one,
simply write the following in the special provisions section of the
contract
"Special Disclosure: The buyer of this property is currently

the seller's friend and roommate."
Working deals like this MAY seem like a waste of time, but I have
always enjoyed working the more challenging ones, as they provide loads
of experience. Again, if you go forward with this one, set the seller's
expectation. Let the seller know that you will be providing the bank full
disclosure and that this deal may not be approved. Run this one by your
broker as well.
If the seller does NOT agree with disclosing that the buyer is his friend
and roommate, then WALK AWAY.
362
Question #36: "Will a lender require financial information

from a co-borrower if that person has abandoned the
home?"
"At one time, I thought I had heaxd that if one of the parties on title and
on the loan abandons (leaves) the property, then the shorr sale lender
should not require any information including financial information on
that person.
Example: If the husband has abandoned (left) the home ... Would the
shorr sale lender require financial information fmm the husband?"
Knolly's Answer #36.:

If one of the co-borrowers has abandoned the relationship, I
recommend that when the financial worksheet is filled out, only the
income of the remaining borrower be tilled in. Keep in mind that
BOTH parties will have to agree to the shorr sale and sign the contract
and closing documents, etc. So you will need to make sure all parties are
agreeable. If there is a divorce that has taken place already., get a copy of
the divorce decree so that you can see which spouse was awarded the
home. The party who was awaxded the property will have to cooperate
with you in order to successfully complete the sho.rr sale.
Be sme to explain in the hardship letter that there 1S a divorce,
separation, etc.
Ultimately, the lender will determine if they require the information
from both borrowers. If they do, you will need to make S\1J:e tloe loss
mitigator understands that there is only one contributor.
363
Question #37: "What do you recommend homeowners

write in their hardship letters?"
''1 just received a hardship letter that was handwritten and four pages
long! Is this good or bad? What do you recommend the homeowners
write out for your 'few sentences?'?"
KnoUy's Answer #37:

I never give my clients the assignment of writing their own hardship
letter, and I never allow them to write their own.
During the Short Sale Pre-Qualification Questionnaire, I gather all of the
information I need in order to write out the hardship letter for my
clients. The bank simply wants to know what their hardship is and why
they can't make their payments. As I point out in Day 3, drawing up a
long-winded hardship letter can do them much more harm than good.
76
Sample Script: Portion of a Short Sale PreQualification Interview

(name of real estate company)
( Script!!.!i Knolly: " ... Frank, thanks for calling me earlier

. . . ..;;;J today. Now, tell me, how did you hear about me?"
(us)
Prospect: "Well, we were looking in the paper,

and we saw the big cowboy hat."
Knolly: "Oh! You saw my cowboy hat! That's
great! So, obviously you've got a situation right
now. What's going on? Are you facing a medical
situation?"
Prospect: "Oh, no, no. There's nothing medical.
See my wife and I ... she tost ..." [So now we know
he's married . ]
Knolly: "Oh, okay, you and your wife ... Your wife
lest her job?"
Prosp,ect: "Yeah, yeah. She lost her job and ... "
KrloUy: "So, teU me abeut that. I mean, dees she
have any jeb prospects? De yeu think you're going
to get back en your feet anytime soon?"
Prospect: "Well, no, 1 don't think so because ... I
lost my job last year, and I had to take a different
job ... a step down ... in my new company."
Knolly: "Well, have you all ready talked to your
lender about this?"
Prospect: "No. I mean, I called and they won't
work with me."
Knolly: "Who's your lender?"
Prospect: "Well, it's Countrywide."
77
Knolly: "Oh, yeah, Countrywide. Okay. So, is it

only Countrywide, or do you have another lender
too?"
Prospect: "Oh, yeah, we've got two."
Knolly: "Okay. You've got another one. Maybe this
one will be more receptive. Who are they?"
Prospect: 'Oh, that's AmTrust."
Knolly: "AmTrust. Okay. Well, now much do you
owe on those loans?"
Prospect: "Uh. I really don't know."
Knolly: "Okay. Well, how much did you pay for
the home?"
Prospect: "Well, I don't even remember what we
paid. "
Knolly: "Okay. Well, you know, that's not
uncommon. How much do you pay each month?"
Prospect: "About $1,350 a month."
Knolly: "So, let me ask you this, Frank. Right now
with your current situation ... You say you're
behind four months, right?"
Prospect: "No, no! It's more like two months ...
only two months right now."
Knolly: "So, you know what, Frank? Your situation
sounds very similar to something that happened to
me. And it's one of the reasons why I advertise
that I help people with foreclosures ... because of
a situation that happened in my life. Have you got
a quick minute? Let me just tell you about it."
Prospect: "Sure. What happened?"
78
Knolly: [after personal story] "Look, I want you to

understand what a short sale is, and what it's all
about. So, I'm going to send you to a website that
gives you more information. In fact, let me give
you the website right now. It's
www.5hort5ale5ite.com . "
Prospect: "What is that, again?"
(your clien't website)
Knolly: .. www.ShortSaleSite.com. That's going to

explain to you what a short sale is ... because
you're probably wonde,ring how it works."
Prospect: "Oh, no. We know all about the short
sate ... "
KnoUy: "Oh? Okay. Weill, ilook at it anyway. And
(we)
let me just teU you in a nutshell what I do: I
speciaH~e in negotiating with your Lender to allow
you to sen your home ... so that you don't have to
bring any money to closing. The tender wiU pay aU
fees. In fact, my services are absolutely free to
you. "
Prospect: "Wow, how can that be?"
(our)
KnoUy: "You know, aU the information

is on my
(we)
website .... You'll learn how I do this. But, for
now, what I want to do, because I've got a short
amount of time, I want to ask you a few more
questions to see if you qualify for the short sale
program ... Is there an HOA? ... "
If you are having problems making mortgage payments and you are
considering a Short Sale of your home, you should contact the CalHFA
Loss Mitigation Unit by calling us Toll Free at 1-877-552-4839.
To qualify for possible assistance for a Short Sale:
You must have a legitimate and valid financial hardship.
The home must be owner occupied throughout the entire Short Sale
process. If the property is vacant the Short Sale will be reviewed on
a case by case basis.
The property must be listed for at least 90 days.
You cannot be attempting to obtain a loan modification.
To apply for a possible Short Sale, you must submit a complete Short
Sale package. The package must contain a valid offer on the property. In
addition, the package must contain the specific required documentation
listed below:
1)
A completed Borrower Financial Information Form (form provided).

Please be sure to fill in the form accurately. Include all of your
expenses and income to present a complete picture of your
current financial circumstances.
2)
A written dated and signed Letter of Hardship (form provided for

your convenience). The important thing is that the letter describes in
detail the full extent of your financial hardship. What is the cause of
your hardship? Has there been a loss or disruption of employment?
Has your available income and or expenses changed dramatically?
Please be specific.
3)
A signed Borrower Authorization to Obtain Information (form

provided). This will authorize CalHFA to access your Credit Report,
order a property valuation, or property inspection if needed.
In addition, your package must include copies of the following documents

(Please send copies, not the original of these documents):
4)
Last two months pay stubs for each borrower and documents to verify
any other income (e.g., disability, unemployment, SSI, child support,
alimony, etc.).
5)
Last two years Federal tax returns for all borrowers on the loan.
These must be complete tax returns including all schedules and
W2s.
If you own a business, we also need copies of the business tax return
and the annual profit and loss statements for the last two years.
6)
Last two months of bank statements for all checking and savings
accounts. (Send complete bank statements, including all pages).
7)
Copy of Listing Agreement showing that you are actively marketing

the property.
8)
Purchase Offer signed by at least the seller(s).
9)
Estimated HUD-1 or Settlement Statement.
10)
A Preliminary Title Report.
11)
A Comparative Market Analysis (CMA) or Brokers Price Opinion

(BPO) that must include comparative values.
Mail the completed Short Sale package to:

California Housing Finance Agency
Loan Servicing / Loss Mitigation
1040 Riverside Pkwy, Suite 110
West Sacramento, CA 95605-1522
You can also Fax the package to us at: 916-326-6423
IMPORTANT NOTICE
Please send a complete package with a valid offer on the property and all
other required documents. The package cannot be reviewed until it is
complete.
If we receive a package that does not include a valid offer it will be
returned to you. If we receive a package with three or more required
items missing we will return the entire package to you and ask that you
resubmit when you have everything.
It will take approximately 45 days to review your package and evaluate
your eligibility for a possible Short Sale. While your package is being
reviewed, other actions relating to any loan delinquency up to and
including foreclosure will continue.
If your loan is currently in the foreclosure process, a complete Short Sale
package must be received in our office not less than nineteen (19)
business days prior to the scheduled trustee sale date.
To contact CalHFA Loss Mitigation, please call:
1-877-552-4839
BORROWER FINANCIAL INFORMATION

LOAN # _________________________
email address: ______________________________________
BORROWER
CO-BORROWER
BORROWER'S NAME
SOCIAL SECURITY #
HOME PHONE #
DATE OF BIRTH
CO-BORROWER'S NAME
WORK PHONE #
SOCIAL SECURITY #
MAILING ADDRESS
Is it a rental?
Yes
No
No
Is the property listed for sale?
Yes
No
If so, what is monthly rental income?
Agent's Phone:
Have you contacted your credit counseling services for help?
Counseling Representative:
No
Counseling Rep's Phone:

Are the taxes current?
Do you pay Real Estate Taxes? (outside of mortgage payments)

Yes
WORK PHONE #
Agents Name:
If so, with whom:
Yes
HOME PHONE #
PROPERTY ADDRESS
Do you occupy the property?

Yes
DATE OF BIRTH
No
Yes
Have you filed bankruptcy?

Yes
No
If yes,
Chapter 7
Chapter 13
Filing Date:
No
Attorney's Name:
Are there other liens on the property?

Yes
Attorney's Phone:
No
EMPLOYMENT
EMPLOYER: BORROWER
HOW LONG?
EMPLOYER: CO-BORROWER
Monthly Income - Borrower
HOW LONG?
Monthly Income Co-Borrower
Wages
Wages
Unemployment Income
Unemployment Income
Child Support / Alimony
Child Support / Alimony
Disability Income
Disability Income
Rents Received
Rents Received
Other (Please Specify)
Other (Please specify)
Less Federal and State Tax, FICA
Less Federal and State Tax, FICA
Less Other Deductions (401K, etc.)
Less Other Deductions (401K, etc.)

Total
$
Total
Monthly Expenses
Assets
Other Mortgages / Liens
HOA Dues (If any)
Home
Auto Loan(s)
Other Real Estate
Auto Expenses / Insurance
Checking Account(s)
Credit Cards / Installment Loan(s)
Savings
Health Insurance
Money Market
Medical
Cars
Child Care / Support / Alimony
IRA / Keogh Accounts
Food / Spending Money
401K /ESPO Accounts
Water / Sewer / Utilities / Phone
Stocks / Bonds / CDs
Other (Please Specify)
Other (Please specify)
Total
Type
Estimated Value
$
#
$
#
Total
* Please briefly explain your hardship or reason for being delinquent:
"I agree as follows: My lender may discuss, obtain and share information about my mortgage and personal financial sitiuation with third parties such as purchasers, real estate brokers, insurers, financial
institutions, creditors and credit bureaus. Discussions and negotiations of a possible foreclosure alternative will not constitute a waiver of or a defense to my lender's right to commence or continue any
foreclosure or other collection action, and an alternative to foreclosure will be provided only if an agreement has been approved in writing by my lender. The information herein is an accurate statement of
my financial status."
Submitted this _______________________________ day of _____________________________________________________

By ___________________________________________________________ Date ___________________________________
Signature of Borrower
By ___________________________________________________________ Date ___________________________________
Signature of Borrower
Before mailing, make sure you have signed and dated the form and attach a copy of your most recent paystubs and bank statement(s) of your checking and/or savings account to it.

1040 Riverside Pkwy, Suite 110
Call Toll Free: 877.552.4839
LETTER OF HARDSHIP
On the following lines, briefly describe your hardship and current financial situation.
Please be as accurate as possible so we can better assist you.
Date: _______________________
CalHFA Loan Number: __________________
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
Sincerely,
(Borrower signature) ________________________________
(Please print) ______________________________________
(Co-borrower signature) ______________________________
(Please print) _______________________________________
CalHFA Borrower Authorization to Obtain Information
RE: CalHFA LOAN #
I/We,
and
give my/our permission to
California Housing Finance agency and/or the mortgage insurer to order an Appraisal/Brokers Price Opinion,
Credit Report, and/or an interior Property Inspection.
BORROWERS SIGNATURE
DATE
BORROWERS NAME (PLEASE PRINT)
CO-BORROWERS SIGNATURE
DATE
CO-BORROWERS NAME (PLEASE PRINT)
PROPERTY ADDRESS:
Number and Street
City
LOAN SERVICING
State
Zip
Revised: 08/19/2009

Things to make your Short Sale process go smoothly

Remember, there is no guarantee that your Short Sale request will be approved. Each
request is processed with close consideration to your hardship and the specific financial
information provided. Regardless of whether your request is approved or not, here are
some things that can help to move your short sale request through the process
smoothly:
We must have a complete package. You should already have the list of
items required. If not, the list is available on our website at:
www.calhfa.ca.gov/myaccount/
It is best to submit all items at once. If we only have some of the items,
we have to hold the file until we have everything. If we receive a package
with three or more required items missing, we will return the entire
package to you and ask that you resubmit when you have everything.
We will always need your latest pay stubs and bank statements. If time
passes and we have not yet completed your review, we will need your
next month of pay stubs and complete bank statements to complete your
package. When we send a package forward for consideration, it must
always contain the latest pay information and bank statements.
Bank statements must be complete. We need all the pages. It needs to

be an official bank statement like you would receive from your bank by
mail. The statement should show your name and address.
Tax returns must be your complete return for all borrowers and must be
the entire return including all schedules, attachments and W2s.
Please call us Toll Free at 877-552-4839 if you have questions,
December 23'd, 2011

Attn: CalHFA - Loan Servicing/Loss Mitigation
RE:Kyl~
CaIHFA Loan #022472-3
5020 A Street, Sacramento, CA 95819
Attached please find documentation to support the request for approval for a short sale on the above mentioned home.
The package includes:
3'd person authorization letter signed by borrower
Borrower Financial Information Form
Letter of Hardship and proof of hardship document from UCLA medical center
PayStubs for October and November 20 II
Federal Tax Returns for 2009 and 2010
Two months bank statements for checking, savings, and current retirement account balance.
Listing agreement and current MLS
Purchase offer signed by buyer and seller
Estimated HUD
Current preliminary title report
Broker Price Opinion dated 12/22/11, with photos of property and comparables.
Please let us know if we need to provide anything else for this request to be approved.
Thank you,
1Pffi~
Kelli Boehm
Ramsey Real Estate Group
kelli@ramseyrealestategroup.com
Cell 916-947-9814
Fax 916-760-0575
CalHFA Loan# 022472-3
1 of 130
aa
Borrower: Kyll ..
e. . . . . .
December 14th , 2001

To Whom It May Concern,
I, Kyle
give my permission for CalHFA to
discuss my loan #022472-3, or any account associated with

the property at 5020 A Street, Sacramento, CA 95819, with
Daniel Ray Ramsey Jr. and any employee of Ramsey Real.
Estate & Development Corporation.
Sincerely,
Kyle
SS#
Kelli Boehm
Daniel Ramsey
kelli@ramseyrealestategroup.com
reo@ramseyrealestategroup.com
0011916-947-9814
Ramsey Real Estate Group
759 47th Street
Sacramento CA 95819
office 916-737-5656
fax 916-760-0575
2 of 130
Borrower: Kyle_._ _
IXl No
you
DVes
EJNo
I2Yes
ONo
ONo
Attorney's Phone:
Care I
spet:ify)
o
Please
on the property does not cover the expenses for the property - see hardship letter
; I
waiver of or a defense to my lender's right to commence or continue any

in writing by my lender. The information herein is an accurate statement of
ill
3 of 130
Borrower: Kyle
Attn: California Housing Finance Agency

1040 Riverside Parkway, Suite 11 0
December 21, 2011
RE: CalHFA Loan # 022472-3 / /
/ / LETTER OF HARDSHIP
Dear Cal HFA Loan Servicing,

This letter is written to explain my current financial situation and the approval of a
short sale of my property at 5020 A Street, Sacramento, CA 95819. Due to my
degenerative medical condition I was forced to change jobs and move locations, and
the rental income does not cover the mortgage expense.
I was diagnosed with a disease called Friedreich's ataxia (FA) at age 17. FA is a
degenerative, life-shortening neuromuscular disease. The degeneration of my
condition has forced me to change jobs, which has forced a move to Pennsylvania.
Previously, I had a job as a civil engineer at a firm in Sacramento. My job required
me to be in the field the majority of the time. The progression of my disease made it
unsafe for me to perform my job responsibilities. I now work for an organization
called the Friedreich's Ataxia Research Alliance which is based in Pennsylvania.
I have stayed current with my mortgage payments since the mortgage began in
2005 but now with the relocation, I am unable to meet my financial obligations in
relation to this property. Enclosed are documents for the past 2 months to explain
the financial situation I am currently going through. As you can see, if this offer is
not accepted I will not be able to meet any of my financial obligations.
I am embarrassed that I am in this current situation and would like to avoid further
financial difficulties of continuing negative credit and mounting financial
obligations.
Enclosed is proof of my medical condition, and a complete short sale package.
Thank you for your time and consideration.
Sincerely,
Kyle
4 of 130
Borrower: Kyl .... . . . .

.
UCLA Medical Q:.nleIC
Outpatient Consultation
NEUROLOGICAL SERVICES
FriQay. March 10. 2000
Date of Service:
Clinical History: Kyle

is an 18-year-old student. seen in Neurologic Consultation at the rql!est of
Dr. Geraghty for a second opinion on management ot Fliedreich's alaxla
Around the age of 13. the. patient notoo onset. while plaYing baseb.aII. of difficulty catching and throwing.
Around the same\ime. he note;:i very mild difflcuJty walking down stairs. Over the inteFllening yealS. he
has had very gradually progressi'#e problems with balance. Functionally. he is still able to ski and piay
other sports .although he notes that he is not as good at them as he used IQ be. One of the early
symptoms was spontaneous attacks of shiveJing mille body that were conceived of ,as "tremors."
Recenlly these have not been occurring. Tilers has also been slight tremor of the hands with action, most
notable when 1I1e patient is tlred, allhough again Illis is nol as prominentas Ihe balance problems.
This patient has had extensive testing for diagnosis of thls condiUon. According to the palient andfam~y.
vitamin E levels. electrocardiography. and echocaro!O!Jfam were.aU obtained and were normal. I have
asked the patient to have these-records forwarded to me so that they may be reviewed. Genellc tesling
performed bY.Ath!laon 12103/99 conlimled that the patient is homozygous for the G-A-A mutation
commonly associated wElh F,eKlrerch's ataxia. On the two anneafs.1l1e patient showed 777 and 454 G-A-
. -
A~.
Previous to this genetic tesllng, the patient had. numerous other diagnoslk; !ElS!s. ViSual evak.ed response
testing on 09122199 was within normal limits. and EMG and nelVe ronduc1lon study on 09127199 oflhe
righllower extremity showed no signs of peripheral neuropathy. "A somatosensory evokoo response test
of llle. posterior tibial nerves bilateraUy revealed absence o.f Ctttical peaks with slimulation of the left
posterior tibial neIVe. Testing for very loogchain fatly acids and phytanlc acid 0." 09129199 were within
norrnal.liml1s. On fhg same dale, cerulo.plasmln was SO (normal2.5-tl3). On 07!15199. a panel otother
genetic tesls for alaxlas-, Including analysis f mutatlonsassoclated with SCA_1, SCA-2.. SCA-3, SCA-tl.
and SCA-? were all negatiVe.
Past M.edlcal History: otherwiSe unremarkable.
Medications: For Ina past few. days. the patient
has been taking a combiflation of acelyl-L-cysleine
2 grams p.o. bJ.d . CoEnzyme Ql0 30 mg p.o.I>.i.d magnesium 50 mg p.o. q.d" and selenIUm.
Drug Allergies: None.
HOSpilaUzatlol'ls And Operations: Appendeclomy In 1.992.
[;"Ijuries: Sroken Ihumb. j
9SS. Br!lken wI'lst. 1994.
Sodal History; Noncontributory. The paRent is astu<lefll

FamHy History; Noncontributory.
Review Of Neurologic S.ystems: t</oncootributofl/ ElO(cept as nolelj OOove.
COMPlETE REVIEW OF 14 SYSTEMS;. (Obtained by questl0l1l1alre and reviewed by Dr. Whilrnan)
NO!1:contrlbutory.
Physlcal examination: The patient was, a pJeasant. heallhy-appearing young man In.oo distress.
Mental Statlls Ex!.m~;atio,,:."rhe patient was alert, attentive, with nonnal concentatkln and able to gwe
a clear history. Thera was a 1l1nt of scaMlng speech allhaugh this was by no means obv'aus. There was
Outpatient Consultallon
~J;~~~~!!!5~;:__~::::::::::::::::::::::::=-=-=-:::::N:EU:R~O:~:OG:;I~:;:SERV:;;~;;Es
S'~1o!'3:
Ca
Lu,,,,.. e2-2472-3-
CalHFA Loan# 0224723
.' - - - - - -.
5 of 130
UCLA M.edical Center
no ellidenoe of a laoguage disorcf8J".

Craoial OaNes: Visual i;elds Wf!re full to oonfronlalioo Wrthollt extinctloo. Funduscopic examination
(UndUaled) was uoremaTkable:. PupilS were equal, round and reactive to light, without afferent pupillary
defeCt Saocades wete bnsk and accurate. Smooth pursuit was full and conjUgate, Without spontaneous
or gaze..evoked nyslagmus. Facial sensation, symmeb:y and strengtl! were within normaillmlls. Palatal
elevaaon, phonal/OIl, shouklershrug, and tongue wefe all oonnal.
Motor examination: T~ere was no pronator drift Floe tlng8J" movements were very mildly slowed, more so
on 'the left. Rapid ,alternating movements were perfomled less well with tile left hand. On linger-nosefInger leslIng, there were very mild Inaccuracies bull10 frank iotenOOn tremor. There was an inconsistenl
bilateral action tremor tIlat was not mudlJ more lhan physiological. Muscle bulk. tone and. strength wer,B
Within normal limits. Deep tendon reflexes were absen!. The patient was able to sland with his feet
logelher, although 'in the Romberg position, there was moderate sway. Casual gait as well as heel and
toe walking were normal. AJlholighthe patlentwas able to walk in tandem. he had more difficulty doing
this than expected for age. Toes were down.
Sensory e><am ination: Th.ere was no obvious deficit of-tactile sensation or joint J>O$ifkJn sense.
Inaddilion lo tt~a above tests, the patient had a bran MRl on 00/18199. This was said to be unremarkable.
However. there was a T2 Jjypeririteflsity in the region of the right petrous ape>< which was said fa possibJy
represent "jn!!ammatory disease will1in a pneumatized petrous apex.' I have askadlhe patient to hal/e
these films forwarded to me so that I may relliew them personally.
Summary; Eighteen-year-old young man who, presents wllh at least a 5 year history of a very graduaUy
progressive dislurbanceof balance arid. to a lesser degree. appendicular coordination. 00 e><aminalion,
there ar:e mild abnormalilies Of posture and eooroinallon. as well as areflexia. I agreelhat these Signs.
symptoms and genetfc testiog are mos!. consistent with ai diagnosis of FreidreidlJ's ataiXla.
AltIloughtllere is no specific !realmenl tllat is highly effective for this disoo::ler.l have reCOmmernied a
combination of supplements that has been effective in reducing symptoms of ataxia in some palients. I
have recommended lhat lhe pallent switch to the buffered liquid formulation (If N-acelylcysteine 1 gram
per 5 cc of buffered solullonat a ,dose of apjlroxlmalely 60 mg/kg/day. divided In 3 doses. For
convenience, J recommended that !he patient sIart with 1000 mg p.O'. t.t<l. and' this dose may be adjusted
depending on !he response an.d any side effects. Additionally, I agree with confinootioll of the,
CoEnzyme Q10 arn:! selenium, and malJOesium. If this palient were to develop signs of cardiac disease.
then one could certainly (lollSidertreallng Wilh laebenone. A clin icallrial of ldebenane in patients willi
Freidretch's ataxia may be initiated at some point in lhe next year. As I menlIoned, I halle asked the
patient to send medi;;ai records regarding the electrocardiogram and echocardlogfam to confirm Ihe
absence of evident cardiac disease: The jlalient was encouraged to' remain active, safely pursuing
activ~ies !hat challenge his balance and build muscle strength. The pa!1ent is to followup In Neurology
Clinic With Dr. Periman.
GregoryWh11man, M.D. (P179sa)

Electronically signed (Sun Mar 1218:31:25 PST 2000)
M05 checksum: Mcac08b1 Oab82a43ae3d32261 9611 ef
Oillpal....t consul~lIon
NEUROLOGICAl SERVJCES
6of130
Borrower: Kylj
UClA Meilioal Center
Dr. John Geraghty

11720 Education Street, Suite 3
Auburn. CA 95S02
Phone 53O-aZ3-3407
Kyle j
23190 Broadmore Court
Auburn. CA 956{)3
Phone._ __
Susan Perlman, M.D.{P06339}

UCLA Neurclogical Services
Gl1egory Whitman, M.D.(P1796S)

UCLA Neurological Services
(3\D) 1'1tj.-ll~S
Ok,::t,ted~3If.or..::aoo 1~:2;!'
Outpalient Consll/!aliOll
, sy: Gt'I!QCtYWhi~ iM.D. r(P179BS)
NEURot~CALse~cES
Ref~ntfitrber.: M1-439135
TQtlsa1bed::3I'1112COO f~e:
By: 1RO:ROf063
ReIere:=ce~iJCA3.'i1'rr,Pfi3
...
'
R=t'iClt. ::3T'I 'Ji2OOQ 12:57
J30.rfOw.e.t- ~'
CalHFA loan#02247-2-3 ,-, -- ' - - - - - -----CalHFA Loan# 0224723
7 of 130
Borrower: Kyle '
,
'~-Jv~
State of California
Ca I BFA S" California Housing Finance Agency
CalHFA Borrower Authorization to Obtain Information
RE: CalHFA LOAN-#
022472-~
,
l!We,
Kyle
and _ _ _ _ _ _ _ _ _ _ _ _ _ give my/our permission to
California Housing Finance agency and/or the mortgage insurer to order an Appraisal/Brokers Price Opinion,
Credit Report, and/or an interior Property Inspection.
12/21/2011
BORROWER'S SIGNATURE
DATE
B6~~J2WER'S NAME (PLEASE PRINT)
CO-BORROWER'S SIGNATURE
DATE
CO-BORROWER'S NAME (PLEASE PRINT)
PROPERTY ADDRESS:
5020 A Street
Number and Street

Sacramento
City
CA
95819
State
Zip
.. ~
LOAN SERVICING
.~
".III!II.
Revised: 08/19/2009
8 of 130
Borrower: Kyle
~(>jKl4
0026 004S.LODS FtiooreithaAtaxia ReaearchAt
:;:
g
iil,
PAYROLL JOURNAL
Payrolls by Payellex, Inc.
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yle
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EMPlOYEE TOTALI
5.208]3"
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Soci.1 SecU/ity
Medloare
Fed Income 1ax

PA Income Tax
PA Unamploy
PA LST52 DIS L
PA UWCHl.Che
512E_~t~;1._~_~,. ~~.L ~ ...__ ,__.
218171[pjA DEN POST

7515:
935i4'
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11/01111 ~ 1 ~J.10f11
P'mo I ut 'J.
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KYLE~
WTOTHE
9402. smn:iEL RIDGE

NORRISTOWN PA 194()3
ORDER Of
VOID THIS IS !lOT A CHECK _ . _.... _ . _. _. _ _. _. _ .. _. _ .. _. IJOLLARS
.. *NON.NEGOTIABLE"*
~
____________________________________________________________________________________
~Mm==~IO~"~~~s~~~'~==RE~W~!
_____________
.
~
~~. __ J.!~~~CI!.~~~~~.~_~.~~~~~~_~.~l!~,~,~~.~~~n".!~_~~~"~8I!:~~o.rmn.D,.r~"~ ___;

;:.; FOLD AND REMOVE
---""-'----,CHECK INFOR!lllATlEON
~
P~AND
FOUt ANO
Aa.,oVE
~; ~--
E..\RH,NGS ... - "ESCRip;;oN - - HRsiijr-liiS - --w,rrTHIS PERiOO(SI YroiiOURS "..... - -\7orsi ...
",
K)'I.~
9402 Sentinel Rh$ge

NQmstowt'J. PA 19403-
5208.33
THIS PIORIOO is!
Soc Soc #: xxx~xx-1532 Employe-e ID: 10

Home Oepartment: 150 Moothly
Social SlZlcun-ly
Mect:icare
FOO Income Tax
Pay Period: 10101/11 to 10131111

Chock Dale: 10!31'11 Check #; 11e:8
NET PAY AlLOCATIONS
I
DESCRJPTlON
THIS PMIOD lSI
)'1l) ($) :
Cnedt Amount
0.00
3732.15
3732.15
~I
Chkgl831
NET PAY
4.11
2187.00
755.20
9354.20
1,99.00
41.70
4.34
52.00
520.00
PtA DEN POST T
26.00
130.00
TOTAl
2a:oo
130.00
sa
PA lOCOOlO Tax
PA Uo","pioy
PAlSi52lSi
PA UWCHlChe I
43.4!I
0.00 .
37451.50 ; DEDUC'nOHS
7rtiS PERIOD (S)
HETPAY
PayrollsbY Ps"Che,,:;;;;"
216.15
75.52
935.42
159.00
.. -- . --- ....
37$2.15
YTOIS)
37451.50
"
0026 0045-L0Q6. FrJeeichs. AlaxIa Research AI a 523 Wasl Uwchlan Avenue- Oownlngtown PA 19335 (4S4) B1~015
10 of 130
Borrower: Kyle t
DEC-21-2011 15:21 From:PAYSERV
Form
1040
Name,
Address,
IlndSSN
6105243253
Department of 1he TI'W&IIY ". JnktrN!l Rov~$eNice
."
Kyle
11.- JOlnl re:tum,
See separate
instructions.
2010
US
I d"IVI"dUall"COme Tax Return
"
For the.,.r Jan 1 Dec 31. 2010, "other lax _ ileginn;;--'"
Yaur fir:l;t f1::.me
~'9.
firs.t narne!l
'.
1
Z
:1
Filing Status
Check only
ExemplioltS
'iEIoIf
inlitruCti(,~.
--,
.... ,.
__
.....
"'ZiP-~
S....
-,' "
"
(2) ~ondont'S
socia security
Attach Fonn(,)
W2 h.rt, AbO
_Fo...
W2G and 1099R
iftB was withheld.
If jIlU did not
gel' W-Z,
soo instruetions.
Enclose, but do
not attach, any
payment. Also,
~I"'" use
."" 100000V_
Adjusted
Gross
Incomll
change your tax or refund,
d\~d a,1~
~m&
tor
~"r
to you
l.ast name
_..-...........
"'.-'
. , . . ..
, "
b Tax-exompt interest. Do not include on line Sa

911 Ordinary dividends, Attach Schedule B 11 reql.J!rId ..
b OuallTlea dividendo ....... . . . . . . . . . . ........
."
"
..
" .
.... .. "._ ...
"
...
I sbl
.... ....
with you
64W1kJI.
'~'--"-'
L~~t ~.:~~:
live
t:..~
.. _.
:.::-..::
...... :n~ .......1

s.
46:..-
....... ".. ".-.!!!. -".'_.

1 325.
10
11
.!.~".
,,0
13
I--,--~--.- .-~
14
15a IRA dlstrinutions .. , ......... \
~bTa)o!able amount. ..... .' .... 15b
..... 16b
16a Pensions and arlnUtlles. ,." 16~
bTaxable aITIount. . "
17 Rental real estate, ro'yalties~ partnerShips. S corporations, trustsr etc. Attadl Schedule E .. 17
.,. . .
18 Farm rn('..6mo a( Ooss). Attach Schedule F
"
. . . . . . . . . .. . .
: .....
19
Jb'T~~I~'~o~r~t:::::: ...... lOb

200S""ial,acurily",",efits '"'' '''' 2001
21
21 Other Income
22 Combine the amoUnts in the'far ~iant-txiumnfoflint$ 7-thJOUiihl~ihis-li"yQiirlllbii~-. ~.-:. ~. ~. ~ .~: .--... 22
........
23 Educator oxpenses .. .....
.'."-
,!
24 Certain
busine~s .expenses of reservists, perf{)t'm~
artists, and 'foo-Qasis
gOY\lmment Off~I,I$, Aitaeh ~orm 2106 or 2106, .." .. ' , . "

25 Health sawngs account deduction. Attach rorm 8889 ....
.....
Z6 Moving expenses. Attach Form 3903
Z7 Ono-half of seltemployment lax . Attach Schedul. SE ,
26 Self. employed SE"P, SIMPLE", and qualified plans."" ,
29 Selfemployed health in::;urance deduction .. .. " .
...........
311 Penatty on early WIthdrawal of savirags .
.
3l.a Alimony ptlid b Recipient's SSN ......
............. .. .... 18
19 Unemploym.!l'lt compensation .........
Z3"
It
55 500.
, "
10 Taxable retunds r credits. or offsets of s~te and local income taxes ..... ...... , " .. , .
.....
. ........ . ....
11 Alimony received ..... ... .. . - . - " " " .....
"
... . . . .. . . .. . .
12 Busrness income or Ooss). Attach Schedule C or C-EZ .
13 Capillil gain or (los.). All Soh 0 rC<t<!. nn(It reqd, ok here . , ' , , , . . . . . . . . . . . . . ...
14 Other gains or (loss,",). Alta"" Foom 4797 " , , , ..... , .. ....
lSlI\
NIl
....' . " ' - - -
& 111M!
.,IIV.d
.- ' ["1-' ='::''"'
.-.~.,"-'''''
,-,
i~)
iOf)
~-.,
.... _
ott
. --"'n dllelflcn:..
-,-_ ..,
d Tatal ;;~;;b;( 01 exemptions claimed " " ' - - .... "

7 Wages, salaries, tips) etc, Attach Form(s) W2
s. TlOOIble inter..t Attacll Sch.Qule S It requrred , . "
0 You LJ Spouse
.... -..... 'l"~' =a~ .... _ _

1
relagonship
If more than four
are correct
O<cking a box I>olow Will not
.(3) D~ '~~~~~t'~:: :.: ;.~(~
"
,-
Income
...._.-" ..
number
check here .....
. . Qbave and on tine PC
Head ot household (With qualifying person), (So.

Instructions.) It th. quallly'''9 pal""" IS a ""rid
but not your dependent, enter 1his child's
name here ...
Qualifying wi";;(;) With deper1dent child
Marned fIlmq sepalately. Enter spouse's SSN above & fun
Dopon<fom.:
depondenls, see
instructions and
5p01l:~.
Mako sure the SSN(s)
Ap.;utment nO.
PA 19403
Mamed filing "lntly(.... ~ only"", had i"""""')
in ttu5
SpaMe'&S('Idai.-u,ny .1Imber
Single
Q) Flrst...I].~.~.
~bple
OMB No, 1545.Q074
liHit ~"""
Ridae
' ' "
MI
,am. her. , ..
5 0
68 ~ Yourself,. tf someone can claim you as a dependent. de) rd check box 6a
bOS_,," .. ......... " .
.... - .. - . .._- ..
one box.
CD not WrtIe or
Your .adal MtUtfty DIHtlb&r
Norristown
~ Check here If you, or your 'PO'" ~ filing jOintly, wanl $310 go to IhlS fund?
Eloction
c.mpaign
lAS U2!! QnIy -
laett\O.m6
City, town or pOSI ottle!!!. U you h&wt a foreign addf1!J6S. ~ imtnlctiorrs.
P",sidontiol
(99)
,2010, 'i".i!~I1._., __ ~.",,_ ,,20
MI
Home;lrddrer.t:, (r'lUl'rltk!l~ and !l.1:NIe1). If yoo have a PO. 00)(,
9402 Sentinel
To:Kelli
56 87l.
I I " , , "..
24
.,-,#,,-- ,- . . , . _ -
25
26
-"iT
.__ ..
26
1 405.
-----_.. .........
,
29
_._,.,._!]31.
li'
............
S2 IRA ~.<lUcDon
...... . '" .. 33
33 Student loan interest deductJOIi . , .
34
34 TUition and ta .., Attach Form 8911." .......
55
35 Domestic production: activities del,ICtion. Attach form aocJ3 ,. ,.
36 Add lines 23 - 31 a and 32 35
................
ThiS is ,our adlust~~~ i;';';'~
~ Sub~nct line 35 from line
.
FDf,AOl1l
BAA For I)l$cIosuro~ PnvlllCY Act, end Peperwork ReduetfOl1 Ad: NotIce; sec scpztnIle Instrudi0n5.
,._----
22.
CalHFA Loan# 022472"3
::. ,.
11of130
.. m
36
1212211D
1, 405.
:;~,46G:
Fonn 1040 (2010)
1111
Borrower: Kyle
DEC-21-2011 15:21 From:PRYSERV
6105243253
TQ:Kelli
P.2/27
Form
39~ Check
D
.
gross
Blind, T<>\.I bo_

It
Spouse was born before January 2, 1946,
Blind. checked ~
b If YOl,lr spouse itelTllzes on <1 separate return, or you lNel'e a dl,l~l-smtus alien, check here.
. ....
40 itemized d$ductlons {from Schedulo A} or your ~"mllrd dtduc:tlon (see Instructions) .
41 Subtract lin~ 40 from line 38
You were born before January 2, 1946,
--'-L.-.J
42 Exomptions. Multiply $3,600 by the Tiumbor on line 6d .
43 T.. ,~10 Inc..... Subtraclii,. mram line 41.

If Iino 42 is more than Imll 41, I)q\(ll -0- ... _. _.
44 T.. (see instrs). Check il any taX is from:
. ........ _. _....... .
BFOrm(S) 8814
form 49n ....

'1!i Altomotive minimum tox ($ee 'n.truenans). Att.ch rOrm 6251
46 Add linas <14 and 45 ..
. ....... .
47 Foreign tax credit. Attach Form 1116 if required ,.
r-4;:7c-+_ _ _ _~. __1
46 Credil for child and de~ndenl O3r. expon..,. Atlach rorm 2441
49 EducatJon crodits from Form 8863, line 23 ...
50
Retirement .saVltv.;;; contributions creQit. Attach Form 9880 .
51 Child tax credit (see instructions) ...

5Z
Residential energy credits. Attach Form 5695 ..
53 other en _om FOrm: 0

3800 b
8801 C U_,,-__ ,..._L=..J...._ _ _ _ _ _-!
54 Add lines 41 througll 53. These are your total
_ _ ,.,, _ _ _-.:;$=-.;:S~U;o:btr!!ct line 54 from li"""~-,::!=-,54=is~",,-:,, ~l2!.!.=='-"=~:,.: .:.:~,~-'-=-'-"=:+_=+----'~~o!..!.

Other
56 Self'''''ploymenl IlD. Attach SChedule
.. .. . " ..
Taxes
51 Unreported ""ial ""urily.nd Medicarelaxfrcrn Form: e
b
&919 ...
58 Addition.al tax on lRAs, other Ql,lalificrl retirement plans, ~to. Attach F'0IlTI 5329 if {1lQ,\,Liled , . . . . . .
Form(s) W2, box 9
b
Schouul. H
c
Form 540~. line 16.
Add i
I
Om)
59.0
Payments
tax withheld
62 2010 es1tmated tax paymonts and amount applied from 2000 return
!f you hciVe'"aL.. 63 Making work pay credit. Attach Schedule M

64. Eamod incomo cre<llt (Ele) ....
child, attach
I
b Nontaxable combat pay election.
Schedule EIC. I
65 Additional child I.x credit. Attach
66 American opportunity credit from Form 8863, line 14 .
qualifying
67
68
69
70
Firsttime horn~buyer credit from Form 5405, line 10

Amount paid with request for extension to file .
E.xcess $OCi~1 security and tier 1 RRTA tax withheld
Credit for federaj tax on fuels. AttaC!1 Form 413G
71
Qedit' from Rlrm: ,
D 2439
0 8839
0 88~1
08885
is the amount )'OlI 0IHlIp2ht .
Refund
If Form 8888 is attached, checK here .....
deposit?
See instructions.
Direct
Third Party
Designee
Sign
Here
Joint return?
See instructions.
Do you want tQ aUow another person to discu!>!> this retuJn with tile IRS (see instructions)?
SaVings
Yes. Complete belOw,
UmleI" ee-na/tioeo!i. of PQlj.lry. t &,dare that I hlil'! exmMd thit. f\9lL1m:;.n<;l ;EtOtnpanyino &dt1Jdu1o!i 0Ind "t::ItI!!Jt\eI\1S, and b;I tI1~ best of tl'lY knowlil!dQ6 and
ooli,*, O>cy:iM true, comd", ..00 ~omplete.. ~ of pt'I'ltl~ (othor Ihoan t;1lI;~" is ba6&d on alllnfDmllltion af which pf"OQiIrtf h;r,!il :lny ki'low/&dg&.
Cb~
Yot.l( signatuN)l
phontl' number
~~~~~i~~~~~~~;'~I~~"~.------I~~--li~~~~~--'--1---------------
Paid
Pre parer's
Use Oldy
F""",
FDrAOH;?
12122110
12of130
IS. . . . .
Borrower: Kyl. .
6105243253
SCHEDULE A
Itemized Deduc;;tions
(Form 1040)
2010
~
MeIII",,1
and
Dentol
El<ponsos
To:Kelli
.. S.., Instructions lor Schedulo A
AItIlch to Fonn 1040.
CauUon. Do not include expenses rOlmoursed or paid by others,

1 Mechcal and dental expenses (see InstruCtions) ,
2 Enter amount from FOf" lQ.1~ lin.311 ..... IL-'2'--l1______
3 Multiply line 2 by 7.5% (.075)
................ .
J. . '" . . "
5 State aM local (check only one box):

ZI ~ Income taxes, or
Tues You
P.zIIid
f)
UGeneral sales taxes
Real e:>lato taxes (see instructions) ,
........... .
7 Ne'w I"rlDWr lfehJcle taxes from line 11 of the works~eet on page 2 (fof certain
vehicl" purchased in (009). Skip th" line if l"U chookod box 5b .....
8 Other ta,es. List type and amount ,.
Imol'<l$l
You Paid
'0 Home mtg Interest and points reported to you on Form

11
Home mortgage Interest nol n~p(lrted ta you on Form 1093. If pa~d to the person
from wnom you bought the home, see instructions and show that person's name,
Identifying number, 'Ind address ~
1.2
Pomts not reported to you on Form 1098. See inrtrs for spcl rules _.
"<>1o.
Your mor~,ge
interest
deduction may
be IImired (see
mstrs).
13 Mortgage insurance premiums (see instructions) .

14 Investrrlerlt U"lterest. Atta~h form 4952 if required.
(Soe i'strs.) .
15 Add Ilnes 10
Gifts to
gol: a benefit
for it, see
Instructions.
15
14 .
l7
~36.
16 Gifts by cash or eIleck. If you made MY gift of
Charity
If you made
a gift and
. ................... .
moro, see instrs .
l ' Other than by cash or chock. If any gift of $250 Qr
more, see instru.ctions,

Over $500
must :attach Form 8283 if

......... .
YO\)
18 Carryover from prior yeS!
Cos.olly and
TheftL.......
Job Expo""""
Coi1ai n
21
Unreimbursed employee expenses - job travel, union dues,
and
JOb education, etc. Attach Form 2106 or
MiscDllllneous
required. (See instructions.)
Deductions
2106~EZ
if
..
--- - - -- -- -- - ., ,. " .. - - --- -- - - -- - -- - f-."-c-i----,,----I
22 Tax preparation fees .

23 Other expenses - Investment, safe deposit box1 etc. List
type and amount
_________ ... , ...... ~.~ _____ _
-- - .....,-- -- -- ------- ---- --... - - - --- -:=-+-----1
24 Add lines 21 through 23
25 Enter ,mount from Form loJ, line Sg ..... 1_25=-'-_ _ _ _ __

26 Multiply line 25 by 2% (.02)
I
i
Other
28 Other - from list in instructions. List type and amount
Ii>-
Misco1hmcous
Deduction~
Tol.aI
29 ~AdC! the amounts in the far right column for lines 4 through 28.
Also, enter this amount on Form 1040. line 40
nemlzed
Deduc1iOnG
30
elect to itemize deductions even though they are less than your standard
BAA for- Papentlori< Reduction Ad Noti..., .... fonn 1040 i_Ions.

f0lA0301
13 of 130
12121110
Schedule Po (Form 1040) 2010
llllillt
Borrower: Kyl......
Form
6105243253
To:Kelli
Moving Expenses
3903
~
Before you begin:
-_.
'W""Se~
~See
"
1 Transportntion
2010
Attach to F0I1l11041l or r ..... 104llNR.
the Di~ Test and Time Test in the instructions to find out if
Members of the..Armw Forces in the Inslructions, If a~pJicable
you can deduct your mOVing expEtnses.
..
"
...... - . " ._- .....
and storage of household goods and personal effects (see: ins1ructi()\')$)
550.
, ...
855.
. .....
. ......
... - ..
2 Travel (including lodging) from your old home to your new home (see instrucbons). Do not include \he
costofrneals
........ ,' ........
3 Add lirlas. 1 and 2 .
I' . ',
.. ......
..
...... ..
- - P . . . . . . . . . . . .. . . . .
4 Enter Il1I:;! total amount your
emwo~er paid
included in box 1 of your Form
r,0U
for the
exrensas listed
.._,
on lines' and 2 that
..
1,405 .
iSfc0t
- (ml.ge:;;. This amoun should be shown in box 12 of your orm W-2
5 Is line 3 more th.n line 47
o
~
No.
Yes.
You cannot deduct your mOvif1~~ense5. If line 3 is less tt'wn line 4, subtract line 3 from line 4
and include the rASult on Form
line 7, !'lr Form l040NR, line 8.
SUbtract line 4 from line 3. Er)tor the result here and
line 26. Tni,I,Ye"r mov'""
011
rorm
1040, line 26. or Form 1040NR.
do<!udIon ............. "'.'.' .................. ' "
BAA For Paperwork Reduction Act Notice, " " yOW! Wt mum ...Iruction$.
FPlAJrol
CalHFA Loan# 022472.3
1 405 ..
Form 3lI03 (20 10)
06/lSl10
14 of 130
Borrower: Kyle. . . . .L"tt
DEC-21-2011 15:22 From:PAY5ERU
6105243253
To:Kelli
SCHEDULEM
OMS No 1545.0074
Making Work Pay Credit
(form 1040A or 1()4()

D~1'Imen1
of the T~ry
Irite-mal R@'ienueSeNiC';t
Namll~)
2010
.. AltlIch to Form 1040A or 1040.
(99)
Atmeh'T'llnt
Seq~t'lca No.
166
rohown on relult'l
--.l!!!I!!!!!!!I!.,II!!I.L___
Kyl'"
Caution:
To t4lke the making work pay credit, you must inolucJe your sociaJ ~urity nurhbeT (,f filing a joint return, the number of either you or
your spouse) on your tax lelurn A SDCia/ securiry number does not include an identifICatIOn number issued by the fRS Only the
Social Secf1n~y Administration ISSues saciaf secunty numbers.
OtutiQn:
You cannot take tht; making work pay credit if you
c~t)
be claimed as someone else's dependent or ifY0I,J are a nonresJdent 'f)/icn.

,.~
tmportant: Check the 'No' box on line la and see the instructions Ir:
(~) You have fl net loss from 8 busm&$~;,
(b) You received a taxablC, scnolarshlp or fellowShip grant not reported on a Form W2,
(c) Your wages InCllJdo pay for work porformed while an inmlte in a penal Institution,
(d) You received a pension or annuity from a nonqualified deferred compensation plan or a nongovernmcntel
section 457 piaI'll or
(tI) You are tiling arm 2555 or 2555-EZ.
1 a 00 )IlU (and your spouse iffiling joinlly) have 2010 W"dgiS of more than 10,451
(~12.9IJ:l
IT marriol filing Jo;nlly)1
~ Yes. SkiP lines 1a through 3, Entor $400 ($800 IT married filing jOlnUy) on line 4 and go to Iina
No. Enter your earned income (see Instructions) .. .. ..
,
.".....
r-1~''t--
~.
b Nontaxable combat pay included on line la
(see insiruc~ons) .
.. .... " ' ,
2 Multiply line 1a by 6.?% (.062) .
...
l._,l.c::b,-1- - " , , " - -
.1..
.,,'
3 En10r ~4Q0 ($800 it married filing Jointly)

4 Enter the smaller of line 2 or fine 3 (unless you checked 'Yes' on line la) ,
....
...
"
5 Enter the amount from Form 1040, line 3Er', or Form 1040A, line 22 .....
55,466.
6 Cnter $75,000 ($150,000 if married filing jointly)
75,000."
400.
r2' ..,.
7 Is the amount on line 5 more than the amount on line 6"t

g] No.. Skip line 8. t::nter tne amount from line 4 on line 9 below.
Yes. Subtract line 6 from line 5
. .. .. ....
. , .....
.,,--
......

9
Subtract line 8
trom
'"
. '"
line 4. If zero or less, enter -0-
II
9
',._ 400.
10
o.
10 Did you (or your spoU$, if filing jointly) receive an economic recovery p~yment in 2010? YOl J may have
received tt)i~ peymeryt in 2010 it you did not,re90ive an eeonmic r.ecDllery payment in 2009 but you received
sacial security benefits. supplemental s;;.e!;Urlty Income, railroad retiremen~ b~n9fits. or veteran 5 disability
comp~nsation
or pension benefits In November 2008, December 2008. or January 2009 (see instructions),
~ No. Enter -0- on Iinc 10 and go to fine 11.
11
Yas. Enter the total of the payments you (and YOUr spouse, if filing jointly) recelvea in 20 10.
Do not enter more than $250 ($500 if married filing JOintly) ..... " . . ............ .
MakIng work pay t:redit. Sub1ract line 10 from line 9, If zero 01' less, enter -0-.
Form 1040, line 63; or Form l040A, line 40 .. , . . . . . . . . . . . . .. .' ... ,........ . ........ . " ....
. ".,-.
Enter the resuIt hero and on
11
,.,"
400.
"!tJf you are 1iIJng Form 2555, 2555~EZ, or 4563 or you are excludll"lg income from Puerto Rioo, see InstructiOns.
BAA For Paporwork Reduction Act Notice. $1)0 your lax mum instructions.
Schedule III (Form 1040A or 1040) 21:>10
FDlA8501
09I20Il0
15 of 130
Borrower: Kyll'
6105243253
To:Kelli
Federallnfonnation Worksheet
... Kee for
2010
recordS
Part I - Personal Intonnation
:==---
TlIXplIyer:
Spo_:
Last Name "
Last Name ............ tII!!II!II-L---First Name .

.!lI:J."'e'-_ _:::-::--____,
Middle Initial .,,. .. ,.,. .. P.
Suffix ...
Social SecuntyNo, .,' . _
First Nama
Middle lnitial ....
Suffix,
SOCial S"curily No.
Occupation ..... ,. . . . ., . ,.
_ _ _ _ _ _ (mmiad/yyyy)
Date of Birth , . ,
or Age as of 11112011 .
Occupation
. , .... ~l?Q...k:iieii5i;p~e",r",s",o",n,:---;-=___:;Date of 8irth ....... ,. . ' - " ' 9(mm/dd/yyyy)
or Age as 01 11112011
-zg--Date of death
legally blind
. ,. .
f "m~il Address. .
Date of death
Legally blind , ..
E'mall AdOrsss
WorkPhono
Ext.
Work Phone
Cell Phone ....... _ _ _ _ _ __
Cell
Home Phone.
Address
Fax Number . ., . .,.

UTaxpayerWork
L.JHome
Check to print phone number on Form 1040
Ext .
pncne.
Spouse
9402 Sentinel Ridge
, Apt No.
.. Nq:;,ristown
City ...
Work
State
ZIP ewe,
.... PA
For~lgn Country ..
~oreign
APO/f'PO/DPO <.ldc.lres..,. check jf appropriate ....
.,......
PhOOA .
. 19403
, ....... _.
............
I FpOTI'pPOD
Af'>ol
..
Part" - fede~~_F!ling Status

1
2
Single
Married filing jointly
Married tlltli(! separately

~xpaycr did not iive wiih spouse ~t anytime during the year
OT
[J i axpayer is eilglble to daim spouse's ex.emptlon (see He.ip)
0 Head of household
If the qui:lhfyil1g person is e:. chile! but not a dependent:

Child's name ,
Qu~lLfylng wldow(er)
Child's social sect.Jr11;y number ...... :::;,..,--:-:-::::-r"""'-. . , .... _. _ Year the spouse died ............. Il'- 2008'
2009
... _. _" .. __ . _.
Part 11/ :: DependentlEamed Income Credit/Child a~~,~pendent Care Credit Information

Fi,st Nama
MI
Social Security Number
C
0
Last Name
Suffix
__"r-""
E Lived with
Not
_P~t~ol~~
lIF:elationship
-~
qualified
for child
taxIT~r
In ..
tax: credit
"-T--rr-./",
~ ~T
-"n---
Education
tuition
and fees
=_T" 11-It' claiming enH!:! ether than taxpa';er's, see Re!:mOMhiD 10 He\?_
Qualified child and

dependent care
expenses Incurred
and paid In 2,010
..
-,_ ..,..-
,"'-
.-
1---'"'' "" '"
--
0
0
--T~~rr--
~ution:
.~~,.
...
..........
-,,-
Part IV - Eamed Income Credit Information

Required to calculate EIC:
y"" No
!ills taxpayer or spouse quall1ying child for E1C for flr'lother person?
~
Was taxpayer's (and .spouse's if mamed flhng jointly) home in Umted StateS'. for more than half of 2010?
Check Any that Apply:
SociafS0CUfity card says Not V~id for Employment and SSN of tho taxpayer, or spouse if' married filing jointly, was obtainod to get
rederaUy funded benefit. such as Medicaid (see Help)
Taxpayer filing as head of household Artd lived
with nonresident alien spouse (fIJring last six months 01 2010
EIC was disallowed O( reduced in pre'Yious ye.c.1r and taxpayer required
to filo Form 8862
Taxpayer nohfted by IRS that EIC cannot be cl"'med in 2010
FDlY411Z
02122111
16 of 130
Borrower:
Ky":e"'. . . . .
6105243253
To:Kelli
P.7/27
Electronic Filing InfoRtlation Worksheet
2010
.. Keep for your records

Nam.(s) Shown on Return
_.2
Ky~.,.
.. , ,.,
Declaration Control Number
Payment by Check (F"onn 1040-11) - Federal Bdanc:e Due

Date Form 1041lV was gIVen to client......
. ....... .
Electronic Retum Originator Infonnation

The ERO Information below will automatically calculate bas<!d on the preparer code entered on the
Federal Infonmation Worksheet. If the ERO is no! the same as the preparer designated on the Federal
Information Worksheet, enter a Preparer Code from the Flrm/Preparer Info to assrgn an ERO to this return.
Check
to use ERO name instead of firm
name in electronic file ana on Forms 8878, 8879, & 9325 ....
r.: irm Name
"0
Social Securrty Number or' PTIN
Individual T,ax Associat~~ _ _ _ _ _ ~

Employer Identification Number
Name
fax Number
1900 S. Ocean 1l1,V9-;.:.-,#",2"B,--:___=:-:--:-_ _ 111!1. . . .

City
State
Pompano Beach
~'L_
ZIP Code
Elec.tronic Filers Identification Number (EF!N)
3~062
Country
~nter
141325
[-mail Address
a Preparer Code from the FitrnJPreparer Info to assign a different ERO to this return. (See Help) _ __
Paid Prepare,lhfonnation
Firm N<lme
Social Security Number or PTIN
lndividual Tax Associates
..
EmplOyer Idontitication Number
Name
Phone Nurnoor
1900 $_ Ocean Blvd. #2,!!

City
Sl<1tc
Pomp,!no Beach
Country
Ii'l~
..---
ZIP Code
33062
fax Number
?Ii(
E -mati Address
If your firm is ONLY the ERO and the return being transmitted was not prepared by your firm, enler
preparer code from the Alternative Ef Preparer Information to assign a paid preparer. (See Help)
a
..
Non Paid Preparer Infonnation

If the return was prepared or reviewed through an IRS tax assistance program, self.prepared by the
taxpayer t or was prepared by another person who was not paid to prepare the return, check one of the
following boxes that applies to this return.
IRS.revieWed .
IRS'prepared .
Prepared by taxpayer or other non-paid preparer
~~-----
17 of 130
..
---
Borrower: KyIOllllls._.al
6105243253
To:Kelli
Page 2
Miscelhu,\)ous Electronic Filing Items
------------------------_._--Check this box to suppress Modemiled .,Fite format for the tax return .
Check this bo. to force state only filing for all stiltes selecled 10 be filed electronically
Returns rejected tor Taxpayer or Spouse name aoo SSN mismatch. Check this box to retransmit this return
as an imperfect return. ThIs only applies to reject code 0501 and 0504 ..............
. .........
"0
Enter an 'in care of addressee', conijnuation of the address entered on the federal Information Worksheet,
or name of personal representative.. . . . . . . . . . . . . . . .
.._ _ _ _ __
If married filing joint and one spouse IS deceased. is the surviving spouse also the
personal representative? ............
. ............... ..
..Oyes DNa
Check this box if your cllenl is in the U.S. Armed forces Wllh a stateside address .
Check the appropriate box if the taxpayer (or spouse) last serVed in an area deSIgnated as a combat zone
or qualified hazardous dUty area.
Iraqi Freedom .............. , ....
.. ..... ..
Kosovo Operation ........ .
Afgha~istanjEndunn9 Free~om
Desert Storm .
..
Haiti ...... .
Former Yugoslavia _....

UN Operation.
Joint Guard
Joint Forge
Northern Watch.
Op~ration Allied Foree ..
Northern Forge ....
Combat Zane
...
."
..
, . Deptoyment Date ............ .
....
.".
Preparing Form 8453: U_S.lndividliallm;ome Tax Transmittal for an IRS a-BleReturn

"lte Form 8453 Only If You Are Attaching Ono ot More olthe "oIlowing Fomr.; or Supporting Documents.
...
.
,,,,,"
Che~k the applicable box(es) to identify the attachment.,

Form 2848. Power of Au(\rney and Declarabon of Representative. , , , ..
Form 3115. Change in Accounting Method ............. .
Form 3468, Histone Struclul'e Certificate.
Form 4136. Credit for Federal Tax Paid on fuels
........ .
Form ~713. International Boycott Report........
. ....... ,
Form 8283. Noncash Charitable Contributions (Declariltion of Appraiser) .
, ........ .
1098C. Conlrtbutlons of Motor Vehides. Boa!:> and Airplanes. .
. ......... .
Form 8332, Releal of Claim to Exempijon for Child by Custodial Parent or Other Documentation
Frm 8885 .. Health Coverage Tax Credit.... ..... .
.. ...... ....
. .... " ..... ~
form 8858. Foreign Disregarded Entines ........ . ..... .
.... -.-."." ....... ....
Form 8864. attach the CertJilcate for Blodiesel ....... ,
Acceptable substitute for Schedule 0.1. Continuation Sheet for Schedule D1
Appendix A, Statement by Taxpayer Using the Procedures in Rev. Proe. 200920 to Determine a Theft
Loss Deduction Related to a Fraudulent Investment Arrangement ....................................... ~D
.
.
..
18 of 130
Borrower: Ky.'. . . . . . .
DEC-21-2011 15:23 From:PRYSERU
6105243253
To:Kelli
2010
Fonns W2 & W-2G Summary
Form 1040
Keep for your records
~ber
~~um
~onnW_2
;',-,.,.,.
;-H
Waoes
SP
5s.500.
Federal Ta
Slate WaDeS
9:""i44
55,500
2.951
1-- ,
....,.-
---'".-~-.
P.9/27
,-, ..
.....,,'M'~
Totals.
".- ..
.. ., .. . . .. .. . .
55,500.
9 l 144,::..
'.
55,500
2,951.
Form W.2 Summary

Box No.
Description
T""payer
----
1 Total wages, tips and compensation:

Non-statutory & statutory wages not on Sch C ....
Statutory wages ,oported on Schedule C
Foreign wages included in tOlal wages .
IJnrljp<:>rted tips. , , . . , ..
. ........... ..
2
T otallederal tax withheld
. . . .. ...... ..
3 & 7 Total social security wagesJtips ...
4
Total social security tax withheld .
5
Tolal Medicare wages and tips , .....
6
Tolal Modicare tax withheld
8
Tolal allocaled tips .
9
Tolal advance earned income credit
10
Tolal dependent care benet,ts , .. , ....
11
Tolal distributions from nonqualified plans ... ,
12. Total from Box 12
.. , ......... .
b
EIec\ive deferrals to qualified plans .,
c
Roth contributions to 401 (k) & 403(b) plans ...
Deterra!s to government 457 p!af?!S .... , .. " .

e
f
9
h
I
k
m
14a
b
c
d
e
9
h
16
17
19
Deferrals to nOn-government 457 plans

Deferrals 409A nonqual deferred comp plan.
Income 409A nonqual deferred camp plan .....
55, 5 oq"_
________-,5,-,5!..<,-,5"O"O~.
- -.." - - - - 9,144.
9,H4.
55.500.
___ -" 3,44J.
55,500_
805.
55,500.
. _ - - --_ ....
3,441.
55,500.
605.
_- ----
- - - _..__. _._._--- - - - - _....- - - - -
Uncollected Medicare lax , ....... , .. .

Uncollected social secUrity and RRTA lier 1 .
- - - ..
Uncollectod RRTA ~er 2
......... .
Income from nonstatutory stock opnoos .
Nonlaxable combal pay .... , ..... .
Tala! other items from box 12 .
. ........ ..
Total doductible mandalory slate lax ..
Total deductible ct>arilable conlfibutions ... , .
T alai deductible employee expenses ,.
Tolal RR T,er 1 wagas
T ctai RR Tier 1 tax ......... .
Total RR Toe' 2 lax ,
........ , ..
Tolal RRTA ~ps .... "., .... ..
Total other items from box 14 "
Total state wages and tips
Tolal slale lax withheld, .
Total local tax WIthheld " ......... , .......
tollIl
-----
._~6~1~1.'-1_--__- - - _ _....;~U.,-
55,500. _ _ _ ,_ _ _--,5",,5'-<., !l..Q.Q.~

2,951.
2,951.
I~'
190f130
Borrower: Kyl~dlllj
To:Kelli
Form W-2 Worksheet
Fonn 1040
.. Keep lor your records

Name as shown on retLm
Ky 1"
8:II..iIIL.
2010
. .-1 S~~I securile~_
'-_'_0'
EmployorEIN
._ _ .
._ _,
... 52-2122120
Employer Name.,...
}!ri_edrei,chs Ata~ia Resea:a::ch. XL
Name (cont.) . _ _.
Street Address of p, O. Box
po. B"x 1537
.. ___ .
City . .spdn!l,ield..
State. VA.
ZIP 22151
..
Foreign Addr ..
Foreign Counby .
nSpouse-"W.2
0"
DDonolt1lmslerltrisW.2tonextymr
[jOAutomaticaily calculate lines 3 ttwough 6 ~nd line 16.

Caution: Box 12 entries for deferred compensation will change lines 3 through 6 automatically.
1
3
5
7
Wages t tips, other c()mp ... ,

...__~?,.500 ~
Social security wages.
,;;5. 500~
Medicar. wages and tops .
.~5, sq.!!....
Social security bps.. .. .... . _ _ _
_ _ _.
2. Federal tax withheld
._ _ _~.,144.
_...
3,441..
4 Social sec tax withheld

6 Medicare tax withheld ....
8 Allocated tips
.805.
13b aRetiremonl plan

Foreign source income eligible for exclusion on Fonn 2S55
Aotive duty military pay
Box 12
Code
Box 12
, Am9 unt .
II eOl< 12 code IS:

A: Entor amount attributable \0 RRTA Tier 2 lax ....
1\'1, Enter am"unt attributable to RRlA Tier 2 tax ,
P:
R:
Double click to link 10 Form 3903. line 4 ..

Taxpayer.
Enter MSA contribution for
Spouse.
W: Enter HSA contribution for
Taxpayer ........ .
Spouse ......... .
G: OEmployer is not a state or toeal governmont
Box1S
Box 16
State wages, HpSL et<:..
55 r 5~"_.
Box 17
State income
1<;>
2l.951.~
._-_ . ." - - "
--
8ox20
Locality nal"(l_e_.
10
11
8ox18
_loc~t wages, tips. etc.,
8o~19
~q,ca! inc~!l1e
AssOCiated
tax
Advanced EIC payment..

.. .. .. ... ............
.. .. .. .. . ..
9
Dependent care benelns (Check if employer furnished eare at work) .... , ,~D 10
Dependent car. beneilis Amount forreited from flexible spending account '" .
Dislributions from Section 457 and other nonqualified plans (See help,
it EIC, Olild Care, Child Tax Credit, .r IRAs.)
11
Sla1e_.
------.
80><14
DeSCription or Code
Fonn,W.2
_(O,l\.SDI
'" _ _ .
_.,.2Q.Ac:t~1
20 of 130
eorrower : Kyl . . . .lIIIg
6105243253
To:Ke!!i
2010
Fonn W2 Worksheet Additionallnfonnation
Form 1040
1.<~"
_ _ _ _ _ _ _ __
Employer Name _., _.

Part I
Statutoly employe.s
13a. StaMory employee
Deducting expenses In connection wrth
If deductIng expenss5, double click ID link
this income
to Schedule C ...... .
Clergy, church employees, members Qf remgnized rdililous sects
Part II
Page2
Fr.iedreichs Ataxia Research :At.
BBoX
A
B
6,
Clergy only:
Designated hOl",ing or parsonage allowance
. . .. .. . . . . .
Smallest of (a) the designated housing or par'lOnage allowance.
(b) amount spent on qualifying housing expenses, or (e) fair rental value.
If no FlCA was withheld, check !he applicable box below
F
1
2
0
E
~pay self-employment tax on housing or parsonage allowance only

Pay selfemployment tax on W-2 income only
3
4
Pay self-employment tax on W2 income and housing allowance

"" Exempt from self-employment tax and has approved Form 4361
Non-Clergy only:
Bpa
If no FICA was withheld, check the applicable box below
1
2
y self-employment tax on 1\11$ W-2 income
Exempt from slf.employment tax and has approved
Part III
Form 4029
Unreported TIp Income
H 1 TIps $20 or more in a month which were nol reported to employer .

2 Tips less than $20 in a month which were not required to be reported
3 Value of non"ch tips, such as tickets or passes, not reported ............. .
Actual amount of allocated tips if different than the amount In box 8 .. .
5 !iJ!s paid oul through a tip-sharing arrangement ............................. .
6 DEmployer is. federal, state, or local government and bps are
only subject to Medicare tax
Part IV
H1
--"-'''-'--H2 _
__
H3!1_ _ _ _ _.
H4
H5 - - - - .
Substitute Fonn W-2
I. If substiMe Form W-2 needed. double-dlck to link this W-2 to a Form 4852 ..
..
Part V
Inmate In a Penal Institution
J a Pay from VIlQrk performed while an inmate in a penallnstitl.ltioli ..
Part VI
.. -....
13c
_--
Additional tnformation for Electronic; Filing and Certain Stales ($tH1 Help)
Third-party Sick pay

Non-standard W-2 (handwritten, typewritten, or altered in
any way)
LjConected W-2
Control number (oplional) ........ .
Employee infonnation: Correcl to match employee information on W-2

Employee's SSN.
. ..... 607-03::-1532
Suft
First fl"lffie
M.I. Last name
~K~Y~l~e~_ _ _ _ _ _ _ ~ Bryant
Mdross
9402 Sentinel R.!.dg"., _ _ __
___
CIty
St
ZIP code
N~.E_.I:istown
PA
19403
Foreign Q)untry
21 of 130
Borrower: Ky ..
llIlId t
6105243253
To:Kelli
P.12/27
Interest and Dividends Summary
2010
... KGAp 10r your records
~;~:~.lliiiL'l-____________________________________________~________JI!~II'~~lIn1~'"lumll~i;L-__________
&
_.
~'.
,.,.
Interest Summary
Totallnt......t
...
1 Selier-fH"Ianced mortgage
....... 1--2 From Schedule 8, Port I ...
3 Frorn Schedule B, Parjll ... .... .
4 From Kl Worksheets . . . . " .....
5 Exempt"inter(':st dividends (net of adj.)
...
f--.'
.. . , 'f--..
6 From f'orms. 6252 , .. ... , ....
7 From rorms 8814
. . .. . ... ' .
S Subtotal
.. . . . . . ...
..
Less Mjuslmonts:
~
13 Accrued Interest .
l ' Total to Schedula S, line 2 ...
...
"'-"'-
",'
- .. ..
~
-.~~~".
46.
...
"
..
..,,'-
..
18 Total to Form 1040, line 8b

..... ...
19 Total U.s. goven'1!'rJent intrprest . " . , ...
20 Total to form 6251, line 12 ... ...
..
.-
.. ..
.-
.,"'
".~
.....-,
.. ,,, .
.'.".
"".
46 .
... ,.
.,,.
...
.....,
."-
.,'"-
M,'.
'-'
-.. "...'--
. '"'
',"N'
... ,,.... ..
~."
...
,
..
...
'"
....
-"" .....'... ,.~"'
,,'
..
f - -......
~.
.....
.... .. ....
,,~"'~
.,
-."'~,
_.
, . .. . .
1--'
. ... -." ..
... .......
14 Other adjustment ........

15 Series EE and I bond eXClusion
16 Total Mjustrncnts ......
Private Acti.ily Bot)!.
.... --.~
prelilously reported
.. -.
"iis. G.wemmcnt"
T""~IJI ..
46.
u.s. savit)gS bond interest
.,
10 Nominee distribution
11 010 adjustmant , " . , ' " ..... ....
12 ASP adjustm""! .. " ' ...... .. . ,
...
.~"...,,,"~
..' ...,
''''<0,
DIVIdends Summary
-_.._ - - - - - - ----TI-------Ordin8N
Qualifted
capital
~~~._+--_:.:No:::nt"':o
:o."'bl::::.___
- - - + - - _ .__ . . . .---
1 From Schedule S ....

2 From K'l Worksheets
3 Subtotal
Less Adjustmonts:
4 Nominee distribution,
5 other adjustment .
6 Totar Mjuslmonts
..
7 Total to Schedule B. Iln~ 6
.... f - - - - -
Total qualltlCO clividends
9 Total capital gains ....

Toiai nontaxable dlvJdonds
_._------+--
...
iu
Capital Gai~;; Summary

:28% rme
1 From Schedule B
Less Adjustments:
2 Ncminee distribution ..
3 other adjustment.
4 Toml Adlustments
5 Total to Schedule D
6 Total to Schedule D
.2._..Tptal to Schedule D
Se<1lon 1202 60%
1----".-- - - - / - - -
1---...
..
..
..f - - - - - - - -
.......-
+-------1
,j------
F'PIV56tl2
Soc:Iion 1250
IllOlnO
22 of 130
Borrower: Kyle ~
Form
6105243253
To:Kelli
Fonn 1099G Worksheet

Certain Government Payments
1040
P.13/27
2010

Social Security No.
Name(s) Shown on Return
Kyle . . . .
Worl<sheel DesCliption .
california State Refund,.,.
~scripti(m
Box
Own<>rship (defaults to taxpayer}:

Check ifTaxpayer .......... ..
Check if Spouse.
Check if Joint ....
Payer's Federal ID number.
Enter the abbreviabon of State
or Locality issui ng this payment
10 a
State abbreviation .......... ..
locality abbreviation ........ .
Payer's name.
Unemploymenl compensation. , .
a Amount repaid
......... .
2 State or local income tax refunds,
credits, or offsets ..
3
Box 2 amount IS tor lax .year ....
4 Federal Income tax withheld
5 Alternative Trade (ATAA)
6 Taxable energy grants ...
7 Agriculture payments ...... .
(Doublec1ick) 10:
a Link 10 Schedule F Line Ga, 40a ..
b Link to Schedule F Line sa, 42 ...
c Link to Form 4835 Line 3a ......
d Link to Form 4835 Line 5a
~
8 Check if the amount in box 2
applies to income from
(Doubleclick) to:
a link to Schedul" Cline 6 .
~
b Link to Schedule F line 10,44 ...
Enter the taxable portion of tihe
amount in box 2 to be reported .'
on Schedule C or F ..
9
Market gain ........... .
a Link to Schedule F Line 6a, 400 ...
b Lmk to Form 4835 Line 3a.

10 b State identification no ....... .
11
State income lax withheld .. .
~--~-I----,-- - - - -
state of
. ........ .
a trade or business , .
B
CA
-_.. _ _-....
..
23 of 130
Borrower: Kyle_S
6105243253
To:Kelli
2010
Tax Payments Worksheet

.. Keep lor your records
Social Security NLutlber
Estimated Tax Payments for 2010 (If more than 4 payments for any state or locality, see Tax Help)
.,
--"
..
"
Date
Amount
1 04/15/10.
2 06/1SnO
04/15/10
.....
....
.","
--_....., - - - - ..
.-
Tot Estimated
Payments ,
."
04/!.;!/10 - - - , , - - - -
0E;/l5/10
.".-
,,-
~/10
--"-- --
--,.,~--
_C!;t/18/1l
- _......
"
01/18/11
,-"
-.-
.. ,-
..
--
--"
--
....
Credited by estates and trusts
Totals Lines 1 through 7 .. "

2010 extensions .... ".. "
". .....
Slaie
Federal
10
Local
10
_.
---'."-- -"
-"
-. ......
--
.......-
Local
9 ,.144.
2,,1 951.
.,,'.
--""
-- - - ' "
,.,.--
-_. . ..." - -
-,,-
,,--..........
-_.........
--.
,.
,,-
-""
...
........ ,..,..-
..
9,144.
9,144_,
2,9512,95}._
State
.....
Tax paid with 2009 extensions, "........ ..
2009 estimated tax paid after 12/31/09 ... ... ......
Balance due paid With 2009 return .. . . .. . . . " . " ..
Other (amended returns, installment payments. etc)
... '
".
ID
240f130
..
---
-_..
..... ..
~
..'.'.".
'
, , - --"'
......
...
to
..
."
Local
--_- -
.. ....
"
- - ,.. ,,"--
,,--
Prior Year Taxes Paid In 2010

(II multiple states or localibcs, see Tax Help)
..
State
Federal
..
"
..
,,'"
"
..... ...... ,,, .... ..

Forms W-2."." ..... "
, ...
Forms W2G.
' " .....
".
....
Forms lO99-R , ........
" . .. ...... ,. ,.
Forms 1099-MISC and 1099-G
....... . ..
Schedules K' " " ' , ...
...... .. ..
Forms 1099.INT, DIY and 010 ".
16 So"i<ll Security and Railroad Benefits , ....
17 Form 10998 ,," . "
St -- Loc - " .
18. Other withholding ".
St
Loc
-St
Loc --"
b Other withholding ... "
Loc
C Other wilhholding ..... ". S!
19 Total Withholding Lines 10 through 18c ........
2D Total Tax Payments for 2010 " ..... ... ......
10
11
12
13
14
15
----
"."'--
,,-
'"
. ..
"".
."--
...
"
Taxes Withheld From:
.'.~-
'
23
24
--
""
-.".
6 Overpayments applIed to 2010 .... "
21
22
--
".-
".
".
Tax Payments OtIIer Than Withhdding

(If multiple stales, see Tax Help)
----_..
..-
"- - -..-- -_."-- -"."
10
.,- -
09/.150 0
4 01/!8/11
c...
."
Amount
Dale
ID
06/15/10"
".
3 09/15no_
Amount
Date
".-
"
local
State
Federal
--
--.-
Borrower: Kyb. . . . . . .
Schedule A
6105243253
To:Kelli
State and Local Tax Deduction Worksheet
Une5
2010
Keep tor your records
Nome(s) ShOwn on Return
Kyle
State and Local Income Taxes

State income taxes:
1 State Income tax withheld . .... .. " ....... " ........ . . , . . . . . . .

. ' - " , ..
2 2010 state estimated taxes paid in 2010 .... , . . . . . . . . . . ....... .. -, . .. - ...
. ... " ...
3 2009 state estimated taxes paid in 2010 . ,
4 Amount paid with 2009 state application for extension ..
-, ..
. " ...
., ..... ,
. .,
5 Amount paid with 2009 state income tax return ... , . ,
6 Overp",yment on 2009 state income tax return "'Pphed to 2010 tax ......
7 Other amounts paid in 2010 (amenoed relurns, installment payments, etc.) .,'
... " , . , .
8 State estimated laX from Schedule(s) K-l (Form 1041) ... ,
'.,
'
'
10
11
12
13
14
15
16
17
18
19
20
21
22
Local income taxes:

... ,
Local income tax withheld , . . . . . . . . . . , . . . . .... . . , . . . . . . . . . , .... .,
....... ,. , . ..... , . , ,. ,
2010 local estimated taxes paid in 2010 .. , '. ,
,. ,.
2009 focal estimated taxes pa.d in 2010 .
....... .... , ..
Amount p;;lid With 2009 local application for extension .. ...... " . .....
Amount paid with 2009 local income tax return .. .- ....... ... ............... .,
OVerpayment on 2009 local income tax return "'Pplied to 2010 tax" .... . '"
Other amounts paid In 2010 (amended returns, installment payments, etc.) .. ,
Local estimated lax from SchedUle(s} K-l (Fonn 1041) .,
...............
Other:
st.ate mandatox:y taxas
."
Total Add I.nes 1 through 17 .
........ ...
.. ... .... .. .... .. ....
State and lOCal refund allocated 10 2010 ... , . ...... , , . , .... ..... .. "
......
,. ....... , " . ... ....... , ..
Nondeductible state income tax from line 28.
Total reducUons Add fines 19 and 20. .........
......... , . , " ..... , ..
Total stille and local income tax dcdudion Line 18 less line 21 . , ' . .....
1
2
3
4
S
S
7
-.
2,951. .... ,....

,~.'~
--,,'
~'-
-_.,-
9
10
12
13
14
15
16
17
--,,-
-_.
.'
,.,,--
-"-611 '-. .. ,
-,
18
19 - ...
20
3,562 .
o. ,.,-
o.
21
22
3,562 .
Nondeductible State Income Tax (Hawaii OJlly)
23 Nontaxable federal employee ""OSI of living allowance ...... .. ," " .... .. ....
24 Adjusted gross income ........ .... .
........
.. .... , . , . " ..........
25 Add lines 23 and 24 .
. , . . . . . . . . . .. . . . . . . . . . . .
.....
.. ........
26 Nondeduc6ble percent. Line 23 divided by line 25 .... , .. ..............
. . . . . . . . . . ..
Zl Hawaii state Income tax included in line 18 ...... . ........
28 Nondeductible Hawaii state income tax. Multiply line 26 by line 27 .. .- . . . . . , , .
"
25 of 130
23
24
25
26
27
28
-,,-
0/0
._.'"
Borrower: Kyle4
6105243253
To:Ke!!i
Charitable Contributions Summai)'

~ Keep
NarIx;IC!:) Shown on
for your
2010
rec<ll"ds.
Rerum
Kyle
Cash Contributions Summlll'y
(oj
(1))
(0)
(d)
Total
50%
3D"
100%
lbnit.
limit
LiMit
(Seh,K.l)
2.50.
,-----'-'-..:::'._-'
,--"
Totals;
---"=---.:~
iPortj[]
===2:,,!}O ~
---"-::'-::'-.-.--
Non-c.sh ContributlonsSummory
~Fm.I""I" Property
.....
(a)
T"",.
(b)
..,.
(e)
..,.
(d)
(e)
limit
limit
Limit
Limit
""'"
10lals:
[Pirtlll
Contribution c.rryOVOl'S to 2011
~--
Total
c..oandClller
Capital G.aIn
Non..eipltal Gimn Propctt)"
"""porty
,_
(iI)
(b)
Tota'
(0)
Umil
Limit
1 2010 conbibutiorui
..,.
..,.
L!m~
LImH
(d)
(e)
(n
20%
Limit
2. 201 0 contributjoo~
allowed
3 CanyoI/.", ",.,,,
a 2000 tax year .
b 200a tax year .
_ _ _,-,-0:
,.,
2!;O."
--....!!."-,--
,,--"--.
,,, _ _
0_,
. ___
u~,
., .... ,........Q..=...
.. .-2.:..
.... ,~-=-
e 2f:jJ7 tal( yea r .
d 2/XJ6 ta'IC year .
eM5 tax year.

4
~nyovors
allowed in 2010
CartyOVers
di$al10w0d In 2010
~rryoverS to 2011 ~
iI From 2010
bFrom 2009
"From 200S
o.
_ _ _ ,.. ,. O~. _ _ _ _ O . _ _ _ fl.
0,
----"-'..
"~-'-'-_. '.-"==.,.
d Fmm 2007
cFro!11~
f from 2OO!;i {expifd) ..
--_.... "- .
,_ _-"o_~
26 of 130
Borrower: Kyl . . . . . .
Fonn lD4D
Line 40
6105243253
To:Kelli
2010
Standard Deduction Worksheet

~
Nom.(s) Shown on Return

Kyle
US(!: thiS worksheet if (a) SOmeone can claim you, or your spouse it filing jointly, as a dependent; or
(b) you or your spouse w.re born before .konuary 2, 1946, or were blind;
1 Enter the amount shown below fef your filing status.
Single or married filing separately - $5,700
Married filing joinUy or Qualifying widow(er) - $11 ,400
~ ..
1
5,100.
Head Of household - $8,400
2 Can you be claimed as a dependent?
No. Enter the amount from line 1 on line 4. and go to line 5.
Skip line 3,
--1
W
D
Yes. Go to line 3.
asour earned income" more than $650?
Yes. Add $300 to your earned mcome, Enter 1I1e total
No. Enter $950
Enter 1I1e smaller ot line 1 or line 3. If born after January 1, 1946, and
not blind. enter th,s amount on line 6. Otherwise, go to line 5
It born belore January 2. 1946, or blind. mulbply the number on
Form 1040. line 39a, or on Form 1040A. line 23a by: $1,100
($1,400 if single or head of household) ..
. ............ .
Add lines 4 and 5. Ertter the total here and on Form 1040. line 40;
or Form 1040A. line 24 ...........
. .............. '
5,700.
5
6
5,700.
1Iamed income includes wages, salaries, tips.. professional fees, and other compenSltion received for
pe(sonal services you pertOr'med_ It also includes any amount received as a scholarship that you mu.~t
include in your Income. Generally, your earned income is the \o\al 01 the 'lInount(s) you reporled on Form
1040, hnes 7.12. and 18, mmus the amount, if any, on line 27; or on Form I040A, line 7.
27 of 130
Borrower: Kyle ".. . . . .l1li
6105243253
To:Kelli
Earned Income Worksheet

~
2010
Name(s) Shown on Reb..Jrn
Kyle

.,....
- ....
Part' - lEarned Income Credit Wks Computation
Taxpayer
Spouse
Total
--,
If filing Schedule SE:
.. ....... _-- .
self-employment income
b Net
Optional Method and Church Employee income.
.,
c Add lineS 1a and 1b "
...... ..... .. ....
-,
..,- ...
,
d One-half of self-employment tax .
Subtract line 1d from line 1c .. .... ., ..
2 If not required to file Schedule SIE:
..............
a Net farm profit or (loss) ,
Net
nonfarm
profit
or
(loss)
..............
b
c Add lines 2a and 2b ............. , ..........
3 If filing Schedule C or C-EZ as II statutory
"
0'-_-
...
---"
"
----
.......
"
..
.-..
-.
~.--
employee, enter the amount from line 1
of that Schedule Cor C-EZ ............... .. ,

Add lines le, 2c and 3. To EIC Wks, line 5 ..
..
--
..
Net sel!-employment earnings Olne 4 aDove) .. ,

Wages, sala,ies, and tips less distributions
from nonqualified or section 457 plans, etc .. _..
7 Taxable employer-provided adoption benefits .
8 Add lines 5 through 7. To Fonn 2441, lines 19
' ..... ........
. " , .. .
and 20 .....
9" Taxable dependent care benefits ... , ... .....
b Nontaxable comba! pay. . " ...... , ...
10 Add lines 8, 9a and 9b , To Form 2441, lines 4
, ........ .. _-_. ......
and 5 ...
,," .
, "
11
Scholarship or fellOWShip income oot on W2
12 SE exempt earnings less nontaxable income ,.
13 Distributions from nonqualified/Sec. 457 plans.
14 Add lines 8, 9a and 11 througll13. 10 Standard
Deduction Worksheel or Schedule L, line 3 .
5
6
..
w ... ' , '
""--
'-'
-_.
-,,-,"~'
5 5, 5.Q..Q\;:.~
55,500.
55,500_
-',"",--"
- ... ...
...- ....
"
5!>,500.
-"
---.~.'
_.
-.,,-,~"
--"-.~
____
."..,
55,500.
... -
..,'
...
Part ii - f onn 2441. Standard Deduction Woricsheet and Scnedul" l Computations

----.~
"".",._.
~
..
!:>5,500.
~.",,--"'-'~---
._--
5:',500_
55,500.
Part In -IRA Deduction Wortlsheet Computation

15
21
Nel self-employment income or (loss) .....

Wages, salanes, tips, etc ....
Net sell-employment loss
Alimony received
Nontaxable combat pay. ,
Foreign earned income exclUSIon .. ,
Keogh, SEP or SIMPLE deduction .
22
Combine lines 15 through
16
17
18
19
20
.. ...- - - - ----::--::--c::-:--:-_._. __ .5!>~,""5"'00"-'_'--1 _ _ _ _ _ _ 1

55, 500.
- - - - 1 - - . -..-
----
- - - - -......' - -
21. To IRA Wks.ln 2l:==5=5=,=5:::. 0=.,.:::9':::""l:======l:==:.:.;>::.~=,=5=O=O=.
Part IV - Fonn 8812 and Schedule 1\1 Earned Income Computations

..
~,,-
23
24
25
26
27
Self.emp loyed, church and statutory employees

Wages. salaries, tips, etc __ .... ____ .. , , ... , ....
Nontaxable oombat pay ........... " .. ____ .... __
Forergn earned income exclusion .... _... , ......
Combine lines 23 through 26. To Form
8812, lin e 4a and SChedule M. line 1a ... .......
.......
M'_ ..'.....
55,500.
.
55,500.
......
- . ..,,-
-""'-
~."
55,500_
---..- ....
-.-~-
---
-'-
55,500.
"'
28 of 130
Borrower: Kyle lI; ~_
6105243253
To:Ke!!i
P ,19/27
Federal Carryover Worksheet
2010
... Keep for your r"""rds
2009 State and Local Income Tax InformatiOll (See Tax Help)
--'~r-'-----.------r--'--
(a)
(b)
Slale or
PaldWrth
- -..,------,--
Estimates Pd Total WlthPaid With

Total Ow....
Applied
. ",A"-,fte",r~l.~~2J31=+-",hel,,dIPmts=='--t__-,R=etu=m"--_+---tpay!!1!!==n,-,l_ ~~!!L
-- ----- . - - -------
~.----
-----
---~
_.'----
- - - - - -"---1------ .--'-- --"---
T~~I==E. ~..'..
~- ====='-
--===-L-.
;=:-
Other Tax and Income Information
2010
----..- - . - - . -..- - - - . -.. --------,---+-. ---_.1-----1

2
3
4
5
6
7
8
Filing status
Number of exemptions for blind or over 65 (0 ' 4)
Itemized deductions after limitation
Check box if required 10 itemize deductions .. , .
Adjusted gro~<; income. . . . . . . .
Ta.liability for Form 2210 or Form 2210-1".
Alternative minimum tax ..
. . . . .. . .. . .... ...............
_. _____. J.. SIngle
1
2
--,,-..-
-0-"-
-----
---,~-
LJ'-
. - - . - - ' - -~~
_ _, _ .
3,265.
Federal overpaY~~p-l_ie_d_t~_n_ext_y_e_a_r_e_s~_m_ate_d_la_x_._~:"--_~J.:======:J.======
__
........--lL.. J
-._--_.-_.--_. .------------ -,,--.----------_.2000
Qu;<:lcZoom \0 the IRA Information Worksheet for IRA InlOrnlation
Excess Contribution!'
2010
9a ____ ._ _ _ _ ._____
9 a Taxpayer's excess Archer MSA contribulions a.. of 12/31
b Spouse's excess Archer MSA conlnbutions as of 12131
b
---1-'--'lOa Texpaye"s excess Coverdell ESA <:Dntrlbutions as of 12131 .. 10 .. _,, _____________ _
b Spouse's excess Coverdell ESA <:Dntributions as of 12131
b _,, ___ ,_ _ ,_ _.______
11 a Taxpayer's excess HSA contribotions as of 12131
11 a _ _ "_______~____
b Spouse's excess HSA <:Dnlributions as of 12131~~_~:"'_L_b=l-:====== ._______ _

Loss and Expense Canyovers
2009
2010
------.--.-----.--.-.--.---..-
,,-1------1-----
12 .. Short-term capital loss .....
12" .______... _ _ _ _._ __
b AMT Short-term capital loss
i
13a i ____,__________
.._
13a Long-term capital loss .... .....

b AMT Long-term capital loss ..... .............
b _. _ _ _ _ ._ _ ... _ _ .. _ _
14 .. Net operating loss available to carry forward.
148
b AMT Net operating loss available to carTY forward. . .
15 a Investment interest expense disallowed....

20.10.
b 20.09
c 2008
d 2007
2006..
2005
._.__"_,,,_____
f
29 of 130
------------
b __.,, _ _ _ _
15 a
b AMT Investment interest expense disallowed .

16 Nonrecaptured netSectton 1231 losses from:
a
------- -------
_-
0> _ _ ,, _ _ _ . _
. - - - - --_.
b _,, _ _,_________ _
16a _ _ _.______.______
b
c _ _ _ _ ,, __ ._ _ _ _ _ _
d _ , _ _ ,, _ _ 1 - - - - e _ _._ _ _ ____ _
f
~....l.:-::======::l::=======
Borrower :
Ky'e"I1 ~
6105243253
To:Ke!!i
2010
Tax History Report

... Keep for your records
N;ame(s) ShOWn on FitufTI
~~----~,----- ~---
----- ---
Fl
2006
y"", Tax Histvry:

2008
2007
2010
2009
- .. --~I---
Sinqle
FHing status
Total Income
,.. _ .._---+
Adjustments ~o income
.. '~'---4-------+---------1f--'--+--
56,S1!,,,-
Adjusted gross income
1,405.
55,466.,
7,022.
Tax Qxpense ..... .
17,336.
Interest expense.
_-l-_ _ _ ~50 .
Contributions ...
Miscell~noous deductions
',1-----1---
-+--
other itemize<j deductions
--1------
Totl:ll it~mized/standard deduction
Exemption amount .... , . ,
24 60.L
' , , ..
'1--,. _____ 1_____
3,650 ...
Taxable income ...... .

Tax
.1---...- - - - \ - - - --1--
3,665,"
Alternative minimum tax
1" otal credits , .......... .
"'1--
----1----
Other taxes
"1---.---
Payments _.
'I---. "---J..
Form 2210 penally
9,544.':.,
I---- ...---+-
.. ....... 1 - - -
AmQunt owed.
Applied to next year's

estimated tax , ...
. . I -..----+--------jl-----+--- ,-+-----'&"-'.~
Refund.
Effective tax rater %
-rax bracket %
1--- . - - - - 1 _ _ _ --1----
5.89
....
--rax bracket % IS baSOd on I axablEl JnCome.
FOl'f9201
11109na
30 of 130
Borrower: Kyl ..
. . . . . .
DEC-21-2011 15:26 From:PAYSERU
6105243253
To:Kelli
2010
Tax Summary Report

Name(s) Sho'M'l on
R~turn
5
"1llng 5talt.lS
Nl.D"Tlber of exemptions .....
_1.
Gross In""",e
Wag... and salaries .
Interest and dividend income
Business income (loss) ..

Capital gains (10SS<'.s) ....
Pensions and annuities , ..
Rems, royalties, partnerships, etc.
Farm incom0 (loss) ..
Social security ooneflts ..
1,325.,
Othor income " .

Total GI'<>!Is Inc""", ...
Adju~_nts 10 Inc:ome
56,871.
_. _-=1::,4"-,0,,,,5-,-_
Adiuoted Gro lncome .... , ........... .
.... (Last year's AGI)
55,466.
Itemized/Standard Deductions
Medical and dent.1 ...
Taxes ..
Interest .....
Contributions .
Q,$ualty or the:tt Ic:::ss(es) ...... " ..
Miscellaneous ..
ToIlIlltemi%ed Deductlons ...
Standard deduction
Exemptlon amount , ..
T"".blolncome
...27,208_.
Income lax
_ _-,3,,-, .665
Alternative minimum tax ,

Totli; Tues MforA C~i"'g
Nonbusiness credits
SusinlSSG credits ..
.... ___ ~_ ~,665 .~_,
Totol Credits ,
Self.employment tax .
Other taxes
Total Ta........
Withholding ..
Es~maled lax payments
......... .
Olh.r payments ,
ToIlIl Pooymento .
EstirMled tax penally....
. ........ .
9,144.
Refund applied to next year's estimated tax ...... .
Amount Ovetp.oid ".
Refund
_---'5"-', 679 .
Amount Applied to E _ _
Amount Due
Tax bracket .. , , ........ ,

Effective tax rare ...... .
31 of 130
Borrower: Kyl!!lC. . . . .
..
DEC-21-2011 15:26 From:PAY5ERV
6105243253
To:Kelli
KYI~
SMARr WORKSHEET FOR: Form 1040: Individual Tax Return
Tax Smart Worksheet

A
1
2
3
4
5
6
7
B
C
D
E
F
G
_ _...::3.,.. 665.
Tax .. ,
Check if from:
Tax table"
.. " " .. " .........
Tax Computation Worksheet (see in$lructions) , .. ,
Sch2du~e D Tax Worksheet ,
, , ...... , ,
Qualified Divideno$ and Capital Gain Tax WOrk$h$et . , .. ,
Schedule J.. ... ,........ .. " ..... , ......... "
Form 8615 ...... " " ...... ,
Foreign Earned Income Tax Worksheet
Addibonal tax from Form 8814 . , ,
Additional laX from Form 4972 ", .... ,'
Tax from addibonal Form(s) 4972
Recapture lax from Form 8863 .... ,' ' , ....... .
IRC Section 197(1)(9)(6)Qi) election for an additional tax
Tax. Add lines A through F. Enter the result here and on hne 44
::~
. . . . . :
--,,---
SMART WORKSHEET FOR: Schedule A: Itemized Deductions

State and Local Taxes Smart Wol1!sheet
Enler sales tax information below. The greater of sales Iaxes from line' plus hne
on line 1\:. will How 10 line 5. See Help,
J. or income taxes
Income from Form 1040. lIne 38, .....

.. ....... , . ... . . . . . . . . ...... ,
55, 46 11.::..
Nontaxable income entered elsewhere on return .....
"
.. .. ....
.. .. ....
..
C
Available income: 2009 refundable credits in exceS$ of tax , ,
O.
-'
D Economic recovelY Ilaymems .... . , " ... .... " " ... _-- .. " .......... . ...
O.
E
Enter any additional nontaxable income ...... , ........ , . . . . . . . . . . , , "._-,
F Tolal available income for sales taxes .. ,
...... . ....
. ....
55,466 .
G
Sales tax table information:
Enter total (combined) state and local sales tax rate in column (d) lor each slate listed in column (a),
If Jl;l, CA, CO, LA, NJ, NY, or SC in column (a):
QulckZoom to Mise Global Options to enter default locality,
........ ...
~
or Double-clIck in column (d) to select your locality for each state entered .
A
"
--
--_..
..
(a)
(b)
(c)
ST
Lived in
State
From
Lived In
State
c;,
Total
Tax Rate
To
01(01/10 ].2/31/10 8.2500
-- -,,----
(d)
Enter
--,'"---
..
'"
(f)
State
Tax
Rate ('Yo)
Local
Tax
Rate ('Yo)
(9)
State
Table
Amount
8.2500
0.0000
768.
..
-'
,,,,'-
..
~)
Prorated
or Total
Amount
(h)
Local
Sales
Taxes
788,_
0"
Total general sales taxes lrom table ,,,., ... , .. , . ........ "
780 .
..
Enter additions to table amount (molor vehIcle, boat) .. , " , ...
.. -'"
Total sales ta.es from table plus additions to table amounl. .. ...
....... - ,
Enter actual sales taxes paid (in lieu of table amount) " .. - .. , ..
" -. --. .. - - '
Total income taxes paid ., ..... " ' ..... .. " .. . . . -- . " .... - _ .. '" , . ..... ..
'
H
I
,,---
"
(e)
KEEP FOR YOUR RECORDS

--
..
32 of 130
78a .
"
3,562 .
Borrower: Kyl"_ "iiPiE
.....
6105243253
. KyIIlllS_gllEiP:r
To:Ke!!i
SMART WORKSHEET FOR: Schedule A: Itemi"ed Deductions
Mortgage Interest and Points Smart Worksheet
a description and an amount for fully deductible mortgage interest and POints. Check the
box if the mortgage was sold to another lender. <)r the mortgage tlas been paid off; the
lender's name will not transfer 10 next year's retum.
Check the box if the mortgage interest andlor points are not reported on Form 1098.
No"', When the POints must be deducted over the life of the loan, enter this information <)n
the Other Points Smart Worksheet.
A Enter
~nder'S NameJDescription
~~.t.?':,!9J:nia
Hous;nq
~"inance
Paid
~UGtible
00
Intere,"!
PolOts
... . ..
Agency
"
17[336.
...
,,-
,.,.
Fully
M",!gage
.. ,
,.
..
-'~,
Deductible
,..
-,.
..
_._-
... '"'...
..
,.
Not
on
Form
1098
_he.
.,
SMART WORKSHEET fOR: Schedule A: ltemiLed Oeductions
.~
.__1_T_o_t_al_h_o_m_e_m_o_rt_9a_g_e_'_n_,e_,e_st_a_n_d_p_o_1n_ts_lro_m_l_O_98~'_S_fr_o_m_d_e,_ta_i_"_.
2 Enter amount to deduct on line 10 if different.
............._ _ _ _... ,. , ___1.7.,...,',.:~~.36.
....
A
Adjust Home mortgage interest and points ",ported on Fonn 1098:
...
SMART WORKSHEET FOR: Schedule A: Itemized Oeductions

Cash Contributions Smart WorkSheet
A Miles dnven for charitable purposes:
1 All miles tor:
a To perform charitable selVice .. ,.
b To deliver noncash contributions
c Total. Add lines a and b ..
B cash contributions, enter name ot charily. type of charily. and amount;
r;;;;
Miscell?neouS
---,---.--------.~
Name <>1 chalily_ _ __
._---+
Type
Amount
C~~rJ.table ~Rntrib!!ti?~",,,____ ,,.. ______ ,._._-,,2",5,-,O,,-~
------- ,---,-----------1---- --.--
---.----
------------------_...._- - -..
..- - - - - - - -
---_.---C Print tash contribution detail with filing copy?
.0
33 of 130
Yes
Borrower: Kyle 1It
6105.243253
To:Kelli
Kyl ..
__
SMART WORKSHEET FOR: Form 3903 (California to Pennsylvania); Moving Expenses

Generallnlormation Smart Worksbeet
A
B
C
e:
Enter the new principal place of work for this move .. California to.,PeIlnsylyania
If you are NOT in the military. enter the total amount your employer paid for your move
(EnterOHlY if your Form W-2 ~(les not show an amount m Box 12 with code P) . _, .. ..,.."._ _
Enter the number of mIles from your g/d home to your new workplace ...
_ ..' 3, 000'rn1""
Enter the number of miles from your aid home to your <lid workplace.
15 miles
Subtract line D from line C. If zero or less. enter -D
---..bm mn..
15 II ne E at 1'1111$1 50 I11Iles?
Yes ~ You meet thiS test
You do not meet this test. You cannot deduct your moving expenses.
Do Not complete Fonn 3903.
For foreign moves check here only if all the follOWing apply. . .
.
You moved in an eartier year
You are clalmmg only storage fees while you are ....f1'j from tho United States
Any amount your employer paId for storage fees is included as wages i~ box 1 of Form W2
No
"0
SMART WORKSHEET FOR Form 3903 (California to Pennsylvania): Moving Expenses

Moving Expenses Smart Worksheet
Enter your moving expenses:
A Transportation expenses for this move
............ .
B Storage of household goods and personal effects
......... .
C Travel expenses for thIS move (See Tax Help for new mileage rates) .
Lodging expenses for this move ..........
.. .. ...... .. ...... ..
_ _-,5,"-,,,0.
."---.. ,
SMART WORKSHEET FOR: Schedule M: Making Work Pay
SchedlJie M. line 10 Smart Worksheet
Economic recovery payment received in 2010? ...
....... f I~A~~o I ~~USErRi1
34 of 130
Borrower: Kyl~J "
6105243253
To:Kelli
P.25/27
KYle_
SMART WORKSHEET FOR: Form l099G Worksheet (California State Refund)
...
.. .
..
!'onn 1099-G Electronic Filing Infonn;dion Smart Worksheet
~
'
'''-
Complete onIy if filing electronically -See Tax Help for additional info.
Payer 1
II CORREC1ED check here
Recipient 1
..
Payer Infonnatioo:
---
State Identification Number.
.. -'
Recipient lnfonnalioo;
IdenMcation Number , . ........ 607-03-1532
68- 0204061
Name, street address, city, state, ZIP code and
Name
telepnone number.
Street addre:;;S
f' e@f<!ll Identification Number .
stat."
ot,,"'=""-__ _
-_........ - - -
Kyle
Ridge
._-
Slate
Zip code
pI.
19403
(optiona~
Accoun! No.
."
.....,-
'"
..
--'-
.,.,-
Payer 2
Recipient 2
"0
..
It CORRECTED check here, '
.,
Payer Inlonnation:
State Identification Number _. _..
---'"
Number ...
-"'
Name, street address. city, state, ZIP code and
telephone number.
Federalldenbt,~tion
'"
...._-
- -..
"
-", ..
Apal1m.n! No.
..
Zip code
-,-
..
."
...
..
'"LJ ..
..
Identification Number
'".
-'"'
.'-""~
Name. street address, {lity. state, ZIP code and
-,,_.
Street address
.. -
""---
"
.,,--,"
--
..
--..
.-.-"
City
ApaI1ment No.
-,--
State
--_..
Zip code
,_ .... _---'''Account No. (optional)
Ext:
... ,
Nama
telephone number.
l'elephone number
..,,-
~."
Recipient Inlonn.... on:

....
Federal Identification Number
-----,---
,.~---
..
Recipient 3
Payer Information:
State Identification Number
,.
,.-
State
AccOW1! No. (optional)
.
If CORRECTED check ~re .. .. ,
',,-
..
..".
-,"
Payer 3
-.-
City
----".--
Ext.:
~.
Recipient Inlonnation:
Id.entification Number , ....
Name
.. ..
'
-",-
Telephone numbet
...
Street address
,"'
---..
"
Apartment No.
Norristown
----. ,._-
Ext
...
.--"
City
.,'
T Ellophone number
Br~ant.
Sen~inel
..9402
..'
", ...,-
..,.--,-----,-- - - - : : - " ' -
"'-
--
35 of 130
Borrower: Kyl. . . . . .
Form
6105243253
To:Kelli
P.26/27
oMS No. 1545-0074
8879
IRS e.file Signature Authorization
2010
Do not _
to !he IRS. This Is "'" a !me ...tum
.. Keep this fonn for your records. S< insITUctions.
Decl~ration Control Number (DCN)
Ta;;aYe'~\; I1OIm!!
I<:yle
--------
. . . . . ._ _ _ _.
Sp~sna~
1 AdjuSled gross income (Form 1040, I,ne 38: Form 1040A, I,ne 22: rorm lO40EZ, line 4)
2 Total tax (Form 1040, tine 60; Form l040A, line 37) Form l040EZ, Bne 11) .
Federal income tax withheld (Form 1040, line S1~ Form 1040A, line 38; Form lD40EZ, tine f)
4 Relund (form 1040, lin.74o; Form 1OWA. lin.4\\>; Form 1040E4 1".12<; Form 104I).SS, Part I, 1".12.) .
I
for the taJ< year ..ding

from my .I",tronic
110m tto IRS (a)
(dille ,1,"",(,.,,;,; refund, If applicable.
accoullt indICated in the
10 l~i..OtQunl I
(B'fPS). In order fur
and eft",t until I
late.r tl!!m 2
1)f ta.xes ro recei\le confidential

(PIN) bolow is my signallJre for my
T~.
~I
PIN: oh_ one box only
authorll.e
J,....ndividual Tax
as my signature on my tax year
AsSO"C=~:c'a=t:'e"s'--_____ ~.,, ___ to enter
i'iioalm DIIMIr
2010 fi1tleclronically filed Income tax return.
I will enter my PIN as my signature on my tax ~ar 2)10 efectronicaUy filed income tax return. Check this. box only
own PIN and your return is filed using ttle Practitioner PIN method. The ERO mustcomp!ete Part III below.
Your signall.lrfl
31532
or generate my PIN
If you are entering your
..
Spouse's PIN: choek on~ box only
oI authorize
_____ to enter or generate my PIN

Eat.r fin ","""",, !:Ittt
ERC1InnllaftW
doDGt.""r.u~
as my signature on my tax year 2010 electronicallY filed income tax return.
o, own PIN and your return
I WIll enter my PIN as my signature on my tax year 2010 elec;trcnlc~lIy tiled income tax return. Cho(;:~ this box only if you Bre entering your
is filed using tne Practitioner PIN method. The ERO must complete Pert III belOw.
Practitioner PIN Method Returns Only -
continue below
leart til Ieeiilfi;-ca-cfj'"o-n-a-nd"A;-u-;;th;-e-.n""ticati~

'-'on - Practitiol!,e.r. PIN Method Only
__-..-.,"-__-_::::::::-=-
~_===::::::::::::::::::::=-
ERO"s EFINIPIN. Enter your six-digit EFIN followed by your fivedigit self'selected PIN,
do not ......, III.nrw
certify 1hat.the abolJe numanc enby is my PIN, which
I~
my ;3ignature. for the taxyear,2010
olec1r~jcally
filed income
.~
return for 'the
taxpayer(s) Indicated abOve. j ~onftrm that I am submlttlnglhl$ return In accordance With tho requirements of the Ptacttnoner PIN method
and PubJlcatlon , 345, Handbook for Authoriloo IRS efiJe ProVIders of Individual Income Tax Returns.
""",'" 03/03/11
ERO iIIlJ$t Remin This Fonn - Soo ....lrucIions
Do Not S"bm~ ThIs form to 1he IRS Unlo$$ R"""""tod To 00 So
BAA For PapeIWOrk Reduction Aclllotic:e, .... your tax roIum instructions.
FDlAl701
Form 8879 (20 I 0)
1109/10
36 of 130
Borrower: Kyle . . . . .M.*
5105243253
P.27/27
To:Kelli
2010
Plaasa Indicate how the taxp"yer(s) PINts) .re entered into the program.
T""Payer(s) entered PIN(s) .......... .
ERO enterea Pnmary Taxpayer's PIN .. .
ERC entered Secondary Taxpayer's PIN.
ERG entemd Prim~r Ta.x>a 1> PIN and Seconda
'sPIN.
a - Sig"ature of Electronic Return Originator
=-:--:--::--.,.." . _ , . - . _ . _ - - - - - - - ERO Detlaratlon:
I declare that the Information contaIned in this electronic tax return is the informatIon fumlShed to rflt? by 'ltle taxpayer. If the taxpayer furnished
me a completed tax return, I declare that the information contained in this electronic mtwn is identical tC) l.htlt contained in the return provided
by the taxpayer. If the furnished return was ~gned by a paid preparer, t declare [ have entered the paid preparar's Identifying Information in the
appropriate portion of this electronic return. In am the paid prr.parer, under the penallleS of penury I declare that ( have examined ttlis
electroniC return. and to ttle best of my knowtQdge and belief, it is true, correct. and complete, ThiS declaration is based on aU Information of
which I have any knowledge.
ERO Slgnatu",
1II1II signing this Tox Return by entering my PIN "'Iow.

ERO's F"IN (EFIN followed
by any 5 numbers)
.. EFIN
S.II.soleot PIN
C - Signatu", of rllXpayerlSpouse
- - - - - - - - - - - -................_ - - - - - - - - - - - - - - - -
Perjury Statement:
Under penalties 01 perlury, I dedare that I ha'Ve examined 1his return, includtng any accompanYing statements and schedules and, to 1he best of
my knowledge and belief, it IS true, correct, and complete.
Consent to Disclosure:
I consent to <::IlIow my Intermediato Service Provider, transmitter. or ElectroniC Return Originator (ERO) t() send my rerurn to I~S and to receive
the following information from fRS~ (1) acknowledgement of receipt or reason for rei~on of transmission; (2) refund offset; (3) reason for any
delay in processing or refun~: and, (4) date of any refund_
10m signing this TO)( Return ond Electronic FW1ds WllhdYowol Consent, if appliC<lble, by entering my Self-s.t.... PIN below
Taxpayer'$ PIN (enter any 5 numbers) _. _.
---
.
02/24/2011
Date
If you're filing a joint retum:
Spouse's. PIN (enter any 5 numbers)
o - Form 1310 Signature and Verification
- - - - - - - - - - - -..
__._ -
, .... ..
..
CompletIon of thIS ~clJQn Indicates that I am requesting a refund of taxes cverp:rnd by or on bah:al1 o1lha decedent. Under penalties of perjury,
I declare 1hat! have examined this Form 1310 claim, and to the oost'Of my knowledge and belief, it is true, correct. and complete,
$iqn.D.irt;t ofPIlISCII"I Cbiming Refund (35 eh.1:I~1In'
I~'~~---------------~'
FDIW1501
........-~.-
11116110
37 of 130
Borrower: Kyle . . . . . .
6105243253
Form
Departm~)\t
1040
U.S. Individual Income Tax Return
Label AL
(Se::e::im:;l
on pg 14.)
Usa the
IRSlab.l.
Othgrwise,
pJe1l:So!! ~rlr.t
ortyp~
ot til;!
~@09
rrlillilroury - lr.tern3.1 Rev!:'nue::Se/r~fc~
Forth ill yeer JOIn 1- Dille 31, 2009, 01 oth er tliX year bej:jinnin!l
B
E
L
H
E
R
KYLE
To:Kelli
!'ill"
nMtwritltorsta Il'!inlhi..:s ;II:l'!
, '0
,2009, endil19
OMBNo.1545QQ74
Your social securitynumb@r
___.2--_11.-
lili
5020 },. STREET

S}"CRAMENTO, C}" 95819
Spouse's social security number
Presidential
ElectionCam ai n ... Cheokhe:reif ou.or ours DuselffiUn 'oinl
Filing status 1
2
Check only
want $3 to
X Single
Married
""" p.'''," is" I:lhH<;j but nol your de~erldent, .!nler thiS
;,
onebo)(.
Exemptions
Yourself. I
Nil,otchildrell
~~~~~~~~~~::::::::~~~::::~~~~~~~~~~~~~~~~~~~~~~QnEeWhQ
~---------.
. ------------+--..---..---t--------t-++c
Ifmoro
' .lIved wltl1 yOU_ _
Last name
tMnfour
d&pendents,
... pag.17
an<leheeb
here ...
.dldl\Oth~$WltI1 YIJ
numbel
dUato dlVlHce
~r~~e:~~t~oa~
__
--------------------,-+-------+-------+-+-1- ~:~:~~~I\t~
----.,-----------------+-------+-------+-+-1- ~l\tered above - 7
Income
56 92B.
Sa Taxable In1erest.
Attach Fonn(s)
W2 her. Also
attach Form5
b Tax~exemptinterest.Do"
93 Ordinary dividends, Attach Schedule B if required
1099 Riftax
was withheld.
10
Taxable refunds, credits l or offsetsofstate and local income tixes (see pase 23) _
11
12
13
Alimony received
6y$lneGs income or(loss}. Attach Schedule C or C- EZ .
..
) Attach SchedlAleD i1 ro1!qLlired
Capital gam or (10$$ 'Ir nl)lll!lqtJil'l!Id. checK here.
gotaW-2,
14 Otherga.ln$~rl~~~~ch,~;~:,
158 IAAdlstnbutlo,~j.' . 't~":I;~J,:<rga
see page 22.
16.
enclos&, but do
18
If you did not
not attach. any

payment.Also.
pleaseu$e
Fonn 1040~ V.
LI=.lI-,-,-______ ....
b Quallned dividends (see page22)
W~ZGand
~S'?:
~_'" ,1'-'
P~nsionsand~uitie$,;#H,f: '16a
i~~~r
,:~:w,
'~"":
;.,;;:;:,:z;
~g~~' .&if ',!~~*~i~b, @,$1:~1~~~:
t1!hz~"
~,T~P1eamt'.ag_
'''' ~iR
"'..
~~"" ::"',,:N, :,t~",ableamt%)~,
~m,.. ~',.":,,
~%~,
~"
E~1,
17 Rental real eil~, rOJaiftiSt'jrtnersiJ!I\w' S corpo~n"'Jf~, ~hAttacn;l!'Bi.diliiiE
ftM.if;~~i~A'~tt' ..i$L~~;~"F
# .~. i;%V '~~~~:~~WW;> . E:i:'
Farm Inome:<.;ni'\'~7_ a""11"-il:I,~~~e.
:'::""'". :::",,,,,. . .... :~ilt'~:t'~'
0''''
Unamploymentcompensatlon [n excessof$2,400 perrecipiel1t . _ _ . . . . .
1~
.~
b Taxable amt(see page 27} .
20. Social5ecurlty benefits
21 Other income. usttypeand amount (see page 29) __ ~_~ ., ____________________ _
1~1---'--'"---
---_...---_._--:---_.. --------
Adjusted
Gross
Income
23
24
25
26
27
28
29
Educator expenses {see

Certain
(ee~ basis government
Health
Moving expenses.
I
$elf~ employed
SEP, SIf',tlPLI;, and qualified plans

Self-employed health insuraneedli!duction (see page 30)
30 Penalty on earlywithdrnwaiofsavings
31a Alimony paid b Recipienf$SSN ~
32 IRAdeduction {~e page 31}
33 S\udentloon inter&st deQuQticn ($So page 34)
34 Tuition and fees ded uctlon , Attach Form 8917
35 Domestio produotlon aetivitiesdeduction. Attach Form 6S0:3
36 Add lines 23lhrQugh 31 a. and 32 through 35
KBA For Di5c:::!o5ure. Privacy Ad, and Paperwork ReducticnActNotice, see page 91.
CaIHF.IIO~~22472-3
'Form 0
FD10401V 1.25
wae-C-oP\'rrgli!HI9S.20101~R.BT;!Gf04j),I!lc:
38 of 130
Form 1040 (2009)
Borrower: Kyl . . . . . . .
6105243253
{8 YouWer~bornbeforeJanuarY2.1945,
Amot,mtfrom line 37 (adjusted groSSit'loome).
Tax and
:'8:
Credits
3S. Check
if'
_ ,
To:Kelli
spouse was born beforeJanuary;2, 1945,
Standard
Deduction
for~
Itemized deductions (from Schedule A) or your standard dedudlQn ($~e J~tt margin) .
People who ~
check any
b Ifyol,J are increasing your~;andard dedUf;ltion by certain real estate taxes, ne\l\f motor
boxon line
39a.39b, or
40b orwho
canb@
claimed asa
dependent,
p.~.35.
All others:
vehicfetaxe5. ora net disaster loss, attaoh Schedulel and check here (see page 35)
....
Subtract line 40. from lin" 38 .
42 Exemptions.lfline3S Is$125,100orlessand you did not provide h~using to a Midwestern
displaced individual, multiply $3,650 by the number on line 6d. Otherwise. see page 37 .
43 Taxable Income,
44 Tax (see page 37).
41
Married lilin9
45
46
'is.700
47 Foreign tax credit.
MSrrled tilln!J
48
Sil'l~!eof
5ep~r:!.tely,
jaintlyar
Qu:alifying
widow(er),
$11,400
Heild of
hOl,lJ;.qhold,
56,350
150
49
50
5\
52
S3
Credilforohlld and depend_nteareexpenses. Attach Form 2441

Education credits from form e663. line 29 .
Retirement savingsCQratributionserediLAttaoh Form S880 .
Child tax credit (... page 42) . . . " . . . " . .
Credits kom FOJll1: 08396 b 08839 c ~ 5695
Oth!;!"raredlt& a 03800
/rQm Fgrm.
bOaa01 cO
54 Add In 471hrough 53.

I
other
II
56
Taxes
57
68
Payments
61
tiZ
If you nave.
qualifying
1-'-'--+--_._-'''--
Federal inco me tax withheld from Forms W 2 and 1099

20098stimated tax payments and amount applied from 2008 return
Making work pay and govemmentretiree credits. Attaoh Sch M .
Earned income credit (EIC)
ehlld,attach
Schedule EIC.
68
.9
70
Refund
72
If Una 71 is more than line 60, subtract line 00 from I

Amount afUne 72you wantrefundedto you. If Form
Routing number
...
IKI
Account number
ill
. ..
~~~~I~~
; . '..
"".
Paid
Preparer's
Use Only
CaIHF!IIIUO_)22472_3
FO(I)1 sortw$f-", C:l""lpyright 1996,
FD1040-2V1.25
2010 HRB TOll:: Group. Inc.
39 of 130
Borrower: Kyle
SCHEDULE A
(Form 1040)
6105243253
To:Kelli
Itemized Deductions
~@Og
.... Attach to Form 1040. .... See Instruction5 for Schedule A (Form 1(40).
Caution. 00 not include expenses reimbursed or paid by others.

Medical and dental expenses (seepageA.. 1) ________________ _
Medical
and
Dental
Expenses
_._-_..__..-_._------_.....-..._ 2 Entaramountfrorn Form 1040,
3 Multiplyline2by7.S% (.075)
I
I
Taxes You
Paid
5
8
(See
pageA2.)
8
6
Interest
You Paid
10 HomernQrtgage interest and
11
(See
p.goAa.)
Note.
Personal
interest is
not
deductible,
Gifts to
Charity
If you madea
giftandgQta
benefit for it,
see page A 8.
12
13 Qualified mortgGtge Insurance premiums (see page A~ 7)
14 Investrnentinterest. Attach Forh'l4952 ifrequired. (See pageA-S,)
18 Gifts by co,hOr oheok.llyou made any glftol$250 or
17 Other than
11;1 Cartyoverfrom
19 Add
Casualty and
Theft Losses
Job Expenses 21
and Certain
Miscellaneous
Deductions
(See
p'geA.10.)
22 Tax preparation f@es

23 Otheraxpenses .. inve~fl1ent.
24 Add Iin.,21through23
25
Enter alilountfrQm Fonn 1040, line 36

.
28 Other- fromlistonpagaA-11. Listtypeandamount ... ___ .. ____________________ _

other
Miscellaneous
Deductions
Total
Itemi%e~
Deductions
29 I,Form 1O4O,lIno 38, ovor$166.800 (over $83,400ilmarried filing .eparately)?
No.
YOl.lrQedLiotlonisnotljmited.Addthe~mount$inthefarrlghtcolumn
forlines4through 26. AI$O, enterthisamounton Form 1040, line 4Oa.
DYes. Your deduction may be limit~d. See pageA-11 forthe amount to enter
C:all~F~~;;~~~~~R:'~d~U:ct~io~n:A~c~t~~~~~~~~~~~~I~~~~~~~~~~~~~~~~s~c~hedUleA(FOrm1040~)i20.019 ~
2010 14Rij Tl:I~ G!o.:rp~i";.' 1.9
40 of 130
Borrower: Kyl..
....
it
Form
2106 EZ
6105243253
P.4/15
To:Kelli
Unreimbufsed Employee Business Expenses

.. Attach to Form 1040 or Form lQ40NR.
Your
expenses
This Form Only if All of the Following Apply.

You are a.n employee deducting ordinal)tal"ld necessary expensesattributabJe to your job. An ordinary expense is one th"lt is
common and accepted in yourfle!d oftrada, business, or profession. Anecessary expense is one th~tl$helpful and appropriate
(or your business. An expense does not have to be required to be considered necessary.
You do notgetreiml:tursed byyouremp!oyerfQraoyexpenses (amQuntsyouremployerincluded in box 1 ofyolJr Form W- 2ar6
not considered reimbursements fQrthis purpose),
Ifyou are cl~imin9vehlcla expense. you
CaU1iQn:You can use the standard mileage

you plil!leed the vehicle in service, or (b)
It~ Figure Your Expenses
,. ".r,d.rd mileage rate forthe first year

00111011 oTm.lease period after 1997.
....
. ..
Vehicle ex:pense using the sandard mileage rate. Complete Part II and multiply line Sa by SSt (.55)
Parking rees. toils, and transportation. including tra.in, bus, etc., that did not involv!!! overnight
travel or commuting to and from work.
s.~
.., "
. <AAl
,~~~.~~~~
;~i;r,
oonQtinclude meals and entertalnment
""".l
:;1jW
:;:~~.
~j ,
;,:)~~
-><"'''''
2
,....,~
&Ji
<;~:;... :f.W>t
Travel e>:pense while away from homeover9jWt, tnclut!~ I~m~, alPnEt~rrental.~l.19, i~~~"
J~~~.;\
;~~
O<O<~ .~!;l!_
~'!l:i
ffi!.~ .",*,%. ~~~\''''';:'''

~,
,.;t<oO
<'"''
'
:<?':~,,&,~
. . ~~~
' """
~:);:'*
"'"
*r
~~
dJW t$ '~J~~~f ,,,i><;~

'1't1l!:!" "~,,
""""
'~"?!-~; ~""'~"':5:
....",
6L1Slnes$expenses not included on nnes 1 th1'C;jJg&~1Jo nb'tlnclud"~l!al
;Rftainffient
Mealsand ent@rtainmentexpenses: $
O'lL
1()0_,.
:395.
.~.,
1,600.
............ X50% (.50). (Employees subjeetto

DepartmentofTransPQl'ti!Itlol'I: (DOT) hoursofservle limits: Multiply meal expenses ineurred
while away from hOMe Oil business by 60% (.SO) instead of50%.
Fordet~II$,
$1)0 instructions.) .
.M _ _ _
Total c:!t:penses. Add lines 1 through S. El'Iterhere and on Schedule A (Form 1040},line
21 (oron $(:h~dula A (Fonn 1040!if:W!m:!)' {A~m9.!l!esre$ervl~~e- bae'3tat~tlt@~~. .m~M~*J~~
local govemmentofticials, qUalifi(i;e~form&9
a~dlVldual!l.~.isaijUe~$ee ':'I:~j!~.'"""""]ff''''''''
aifiSts.
Ji,iii'i
this ama
"':'~n_
'11W
". .
theinstructionsforspeclalrulesdn:Where
Rml
Infonnation on
YO.?\llt~gg:~~~f~
,!od'
S
.. Ji",.~~ ..;tr~~.
.
:3 166.
~:~~: . $~if.
vehicle
expense on line 1 .
oqllll:~f 'm~!dl):~'!lra",$l1lg
thjs Ilf@
..
...
........-.
--
""'il;'~"
''W
,~~'
..\:~. ,~~~ #~i~
;~;<:~~
~>;-.
'~;.if:m::r ~1~.
>.",,:~,
,,'~i<i.~.i:1:i!~
:.-:e~
Q2!..9J.L?gg~
\MIen did you place yourvehicl. in service for busn ... u.. ? (month, day, year) ..
Of the total number of miles you drove your vehicle during 2009, entorthe number of miles you used yourvehiele for:
6uoloo.. .'l-..L~ 5 0_ _____
Commuting (... Instructions)
AL!lil_()___ . _____ ... ___
other
.!..J._!?_________ _
~Yes
ONo
10
Oy
~No
11.
~Yes
ONo
~Yes
ONo
KBA
If''Yes,'' isthe !!tvidence written'? .
For Paperwork Reduction Act Notice, see page 4.
CaIHF"1l!ij!hfj!"""'472-~
FD2106EZ 1V1.ll
~Clrm"'C!"tw3r:;,eopyrl.!;lFil Ht~. 2010 HFl.B T;; Group. Irll'~
Fo rm 2106 EZ (2000)
41 of 130
Borrower: Kyle !
Form
6105243253
To:Kelli
Residential Energy Credits
5695
.. See instructions.
... Attach to Form 1040 or Form 1040NR.
Before
Begin Part I: Figure the amount of any credit for the elderly or the disabled you are claiming.
Were the qualified energyeffiolency improvementso( resldential energy property costs for your
main home loca!ed in the United States? (see instructions) .
. '>:<j~..s:;;:..:,
.~;~~~~~
=~~.1~<, ~W..t:...
J~~~~'
C.ution: If ou checked the "No" oox au c"'Mf6m1~ th.l\lM~f ss

y
y !.~~\l
'*'~".., 'h~!~
~:r~ 3'W~y I" :~~[~, li1l1>:r.<tiI;;';;
'~E~ ~itf
p
00 not CQmp lete Pl;!;rt L
Mf
~~'
~:~lf
$~i
".""",'IZ'/!!'ll.
~i*,~~ m~'~:-:-I$,~~:~t
Ajf i~m~d::>o~w
Improvements Eile instr.uafO~~:h.

..;#i~ :;!'~1:=
2 Qualitiod enernyeffioiency
1;1
@~"''',,.,> "~>:>'-'''"''"!"''::tw
,1m
\~~t"j:(
:~~1~
,~m~
':~:~
,a Insulation material or system $pecifically ani'.,mMiftY desigEWredudEAAeat IO$$or gai~your home
b Exteriorwlndows(including certain stann windows} and skylights
02~
c Elcteri<Hdoors(including certairlstormdoors)
d Metal roofwith appl"Qpri:ata pigmented coatings, or asphalt roofwith appropr1:;1te oooling granulos, that are specifically
and primarily designed to reduce the heat gain of your home, ~nd the roofmeetsorexceedsthe Energy Star program
requin~ments in effect at the tim@ofpurchaseorinstallation
Add Iines2a through 30 _
Multiply line 4 by 30% (,30)
Maximum credit.moun!. (If you jointlyoccupied the home. see instructions)
8
9
1Q
Subtract line 9 frotn line 8.lfzero or I!s:!i, slop. You cannottakethenonbusinessenergy
property cred~
KSA
Form S6SS (2009)
For Paperwork Reduction Act Notice, see instructions.
CaIHF"iI/j.....!l)22472_'
F06695-1Vl.7
"F'Qrm 5Qt"r'w:3re ~0f!yrlgnt 1996- 2010HRS T;sx Grllup. Inc.
42 of 130
Borrower: Ky1etl
Form 5695 (2009)
6105243253
To:Kelli
KYLE
P"g" 2
Before You Begin Part 11:

Figurethe amount of any ofthe following oredits you a.re claiming.
Credit rorthe ~Iderlyorthe disabled.
Di$r;cl 0 f Columbia first.. time homebuyer credit.
Qualified plug-In electrle v(lhicie credit.

Qu~lifil;!cl plug-In e!lectricdrivemotorvehicle cre~it
Altl$!rnative motorvehicle credit
Residential Energy Efficient Property Credit (See instruGtions before completing this part.)
Note. Skip lines 12 through 21 if
only hav;;e;-:a~cr~e;;;d~it~~r;~~;d -fr-om-2-0-0-B.----------
12 Qualified solareleetric propertytosts
15 Qualified gsothermal heatpump property costs

1. Add line. 12through 15
17 Multiplyline16by30%(.30)
1S Qualified fuel cell propertycosts
1& Mulliply 11M 18 by 30% (.30)
20 Kilowattcapacityofpropertyon line 18above ..______________ _
21 Enterthesmallerofline 190rline20
22 CreditcanyfolirVi')rd from 2008. Entertht! amount, ifany, from Y0l,Jr2008 Form 5695, litle 29
11'1 Pub. 972 (see instJl.lctions); Form 8396, line 11; Form a839, line 18:
Form S859, line: 11; Form 8834, line 22; Form 8910, line 21; Form a9:36,
line14;and Schedule R, line 24.
27 Residential energy efficient property credit, Enterthe smaller of line 23 Of line 26 .

29 Credit oanyro"."ard to 201 O. IfUne 27 is less than line 23, subtract line
I
Current Year Residential Energy Credits

29 Add lines 11 and 27. Enterhete. and on Form 1040. line S2, or Fonn 1O4ONR.line 48,
and cheok bQ}( eon that line
29
308.
Form 5695 (2009)
CaIHFA&96#ij\f!02'472-'
FD56S5.2V 1.7
Form Software ~opyrl9iit 19913 - 21:)10 HRe T;"x Grl;l\lJ), 1M
43 of 130
Borrower: Kyle III!II~
DEC-21-2011 15:15 From:PRYSERU
6105243253
SCHEDULE M
To:Kell;
Making Work Pay and Government

Retiree Credits
(Form 1n40A or 1040)
OMS No. 10400014
~@09
instructions.
":;':~:.:~ See the instructionslfYQu can beclaimed as.someone else'sdependent or are filing Form 1040NR.
Cheek the "No" box below and seethe instructions If (a) you have a net loss frorn a business, (b) you received
a taxable schoJafShip orf@!lowshipgrantnotreportedon a Form W-2. (c) yourwagesincltlde pay forwark
~errormed while an inmate In a penal institution.
(d) yQU r~eeived a pension or~nnuityfrom a nonqualified
deferred compensation plan ora nongovermental section 457 plan, or (e) youare filing Form 2555 or2555- EZ.
Do you (and your spouse Jffili~9 joinlly) have
1ilinS jointly)?
[Z]
o
b
Yes. Skiplin~1~through
No.
Enteryourea",ed ino,m" (see i
NontaxBble combat pay il'1cluded on
line 1a {see instructionS) .

Multiply line la by 6.2% (.062)
Enter $400 (S800 i/married filing Jointly).
4
5
6
7
lstheamounton line 5morethan tile amount on line 6?
IZ.I
o
B
No.
Skip lineS. Entertheamountfromline4on Iine9b@low.
Ys. Subtract line 6 frQIT'IUne 5
..
.....
Multiplyline7by2%(.02).
10
Enter .a.onlln.l0andgotolln.11.
Enterthetotalofth@paymentsreeeived byyou (and yourspouS8, if filing
jointly). Do not enter more than $250 ($600 If married filing jointly)
11
Did you (oryourspol,Ise, iffilingjolnUy) receive a pension or annuity in 2009forservicesperformed Elsan employee
?fthe U.S. Gover~ment ora~y U.S. state or local g~~Jtmm:~aLtroVf~~~~ot cove.tel:.p~$f'R&1 security? Do not
Include any penSlon or annuity reported on Form ~~~:;,.".oo .... ~ :~~ ~t~~:~
~1o~ol<.:-><~",.>.,
~~
" . ,. iW
o~:~. ;n~e;~~~:;~~:~~,~:~:~~~~~i~~:n~~ilf~::if'rl
and the answer on line 11 is ''Yes'' f~liPth sPQusemw
p@i
'"
J:~'
t!W=~~,,,,,
gjOintil~~~1,mg1
.w......
1ig~~ ~ml
If you checked "YCls"on line 10, entet~ 0- (exception: enter $250 I(tlling
jointly and the spouse who received the pen!ilion or annuity did notreeeiv~
an economic recovery payment described on line 10)
12
Add lines 10 and 11
13
Subtract line 12 from line 9.lfzero otlass, enter 0-
14
Makihg work pay and government retiree credlts.Add lines 11 and 13. Enterthe result here
and on Form 1040, line 63; Form 1040A.line 40; or Form 1O4ONR, line SO
KBA
If you are filing Form 2555 2555- EZ. or 45630ryo~ art! excluding income fro ttl P'uerto Rico, see instructions.
ForPaperwork Reduction Act Notice, see Form 1040A,1040, or 104ltNRinstr...ctions.
Schedule MiForm 1040A or 1MG) 2009
CaIHFAQM)~U2-.~
FDM1V1.0
-FormS"ciHwiOTrel:opy7ignt 19W 2010H RB fax GrQUp, Ine
44of130
Borrower: Kyle . . . . ._
6105243253
To:Ke!!i
P.B/15
For Privacy Notice, getfQrm FTB 1131.
California Resident
Income Tax Return 2009
FORM
540
APE
C1 Side 1
ATIACH FEDERAL RETURN
---~.
KYLE
09
AC
RP
5020 A STREET
SACRAMENTO
01
06
CA
1
10
o
o
o
12
56928
14
16
900
17
18
31
34
56949
23079
1185
09
o
o
o
41
o
o
o
o
o
o
o
o
42
43
44
45
46
61
62
63
64
1087
71
2412
95819
72
73
74
75
76
77
o
o
l\.PE
FS
o
o
o
78
91
92
1325
93
94
95
1325
o
o
o
o
o
3800
3803
SeRGi
587(lA
5805 5805F
DESIGNEE
1
'rPIDP 00058109
FN
431871840
400
'''OT
Sign
Here
It
i~
I,Inl:.wfullo
rorgo!! a
:;pouse'!.1 RDP's
"lgn..iure
Joint return'?'
(";'1><;1 p"'ec 17)
Firm',," ~dd rll5S
Firm's n;!lme [or your.:, if 51:11 o:!IYlplOYlld)
HRB TAX GROUP IN SACRAMENTO

D()
)tQU w;!Int to
allo""aMther IHlfllon to (\I$ou:;.:this retum
wlt~
1.19
~~9~5~8~1~6~_____
{~4/l11
pilEi=: 17)7
PREPAAER
( 91 6 ) 447 -1 "'02"-'1=--_____
Telephone. Number
Prinl Third Party Dosignetl'S name
046
3101096
45 of 130
Borrower: Kyle Alan Bryant
6105243253
To:Kelli
YQurSSNorlTI~
F S
I T
, A
I T
NU
G S
:
3
~ ~:~::d/RDP nnng
IIlIng jointly. (see page 4)
Married/RDP
separately. Enter$pOI.l$E!'s/RDP'sSSN or ITIN above and full name here _ _ _ _ _ _ _ _ _ _ ,....... ~,.___..,.,~". _ __
Head of household (with qualifying person). (see page 4)
Qualifying widow(er) with dependent child. Enteryear'PQu IRDP died. _ __
our California filin
status i dltrel"l!!!ntfrom ourfederal filin ~atus check the box here

6 Ifsomeon@canclaim oU or Gur ouse/RDP asade endent check the box here see iii! e7
7 P&rsonal: If you checked 1,3, or4above. enter 111'\ th@!bo)(.lfyouchecke<l :2 or5, illnt!!r2 in th~ bo)(.
If you checked the pO}( on line 6, see p-.,ge 7 ........
. .. . . . .. . . . . .. . . . . .. . .
,7
8 Blind: (fyou (oryourspouse/RDp) arevisuaUy impaired, enter 1; ifbatf1 arevisualiyimpaired, enter2 B
S Senior: If you (oryourspou.eIRDP)
0 9
If
"
T
I
Whole dollars only

X $98=$ _ _ _ _-"-9::.8-'-,
X $98=$ _ _ _ __
X $98=$, _ _ _ _ __
10 Dependents: Enter name and
$98=$: _ _ _ __
12
13
14
15
16
17
18
r
A
X
A
,
"
8
0
M
State wages fr(lm your Form(s) W- 2,
. 12
Enlerfederaladjusted gros.inC<:lmefrom Form 1040, line 37; Fonm 1040A, lin. 21; Form l040EZ,line 4 ,
California adJustments- subtraotlolis. Enterthe amount from SOMduie CA (540), line 37, oolumn B.
. ...... 14
Subtract line 14from line 13.lflessthan zero, eliterthe r@sultinparentheses(seE!page9) .............

California adjustrnents- additions, Enterthe amauntfrom Schedule CA (540), line 37, column C .
California adjusted gross income. Combine line 15 and line 16. . . . . . . .
15
' , ..... ' . 16
. ............... 17
Enterthe largerofyourCA standard deduction OR yourCAitemized deductions. . . . . . . . . . .
57,84~""
900 .
___,...56! 949 ~
_ _-';0-:,-;;-;-,0,-,-.
---':::--=:L=--Cc::.'-
. .......
31 Tax. Cheek boxiffrom:

T
32 Exemption credits. Enterthe amount
3Z
33 Subtractiine 32 from line 31. Ifbos5thal

34 Tax. (see pag.l1) Check box iffrom:
33 _ _-=loL'.:=.O.:=.8..:.7-=-,
35 Add line 33 and line 34 . . . .
@34
. ........... .
41 New jobs credit. arnountgenerated (see page 11) . .
42
43
44
45
,A sT
46
s c
p "
E
C 0
I
35
New jobs credit, amount claimed (see page 11)
42
smoun~
.............. 43
Code _ _ _ amount
Credit
To 121m morethan two oredits{see page 11) ........ .
........ 44
Code
Credit
47
47 _ _--::---,:-=_
o T
61
~~
62 Ment~1 Health Services
~~
. ........ 63
63 Othertaxesand credit recapture (seepage 1 5).

64 Add IIn~ 48, line 61! line 62, and line 63. This is your total tax
71 California incomataxwithheld (see page 13) .. , ........ .
04
o 71
o 72
2009CAestimated taxand otherpayment$ (SI:!t!page 13)
.2,412.
73 Real estate and other withholding (see page 13) , ................ ,'
73
", .... ,74 _ _ _ _ __
74 Exc SDI(orVPDI)wlthheld(se.pageI3) " ............ ,
Child and (lependent Car. Expen Credit (S.~illi!!l!9JlAI1!!Oh f<iJ:SB 3506*'i"'it"1~
. .
,
.
f<~'1"''''''''''l':,' .3:$1 ffi!r
<~~li~ .. r;<;,,><~,
15 Qualifying person 550(:laI Sflc urlty number .. i~:" ... , , 'i~W' H~~l' ..... ~:~~, 7S _ _ _ _ _ _ __
P
A
M
E
N
76 Qualifyin9 person's social security number
,j~~ii;m~~~$.. -1~]r. . ~~f
77 Enterthe arnountfrom form FTB3S06, Partl~ile8 .... :~gf.
78 Child ane! Dependent Care Expensescredtffrj'rn form

~
1, 087 ,
. 41
.....j~~,~!~tft ________
,jf4[ .... ~@t . 77
.~~P.ii@if.i{1~~"2~~~* --.-.-..-.-.-.-.-.-.-..-.-.-.
o 78
79 Add line 71 , line 72, line 73, line 74. iilnd 11M 78.lhese are YQurtotal payments (see p~ge 14} ....
7&
?J12_
91 Overpaidtax.lfline791$morethanline64,subtraclline64fffJmline79 ...
91
1,325.
R~ ~
92 Amountofline91 you want applied to your2.010 estimated tax ...... ,

~ XJD 93 OverpaId tax available this year. Subtract line 9Zfrom line 91 .
I
U
o E 94 Taxdue. Irline 791:slessthan line 64, subtract line 79 from liM 64
USE. TAX95
Use Tax. This is not a total Une (see page 14)
Side 2 Form 540 Cl 2009

CalHFA Loan# 022472,3
046
, ...... .
........ .
&2
'0
, '
93
94
1,325.
0:
... " .. 85
3102096
46 of 130
Borrower: Kyle
".IIIIII1111&1It
6105243253
Yourname:"===___
To:Ke!!;
YourSSNorlTIN:
Code
.4M
_401
California Seniors Special Fund. (see page 2Z) .

Alzheimer's Djsease/Relat~d Disorders Fund
California FundforSeniorCitizens ............ , ... __ .. "" .... "
Rate and Endangered Speeil!!sPreservation Program
State Children'sTtust Fund forthe Prevention of Child Abuse
.402
.403
.404
California Breast Cancer Researeh Fund .. .

CalifQmla Firefighters' Memortal Fund ... , ....... _........ ' ... " ......... .
Emergency Food For Famille. Fund .... , , ... .
N
T
I
.405
_406
.407
.408
.409
.410
.411
_412
.413
.414
Municipal Shelter Spay- Neuter Fund

California Cancer Research FUnd .,
ALSfLou Gehrig's Disease Research Fund ....... , ... __ ... " .. , '
AY 0
MOW
TUE
110 Add CQQE! 400thraugh cod~ 414. This is your total contribution
111 AMOUNT YOU OWE. Add line 94, lio095, and line 110 (..ep.ge15).M.ilto
FRANCHISE TAX BOARD, PO BOX942867 , SACRAMENTO CA 942670009 .
112 Interest, late retum penalties, emd late payment~nalties , .. ," __

113 Underpaymentofestimatedt. CheckboX: U FTB580Sattached
1
R
E
F
t1.~
'110
O.
O.
111
,
FTB580SFa~ache~.::.:::..
112
113
to:
115 REFUND OR NO AMOUNT Due.
115
1 ( 3? 5.
FRANCHISE TAXBOARD,PO
: not attach a voided enQckora depositsHp (see pa.ge 16).
Fill In the information to aul:holrjzo: dil.~I:d
Have you verified the roultln'9 arId ,'CC'O<
All orthefollowin,g amountofmy refund (line 115) Issuthorized fordireet clapositinto the account ShoWn below:
cneoking
Savings
R.outing number
_ Type
, Accountnumber
.116 Direct deposit amount
The remaining arl'lOunt afmy refUnd (line 115) is authorized fordirect depQsRinto the aocountshowl'l bolow:
"
E
AP
N 0
DrT
E
!f
Routing numb~r
046
3103096
47 of 130
Form 540 Ct 2009 Side 3

Borrower: Kyle
.1
6105243253
To:Kelli
TAXABLE YEAR
2009
P .1l/15
SCHEDULE
California
- Residents
CA
Additions
See i!l""tructiQ"~
wages, salaries, tips, etc. See instructicnsbefore makiflg an entry in column Bore
Taxable interest.
Ordinarydividend$.
. ........... , ....... .
S~&instruction5.
(b) _ _ _",-_ _ _----,,---
10
Taxable refunds, credits, offsets ofslllte and l",oom~1i@le t.~~~~;~"
11
Alimanyreceived ......... ," ......
12
13
Capital gam or (loss). See instructions ... ~s*-
14
Busines$ll'lcm~or(loss)........
"
~:~,
.
Othergatnsor(losses). _. _.... ,
..
Ii,);.,;,. m$~
".;!:f;!!:f ?!;~%:(
~1~~ifir;~
........ ~",,*,0 . . . .
'I~~)
..:'i-.~iW""
'~~~~~~m:~,~
"~~'S:IZ~>Y: ..
15
16
IRAdistrlbutions. Se. instruotions,
17
18
Rental real e~atet royalties, partnerships, S corporations. trusts, etc. .

Farminco,"eor(loss)., ... " " " " "
1$
Unemploymentoompensation in exce5S of$2,400 per recipient
to
21
Socialseountybenefits la) _ _ "_ _ _ _-,,
(0) _ _ _ _ _ __
F'eM;!onsand an.nuities. See Instructions. (a)
--------t-------+-----........ 19 --------t-------17
18
f).
&
~1.~~ot fr;;$:r~.,.,;~." ~~. .,!,~,:-. .;~.
20lb)
OtherineQma.
.,,4\1~~~1t~~:,
J~t
a California lottery winnings
. -.-.,
~~ ~
. W . "']-,- . ~ &!
~- ~~f
w
b Disaster loss carryover from FTB 3S05V ,~ili3806,
3~f:Qt.!eOit
'!l'Oth L4iJ~rJI)' 'i!!!j$( ,~~i:
c FederaINOL(Forml040,line21)
:-_=:-_-1.______
'~~~~
~$~~
21
_:~~~t
fill-if
\~1f*.,::,.~~~.,:" :,~.~,"..:.,~,".,~:~
,
..:m*'"----
"'4~t~g!~J-~' .~. '~~~if ,~I~~*~!Jt l~f
d NOLcarryoverfrom FTB3805V
22
' , ' :, .,
,':'l.
:~~~~q>:,., :l~!t ~~'t."~

I:'"
*11 ........ ~~f. .. ,. J~~..
Total. Combine line 7through line 21 in columnA. Add line 7through 11M 21fin
column Bend colutnn C. Go to Section B
23
Educatorexpenses.
24
CertalnbU$lne$$.&XpanSeSOfre5ep,:m~~~~rdfee-ba1f.1~
25
governrnl!!nt officials ........ iJ ...

.
t ddt"*~
He-althsavIngsaccouti
l~lh. ,..~u:
~~,:.;w.
.*~~}.:':'"
.. ,, '1.a,' ...... ~mi~~. . ff]~

,.:,,"~
Moving expenses .... , ..... ![~~~~Jt!ilf ~~~,:~:, ~~Jft

,~ij~ ,~,
One- half of salf- employment ta~'f'~0;;~~,~:' .... ::-'?~~~~~r.. . .... .i~~i . ... 1;~%.
28 Self- employed SEP, SIMPLE, and qualified plans .. , .
29 Self~ ernptoYe!d health insurance deduction .............. .
an P&naltyon early withdrawal of savings .
31. Alimonypald Ib)Rocipienfs: SSN _ _ _ _ _ '_ _ _ _ _ _ __
18
27
~stn.m
36
.....
..
________________________
Add line 23 through line-:31 a and 11M 32through Iine35 tn.eolumnsA, B, and C.
T(JtaLSubtrectline36 from li(l622in colurnnsA, B,and C. SeeinstrutloM ...
ForPrivacy Notice, getfonn FTB 1131.
+-________
.. 36 __________
See instructions
37
:"'"l~ tti;:. ~; ..
UC10'Sr, t~~~!~ ~h.;~ \~~:.;'t,'$' .
046
7731094
480f130
~------
___,
37 _ _~!..!.L-'e.:!-"L_ _ _ _-"-"-''''-_ _ _ _ _--l
Schedule CA (540) 2009 Side 1
Borrower: Kyle "" 1\1
DEC-21-2011 15:18 From:PRY5ERV
6105243253
To:Ke!!;
KYLE _ _
part II Adlustments to" Federallt6miZed Dedyctir:ms
.... 38
26,150
General $ah~s Tax), line 7 (new motor vehlele tax), and line 8 (foreign incometaxesol1ly), See Instruetlo)'ls .............. 39
3, 071
38
Federal itemized deductions., Ac;lQ the amQuntson federal Schedule A (Form 1040), lines 4, 9, 15, 19, 20, 27,and 28
39
Enter total offederal Sehedull!' A (Form 1040), line 5 (State Disability Insurance, and state and loca!inoometax.. or
40
Subtractline39fromline3B ...
41
Otheradjuslmentslncluding California lottery losses. See instructions. Specify _ _ _ _ _ _ _ _ __
42 Combinellne40and Une41
43
-:'.6::~~
...... ~~~i$'r:w:~::.: -
j;'
<-;r;s'ff
::;:~~}.::::"*'
~~lt%~~~ ~~:;..
~$f$~~::$;,
~~ f~r
< > ~
arr.aunt
'~*1:p.~>x@~@~''''~,~
~;*:~ i'
'''8'',''
.9~,
Jd
;:;::t.'??
't~H
......... 41
,,,,,~~,
. dt"
23,079
42
,d:;"
:-1:""'' ' ' ' <
Is your federal AGI (Form 540, line 13) m%.\1:han t~e

$h(l'#!,~~ur fili~~atus?
Single ormarrled/RDP filing-,!!?:aratI~~ ."%'S.... ~~~Wr. ~~J
SIJl60,739
~~~0~~~~
-<'f}.~!J;M~'Y' &h
.~1i?
Headofhouseholcl ....... .";:;:~.;.:y:.f':
,,;"i'"",z,'(l:"'~';t' . -:.: ..~ _ __ ";;<;"i!241,11J
Marriedl RDP filing jointly or qu.lifying wid oW(er)
... _.. ___ .
............
$321,483
No. Tran$ferthe ~lTIounton line 42 to line 43

Yes. Complete the Itemized Deductions Worksheet in the instruotlonsfor Schedule CA (540), line 43
.. 43
44
.. .. .. .. . .. 44
L...._~2..23.L,
-"O:.!.721
DO NOT
iim~=~
~j~f~if1
.ifi
Side2 ScheduleCA(540)2009
046
7732094
49 of 130
---.---~-"
..----
.W
Borrower: Kyle
8879
Form
D~fl.artmel'lt
lr'1to-rn.,!
of theTre.a5ury
Fl,IlIlrenUe
6105243253
IRS e- file Signature Authorization
OMS NQ, 1545-0074
li" Do not send 10 the IRS. Ttlls is nota taxfeturn.
~@Og
Service
P.1Y15
To:Kelli
Keep this form for your records. S@iI!! instructions.
~D~eC~I.~~~ti~on~C~o~h~tr~OI~N~U~m~be~r~(D~C:N~)~~~~~~~~~------ ..--_O-----------------r-------------------------Social security number
Taxpayer's name
SlloU$E,!'Sname
2
~
Adjusted gross income (Form 104<1. lin. 38; Form 1040A, Ilhe 22: Form 1040EZ.lIn04)
Totalt.. (Form 1040, IInoSO; Form 104<1A.line37; Form 104<1EZ, IIno11)
Faderal income tax withheld (Form 1040, line 61; Form 1040A, line38: Form 1040EZ, line 7)
RerUhd (Form 1040.IIn073.; Form 1040A, IIn046.; Form I04OEZ.line12a; Form 1040 SS, Pa~I, lin. 130) .
II
Under penalties ofpe~ury, I decla.rethat I have examined a copyofmy electronlelr.dlvldual ineom!!!t2lx r4!!turn and accompanying schedules and statements
for the tax year ending Deoen'lberS1, 2009, and to the bestofmyknowlcdg(!! rmd belief, itistrue, correct, and complete. I furtherdeclarethatthe amounts in
Part I above are the
inQQmetax return. I consent to atiow
service provider, transmitter, o-relectronic return
originator (ERO) to :send
the IRS
of the transmisslon, (b) an
Indication of any refund
I authorize the U.S,
Treasury and its
i I institution account indicated in
the tax
financial institution to debit the
b~ dobit(ld througn tnc EJ~trorlic
personal identification number (PIN) to
to terminate the authorl%ation. To revoke
a payment, I must contact the U.S. Trl!!asury FinancialAgent at
no larerthan 2 business days prio rto the payment (settlement) date. I also
authorize the financial institution$lnvolved inthe processing ofthe eleotronl~ paym&ntoftaxBsto receive confidential information necessary to answer
inquires and resolve issuesrelati:!d to the payment. I further Clcknowledgt:! that the personal identification number(PIN) below ism'lsignature formy
eleotronicincome tax return and. ifapplloable. my Electronic FundsWithdra.wal Consent
Taxpayer's PIN: check one box, only
[j9
I authorize
11532
to enter orgenerate my PIN
HR BLOCK
ERO firm name

as my signature on my tax year20Q9 electronically nIed Income tax rl,!'tum.
Entl!!rfive numbers, but

do not enter all zeros
I will enter my PIN as my signature on my tax year 2009 electronically filed income tax return. Cheokthis box onl~ ifYQU are entering your own
PINandyourretum is filed using the Practitioner PIN method. The ERO must complete pare III below,
Your signature
CO PY,. O.NLY ,,- .~.
JII;;;;'
"
j1r;t~' .It::;;"'
,~:~:,
;~r 11 .:gto
spou PtN: oheok 0 box only
o
o
'"WFWW'* Date ~ -"0"'1"-/...

2"'9,..1"'2...0"'-"'-1"'0__________
I authorize
enter or generate my PI N
ERO firm tm~
~~~~ ,,~~;m;;;;;~;:~J;~~~;~;~:t~~~'
as my signarure on my lax ye:Glr 2009 electronic'a:Ityfiled incomaiax refdi1t,~ . . . . . ,. . . . . .,.,.,. ."'. . . . . . . . ~
..
,._nJ
Enter five numbers, but

I will@ntermyPINasmyslgnatureonmytaxyear2009 electronically filed income tax return. Check this box only if you are entering your own
PIN and youfreturn Is tiled usingtJ1e Praotitioner PIN method. The ERO must complete Part III below.
Spous.'ssignature ~ ________~C~O=P--'Y~O=N!.!L:::.Y.!.-
_______ Date ~ _________________
Practitioner PIN Method Returns Only - continue below
I.Jlll
Certification and Authentication - Practitioner PIN Method Only
ERO's EFINI PIN. Enteryourslx digit EFIN followed by your five- digitself~ $elaeted PIN.
I ~ertifythatth8 above numerioel"ltry Ismy PIN, which ismysignab.lre for the tax year 2009 electronically filed incometax return forthetaxpayer{s) indicated
above. t confirm that I am submitting this return in aocordance with the requirements ofthe Practitioner PIN method and pl!l)llcatloli 134S. HaJ1dboor:: for
Authorized IRS e- file Providel'$oflndlvidual Income Tax Retl,lm~.
. ERO'ssignature
_____________________________ Doto
01/29/2910
ERO Must Retain lllis Form - See Instructions

Do Not Submit lllis Form to the IRS Unless Requested To Do So
Form 8879 (2009)
KBA For Paperwork Reductio" Act Notice, see page 2 ofform.

CaIHFAUIZ...,,~.......72_3
form-softwljl,r~opyrtgnt 1986
FD8879D1V 1.0
2010 HRB r.-x Group. Inc;
50 of 130
Borrower: Kyle
.AII.
6105243253
To:K.lli
P.14/15
DO NOT MAlL THIS FORM TO THE FTB
046
TAXA61.EYEAR
FORM
2009
California e- file Signature Authorization for Individuals
8879
Your SSN or ITIN
Your name
KYLE
Spou..SlRDp5 SSN or ITIN
Spouse'slRDP'sname
Part I Tax Return InfOrmalion{wholedoll.rsonly)
1.32.5.
_......... 3
Part II Taxpayer Declaration and Signature Autnonzation (Be sur~ you get and keep a copy of your retum.)
tax return ~nd accompanying Bchedulesand statements forthe tlx
Under penalties
ycarondlns
proyjded to
orindi
o/my I
,and
I furtherdeclarethii\t ~he information J
agent to
return to
return,
penalties.
I i,oknowledge
I
read and
I have selected a personalidentilicatlon nUlmber(
FundsWithdra,wal Con.sent.
Taxp~yer's PIN:
[j9
check ono box only
louthorize HRE TAX GROUP
INC
toenrermyPIN
EROfirm name
![~s~~~~~
Do not enter aU ZetO~
as my signature on my 2009 e- filed California individual income tax ret\.lrt'l
01(29/2Ql,Q._ _
to enter my PIN
I authorize
ERO firm name
Do not enter all zeros
aSMyslgnature on my 2009 e- filed California Individual income tax return"
Part n'(Cerlification and Authentlealion ~
Practitioner PI N Method only
~:.!!!-==~~===::.:.:.:,==c:..:.::.==",,--
___ ___.____ ._
ERO'5 EFINJPIN. en~ryoursix- digit EFIN (ollowl!!d by your five- digitself selected F'IN,
~~~~l
00 not enter illl zeros

I certify that the a.bove numeric entry is my PIN. which is my signature forthe 2009 California individual Income taxretum forthetaxpayer(s) indicated above.
[confirm that I am SI.1bmitting thisretumln aeeordancewith the requlrernentsofthe P~ctitioner PIN method and FTB Pub. 1345, 200ge- file Handbook for
ALithorized a-file Pmviders,
~RO'ssign~ture"
_ _ _ _ __
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Dat _ _-"O..=l.!..I..=229:../-=2"'0'-=1"'0'--_ _
FT6 8879 C2
For Privacy Notice, get form FTB 11:l1.
51 of 130
2009
Borrower: Kyle ..6II1II.....
6105243253
To:Kelli
P.i5/i5
All or portion of refund to direeldeposit
1210003581
RQuting Transit Number(RTN) ,
08458018311
Depositor Account Number (DAN) .
Chec~
Type of Account
Remaining portion oftotal refund
Routing TIlInsitNumber (RTN) .

Depositor Account Number (DAN) ,
Type of Account.
DO NOT
52 of 130
Borrower: Kyle "ltl
Bankof America ""'-
~~
VYour Bank of America

Prima Account
Statement
0845 E P
EO-3
Statement Period:
November 10 through December 12, 2011
Account Number: 08458-01831
1 111.1 1 111 11 11.1
At Your Service
KYLE
Call: 1.800.432.1000 - Customer Service
9308 SENTINEL RDG

NORRISTOWN PA 19403
Written Inquiries
Bank of America
Grass Valley Branch

PO Box 37176
San Francisco, CA 94137-0176
Customer since 1980
Bank of America appreciates your
business and we enjoy serving you.
Our Online Banking service allows you to check balances, track account activity and more, With Online Banking you can also
view up to 18 months of this statement online and even turn off delivery of your paper statement. Enroll at
www.bankofamerica.com.
Tiered Interest Checking

o Summary of Your Prima Interest Checking Account
Beginning Balance on 11/10/11
Annual Percentage Yield earned this period
$1,587.39
Total Deposits
Interest paid
+ 7,816.15
$.81
Number of ATM withdrawals and transfers
Total Checks, Withdrawals,

- 7,693.15
Transfers, Account Fees
Service Charge
- 25.00
Ending Balance
$1,685.47
1
16
Number of purchase transactions
+ .08
Interest Paid
year~to~date
0.05%
Number of 24 Hour Customer Service Calls

Self-Service
Assisted
0
0
Important Information About Your Account
A monthly service charge was applied to your Prima Account because on 11/28 your
balance was below the minimum balance requirement of $10,000.
Checks Paid
Date Paid
Number
Amount
12/05
1881
$1,274.00
Continued on next page

California
53 of 130
Page 1 of 3
II1II.
Borrower: Kyle "
Statement Period:..:iiNo.viieiim.b.eiir.l0 through December 12, 2011
Account Number:.
Account Activity
Date
Posted
11/29
11/30
12/05
Description
Reference Number
Amount
De~osits and Credits
On ine Banking transfer from Sav 6018 Confirmation# 2663033918

Friedreichs Atax OES:Payroll 10:42600800014594x INON:Bryant, Kyle
CQ 10:9001907814 PPO Ref:011332010335559
ATM deposit on 12/03,
Bank of America ATM #IPAN8135 (Card #653821989)
$2,300.00
008225
Total Deposits and Credits
3,732.15
1,784.00
$7,816.15
Withdrawals, Transfers and Account Fees
11/14
11/14
11/14
11/14
11/14
11/14
11/15
11/15
Keep The Change Transferto Acct 6018 For 11/14/11

Check Card Purchase on 11/10 (Card #653821989),
Gli'gre~houndlines1508 214-849-8966 TX
Ref 112 692161314000491380063
$.91
18.09
PennS~lvania American Water Co Bill Payment
Peco nergy
Bill Payment
Cash with rawal on 11112,
Bank of America ATM #ICA06781 (Card #653821989)
005538
Corneast Cable Communications Bill pagment
144.36
1.16
3.59
Keep The Change Transfer to Acct 601 For 11/15/11

Postnet San Die~o CA
11/15
11/15
11/15
11/22
11/25
11128
11/28
11/29
12101
12/01
12/01
12/02
12/02
12/02
Ref #242465113 9207399600029

Baja Fresh 111 San Oie~o CA
Ref #2469216131900063 298055
Online scheduled transfer to Sav 6018 Confirmation# 6036800585
Dana Inn & Marina Resta San Diego CA
Ref #24492791318118000168522
Fara-Friedreich's 888-955-5455 PA
Ref #24323001327123326010018
Keep The Chan~e Transfer to Acct 6018 For 11/28/11
Purchase on 1128 (Card #653821989),
Arco Par-paint Rocklin CA
Online schedu ed transfer to Sav 6018 Confirmation# 7157200468
Attm'436079943357nca 8003310500 GA - Recurring
Ref #24493981334003157403946
Chase
OES:Eliay
10:1231268394 INON:Kyle A Bryant
Co 10:5760039224 W B Ref:011334012715114
Outback 4461 Lewisville TX
Ref #24692161335000986567344
Purchase on 12/02 (Card #653821989),
Giant 6084 Norristown PA
12/02
12/02
12/05
12/05
12/05
Northwestern Mu OES:ISA Pa6;mnt 10:1179301 Isapt;mt INON:Kyle

Bryant
Co 10:9000596 67 PPO Ref:01133501 244088
Online Banking transfer to Sav 6018 Confirmation# 2989261936
Check Card Purchase on 12103 (Card #653821989),
Bikesport Trap~e PA
Ref#24013391 37001329527840
~s Restaurants 424 Lewisville TX
41.42
55.10
100.00
7.60
20.00
96.65
20.00
50.00
676800
.98
60.02
20.00
.78
161.22
2,301.92
.91
16.41
073764
68.68
200.00
1,945.21
1.71
19.05
37.24
ef #24692161337000473954771
12/06
12/06
12/06
12/07
12/07
Pennsylvania American Water Co Bill Payment

Corneast Cable Communications Bill Palmen!
Keep The Change Transfer to Acet 601 For 12/07/11
Online Banking payment to Crd 7647 Confirmation# 6131540203
18.14
20.00
110.66
.12
18.85

California
54 of 130
Page 2 of 3
Borrower: Kyle"."
Statement PeriOd.:N.oiiviie.miiibiie.r.11a0 through December 12, 2011
Account Number:,
Account Activity Continued
Date
Posted
12/07
12108
12/08
12/08
12108
12/09
12/09
12112
12112
Description
Reference Number

Penns Table Of Lionvill Exton PA
Ref #24707801340980150129152
Purchase on 12/08 (Card #653821989),
Wegmans Malvern PA
Chipotle 1550 Exton PA
Ref #24431061342206288000046
Online Banking transfer to Chk 5828 Conf# 2937517835; Feltman, Skylar
Purchase on 12f09 (Card #653821989),
Wawa 8033 Lionville PA
Wegmans # 46 Malvern PA
Ref#244450013451 00264868699
20.88
022779
Interest Paid
Interest Paid from 11/10/11 Through 12/12111
12/12
Service Charge
Monthly Service Charge
.82
24.56
28.62
936799
682.49
.21
51.79
.08
48.92
Total Withdrawals, Transfers and Account Fees
12/12
Amount
$6,419.15
$.08
$25.00
0 Daily Balance
Date
11114
11/15
11/22
11/25
11/28
Amount
$ 1,227.51
1,098.51
1,078.51
1,028.51
967.51
Amount
Date
11/29
11/30
12101
12/02
12105
3,247.51
6,979.66
4,515.74
2,284.53
2.736.53
Date
12/06
12/07
12/08
12/09
12/12
Amount
2,587.73
2,547.88
1,811.39
1.759.39
1,685.47
ATM Information
This period, you visited the following ATM locations:

Bank of America's ATM Network
#ICAD6781 Bank Of America, San Diego, CA
#IPAN8135 Bank Of America, West Norriton, PA
California
55 of 130
Page 3 of 3
....
Bankof Amadea ""-
Your Bank of America

Prima Account
Statement
0845 E P
EO-4
Statement Period:
October 13 through November 9, 2011
Account Number::'
1",111,1,"1"111"",11,"11,1
~
At Your Service
Call: 1.800.432.1000 - Customer Service
~G
NORRISTOWN
PA
Written Inquiries
Bank of America
Grass Valley Branch
PO Box 37176
19403
Customer since 1980

Our Online Banking service allows you to check balances, track account activity and more. With Online Banking you can also
view up to 18 months of this statement online and even turn off delivery of your paper statement. Enroll at
www.bankofamerica.com.
Tiered Interest Checking
Summary of Your Prima Interest Checking Account
Interest paid year-to-date
+ 6,559.53
Total Deposits
- 5,676.31
Interest Paid
Number of purchase transactions
+ .02
Service Charge
- 25.00
Ending Balance
$1,587.39
0.05%
$.73
Number of ATM withdrawals and transfers
Total Checks, Withdrawals,

Transfers, Account Fees
$729.15
2
28
Number of 24 Hour Customer Service Calls

Self-Service
Assisted
0
0
A monthly service charge was applied to your Prima Account because on 11/07 your
balance was below the minimum balance requirement of $10,000.
Checks Paid
* Gap in sequential check numbers.
Date Paid
Number
Amount
10/27
10/31
1878
1880
$ 17.58
1,274.00
Date Paid
Total of 2 Checks Paid
Number
Amount
$1,291,58

California
56 of 130
Page 1 of 4
Borrower: Kyle . . . . . . .
Statement Period: October 13 through November 9, 2011

Account Number:
Account Activity
Date
Posted
Description
10/17
Deposits and Credits

10128
10/31
11/01
11/08

Online Banking transfer from Sav 6018 Confirmation# 5383945410
Friedreichs Atax DES:Payroll ID:42214600019247x INDN:Bryant, Kyle
Co ID:9001907814 PPD Ref:011300012118490
Online Banking transfer from Sav 6018 Confirmation# 2819921495
Reference Number
Amount
008210
$377.38
500.00
002177
$6,559,53
10/13
10/13

Purchase on 10f13 (Card #653821989),
10/14
10/14
Giant 6478 Exton PA

10117
Ref #24013391286019094061986
Purchase on 10117 (Card #653821989),
093039
748136
Genuardis Star Exton PA
10/24

Amazon Mktplace Pmts Amzn.Com/Bill WA
Ref #24692161287000092507612
Wawa 8003 00080036 Norristown PA
Ref #24164071289637000042915
Cash withdrawal on 10/15,
Purchase on 10/15 (Card #653821989),
Bedbath&beyond King Of Pruss PA
Check Card Purchase on 10f14 (Card #653821989),
Southwestair52621061793 Dallas TX
Ref #24036211288624729522384
Keep The Change Transfer to Acct 6018 For 10120/11
Giant 6478 Exton PA
Ref #24692161293000342913703
Purchase on 10121 (Card #653821989),
The Vitamin Sh Exton PA
Mychangeaddress.Com 888-375-4610 FL
Ref #24129421296100003838591
Chipotle 1550 Exton PA
Ref #24431 061295206288000621
Purchase on 10124 (Card #653821989),
10/24
Wegmans Malvern PA
Purchase on 10122 (Card #653821989),
10/24
Wawa 205 Malvern PA

Purchase on 10122 (Card #653821989),
10/17
10/17
10/17
10117
10/17
10/18
10/20
10/20
10121
10/21
10/24
10/24
10124
10/25
10/25
Wegmans Malvern PA
Purchase on 10/25 (Card #653821989),
Wegmans Malvern PA
10/25
Peco
DES:Checkpymt Check #:1879
INDN:0000000000002853037075 Co ID:1230970240 ARC
Ref:011298009211776
10/25
10/27
Online scheduled transfer to Say 6018 Confirmation# 7154577969

Keep The Change Transfer to Aeet 6018 For 10/27/11
$,63
10.37
.53
46.47
Brickside Grille Exton PA
10/17
3,732,15
500.00
1,450,00
2.21
8.70
27.45
56.35
008211
60.00
000775
63.59
69.70
20.00
.57
9.43
432110
.53
36.47
1.20
6,99
24,65
043851
42.82
553169
58.64
014718
60.70
023476
.36
17.64
18.73
20.00
.06

California
57 of 130
Page 2 of 4
Borrower: Kyle
Statement
Account
Account Activity
Date
Posted
10/27
10/28
10/31
10/31
10/31
10/31
10/31
10/31
10/31
11/01
11/01
11/01
11/01
11/01
11/02
11/02
11/03
11/03
11/03
11/04
11/04
11/04
11/07
11/07
11/08
11/08
11/08
November 9, 2011
Continued
Description
Reference Number

Chfotle 1550 Exton PA
Re #24431061300206288000632
Wintercheck Factory 917-623-2480 NY
Ref #24492151301849301597938
Keep The Chanw Transfer to Acct 6018 For 10/31/11
Peco Energy
ill Payment
Purchase on 10/29 (Card #653821989),
Purchase on 10/30 (Card #653821989),
Brickside Grille Exton PA
Ref #24013391302019876619977
Chase
DES:E~ay
ID:1213101159 INDN:Kyle A Bryant
Co ID:5760039224 W B Ref:011301008610787
Online Banking transfer to Chk 2821 Confirmation# 1602364361
Knockouts Haircuts Norristown PA
Ref #24498131304702288201284
Attm'436079943357nca 8003310500 GA - Recurring
Ref #24493981304003178448850
Card Services Bill Payment
Outback 1064 Clermont FL
Ref #24692161305000261265420
Northwestern Mu DES:ISA PaciEmnt ID:1179301 ISapt;mt INDN:Kyle
Bryant
Co ID:9000596 67 PPD Ref:01130501 941372
Subway 00038687 Clermont FL
Ref #24164071306255130517117
Thai Blossom Winter Garden FL
Ref #24071051306158182437404
Carrabbas 6041 Clermont FL
Ref #24692161307000778770084
Cash withdrawal on 11/04,
Bank of America ATM #1 FLN1556 (Card #653821989)
Panera Bread #3354 Clermont FL
Ref #2442733130871 0032584622
Purchase on 11/08 (Card #653821989),
Wawa 8033 Lionville PA
Total Withdrawals, Transfers and Account Fees
11/09
Interest Paid
Interest Paid from 10/13/11 Through 11/09/11
11/09
Service Charae
Monthly Service Charge
Amount
20.94
36.00
223773
1.71
6.00
11.22
001672
19.84
30.23
700.00
1,950.00
.25
20.00
65.00
120.75
282.00
21.00
200.00
.64
8.83
16.53
.48
18.52
005422
100.00
.92
10.08
489857
.28
20.00
58.72
$4,384.73
$.02
$25.00

California
58 of 130
Page 3 of 4
Borrower: Kyle . . . . .
Statement Period: October 13 through November 9, 2011
Account Number:_
0 Daily Balance
Amount
Date
10/13
10/14
10/17
10/18
10/20
10/21
$ 718.15
671.15
760.53
740.53
730.53
693.53
Date
Amount
Date
10/24
10/25
10/27
10/28
10/31
11/01
498.53
441.80
403.22
867.22
606.37
618.37
11/02
11/03
11/04
11/07
11108
11109
Amount
397.37
371.37
252.37
241.37
1,612.37
1,587.39
ATM Information
This period, you visited the following ATM locations:

Bank of America's ATM Network
#IFLN1556 Bank Of America, Clermont, FL

#IPAN8015 Bank Of America, lionville, PA
#IPAN8135 Bank Of America, West Norriton, PA
California
59 of 130
Page 4 of 4
Borrower: Kyle . . . .IIi'
Bank of America "'~

Regular Savings
Statement
Statement Period:
Novembe"r~l~~~~.'1~;.
30,2011
Account N
1",11
KYLE
9308
NORRISTOWN
.. 11",11,1
At Your Service
Ca II. 530-477-5404
Online: wvwv.bankofamerica,com
RDG
PA 19403
Written Inquiries
Bank of America
Grass Valley Branch
P.O. Box 37176

Customer since 1998
Our Online Banking service allows you to check balances, track account activity and more. Enroll at www.bankofamerica.com.
Summary of Your Regular Savings Account
$7,836.08
Total Deposits
+ 107.33
Interest paid year-ta-date
Total Withdrawals
Interest Paid
Ending Balance
0.05%
$7.35
- 4,745.21
+ .29
$3,198.49
Savings Activity
Date
Description
Reference Number
Amount
10/31
11/01
11101
11103
11/04
11/07
11/08
11/08
11/14
11/15
11/15
11/22
11/28
11/29
Keepthechange Credit from Acct1831 Effective

Online scheduled transfer from Chk 1831
Confirmation# 5716760228
10/31
$1.71
20.00
11/01
11/03
11/04
11/07
.25
.64
.48
.92
20.00
11/08
11/14
.28
.91
20.00
11/15
1.16
20.00
Keepthechange Credit from Acct1831 Effective 11/28
.98
20.00
$107.33

0127237.001
Page 1 of 2
California
60 of 130
Borrower: Kyll ...........
Statement period'iN.o.v.e.miib.e.ri.1 through November 30, 2011

Account Number:
[J Savings Activity Continued

Date
Reference Number
Description
Amount
Withdrawals and Transfers

11/01
11/29
11/29
$500,00
Online Banking transfer to Chk 1831

1,945.21
2,300,00
$4,745.27
Total Withdrawals and Transfers

Interest Paid
11/30
Interest Paid from 11/01/11 Through 11/30/11
0127237.002
$.29
Page 2 of 2
California
61 of 130
Borrower, Kyle . . . . . .
t
Bankof America .....
~
Regular Savings
Statement
Statement Period:
October 1 throug',;,h.O.ct.o.b.eir.3.1,.2.011
Account Number.
1",111,
KYLE
9308
NORRISTOWN
At Your Service
Call: 530-477-5404
Online: www.bankofamerica.com
RDG
19403
PA
Written Inquiries
Bank of America
Grass Valley Branch
P.O. Box 37176
Customer since 1998

Our Online Banking service allows you to check balances, track account activity and more. Enroll at www.bankofamerica.com.
Summary of Your Regular Savings Account
Beginning Balance on 10101/11

Total Deposits
Total Withdrawals
Interest Paid
Ending Balance
$9,044.10
+ 91.06
Interest paid year-ta-date
0.05%
$7.06
- 1,299.45
+ .37
$7,836.08
Your savings account earned $,36 in interest this statement period. The Interest Paid shown
above reflects interest earned since your last payment date.
Savings Activity
Date
09/30
10103
10104
10104
10106
10/11
10/11
10/13
10/14
10/17
10/18
10/20
10/21
10/24
10/25
Description
Reference Number

Keepthechange Credit from Acct1831 Effective 10103
Amount
$.49
.29
20.00
.30
1.34
20.00
2.55
.63
.53
2.21
20.00
.57
.53
1.20
20.00

0128545.001
California
Page 1 of 2
62 of 130
Borrower: Kyle _ _111__
Statement Period: October 1 through October 31, 2011

Account Numbe~
Savings Activity Continued

Reference
Date
Description
10/25
10/27

1Dill
10/12
10112
10/28
Withdrawals and Transfers

Withdrawal
Online Banking payment to Crd 7647
,36
.06
$300.00
12.45
487.00
500.00
$7,299.45
Interest Paid
Interest Paid from 10101/11 Through 10/31/11
0128545.002
Amount
$97.06
Total Withdrawals and Transfers
10/31
~umber
$.37
Page 2 of 2
California
63 of 130
Borrower: Kyle . . . . . . . .
b
~.Irr Northwestern Mutuar
insurance / investments / ideas"
KYLE--'
Prepared For:
Kyle_
on December 21, 2011
Prepared By:
John Henry Lockwood, CLU I Financial Representative

1425 River Park Dr, Ste 100, Sacramento CA 95815 I 916.648.6448
john.lockwood@nmfn.com I www.johnlockwood-nm.com
CA License: 0E6 0969
As Of: December 21, 2011
64 of 130
Borrower: Ky'ele. . . . .
KYLE_
W Northwestern Mutual"
Information As Of: December 21, 2011
insurance / investments / ideas'
Investment/Variable Product Summary
Investment/Variable Products
Associated
Account
Account
Number
Type
6S
Annuitant:
Owner:
Fund
Family 2:
NMIS
Account #
Product Type
N/A
Variable Annuity
Assets 1
Traditional IRA
Kyle,
Kyle_
MASON STREET
ADVISORS
Direct Beneficiary:
Invested
$46,548.13
as of 12/20/2011
Fara
Contingent Beneficiary:
Brokerage Investment/Variable Products Subtotal
$46,548.13
Kyle Bryant
$46,548.13
Prepared By: John Henry Lockwood, CLU [ Financial Representative

916.648.6448 I john.lockwood@nmfn.com I www.johnlockwood~nm.com
2010 The Northwestern Mutua! Life Insurance Company. All rights reserved.
CA# OE60969
Report Date: December 21, 2011

Page: 2 of 6
This report is not complete without the accompanying
65 of 130
~Disclosures"
pages.
Borrower: Kyle
KYLE
~I? Northwestern Mutual"
insurance / investments / ideas'"
Scheduled Payments
Monthly Payments
Payer:
Insurance Service Account:
Billing Method:
Due Date:
01/01/2012
Insured
Kyl
Electronic Fund Transfer" Sticker Bank Of America, N.8.(1831)
Contract Number
..
Product Type
Monthly
Premium
Allocated
Dividend
RRNARIABLE ANNUITY AT 98
$200,00
$0.00
Fixed Annuities Subtotal:
$200.00
$0.00
loan
Payment
Repayment
$200.00
N/A
$200.00
Additional Payment:
$0.00
Service Charge:
Account Total:
$0.00
$200.00
Total Scheduled Monthly Payments:
$200.00
NfA
Generally, information shown is only for payments made through an active Insurance Service Account (ISA) or for ULife payments made by Electronic Funds Transfer
(EFr). Please contact your Financial Representative for more information.
Prepared By: John Henry Lockwood, CLU I Financial Representative

916.648.6448 I john.lockwood@nmfn.com I WVo/w.johnlockwood~nm.com
2010 The Northwestern Mutual Life Insurance Company. All rights reserved.
Report Date: December 21, 2011
Page: 3 of 6
CA# OE60969
This report is not complete without the accompanying
66 of 130
~Disclosures"
pages.
Borrower: Kyle . . . . . .11
KYLE
~ Northwestern Mutual"
insurance
investments I ideas'"
'"
End Notes
We have collected values for the assets shown in this report which were the most current available as of the date shown in the top right hand comer
of this report. For the most up to date values, and information on the Jag time in valuation availability for certain assets, consult your Financial
Representative.
Accounts that have an entl)' in the "Fund Family" column are maintained (custodied) by the mutual fund family listed ("Direct to Fund" accounts).
NM1S and its clearing broker, pershing, do not hold or control these assets. This report reflects holdings and valuation information received from
the mutual fund family. Northwestern Mutual and its subsidiaries do not audit or verify such information. Please review the account statements you
receive from the mutual fund famHy for complete information on these assets.
Disclosures
"Nortbwestern Mutual" is the marketing name for The Northwestern Mutual Life Insurance Company and its subsidiaries and affiliates. The Northwestern
Mutuai Life Insurance Company, Milwaukee, WI, customer service 1-800-388-8123 (life insurance, disability insurance and annuities) is not a registered
investment adviser, a registered broker-dealer or a federally chartered bank. Securities and fee-based investment advisory programs are offered through
Northwestern Mutual Investment Services, LLC (NMIS), Suite 300, 611 E. Wisconsin Ave., Milwaukee, WI, 53202, customer service 1-866-664-7737.
NMIS is a subsidiary of The Northwestern Mutual Life Insurance Company and a dually registered broker-dealer and investment adviser, member RNRA and
SIPC. Investment advisory programs and trust services are offered through Northwestern Mutual Wealth Management Company (NMWMC), Milwaukee,
WI, customer service 1-866-664-7737. NMWMC is a subsidiary of The Northwestern Mutual Life Insurance Company and a limited purpose federal savings
bank. NMWMC's investment products and trust services are not insured by the FDIC, are not deposits or other obligations of, or guaranteed by The
Northwestern Mutual Life Insurance Company, NMIS, NMWMC, or their affiliates, and are subject to investment risks, including possible Joss of the
principal amount invested. Recommendations and/or transactions involving equities and fixed income securities may only be offered and/or sold by
appropriately registered and appointed representatives of NMIS or NMWMC.
The products and services referenced are offered and sold only by appropriately appointed and licensed entities and representatives of such entities.
Each Rnancial Representative represents one or more, but not necessarily all, of the entities shown. If you have any questions regarding this report,
please contact your Financial Representative. For general information, please visit us on the web at www.northwesternmutual.com.
This report is provided as a courtesy to you for informational purposes only and may not reflect all policies, contracts, securities, or accounts you own.
This is not an official reporting document for your assets. We encourage you to review and maintain the original, official reporting documents relating to the
assets in this report (contracts, policy statements, account statements, confirmations, etc.). You should refer to the official documents when determining
the value of your assets. Those official documents may also contain notices, disclosures and other information that is important for you to know and are
reliable reference pieces if you have any questions about the accuracy of information shown in this report. The information in this report has not been
audited or verified, and does not in any way alter or supersede the terms of any policy, contract, confirmation, prospectus or statement received from
The Northwestern Mutual Life Insurance Company, NMIS, NMWMC, their subsidiaries or affiliates, or third party service providers or other organizations.
Information presented in this report was gathered from multiple sources, including The Northwestern Mutual Life Insurance Company; Pershing, LLC,
member FINRA, NYSE and SIPC (the clearing broker-dealer for NMIS accounts and most NMWMC accounts); and Albridge Solutions (data consolidation
and performance reporting provider). In addition, all mutual fund holdings in investment accounts that are held "Direct to Fund" are custodied by the
appropriate mutual fund family (or their designated transfer agent) and holding and valuation information is provided by that mutual fund family.
This information is not a solicitation or a recommendation to buy, sell or hold any policy, contract, security or advisory program. This information should
not be used for financial planning purposes. Payments made under a policy/contract, including benefit payments, are subject to the conditions, limitationS
and exclusions stated in the policy/contract. Please refer to the policy/contract for exact details of terms, conditions, limitations and exclusions. Any
decisions made by you based on the information in this report are made at your own risk.
We have collected values for the assets shown in this report which were the most current available as of the date shown in the top right hand corner of this
report. For the most up to date values, and information on the lag time in valuation availability for certain assets, consult your Rnancial Representative.
The total at the bottom of the Table of Contents page reflects the aggregate value of all assets included in this report. Valuation methodology may differ
from product to product. as described elsewhere in the report and in these disclosures.
In some cases, valuations of investment and variable products presented in this report may differ from the valuations shown in your official account
statements for those assets because of different pricing methodologies that may be used for statements versus this report. You should rely on the
valuation information contained in your account statements, rather than this report.
The values of Direct Participation Programs (DPPs), private, non-exchange trading Real Estate Investment Trusts (REITs), Limited Partnerships and certain
other alternative investment vehicles are provided by a third-party intermediary, and therefore may not be reliable. Furthermore, the value for some of
these assets may not be available; in which case the initial purchase price or a zero dollar value may be reflected on this report. The Northwestem Mutual
Life Insurance Company and its affiliates do not guarantee the accuracy of this information. Any information concerning these assets should be regarded
as informational only and should not be relied on.
Prepared By: John Henry Lockwood, CLU ! Financial Representative

916.648.6448 ! john.lockwood@nmfn.com ! W\v\v.johnlockwood-nm.com
2010 The Northwestern Mutual Life Insurance Company. All rights reserved,
Report Date:
CA# OE60969
December 21, 2011

Page: 4 of 6
This report is not complete without the accompanying "Disclosures" pages.
67 of 130
Borrower: Kyl . . . . . . .
KYLE~
Northwestern Mutuar
Information As Of: December 21. 2011
insurance / investments / ideas'
Disclosures
This report mayor may not reflect all holdings or transactions, their values, costs, penalties, surrender fees, charges, or proceeds. Accordingly, this
report should not be used as a source document for tax preparation or other purposes. Only Official tax forms should be used when preparing tax returns.
Please consult with your own tax advisor for specific tax advice.
The Northwestern Mutual Ufe Insurance Company may pay dividends, which are an allocation of divisible surplus to a policyowner. Each year, the Board
of Trustees, in its sale discretion, determines whether a part of the Company's surplus can be distributed to policyowners in the form of a dividend. The
Board decides which policies. if any, should get a dividend and the amount of the dividend. There is no guaranteed method or formula forthe determinat"lon
or allocation of this surplus. Accordingly, the Company's approach is subject to change. Neither the existence nor the amount of a dividend is guaranteed
on any policy in any given year. Some policies may not receive any dividends in a particular year or years even while other policies receive dividends.
Depending on the terms of the policy and personal choice, the dividend may be used to purchase paidup additional insurance, used to reduce premium
payments, left to accumulate at interest, or taken in cash. The dividend, if any, is payable on the policy anniversary. Dividend scale changes, loans and
surrenders or withdrawals will affect policy values. Changing dividend usage on your policy may cause total insurance protection to be reduced.
This report consolidates your brokerage, variable annuity, and investment advisory holdings. However, the investment asset group(s) that this report
depicts mayor may not be managed by NMIS or NMWMC as investment advisers. Keep in mind that NMIS and NMWMC are only investment advisers
as to those assets that are within investment advisory programs. Because this report consolidates different types of investment assets, it should not
be used as the basis for making asset allocation or rebalancing decisions for your investment accounts. Please refer to official performance reports
(described below), account statements or other advisory account speciflc reports when considering rebalancing, asset allocation or other changes to your
investment account holdings. Investment products are subject to investment risks, including possible loss of the principal amount invested.
The Northwestern Mutual Signature Portfolios program is a fee-based advisory program offered by NMIS and NMWMC. The Northwestern Mutua! Signature
Choice, Signature Annuities and Signature Managed Accounts programs are feebased advisory programs offered by NMWMC. NMWMC is a limited
purpose savings bank. Investment products and advisory accounts offered by NMWMC are not insured by the FDIC, are not deposits or other obligations
of and are not guaranteed by NMWMC or its affiliates and, like all investment products, are subject to investment risks, including possible loss of the
principal amount invested.
To help you see how your financial assets are currently distributed, we classified your investment assets among the following classes: cash, fixed income,
commodities, real estate securities, int'l emerging mkts, int'l developed mkts, US equity - small cap, US equity mid cap, and US equity. large cap.
This report will categorize your account holdings in slightly different asset class groupings than the NMIS and NMWMC investment adviSOry quarterly
performance or other reports. Any variable annuities or variable life insurance policies you own are included in this breakdown by primary asset class,
depending upon the subaccounts used within those contracts or policies. These values reflect the gross contract or gross policy values without accounting
for surrender fees or adjustments for unpaid premium, if applicable. The underlying mutual funds in which variable annuity and variable life subaccounts
invest are not available for direct investment.
The Investment/Variable Product Holdings by Client section of this report reflects only the primary asset class for a particular security. Mutual funds,
exchange traded funds and other securities may have holdings in multiple asset classes. Although only the primary asset class is reported in this section,
in the presentation of your asset allocation in the Ovelifiew - Financial Assets section, the value for these securities is split across the appropriate asset
classes. Therefore, for example. a fund that has a primary asset class of US equity Large Cap and a secondary asset class of Int'l Developed Mkts will
show only US equity - Large Cap in the Investment/Variable Product Summary section while the dollar value of that position will be split across Large
Cap and International in the Ovelifiew - Financial Assets. Your Financial Representative can provide information on how a specific fund is designated
across the various asset classes.
Negative cash/margin positions included in this report are related to either margin orto Loan Advance balances. Loan Advance borrowings have limitations
on permissible uses of those proceeds. For more information, consult with your Financial Representative.
For information about your holdings, including fees and conflicts of interest, see the applicable client agreement, program disclosure brochure and
prospectus or similar disclosure document for the variable policy, contract, mutual fund, other security or product. NMIS and NMWMC, as subsidiaries of
The Northwestern Mutual Life Insurance Company, are under common control with a number of other financial services companies. This affiliation offers
many benefits and resources to NMIS and NMWMC, but also may create potential conflicts of interest. Conflicts of interest also may arise as a result
of agreements between NMIS and third parties. For information on these conflicts, please see "What Every Investor Should Know About Mutual Funds"
available through your Financial Representative or online at http://www.nmfn.com/tn/aboutnet-nmis keypoints.
Direct to Fund Accounts: Some investment assets included in this report may be "Direct to Fund" accounts, which means those assets are maintained
and controlled by a mutual fund family or its transfer agent, not NMIS or its clearing broker, Pershing. You can determine whether your investment assets
are Direct to Fund accounts by reviewing the "Fund Family" column in the Investment/Variable Products Summary section of this report. Accounts that
have an entry in the "Fund Family" column are Direct to Fund accountS. For Direct to Fund accounts, this report reflects holdings and valuation information
received from the mutual fund family. Northwestern Mutual does not audit or verify such information. Please review the account statements you receive
from the mutual fund family for complete information on these assets.
For 529 Plan Accounts: Accounts described as "529 Plan" accounts are state college savings plans. Some "529 Plan" accounts in this report are also
UGMAjUTMA accounts, and are subject to state UGMA/UTMA statutes as well as 529 Plan restrictions. Please ask your Financial Representative for
details on the restrictions applicable to 529 Plan accounts included in this report.
Henry Lockwood, CLU I Financial Representative

916.648.6448 I john.lockwood@nmtn.com I W\vw.johnlockwood-nm.com
Report Date:
Prepared By: Jolm
2010 The Northwestem Mutual Life Insurance Company. All rights reserved.
CA# OE60969
December 21, 2011

Page: 5 of 6
This report is not complete without the accompanying "Disclosures" pages.
680f130
Borrower: Kyle
jill
KYLE~
W Northwestern Mutual'
insurance / investments / ideas'"
Disclosures
NMIS is a member of SIPC (Securities Investor Protection Corporation), which protects the value of securities in customers' NM1S accounts up to $500,000
(including up to $250,000 for claims for cash). Direct to Fund assets held by outside mutual fund families are not covered by NMIS' SIPC coverage. In
addition, NMIS' clearing firm, Pershing LLC (Pershing), carries excess SIPC insurance coverage. Assets held at a custodial institution other than Pershing
or other assets "not held" at Pershing, including but not limited to Direct to Fund assets, are not protected by the excess SIPC insurance policy. Information
about SIPC is available upon request, or at www.northwesternmutual.com and at www.sipc.org. For answers to any questions regarding an outside mutual
fund family's SIPC coverage, you may either contact your Financial Representative or the appropriate mutual fund family, or refer to the mutual fund
family's statement regarding SIPC membership. SlPC coverage does not protect against potential losses due to market fluctuation.
An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency.
Although money market funds seek to preserve the value of your investment at $1 per share, it is possible to lose money by investing in such funds.
Henry Lockwood, CLU I Financial Representative

916.648.6448 I john.lockwood@nmfn.com I www.johnlockwood-nm.com
Report Date:
Prepared By: John
2010 The Northwestern Mutual Life Insurance Company. All rights reserved.
CA# OE60969
December 21, 2011

Page: 6 of 6
This report is not complete without the accompanying 'Disclosures" pages.
69 of 130
Borrower: Kyle
MLS
Page 1 of3
Listing #11086887
$239,900 (LP)
Price/SqFt:
5020 A St, Sacramento, CA 95819 *

Beds: 2*
Baths: 1 (1 0) (FH)*
Area: 10819
Vr: 1948*
252.53
mActive Short Sale

Sq Ft: 950*
(12/14/11)
Lot Sz:
Charming 2 bedroom 1 bath in quiet and desirable East

Sacramento. Hardwood floors throughout. Large patio and
backyard. Great view of the quiet neighborhood in the front
with a large front yard as well. Don't miss this opportunity to
own in one of Sacramento's most desired neighborhoods!
D:ii
Agent
Daniel R Ramsey Jr.
Co-Agent
Office
Co-Office
Kelli A Boehm
(ID: SRATHKEL) Primary:916737-5656 Seeondary:916737-5656 Lie: 01813767
Ramsey Real Estate & Dev. (JD:01DRRJ) Phone: 916-737-5656, FAX: 916-760-0575
Ramsey Real Estate & Dev. (ID:01DRRJ) Phone: 916-737-5656. FAX: 9167600575
Property Type
Residential
Subtype Description
Detached
(10: SRAMSDAN) Primary:916-737-5656 Secondary:916-737-5656 Other:916-761
I5Gl
Status
mActive Short Sale (12/14/11)
Service Level
Area
Subdivision
Commission Type
10819
Coloma Terrace
percentage of Sale
Commission to Selling Office
Commission
Property Subtype(s)
Var/Dual Rate
2.5 %
No
Apx SqFt-Primary Res

Lot Sq Ft (approx)
950*
4835*
Sq Ft Source Assessor/Auto-Fill
Lot Acres (approx)
Apx SqFt-Second Res
County
Beds
Year Built
Map Book
Cross Street
Listing Date
On Market Date
Variable Price
Original Price
Occupant Name
School County
1 House on Lot
Price I SqFt 252.53

0.111
Sacramento
APN
0040092-013-0000
2'
8aths (FH)
1 (1
Map Coordinates
298.A4
Entry Date
12115/11
1948*
Thomas Bros. (PL,SA)
51st Street
12114/11
12114/11
or
No
239,900
Expiration Date
12/14/12
Jose
Occupant Phone
Sacramento (Elementary: Sacramento Unified; Junior High: Sacramento Unified; Senior High: Sacramento l
7J) p.fJ30 _ .
Borr9w~r KYJr "._at
http://prospector.metrohst.netiscnpts/mgrqlspi.dll?APPNAME=Metrohst&PRGNAME=...IL/15/2u 1
MLS
Confidential Agent Remarks

Directions to Property
Short Sale
Page 2 0f3
-Current tenant is allowing showings from 10-12 on Saturdays."" CalHFA Short Sale w/wel[ documented ha
lender approval. Any lender reduction in gross commission wiH be shared 50/50, between listing&selling bral
H street east to lett on 45th, right on Brand, [eft on 51 st, to left on A street, and home is on the left.
Yes
General Information
Zoning
Census Tract
Lot Dimensions
Style Description
Construction
Foundation
Exterior
Roof Description
Stories
# of Garage Spaces
Garage
Baths Other
Floor Covering(s)
Laundry Description
Dining Description
Kitchen Description
Kitchen Appliances
No. Of Fireplaces
Fireplace Desc
R-1
2.00
52 (front) x 91 x 50 x 89
Cottage/Bungalow
Frame, Wood
Concrete Slab
Wood
Camp Shingle
1 Story
1
1 Car Attached, Facing Front
Tile, Tub w/Shower Over, Window
Linoleum/Vinyl, Tile, Wood
In Garage
Formal Area
Counter Tile
Disposal, Range Gas F/S
1
Living Room
Miscellaneous
HOA
No
CC&Rs
Site Description
Road Description
Pool
Landscape
Improvements
Features Misc
Air
Heat
Energy Features
Water
Utilities
Sewer
Bonds/Asmts/Taxes
REO
HUD
Auction
Existing Financing
Tenns
Security Features
Yes
Shape Regular, Trees Few
Paved, Public Maintained
None
Fenced Back, Sprinkler Auto F&R
Sidewalk/Curb/Gutter
Patio Uncovered
Window
Furnace Floor
None
Public District
220 Volts, All Public, Natural Gas
In & Connected
Unknown
Showing Instructions
Tenant
Current Rent
Possession
Type Listing
Call Listing Agent, Restricted Hours

Yes
No
No
No
Treat as Clear
Cash, Conventional
Smoke Detector
Listing Information
$1350
By Agreement
Exclusive Right
Privileged Information
Picture Provided By
Internet
Approved
Longitude / Latitude
Agent Hit Counter
Public/Client Hit Counter
Agent to Submit
Yes
Yes
-121.437614/38.576256
17
* Denotes Information autofilled from tax: records.
1.1 1>.1.130 _ .
Borr9J11~r' K'I:r~ . _ .
iLl i 512u i i
http://prospector.metroiist.net/scnpts/mgrqlsp1.dll?APPNAME=Metrohst&PRGNAME=...
Dec.16.2011
i~.
04:40 PM
PAGE.
CIILJFORNIA
RESIDENTIAL LISTING AGREEMENT
~~ASSOCjATION
~
1/ 11
(Exclusive Authorization and Right to Sell)

~C.A.R. Fonn RlA, Revised
OF REA T.TORS"
11111)
1. EXCLUSIVE RIGHT TO SELL: ____2Kyx:lh!ed.III!~~~=';_;;_:;_::;_::_::::::::;__;;::=;::::=:::;_------ ('Seller")
hereby employs and grants

Ramse Real Est.ale and Develo men!:.
beginning (date)
12(14(11
an en ,n9 a :
"on a e
12 14 2012
the exclusive and irrevocable right to sell or exChange the r 1property in the City of
Sa",,,,,,,,,,,,, to
County of
SacraTllento
Assessor's Parcel No.
California, described as:
502.0 A st:reet
("Broker")
st,ng Portod")
("property"):
2. ITEMS EXCLUDED AND INCLUDED: Unle$S otherwise .p.ci~.d in a re.1 estate purchase agreement. all ~xtur.. and fittings that
are attached to the Prop$rty are included, and personal property items are exduded, from the purchase price.
ADDITIONAL ITEMS EXCL.UDED:
ADDITIONAL ITEMS INCLUDED:
.
Seller Intends that the above i1:em$ be Elxduded or induded ill offering the Property for s~J~, but understands that (1) the purchase
agreement supersede. any intention expressed above and will ultimately determine which items .re excluded and included in the
sale; and Oi) Broker Is not responsible for and does not guarantee that the above exclusions and/or inclusions will be in the pt.lrcnase
agreement.
3. USTING PRICE AND TERMS:

A. The listing price shall be: two hundred thi.rty nine thousand nine hundred
B. Admtiona!
Tef~:
an offer lS
lise
rice
~ece~ve~,
Dollars {$ fl39.66
of $10,000 every 25 days from first date of list, until
~eduction
negot~ate
a pest
an
accepLe. Be
inepect~on
and
er to 0
v~rtual
er a Home warranty to
Btag~ng;
uyer,
).
oompl~te
at his own cost.
4. COMPENSATION TO BROKER:
Notice: The amount or rate of real estate commissions is not fixed by law. lhey are set by each Broker
individually and may be negotiable between Seller and Broker (real estate commissions Include all
compensation and fees to Broker).
A. Seller
to Broker as compensation for services irrespective of agency relationship(s), either I!I 6 (six) percent
AND
Of the
(1) I
OR
B.
'
entered into,
"urena,~ the pr~~~~~~

entitled t~ compensation
such offer
expiration of
Penod, or any extension).
(2) If within
calendar days Cal after the end of the listing Peliod or any extension; or (b) after any cancellation of this
Agreement, unless othelWise agreed. Seller enwrs into a contract to sell, convey, lease or otherNise transfer the Property to
anyone ("Prospective Buysr') or that person's related entity; (ij who physically entered and was shown the Froperty dunng
the Ustin9 Period or any extension by Broker or a cooperating broker; or {ii} for whom Broker or any cooperating broker
submitted to Seller a signed, written offer to acquire, lea&e. exchange or obtain an Qption on the Property. Seller, howevet,
shall have no obligation to Broker under paragraph 4.A(2) unless, not later than 3 calendar days after the end of the listing
Period or any extension or cancellation I Broker has given Seller a written natice of the names of such Prospective Buyers.
(3) If, without Broker's prior written con."nt. t~e Property is withdrawn from sale, conveyed, leased, rented, othelWise
transferred, or made unmarketable by a voluntary act of seller during the Listing Period, or any extension.
If completion of the ~Ie is prevented by a party to the transaction other than Seller, then compensation due under paragraph 4A
shall be payable only if and when Seller Qol1ects damages by suit, arbitration, settlement or otherwise, and then in an amount
equal to the lesser of one-half of the damages recovered or the above compensatioh, after first deducting tine and esorow
expenses an~ the expenses of collection if any.
In addition, Seiler agre.s to pay Broker: _____
Seller has been advised of Broker's policy regarding cooperation with, and the amount of compensation offered to, other brokers.
(1) Broker is authorized to cooperate with and compensate broke,.. R!'rticipaUng throu.!l.h the multiple listing serviceis)
("M"S") by offertnQjo MLS broke", out of Brakefs oampenoation speCified in 4A. either ~
2. S
petcont of the
purchase price, or U $
.
(2) Broker is authorized to cooperate with and compensate brokers operating outside the MLS as per Broker's poUcy.
Seller hereby irrevocably assigns to Broker the above compensaton from Sell.ls funds and proceeds In escrow. Broker may
.ubmtl this Agreement, Inotruotions to compensate BrOket pursuant to paragraph 4A, to any eocrow regarding the Property
jnvolving Seller and a Duyer, Prospectille Buyer or other transferee.
(1) &lller rapreoenls that Beller has not previously entered into a listing agreement with another bloker regarding the Property,
unless specified.s follows;
.
(2) Seller warrants that Seller has no obhgation to ~y compensation to any other broker regarding the property unless the
Property is liansferred to any 01 the follOwing individuals or entiti..;
j
C.
D.
E.
F.
and
ofthe~~~~~p~riC~ef),~orr~o~~~~~i~~i~~~~
=____====;--:==:-=:==========-=-====::
(3) If the Property is sold to anyone listed above during the time Seller Is obllgeted to oompensate another broker: (i) Broker I';
not entitled to compensation undBrthis Agreement; and (il) Broker is not obligated to represent Seller in such transaction.
The oopyright law of the Unttil!ld States (Title 17 U.S. COde) fOrbId thil!l
unauthOrized reproductiOn of this tonn, or any portion thereof. by photocopy

mi!!lchlne or any other mGarl$, !\"ac:!Judll"lg faeSlmlJe or computerized fQrrMte.
CQPYriSm@199,.2011.CALIFORNIAASSOCIA1l0NOFREALTORS, INC.
ALL RIGHTS RESE.RVED.
RLA REVISED 11111 (PAGE 1 OF 4)
RES! DENTlA"
720f130
~Ier's
lnltlais (
Dec.16.2011
04:41 PM
PAGE.
5020 A .. treet
Property Address: Sacramento ca 95819
Date: _'..2,,1..,"4.1-/2...Q.1'-1'-_ _ _ __
5. OWNERSHIP, TITLE AND AUTHORITY: Sell$r wa"ant. that: (I) Seller I. the OWner of the Property; ~i) no other persons or entitle.
have utie to the Property; and (III) Seller has the authority to ~oth execute this Agreement and sell the Property. Exceptions to
ownership, title and authority are as follows: ________._ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
c
6.
MULTIPLE LISTING SERVICE: All terms of the transaction, induding financing, if applicable, will be provided to the selected MLS for
publication, dissemination and use by persons and entities on terms approved by the MLS. Seller acknowledges that Broker is
required to comply with all applicable MLS rules a. a condition of entry of the listing into the MLa and Seller authorize. Broker to
comply with all applicable ML$ rules. MLa rules require that the listing sales prtce be reported to the MLS. MLS rules allow MLS data
to oe made available by the MLS to additional Internet sites unl."s Broker give. the MLS instructions to the contrary. MLS rulea
generally provide that residential real property and vaeant lot IIsijng. be submitted to the MLS w~hin 48 hours or some other pertod of
time after all necessary signatures have been obtained on the listing agreement. However, Broker will not have to submit this listing to
the MLS if, within that time, Broker submits to the MlS a form signed by Seller (C,A.R. Form SEL or the locally required form).
Information that can be excluded:
A. Internet Display;
(1) Seller ean instruct Sroker to have the MLS not display the Property on the Internet. Seller understands that this would mean
consumers searching for listings on the Internet may not see information about the Property In response to their search; (2) Seller
can instruct Broker to have the MLS not display the Properry address on the Internet Seller understands that this WOUld mean
consumers searching for listings: on the Internet may not see the Property's address in response to their search.
B. Features on MLS Participant and Subscriber Websltes;
(1) Seller can Instruct Broker to advise the MLS that Sailor do... not want vls~ors to MLS Parlicipant or Subscriber W.bsrtes
that display the Property listing to have (I) the ability to write comments or reviews about the Property on those sites: or (ii) the
ability to hyper1ink to another site containing such comments or reviews if the hyperlink is in immedi~te oonjunction with the
Property. seller understands (I) that this opt-out applies only to Websttes of MLS Partlolpants end Subsoribers who are real estate
broker and agent members of the MLS; (tI) that Olher Intemet sites mayor may not have the features set forth herein; and (iii) that
neither Broker hor the MLS may have the ablUty to control or bloe:k such features on other tnternet sites. 12) Seller can instruct
Broker to advis. tho MLS that Seller ';oes not want MLa Participant or auo.criber Web.~O$ that display the Property listing to
operate (i) an automated estimate of the market value of the Property: or (II) have the ability to hyperlink to another site containing
Suoh automated o.timale of value IT the hyportink is in immediate oonjunotion with the Property. Sollor understands (I) that this
opt-out applies only to Websilea 01 MLS Partlolpants and Subscribers who are real eOla!e broker. and agent membelE 01 the MLS;
(II) that other Internel site. mayor may not have the f.atures t forth herein; and (iii) that neither Sroker nor tho MLS may have
the ability to oontrol or block such f.atur on other Internet siles.
Seller acknOWledges that for any of the above opt-out instructions to be offective, Seller must make them on a separate instruction to
Broker signed by Seller (CAR. Form SEL or the locally required form). Information about this lisijng will be provided to the MLS of
Broksr's selection unless a form instructing Broker to withhold the Ilotlng from the MLS Is attached to thlallstlng Agreement.
1. SELLER REPRESENTATIONS: Seller represents that, unless otherwise spaoffied in wnling. Seller is unaware of: (I) any Nolie. of
Default recorded against the Property; (il) any delinquent amounta due under any loan secured by. or other otJlgatlon affecting, the
Property; (m) any bankruptcy, insolvency or similar proceeding affe<;ting the Property; (iv) any litigation, arbitration, administrative
action, government investigation or other pending or threatened action that affeclS or may affect the Property or Seller'. spiliry to
transler i~ and (v) any ourrant, pending or proposed sp.cial ......m.nts affeeling the Property. Seller shall prompUy notify Broker in
writing ~ Seller becomes aware of any of thea. items dunng the Lls,ng Period or any ext.nelon thereof.
8.
BROKER'S AND SELLER'S DUTIES: (a) Broker agrees to exercise r.a.onable effort and due diligence to aollieve the purposes of
this Agreement. Unless Seller gives Broker written instructions to the OOl'ltiSry, Broker is authorized to (I) order reports and
disclosure. necessary, (ii) advertise and market the Property by any method and in any medium Iected by Sroker, including MLS
and the Int.rn.~ and, to the extent permitted by these media, control the dissemination of the information submitted to any medium;
an(j (III) disclose to any raal estate licensee making an inquiry the receipt of any offers on the Property and the offering price of suoh
offers. (b) Seller agree. to consider offers presented by BroKer, and to aot In good faith to accomplish the sale of the Property by,
arnong other things, making the Property available for showing at reasonable times and referring to Sroker aU inquiries of any party
interest .; in the Property. Seller is responsible for determining at what priea to list and sell the Property. Seller further agree!! to
Indemnify, defen<l and hold Broker harmless from all claims, disputes, litigation, Judgments and attorney fees arlolng trom
any Incorrect Information supplied by aeU"r, or from any matorial facts that Seller knows but falls to disclose.
9.
DEPOSIT: Broket Ie authorized to accept and hold on Seller's behalf any deposits to be applied toward the purchase price.
SelJer'liIlnitiFJlliiI (
Copyright lSI 1$91-2011. OALlFClRNJA ASSOCIAllON OF REAl.TORS,INC.
Reviewed by
RLA REVISED 11/11 (PAGE 2 OF 4)
ome
RESI DENTIAL LISTING AGREEMENT - EXCLUSIVE (RLA PAGE 2 OF .)
73 of 130
S020 )\ Klred,
2/ 11
Dec.16.2011
04:41 PM
PAGE.
3/ 11
5020 A .. t:reet
Property Address: Sacr_nto, Co.
95819
Date; _-,1""..1...' ..
4"'1g"'O,,'u1_____
10. AGENCY RELATIONSHIPS:

A Dlselo$ure: If the Property includes residential property with one-to-four dwelling unlls. Seller shall receive a "Disclosur.
11.
12.
13.
14.
15,
16.
17.
S,
Regarding Agency ReJationshipsn form prior to entering into this Agreement.

Seller Representation: Broker shall represent Seller in any resulting transaction, except as specified in paragraph 4F.
C.
Possible Dual Agency With Buyer: Depending upon the circumstances, it may be neCfiSary or appropriate for Broker to act as
an agent for both Seller and Buyer. exchange party. or one or more additional parlles ('Buyer"). Broker shall, as soon as
praeUe.ble. disclose to soller any election to act as a dual agent repr.senting both Seller and Buyer. If a Buyer is procured
directly by Broker or en '$$ocialellcensee In Brokersllrm. Seller hereby consents to Broker acting a. a dual agent for seller and
suoh Buyer. In the eVi;lnt of an exchange. Seller hereby consents to BrOker collecting compensation from additional parties for
services rendered, provided there is disclosure to all parties of such agency and compensation. Seiler understands and agrees
that (i) Sroker. without the prior wrj(ten corl$ont of Seller, will not disclose to 8uyer that Seller Ie willing to sell the Property at a
prtco lese than the listing price; (II) Broker, without the prtor wrttten coneent of Buyer, will not disclose 10 Seller tho! 8uyer is
wJlllng to pey a price greater than the offered price: and (111) except for (I) and (II) above. a dual agent Is obligated to disclo
known facts materially affecting the value or desirability of the Property to both parties.
D. Other Seller.: Seller underetands that Broker may have or obtain listings on other properties. and that pot.ntial buyers may
consider, make offers on, or purchase through Broker, property the same as or similar to Seller's Property. Seller consents to
Broker's representation of sellers and buyers of other properties before, during and after the end of this Agreement.
E. Confirmation: If the Property includes residential property with one-IMour dweJling units. Broker shall confirm the agency
relationship described above, or as modified, in writing, prior to or concurrent with Selle"& execution of a purchase agreement.
SeCURITY AND INSURANCE: Broker Is not responsible for 10.. of or damage to personal or real property. or person. whether
attributable to use of a keysafellockbox, a showing of the Property, or otherwise. Third parties, induding, but not limit(td to, appraisers,
inspectors, brokers and prospective buye". may have acee$$ to. and take videos and photographs of, the interior of the Property.
Seller agrees: (I) to lake reasonable precautions to safeguard and protect valuables that might be acoesslble during shoWinge of the
Property; and (Ii) to obtaIn Insurance to proteot against these risks, Broker doe& not maintalh insurance to protect SeUer.
KEYSAFEILOCKSOX: A ~.y..f.nOckbox is designed to hold a key to the Proporty to permtt soco to the Property by Brokar.
cooperating brokers, MLS participants, their authorized lloensees and representatives, authorized inspectors. and accompanied
prospective buyers. Stoker. eooperatin~ brokers. MLS and AssociationS/Boards of REAL TORS are not insurers against injUty.
theft, 10$$. vandalism or damage attributed to the use of a key.afeJlockbox. Seller does (or If checked 0 does not) authorize Broker
to install a keysafellock.box. If Seller does not occupy the Propertyl Seller shall be responsible for obtaining occupant(s)' written
permission for use fJf a keysafenockbox (CA R. Form KLA).
SIGN: Seller does (or if checked 0 doe. not) authori Broker to in_tall a FOR SAL;;ISOLD oign on tho Property.
EQUAL HOUSING OPPORTUNITY: Th. Property is offered in compliance with federal, state and local anti-discrimination Jaws.
SUCCESSORS AND ASSIGNS: This Agreement shall be binding upon Seller and Seller'S successors and assigns.
MANAGEMENT APPROVAL: If an a$SOCiale-licen in Brok.f$ offic. (I.sperson or broker-a.sooiate) onterslnto thle Agreement
on Broker's behalf, and Btoker or Manager does not approve of its terms, Broker or Manager has the right to cancel this Agreement,
in wfiting, withf" 5 Days After its execution.
ADDITIONAL TERMS: 0 REO Advisory Usting (CAR. Form REOL) [i! snort Sale Information and Advisory (CAR. Form SSIA)
18. ATTORNEY FEES: In any action, proceeding or arbitration between Seller and Broker regarding the obligation to pay compensation
under this Agreement, the prevailing Seller or eroker snail be entitled to reasonabJe attorney fees and costs from the non-prevailIng
Seller or Broker, except as provided in paragraph 20A.
19. ENTIRE AGREEMENT: All prior discussions, negotiations and agreements between the parties concerning the subject matter of this
Agreement are superseded by this Agreement, which constitutes the entire contract and a compj:ete and exclusive expression of their
agreement, and may not be oontradlcted by evidence of any priQr agreement or contamporaneof,.ls oral agreement. If any provision of
this Agreement Is held to be ineffectlve or invalid, the remaining provisions wiJl nevertheless be given full force and effect. This
Agreement and any supplement, addendum or mOdification, includlng any photocopy or faCSimile, may be executed in counterparts.
S.U.... lnltl.l.
Copyrigltt.p;) 1W1~2011, CALIFORNIA ASsOCIAnON O~ ru:ALTORS.. INC.
1Rw_d by
RLA REVISED 11/11 (PAGE 3 OF 4)
~(
co,.
RESIDENTIAL LISTING AGREEII1i:NT - EXCLUSIVE (RLA PAGE 3 OF 4)
Gl
"""'''''''''
O"'Q'IITQNtTY
5020 A succi.
....
.. palHFA Loan# 022472-3
74 of 130
Borrower: Kyle
AIII_lIII!Ia.
Dec.16.2011
04:42 PM
PAGE.
5020 A .t%oet:
Property Address: S .."ramomi:o. Ca
4/ 11
Date: _""1",2J../l"4,,,1,,2,,O,,1..1~_ _ __
95Sl9
20. DISPUTE RESOLUTION;
A.
MEDIATION: Seller and Broker agree to mediate any dispute Qr claim arisiog t)$tw n tham out of this Agreement. or any
resulting transaction. before resorting to arbitration or court action, subject to paragraph 208(2) below. Paragraph 20B(2) below
applies whether or not the arbitration provision is initialed. Mediation fees, if any, shall be divided equally among the parties
involved. If, for any dispute or claim to which this paragraph applies, any party commences an action without
fir.st
a1;tempting to
resolve the matter 1hrough mediation, or refuses to mediate after a request has been made, then tt1~t party shall not be entitled
to reCOver attorney fees, even If they would otherwise be available to that party in any such action. THIS MEDIATION
B.
PROVISION APPLIES WHETHER OR NOT THE ARBITRATION PROVISION is iNITiALED.

ARBITRATION OF DiSPUTES: (1) Sefler and Broker agree that any dispute or claim In law or equity arising t)$lWeen
them regarding the obligation to pay compensation under this Agreement which Is not settled through mediation, shall
be decided by neutral, binding arbitraUon, Including and subject to paragraph 20B(2) below. The arbitrator shall be a
retired judge or
or an allorney wHh .t least 5 year. of residential real estate law experience, unless the parties
mutually agree to ~ different arbitrator j who shall render an award in accordance with substantive California law. The
parties shall have the right to discovery In accordanCQ wHh California Cod. of Civil Procedure 51283.05. In all oth<tr
,....peet., the arbitration shall be conducted in accordance with TIUe 9 of Part III of the California Code of Civil
Procedure. Judgment upon the ,aw;;lrd of the arbitrator(s) may .be entered in any court having jurisdiction. Interpretation
of thl!lo agreement to arbitrate shall be governed by the Federal Arbitration Act.
(2) EXCLUSiONS FROM MEDIATION AND ARBITRATION: The following matters are excluded from mediation and
arbitration: (I) Judicial or non.Judlciai foreclosure or othor action or proceeding to enforce a deed of tru.~ mottgage,
or Installment land sale contract as defined in California Civil CQde 2985; (ii) an unlawfUl datainer action; (iii) tho filing
or onforcement of a mechanic's lien; and (iii) any malter that i$ within the jurisdiction of a probate, small claims, or
bankruptcy court. The filifig of a <>our! action to enable the recording of a notice of pending acfion. for ordor of
attachment receivership, injunction, cr other provl$lonal remedies .shall not oonstltute a waiver
the medIation and
arbitration provl$lons.
j.on"""
or
"NOTICE: BY INInALlNG IN THE SPACE BELOW YOU ARE AGREEING TO HAVE ANY DISPUTE
ARISING OUT OF THE MATTERS INCLUDED IN THE 'ARBITRATION OF DISPUTES' PROVISION DECIDED
BY NEUTRAL ARBITRAnON AS PROVIDED BY CALIFORNIA LAW AND YOU ARE GIVING UP ANY RIGHTS
YOU MIGHT POSSESS TO HAVE THE DISPUTE LITIGATED IN A cOURT OR JURY TRIAL. BY INITIALING IN
THE SPACE BELOW YOU ARE GIVING UP YOUR JUDICIAL RIGHTS TO DISCOVERY AND APPEAL, UNLESS
THOSE RIGHTS ARE SPECIFICALLY INCLUDED IN THE 'ARBITRATION OF DISPUTES' PROVISION. IF YOU
REFUSE TO SUBMIT TO ARBITRATION AFTER AGREEING TO THIS PROVISION, YOU MAY BE COMPELI.ED
TO ARBITRATE UNDER THE AUTHORITY OF THE CALIFORNIA CODE OF CIVIl. PROCEDURE. YOUR
AGREEMENT TO THIS ARBITRAnON PROVISION IS VOLUNTARY."
''WE HAVE READ AND UNDERSTAND THE FOREGOING AND AGREE TO SUBMIT DISPUTES ARISING
OUT OF THE MATTERS INCLUDED IN THE 'ARBITRATIO OF DISPUTES' PROVISION TO NeUTRAL
ARBITRATION,"
$eller'~ Initi~ls
acl<nclwlad.!JOS that Seller has read, understands, receiv<>d a copy or and agrea& to the terms of this
By
_ _ _ _ _ _ _ _ _ Email
Soller _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _- - - - - - - - - - - Date _ _ _ _ _ _ _ _ _ __
Addre.s _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Cily _ _-:c_ _ _ _ _ _ _ _ state _ _ _ Zip _ _ _ _ __
Telephone _ _ _ _ _ _ _ _ Fax _ _ _ _ _ _ _ _ _ E.mail _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
Real Estate 8roker (Firm)
By (Agent)
DRE Lie. # 01824426

Date_......1;:,.2"'(1"'4"'1...2"'0"'1l'-_-,-_ __
City_""'a..c"'r"a"'m"e"nt"'o...._ _ _ _ _ State CA
Zip_..:9",S",8"1,,,9_ __
R&msl!ly Real Estate and .oevelopment

~-i------ DRE Lie. # 01461166
Address 269 47th Street

Telephone
{9I6) 837-5656
Fax
(916) 760-0575
E~malj
reoram::!eyrealestategrgup.com
THIS FORM HAS SEeN APPROVEC tN THE CALIFORNIA ASSOCIA11ON OF RCALTOR~(C,A.rO. NO AEPRE:SENTA1l0N is MAOE AS TO THE LEGA~ VAL,IPIi'V OR
ADEauACY OF ANY PROVISION IN ANY SPEciFIC TRANSACTION. A REAL ESTATE" 6ROKeR 105 THE PERSON QUAUFIEO TO ADVISE ON REAL cSTAT,f;
ffiANSACTloN!!:. IF YOU DESIRE LSGAL. OR TAX AOVICI;. CONSUlI AN APPROP~A 'TE PROFESSIONAL...
This form i$ Qvailablo fQl" IJ~" bY the entire rea.I est:ate Indus!lY. H 'i3 not 'In!tllc:!ed 10 identify the UIII8f as aREAL TOR. REALTOR is a rog:i;;terod coQodWt:t mtlmbel'$hlp mark
which may be U$1Jd o~ bV n~re oftha NATIONAL ASSOCIAllON a; REAl. TO~ Who BUb8.crlbe to Its eode of Ethlca.
13
III
., Ii>
'tSl
=
!'I.I()ji~hooMdDj$tt'ibu~hy:
RBA1.'BSTA'J'F.nUSINESS 88RVJCES.1NC.
"suhsidirJ.ryH/f'lhtl CuJjfUt'm'U.M!.9lXlmltm Q{R1iAL1'OR~

~Z5 ljo1,/th Virgil t\.VOINI!, LOIi AnS'"'k;~. CaIU'.lrnlll. SIIJW()
1~il!lWed by
RLA REVISED 11111 (PAGE 4 OF 4)

R!;SIDENTIAL LISTING AGREEMENT. EXCLUSIVE (RJ.A PAGE 4 OF 4)
75 of 130
Dale
==
'020 A,...",
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CALIFQRNIA
OF REA L TORS"
PAGE .
. .~ ASS 0 C I A T I ON
Property Addre&$,: $020
a-er.oe..
SELLER'S ADVISORY
(C.A.R. Form SA, Revised 11111)
~'r~e c
aa
$J~el9
("'Property")
1. INTRODUCTION: Selling property in California i. a process that involves many stops, From start to finish, ~ could take anywhere
from a few weel! to many mOMhs, depenclng upon the coMltlon of your Property, local market conditions and other factors, You
have already taken an important first step by listing your Property for sale with a licensed real estate broker, Your broker will help
guide you through the process and may refer you to other professionals as needed. This advisory addresses many things you may
need to thInk about and do as you market your Property. Some of these things are requirements impoeed upon you, either by law or
by the listing or sale contract Others are simply practical matters that may arise during the process, Please read this document
oar.fully and, if you have any qu.stions, ask your broker or approprtate legal or tax advisor for help,
2, DISCLOSURES:
A. General Disclosure Dutle" You must affirmatively dieclooe to the buy.r, In writing, any and all known tact<; that materially affect
the value or dosirabllity of your Property, You mlJSt discl""e th .... facio wh.ther or not asked about such mattor. by the buyer,
any broker, or anyone .Ise, This duty to disclos. appli.s even if th. buy.r agr.es to purchase your Property in i1s present
condition without requiring you to make any repei"', If you do not know what or how to disclose, you should consult a r1 estate
attorney in California of your ohoosing, Broker cannot .dvise you on the leg.1 sUffioienoy of .ny dlsclooures you make, If the
Property you are .elling is a residence With one to four units exc.pt for c.rtain subdivis;ono, your broker .Iso has a dUty to
conduct a reasonably competent and diligent visual InspeetJon of the a""..slble areas and 10 disclose to a buyer all .dvelSe
material facts that the in~pectiOr'l !'eveals. If your broker dlsooyers something that coldd indicate a problerYl, your broker must
advise the buyer.
B, StaMory Outi...: (For onete-four Reeldentlal UnllB):
(1) You must timely prepare and deliver to the buyer, among other things, a Real Estate Transfer Diecosur. Statement ("1OS"),
and a Natural Hazard Disclosure Statement ("NHD"). You have legal obligation to honestly and completely fill out the TOS
form In its entirety, (Many local .n~tie. or orgenizationo have their own supplement to the TDS that you mayaloo be askoc to
complete.) The NHD is a statement indicating whether your Property is in certain de.ignated flood, fir. or earthquake/seismic
hazard zones. Third-party profe..lonal companlea can help you with this teak.
(2) Depending upcn the age and type of construction of your Property, you may aloo be required to provide and, In certain ea.ea
you can receive IImitoc legal protection by provlclng, the buyer with booklets entitled 'The Homeowner. Guide to Earthqueke
Safety," "The Commercial Property OWner'. Guide to Earthquake Safety," "Protect Your Family From Lead In Your Home" and
"Environmental Hazards: A Guide For Homeowners and Buyers." Some of these bookJets may be packaged together for your
convenience. The ~arthquake guides ask you to answer specific questions about your Property's structure and preparedness
for an earthquake_ If you are requIred to supply the booklet about lead, you will also be required to disclose to the buyer any
known lead-based paint and leadMbased paint hazards on a separate form. The environmental hazards guide informs the
buyer of common environmental ha2:ards that may be found in properties.
(3) If you know that your property;': (i) I"""toc within one mile of former military ordnance location; or (Ii) in or affeeted by a
zone or district allowing manufacturing, commercial or airport use, you must disclose this to the buyer, You are also required to
make a good fa~h effort to obtain and deliver to the buyer a disclosure no~ce from the appropriate local agenoy(les} about any
special tax I~vied on your Property pursuant to the Melle-Roes Community Facili~ .. Act, the ImprovemeM Bond Act of 1915,
and a notice concerning the cont~ctuaj a$S1;IS~ment provided by section 5898.24 of the Streets And Highways Code
(collectively. "Special Tax Dlsclosur.,'),
(4) If the TOS, NHO. or lead, military ordnance. commercial zone or Spe9jal Tax Disclosures are provided to a buyer after you
,c'cept that buyer's offer. the buyer will have 3 days after delivery (or c5days If melled) to terminate the offer. which Is why tt is
extremely important to complete these disclosures as soon as po$$Ible. There are cel1aln exemptions from these staMory
reqUirements, however, if you have actual k.nowledge of any of these items, you may stili be required to make a disclosure as
the items can be considered rna.terial facts.
C. Death and Other Disclosures: Many buyers consider death on real property to be a material fect In the purchase of property. In
some situations, it is advisable to disdose that a death occurred or the manner of death; however, Callforn.la Civil Code Seetion
1710.2 provides that you have: DO disrHlSllffi dlil:$ ''where the death has occurred mote than three years prior to the date the
transferee offers to purchase, lease, or rent the real property, or [regardless of the date of occurrenceJ that an occupant 01 that
property was afflicted With, or died from. Human TLymphotropic Virus Type III/Lymphadenopathy-Associated Virus." This law
does not "immuniz;e an owner or his or her agent from making an intentional misrepresentation In response to a direct inquiry from
a transferee or e prospective transferee of reel property, ooncerning deaths on the real property."
O. Condominiums .and Other ComrnQn Interest Subdivisions: tfthe Properly is a condominium, townhouse, or other property in a
common interest subdivision, you must provide to the buyer copies of the governing documents, the most recent finanoiar
statements dlstributedt and other documents requira(l by law or contract. If you do not have a current version of these documents,
you can request them from the mana,gement of your homeowner's association. To avoid delays. you are encouraged to obtain
these documents as soon as possible, even if you have not yet entered into a purchase agreement to sell your Property.
The oopyright lam of the Un~ed Slat (T~1e 17 U,S, Code) forbid the
unal;lthcrized reprodUctkln 01 this tonTI, or any portion thereof, by photocopy
m:ar;:hine or any ether maans, inclucUng facsimile or computerized formats,
Copyright 4D 1991.201" CALiPORNIA ASSOCIATION OF REALTORS,
INC. ALL RIGHTS RESERVED,
SeUer's Initied& (
Reviiwed by _ _
SA REVISED 11/11 (PAGE 1 OF 2)
)(
o.t.
SELlER"S ADVISORY (SA PAGI' 1 OF 2)

Agent:
CantQI Ray Ramsey
Phone: 918-812-3287
Fax: 918~nO.()844
Broker; Ramsey Real Esta:te and Dev't Corp.. Ta9 47th Street sacramento, CA 86819
76 of 130
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a. CONTRACT TERMS AND LEGAL REQUIREMENTS:
A. Contract Terms and Conditions; A buyer may request, as part of the contract for the sale of your Proparty, that you pay for
repairs to tho Proporty and other items. Your docision on whether or not to comply with a buyer'$ requests may affect your ability
to sell your Property at. specified price,
PropertyAddress:Bac~t:ol C.i:l
B. Withholding Taxes: Under federal and California tax laws, a buyer is required to withhold a portion of the purchase prloe from
your sale proceeds for tax purposes unless you sign an affidavit of nonforeign status and California residency, or some other
exemption applies and is dooumented.
C. Prohibition Against Discrimination: Disorlminatory conduct In the Ie 01 real property against individuals belonging to legally
protected classes is a vIolation of the law.
D. Government Retrofit Standards: Unle exempt, you must comply with government retrofit st.ndards, including, but not limited
to, installing operabJe smoke detectors, bracing water heaters, and providing the buyer with corresponding written statements of
compliance. Some city and county govemrnents may Impose additional retrofit standards, induding, but not limited to. installing
low-flow toilets and showerheads, gas shutoff valVes, tempered glass, and barriers around swimming pools and epas, You
should consLllt with the appropriate governmental egencies, Inspectors, and other professionals to determine the retrofit
standardS for your Property, the extent to which your Property complies with sl,Ich staneards\ and the cos1$, if any. of complisn<:e.
E. EPA's LEADBASED PAINT RENOVATION, REPAIR AND PAINTING RULE: The new rule requires that confractolS and
maintenance profe.slonal. working in pre1978 hOUSing, child care facilities, and schools with leadbased paint be certified; that
their employees be. trained; and that they follow protective work practice standards. The rule appnes to renovation, repair, or
painting activities affecting more than six square feet of leadbased paint in a room or more than 20 square feat of Jead-bas'9d
paint on the e;rterior. E.nforcement of the rule begins October 1, 2010. See the EPA; website at Vv'WW.epa,govllead for more
information.
F. legal, Tax and Other Implications: Selllng your PropertY may have legal, tax, insurance, title or other implications, You should
consult an appropriate professional for advice on these matters.
4. MARKETING CONSIDERATIONS:
A. Pre.Sale Considerations: You should consider doing what you can to prepare your Property for oale. such as correcting any
def.cts or other problems. Many people are not aware 01 defecta In or problems With their own Property. one way to make
you~elf
aware is to obtain professional home Inspections prior to salel both ,generally! and for wood deetroyitlg peats and
organisms, such as termites. By doing thiS, you then have an opportunity to make repairs before your Property i6 offered for sale,
which may enhance its marketability. Keep in mind, however, that any problems revealed by such inspection reports or repairs
that havs baen made, whether or not dioclosed in a report, should be dlscl""ed to the buyer (s.. "Disclosures" in paragraph 2
above), This is true even if the buyer gets his/her own inspections covering the same ar.ea. Obtainit\g inspection reports may also
assist you duling contract negotiations with the buyer. For e~ample, Wa pest control report has both a primary and secondary
recommendation for clearance, you may want to specify in the purchase agreement those recommendations, if any, for Which
you are going to pay.
to provide the buyer with, among other things, a home protectionAvarranty plan for the
Property. These plans Will generally cOver problems, not deemed to be pre.exlstlng, that occur alter your sale Is completed. In the
event somethin,g does go wrong after the sale, and it is covered by the plan, the buyer may be able to resolve the concern by
oontacting the home protection company.
C. Safely Precaution.: Advertising and marketing your Property for sal., including, but not lim.eo to, holding open house. ",acing
a keysafenookbox, erecting FOR SALE Signs, and diSseminating photographs, video tape', and virtual tours of the promises,
m.y Jeopardize your person.l.mely and that of your Property. You are strongly encouraged to maintain insurance, and to take
any and all possible precaudons and safeguards to protect youlSolf, other occupants, visitors, your Property, and your
belongings, Including cash, Jewelry, drugs, firo.r",. and other valuable. 10"'lted on the Property, against injury, theft, loss,
B. Post-Sale Protections: It is often helpful
vandalism, damage, and other harm.

Il. Expenses: You are advised that you, not the Broker, are responsible for the fees and costs, if any, to comply with your duties
and obligations to the buyer of your Propelt)'.
5. OTHER ITEMS:
Seller """fe,'d)'no
By E>igning below, Seller acknowledges receipt of a copy of this document

...-_ _ _ _ _ _ _ Date
Sell.r.;:'~iIbJ=~
Print ".[]lIr-----'-.fl..!fL<~
s.lIer.,---_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
Print Name _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
~
11(/I.l <2 tL
Oate_~
__
~_~
__
=,,-_______________
Real Estate Broker Dani@l Ramsey. RREDC
By
Address
(Agenb
----------City Sacramento
State CA
Zip 95Bl9:
E-mail reo@rameeyrealestateg:t;'oup.com
Telephone
759 47th Street
915-737-5656
Fax 9J 6-760-0575
THIS FORM HAS BEEN APPROVED 6V THE CALIFORNIA ASSOCIATION OF ~EAlTOA:S (OAR.). NO REPRESENTATION IS MADE AS TO THE LEGAL VALIDITY OR
ADEQUACY OF ANY PROVISION IN ANY S~CIFIC TRANSACTION. A REAL ESTATE BROKER IS THE PERSON QUAUFIEO TO ADVISE ON REAl. ESTATE
TRANSACTIONS. IF YOU ceSIRt; 1-1:iGA.L O~ TAX ADVICl:, CONSULr AN /AJlP~OPRlA TE PROFESSIONAL.
Thi:s: form ~ mli:.illablefor It9:B by !he entire malestats Industry. It is not intended 10 identify the ~r as Q REALTOFW, R~TOR ~ .. ~~ eCIIlet(:liYa rnomnel'$hlp mark
which may be used only by mElI'nben; of the- NATIONAl. ASSOCIAllON OF ReALTO~ Who subscribe 10 Its Code of Ethics..
Published ana DistriblMd by:
III
R~ ESTATe BUSINESS SERVICES, INC.
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8subsicfaryof~Cdi~A.,~tJooofRJ!AJ.7'OIlSie
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C .. 52$ SQI,lt!1 \I!~! AV8I\llt!.losAngElles. Caifania 90020
..
SA REVISED 11111 (PAGE 2 OF 2)
SELLER'S ADVISORY (SA PAGE 2 OF 2)
77 of 130
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PAGE. 10/ 11
DISCLOSURE REGARDING
CAL I F () RN I A
ASs 0<: rAT ION
0 F R. E A L'!' 0 R S "
REAL ESTATE AGENcY RELATIONSHIP

(Listing Firm I. senor)
(AO ..qulrod by Iho Chili Cod.)
(C.A.R. Form AO, ReVISed 11/09t
men you enter into ~ rllscll$$ion witi'! i1 real estate agent regarding a real estate transaction) you should from the QUtset undemand what type of agency
raiatlonshlp or representation YOLI wish to hlll:ve with the aSl;!nt in the tranS!lotlon.
SEU.ERS AGENT
A Sellers agent under a Iletlng egreel'Ml"It wIth the Seller aots as the agent for the SeUer only, A Seller's agent or a subagent of that agent Ilas the
following afflrmstlve obligations.:
To the seller. A FidUCiary duty of utmost care, Integrity, hone3ty and loyalty in d~lin!ile with the Sel~(,
To the Buyef ~nd ~he Se1ler:
(a) DIUg8nt exercise of reasonable skill and care in perfOrma.nce of the agent~ dutll!l3.
(b) A duty of honest and mir de~ling imd good raith.
(c) A duty to dieclose all facts known to th~ agenf matel1ally a11&ctlng the value or desirability or the property that are not known to, or wIthin the
diligent attention and Ob:!8M!Jtion of, the parties. An agent Is not obligated to reveal to either ~rty any confidential information obmined from the
other party that does not Involve the affirmative duties set forth above,
BUYER"S AGENT
A selling agent can, with a Buyer':s COMl!lnt, agree to act as agent for the Buyer on!y. In these sttuations, the agent is not the Sellera agent, even jf by
agreement the agent may r'el::$lve eompene.aijon for SEtrvices l'@nder6Ci, either In full or in part 1i"om the Seifer. An agent acting only for.a Buyer has the
following: affifmat;ive obligat!On&~
To the Buyer: A fiduciary dUty of utmost care, integrity, honesty and loyalty in dealings with th~ Buyer.
To the Buyer and the Sel'et:
(a) DUIg~nt exercise of reasonable skill and cere in perfotman~ of the agent's dUtlM,
(b) A dUty orhonMt and fair dealing and good faith.
(c) A duty to Qi~IQ~ allf'ads known to the agent materially affecting the value !;If Qesirability of the property thelt are not known W, or wlth!n the
diligent attention and obMlrv:atlon of, the parties.
An asant Is not obligated to reveal to either party any oonfidentiBil il"lfOrltlatiol'l obtaIned from the other party that does not involve the affirmative duties set
rorth above.
AGENT REPRESENTING BOTH SEU.ER AND BUYER
A real estate agent, eitl1er acting directlY or through one or more assocIate licenteelJ., can legally be the agerrt (If both the &I11e-r and the Buyer In a
~n~c;:ti(m, but only Wllh the knowledge and consent of both toe SaUa~ and tha Buyer.
In a dual agency 51tuaijoM, _he agent has tne rollowing affirmative obligations. to both the Seller and the Buyer~
(s) A fiduciary dLrty of utmost earll, Il"rh:Igrlty, honesty and loyalty in the dealings with either the Seller or tM auyar.
(b) Other dutlas to the Seller and the Buyer as sts.ted above In thelr rt:!speCtiVQ sections.
In repre~ntillij both SeHer and Buver, the agent may not, without the e)(pl'ElSS permission 01 the respective party, disclose to the other party that the $eJl~r
will ac:cept a price less than the lieting pri~ Qr fnal the Buyar wlU pay a price greater than the price offered,
The above duties ofthe agenlln 2; real estate transact10n do not reJleve e SEllJer or Buyer from tht:l responSibility to protect his or her own Interests. You
should carefully read all agMaments to ;!issure: that they adequately express your undersw,nding of the transaction. A real Elstate agant 1s i!I. pEIrson
quaUf1&d to advise about real etXate, If legal or ~e.X advice is desired, consult a competent professional.
Throughout your real property transactiOh you may r.:toolv& morEl than one disclosure rorm, depending upon the number I)f agents assiatil'lg In the
tra~ctlon. The law r4!lC(ulres each agent with whom
have
than a cas.ual relationshIp to ])resent you with this disclosure form. You should read
Its contents each time it i~ preaented to you,
and the real estate agent in your specific tranGaciion,
This disclosure form includes
of the Civil Code m fQrtte ",. page 2. Read it camfuUy.
WlE ACKNOWLEDGE RECEIPT OF A
THE CIVI~ COD!: PRINTED ON THE BACK (OR A
1: : 4'
/I' ." J 1
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PAGE).
oSEPIlAATE
Buyer E9 Seller 0
Landlom
Ten.nt
Oate
o Buyer 0 Seller 0
Landlom
Ten.nt
Oate _ _ _ _ _ _ _ _ __
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By
DRE Uc. #
01461166
o.te
12/14/2011
AGENCY DISCLOSURE COMPL.IANCE (Civil COd. 2079.14):

VvhEln the listing brok~ge comp~1"Iy ~ISQ mplttS4!lnts BuyerlTenant: The Listing Agent shQII have one AD form $iijmd j;}y Seller/Landlord and a
different AO rorm signed by BuyerfTenant.
,
V\lhen SellerfLandlQrd ~nd BuyerlrMant 31'f1 represented by different brokel'Bge companies: (i) the Using Agent shall have one AD form signed by'
Seiler/landlord and (II) the Buyer'slTenanfs Agent nil have one AD form slgned by Buyerffenant and either (:flat same or a different AD form
presented to Seller/LandklJ'd ~r signature prior to presentation of the offer, If the ~me fQrn'l is used,
here:
ISELl.ERJl.ANOLORD: DO NoT SIGN HERE)
SeDerlLandlOrd
Date
The copyr1ght law;; of thlt UnHM Stale:a (i~lt) 17 U.S. Code) forbid the unauthorized reproductIon of thi$ form, or any portion 1hareof~ ~ phDlocopy machine or any other moons,
Including facsimile or computertzed for~t$. copyright C 1~1~2009, CALIFORNIA ASSOCIATION OF ReAl..TOR$, INC. ALL Rl(lrlts RESERVEO.
THIS FORM HAS BEEN APPROVl::O av THE CALIFORNIA A9SOCIA11ON OF REALTORS (CAR,), NO REP~SE:NTATlON IS MACE M TO THE LEGAL VALIDITY OR
AOEQUACY OF ANY PROVISION IN ANY SPeCl~IC TRANSACTION. A REA~ ESTATE BROKER IS THI; PERSON QUALIrleO TO ADVISe ON REA~ ESTATC1
TRANSAC1l0NS. IF YOU CESIRE ~EGAt. OR TAX AOVICE. CONSULT AN APPROPRIATE PROFESSIONAl..
1111$ ferm Is J,lv811able for use by the entire real aslatlil indu$!:ry, It 1$ not Intended to Identify the usera& 8. REALTOR, REAI.ToR!$ a Jegbtel'~ (X)lIe:t;l1lve membership mark
which may be U500 onlY IW members. of the NATIONAL ASSOCrA110N OF ReAl.TORS. Who !!oLlbecrlbe kl lie Code of Ethics.
Publi$/'ied Md DWlribul&d by.
II
REAL ESTATEOO$INCSS SEflVICES.INC,
[ ] asub$ldittry r;I f;tt CsIIbrnia ksreiation of REALTORSS
.e eo 525 Sou" ViI#J A~o!:IIUil.l.os An~Ies. Caifomia 90020
Revlowed by
Date
~
OPl'olllUWrrV
~
.....
AD REVISED 11/09 (PAGI11 OF 2)

DISCLOSURE REGARDING REAL ESTATE AGENCY RELATIONSHIP (AD PAGE 1 OF 2)
Agent: Daniel Ray Ramsey
Phone: 916-812~3267
Fax: 916760..0844
Prepared usmg zipForm !jottware
Broker. Ramny Raid Estate and ceV't corp. 769 47th stl'8et Sacramento, CA 96819
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Borrower.: ~'~le~IIII 1
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PAGE.
CIVIL. CODE SECTIONS 2079.13 THROUGH 2019.24 (2079.16 APPEARS
11/ 11
0111 THE FRONn
20~.13 As U$l:!d I~ seotlO'ns 2079.14 to 2079.24, Inclusive, the following terms have the toUowing meanings:
(<11} "ASl!:!l'Il~ me:ans a person acting under provl'Slons of title 9 (commencing with SectIon 2295) In a. real property
transaction. and Includes a person who Is

lIcensed as Q real eetate broker undi:!r Cha~r 3 (commenctng with Sealon 10130) of Part 1 of Division 4 of the Business and Pro1l!lssions Code, and under
whose license a listing Is exec:l,lted or an offer to purmase is obtained. (b) "Assotiate licensee~ means a p~l'$O!"I whO is liCensed Sq a r.el;ill e2;It;lte broke~ Dr
sale!5lperson under Chapter 3 (commencing .....ith S!:iction 10130) of Part f or Oivlslon 4 of the Business 21nd Prof'l!lMlans Code and Who la either licensed
under a broker or has eRtered Into a written contract with iF!- btol(er ta act as th~ brokers agent In COtlhectiOl"I with ,acts reqtlinng a real estate license and to
fUndion Under the broker's supervision In the capacity of an: associate licensee, The agent in the real property transaction bears responsibility for his or her
,at>SCX:iElle licensees whO ~rrorm as agents OJ the agent VVhen an associate licensee o.wes a duty to any prindpal, or to any buyer o.r sellar who. Is ncd a
p,nncipa.I, In a. reel property transaction, that duty 1& t:qulvalent to. the duty o.wed to. that party by ffie broker for whom the associate licensee funcUoos. (el
'Buyer" means a tranSferee In it real property trilnS8ction, i!!Ind Includes i!!I permn who execules an offer to. purchase rei!!ll property from a seller through ;!!In
agent, o,r who. seeks the ~JVicei of an agent fn more than a C'ae..!al, tra.rwitOry, Qf preliminary manner, with the object of entering into II real property
transactlo.n. "Buyer" Includes vendee or lessee. (d) "Dual agent" means an a~ent acting, either direrjly Qf through 1;\0 associate licensee. as agent for both
tM aeller and the buy~r In a real property transaetJon. (e) "U5tlng agreement' mea~ a (:Ql1traet between an owner of real property and an agent, by which
th& agent hu been authorized to sell tho real propertY or tQ find or o~in ~ buyer, (I) "Listing agent" means e person who has obtained a listlng of rea~
property to aet as an agent tor compensation. (q) "Ustlng price" is the amount expressed In dollars specified In the listing 'or whIch the s@lIarlswllllngtosell
the real property through 1M Ilt;ting agent. (h) Otferlnfl prlCEt" Is the amount expressed In dollars sp8cll'led In an ott'lI!lr to purcnase: for WhiCh the buyer Is
wRUng to byY the real proP'lI1Y. ('l "Offer 10 purehasa means a written ~ntnlct e)(eeut8d by a buyer aetlng through a seiling agent which betmea the
contract for the- sale of the Teal pro~ upon acceDtance by the seller. (i) "Real property" means any estate speoified by subd"M3bn (1) or (2) of Section
761 in property which constitutes or is Improve(J wl~h one to fOur ~lHng unlls, any leasehold 11\ this type of propertY' exoeadlllS one )lear'~ i;lu~tion, and
mobile homes. when offerea for $ale or 8Q!d thrQ1.l9tl. ai1 ~~nt pur.stJant to the authorlty contained in sedion 10131.6 oflhl;! BU8ineq$~nd profeeaions Code.
(k) "Real propany tranSi!llction" means a transaction for the sale of real pro~rtv in whICh an agent is employed by .one or more of1he principals. to act in that
transactiol'l, and melUdas itUi!>tlng or an offer to purchase. (I) "Seu," "sale, or "soldu refef$ to e transaction for the t~nsfer of real property from the seHer to
1he bl:'Yer, and InCludeS a)(ci'anges o( real property between the selier and b~r. transactions for the oreation of a real propertj sales contract within the
m~nin9 of SectiOn 2985, ;!;nd transactions forthe creation 01 a leasehold exceeding one yeats duration, (m) "Seller" means the transferor In a real property
transaction, and lnolu~ei an owner Who lists real pr.oll@rtVwlthanagent, whether or not a transfer results, or who receives an offer to 'purchase real property
.of which he or she is the owner from an agent on behalf of another. "Seller"' Includes both a vendor and a lessor. (b) ~seiling agent means a Ilsllng agent
who acts alone. or an agent who acts in coopel1ltlon with ~ rlStilig agent, and who :&aIls or finds and obtains a buy-er for the rear pro~rty, or an agent Who
IOC!ites property to.r a buyer or who finds a buyer for :a property for WhiCh no liStIng
~nd presenl$ an offer 10 purchase to tM ~"er.
"SUbag!!!nt"
meaflEil ~ perwn tQ w!'tQm an agent d6Iega:h!Js. agency powers as provided in ArJ:i9fe 5 (commenc;ing with Section 2349) of Chapter 1 of Trt e 9. However,
usubagenf dQee not inlu~e an associate dcensee who Is acting under the 3uperviSlon of an agent In a real property tIlmsadion.
ex.
!o)
2879.14 lkitlng agents and selling agents shall provide the seller I;Ind buyer in a real property transaction wflh a eopy of tM dlSC1o&IJre form ~pecified In
&:!dion 20'1S.16, and, except aG provided In $Ybdivi~n (c), PiJh~1I obrein a signed acknowledgement of receipt tram that EiBller or buyer, except as
provided In this section or $edion 2079.15. as fQlI~ (a) 1M lISting agl!lnt, It any, :!hi!!ID prOVide the diselO&lre form to the Miler prior 10 entering fmo the
fisting agreement, ('" fhe selling agent shall provide the disclosure foon to tile se!Ier as GOQn as prad:i~ble prior to pre~ntin.g the "Iler wiCh an offer to
purchase, unle$s Die seiling agttnt previously provldtd the seller with a copy of the dISClosure form pursuant to subdivliion (a), c) Where the eeliing a~enl
does not deal on a li;u::e~to-raoa ba:slS With tM seller, the dlsoJosure fooo prepared by the selling agent may be furnIShed to the seller (and
aek'nOWledgement of receipt obtained for the eelling ~ant from the seller) by the 1IS1lng aganl. or the MlRng 2g8nt may ~lIv&r tl'"te dlseiOSUfft (onn by
O!trtlfted mall addressed to the seller at hie or her I~st Known address, In which 0i!Ia!! no slaned acknowledg&ment of receipt 1& fequll'fld.\d) The Milling
agent shall provide the disclosure form to the buyer as soon as prn:eticable nrlor to exacutfon of the buyer's ofter to pul'Ghase, except tha It the offer to
purOhase Is. no.t prepared by the seiling agent. the selling agent shell pre~nt the di&elOsUre form 1(1 the buy~r not laler ~n u,@ ne)d bUSiness day anar the
selling agent receives the Qffer 10 purchase from the buyer.
2079.18 In any olrcumstance in which the seller or buyer refu~s to itGin an aCk:now1edssmenl of receIpt pUl"SUanl to. Section 2079.14, lhe agent, or an
assoclatellcensell!l actIng for an agent, shall set forth, sign, and elate a wlitten declaration of the fadS (lftM refusal.
2079.16 Reproduced on Page 1 of this AD form.
2D79.17 (a) As soon as practicable. the sefling agent e.het:1I di5'l;Ioee 10 tile /;IllYElI' and seller whether the samng agent Is acting In the re81 property transaction
exClUsively as the buyer's agent. exclusively as the 5elle(s agent, or a6 a ~ual aset'lt \'@pri:!~ntlng bath tha J)Uyer and th& selltr. iNs. I'fIlatloMi'lJp shall be
confirmed in the contract to purcnase and sell real property or in a !ieparate w!i1ing e;x;ecutect or acknOWledged by the saller, tnfl buy&r, and the seiling agent
prio.r to or coincident With EOtecllllo.n Of Inat contract by the buyer and the seller. respectively. (b) As soon as practicable, the listing agent ahall diSCloS4:! to
the seller whether the neting ~gent is acting in th~ real property transaction exclusively as the seller's agent. or as a dual agent representing both the llliyer
and seller, This relationship shall ~ contlnned In the contract to purchase and sell real property or In a separate writing executed or acknowledged by thE;!
seller and the listing sgil'nt prior to or coincident wIth tl'te execution 01 that contract by the seller.
(c) The confinnation required by subdlvlSlon~ (a) and (b) .shall be In the following tonn.
(00 NOT COMPLETE, SAMPLE ONLy)
is the agent of (check one): 0 thE! seller e)(cluslv&ly: or 0 both the buYlI!lr and seller.
{Na~ ()f Lii3lng Agent)
(DO NOT COPL.El'E. SAM~Lc ONLy)
is the agent of (check one): CJ the buyer exa!u!iiiVsly; or CI the saller sxclualv6ly; o,r
(NaTnel ofSeUing AgfOOl if no! t~e$lllimo~ttile [!$ling Agent)
0 both tha nuyer ~nt;l seDer.
(d) The di$!I)$UI'> and oonflrmatlon required by this section shall be in addition to the dl!iqQsure reqUIMd bY Seetion 2079.14.
2879.18 No eening agent in a ~al property tranaadlon may act as an agent forthe buyer only, when the eellios agent Is alSO acting as the listing agent In
the transaction.
2019.19 The payment of compensation or the obligation to ~y cortJpansauon 10 an agent by the seller or buyer is not necessarity detennfn~t1ve of a
partJeUJar ageney relationship between an agent and the eeller or buyer, A listing agBnt i!!IM a seiling agent may agree to share any compensation or
commlselon paid, or any rlglit to any compensation or ~mm~n for wtlich an obUsation al'lses as the J'@Isultofa real estate transactio.n. and the tenna of
any such agrQament shall not neoessarily be detenninalive of a particular relationShip.
2079.20 Nothing in this article prevents an agent fmm SBF6ctlng, ;as 2 condition of the agenfs employment, a specific form of agency relatjQn~lp not
specifically prohibited by this. article if1he requireme~ of $ecUon 2079.14 and Sectlo.n 2079.17 are romplled with.
2079.21 A dUil agent ahe:U riot dlSClOSI:! to HIe buyer that the seiler Is willing to sell the property at ~ price Ieee. than the listing ptice, WithQUl the express
wrlHQn consent oHhe seller, A duall;\gent shall not disclo5e to the $E!~er mat the buyer Is wlUlng to pay a price greater tha.n the offering price, wittlout the
e)(press Vifitlan consent ot the buyer. This section does not alter in any way the dUty or responSIbIlity of tl dual ag&nt to, any prindpal with respecl to
GQnfidential informiilltiol'l olherthan price.
2019.22 Nothing In this artiole prec:ludes a listing agent fro.m also being a seiling. agent. ana the combination of ttie$$ fUnctions In one agent dOEls notl o.f
rtself, make Ihat agent a dUi!!ll agent
2019.~ A IXI'ntraet blttwoen the prIncipal and agent may be modified or altered 10 Chan~ tI'le agency I'fIl!tlonsnlp at any time before the performance of the
act which is the object of the agency with the written consent of the partlos to the agency rel~onship.
.
2078.24 Nothing !n thiS article snail be construed t9 either dimlnle.h the duty M diselo.sure owed buyers and sellers by agents and their aisociate Ucen$E!~
:subagente. and employees or to relieVe agenta and their assoolate licensees, GUbagenw. an~ emplOyeM !'rom liability !'or their conduct !n connection with
aets governed by this article orwr e.ny breach ofa flduelary duty or a duty of disclosure.
Buyer'S/Tenant's Initial:\,; (
COpyright 0 19912009. CAUFORNIA ASSOCIA11ON OF REAL"rOF:i:S.INC.
Sellers/landlord Inlttals <
AD REVISED 11108 (PAGE 2 OF 2)
, ReYiewed by
) (
}(
Oate
DISCLOSURE REGARDING REAL ESTATE AGENCY RELATIONSHIP (AD PAGE 2 OF 2)
790f130
) 1.:.1
~':'HI1I11$
502. A
,I"",.
Jun.24.2010
08:35 PM
J.,1tJ::..
CAL I F 0 ~. N IA
..
_~ ASS 0 CIA I ION
~
COUNTER OFFER NO.2
. For use by seller or Buyer. May b. uoed for~M"""~Iil~p~la~CO~u-nt=.r Offer.

OF REALTORS"
(C.A.R.FormCO,Revld11110)
Oat'
Ca~tomia Residen~al POl,lrr;hsee Agreeme.m,

~II9DlbQr 16. 201.1
,on properly known as _ __
This is a eaunter offer to the:

dated
1/
PAGE.
Decem!?er 21. 2011
Dill",
("Offer"),
~~~~~;3~.r.~~~~===~
B.
but are not

by aU partle5. are fjxcll.ld$d 1rom the final agreemant
of this Of another Counter Offef.
amount(&) will bo adjustGd in 1hQ samo proportion as in the original
unla5 5pt;K:ifi(lally
Unless o1herwi5e t1g~ in
Offor
. C.
Purchase price to be $207. 000
Diposit to be snhmittQd to Qscrow upon shortsale approval
When depo3it ~C~8B nonrefundab16 and in!p!ct~on cont1ngency is removed, saller to

issue 30 dar notice to tenenats
C~OSB or 8SCrDY to he 30 days from bank shortsale approva~
Puurcahse funds to be deposited in time to close escrow
D.
2.
3.
followlng
attaehad
addenda are incorporated Into this Counter
oro: __~D:'Ad::d:e:nd:":m~N:o~.::.===========
RlOtfT TO ACCEPT OlHER OfFERS: Ifthie 13 a Seller Counter Offer, (i) Seller ha$ the fight to conUnU8 to off(lr the Property for sale or for another
transaction, and to accept any other offer at any time prior to Acaeptanoe. as desoribed in paragraph 3 and (10 Seller'Go 9QCeptance of anothar offer
prior to Buyer's Acceptance of this Counter Offer) shaD revoke this Counter Offer.
EXPIRATION: ThJ~ Counter Offer $hal be deemed revoked and the deposits, if any, shaD be returned unless this Counter Offer is signed by the
Buyer or SeUer to whom it is eent and a Copy of the s.lgned Counter Offer i$ pe:l'$onal!y reoelved by the person making this Counter Offer or by
c-c-~~~_o-~~o-~~~~_~____~~c-____~~__~~~~~~c-____________ ,who~a~ortzedroreoeNe
it, by 5:00 PM on thlil third O~"1 Aftarthl!! latar date specified In paragraph 5 or, (if checked) by
AM
PM. This Counter Offer may be executed in counterparts.
0 ______________ (date), at
(If cheeked!J MULTlP'LE COUNTER oFFER: SeITer is making a Counter Offet(s) to anotl'ler proa:pecltve buyer(s) on terms that mey or may
the same as in this Counter Offer. Acceptance of tllis Counter Offer by Buyer shall not be binding unless and until it ts subsequently
'001: be
($-Signed by Seller In p~rasraph 7 b$l()w and ~ C()py of 'the Cl)unt&r Off(lr SIgMd In p2l~graph 7 Is p~rson2lUy reoelved by Buyer or by
1 _ _ _ _ _ _ _ _ _ _ _ _ _ _...",...,.,..._ _--,.."._=__-,._-,=;-______ , who is authorized to receive it~ by 5:00 PM
on the third Day After the later date specffied In paragraph 5 or, (If cheeked) by
(date), at
I--~_O AM
!,rior to the completion of all of theae ev~nts, Buyer and Seller soall have no duties or obligations for1he purchase or
&aIel 'CIf the Flroperty. NOTE TO SEllER: Sign and data In paragraph 5 to make this Counmr Offer.
OPM.
OFFER: JYl BUYER OR
SELLER MAKES THIS COUNTER OFFER ON THE TERMS ABOVE ANC ACKNOWLEDGES RECEIPT OF A COPY.
_,-",,!..I),
,1/
_......__ ..,...... .
Dat'
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
!;~~:t~
.."L:ti~:;;;~~~~=~;======
Date _
12/23./2011
~
-;>
B.
7'
ACCEPTANCE: IIWE accept the above Counter Offer (If checked
SUBJECT TO THE ATTACHED COUNTER OFFER) and acknowledge
Date
12/21/2011
Date
7.
Time
OAMOPM
Time
AM 0 PM
~,=,~TI~I:E_ ~~~~JE!t OFF~R .SIO.NA!U~E UNE: By signing ~Iow, Sellei' GG.fIPts this MuJti~18 Counter Offer.
NOTE TO SELLER: Do NOT sign In this box until after Buyer SlgM In paragraph 6. (Paragraph 7 appliea only if paragraph 4 ia; c:hoekftd..)
8.
1_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Date
Time
OAM [M
Data
Tlma
AM [M
(_ _ _ 1_ _ _ ) (Initials) Confinnation of Acceptance: A Copy of Signed Acceptance was personally received by the maker of the
Counter Offer, or that person's authorized agent as specified In paragraph 3 (or, If this is a Multiple Counter Offer, the Buyer or Buyer's authorized
at
AM
PM. A bInding AgRement
agent as specified In paragraph 4) on (dste)
i,. crvated when II Copy of Signed Acceptance is personally received by 11\9 tha maker of tha Counter Offer, or that parson',. authoriuld
ag8nt (or, if 1his is a MuHipl9 Counter Offer, 1ha Buyar tIT auyar'~ autborl%:",,~ ~ltr!t) whcttt'lor or not confinnecl In !hl$ doc:umoot. Compl$liQn
of thir> eonfinnat{o~ 1$ not legally Nlq ... 11't!<I in order to creme a bimfing Agreementj it i:. ~olv:ly intended to evidence the date that
_ptan... h.. """ortad.

The c:opyrlght Ia-w. 0( tht.I UnllOd Still~ (iltlilt 171J,S. CtJd.) 10rbld th. unautttcriud reproduc1ian afthi& form, or any portion thereof. by photocopy machine or all)' other means,
including facsimYe or computerized formats. CopynghtIi!l198f!...2004, CALIFORNIA ASSOCIATION OF ~EAI. TOi='($, INC, ALL RIGHTS RESERVED,
THIS FORM HAS BEEN APPROVED BY THE CAU~RNtA ASSOCIATION Of: RSALTORS$ {CAR.}. NO RSP-R5SSNTArtON IS MADS AS TO THe LeGAl. VALIDliY OR
ADEQUACY OF ANY PROVISION IN Af'N SPECIAC TRANSACTION. A REAL ESTATE BROKER [S THE PERSON QUAUFIEO TO ADVISE: ON REAl. ESTATE
TRANSACTIONS. IF YOU DESIRE LEGAL. OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL.
ThIs fQITll 18 ~ailibll;t for use b~ thfJ: entirl;t fl)at ~w.w Indum. It it not Inttncltd to Ic\lilnt!fv tI10 user ;.\$ aREALiOR REALTO~ 1$ a t"iiShlt'Gd collective membership mark
which may be ue&d only by menibera of the NATIONAL ASSOCIATION OF REAl. TORS wno $1.lbscribe to 1\:$ Code of Ethle&
FYbllsl"lod.rId DIWIbIltOd by
_
tS:r
IR$vJowed by
\I
:::::!::=/s=7!~f~EALTORSfiI
[]
c II 525 South VJrg~ Avanus.l.o8 Angeles, California 90~20
Date
EOWl-:SiNC
DPP'J~TIIlIlTY
CO REVISED 11110 (PAGE 1 OF 1)
COUNTER OFFER (CO PAGE 1 OF 1)

Agent: Guillory
Phone: (916)487-8393
Fal(~ 1916)487--8280
Broker: C1.tstom Realty & LoaM 3600 Power Inn Road suite H3 Sacramento, CA 968.26
80of130
Prepared using zipForm software
IIIEI
Borrower: Kyle
Jun.25.2010
07:21 AM
i~.
CALIFORNIA
. .~ A:>SOC IATJON
1/
PAGE.
COUNTER OFFER
r.;!i1~tir Offer.
For use by Seller or Buyer. May be used

OF REALTORS"
(C.A. R Form CO, Revised
Oaoo
Deoemter 20. 2011
~g~rei.~m~e~nt~'~D~;c~o:unto:~rO~ffo~r~,o~r~~ot~h.~'~~~~~~~~~~~;!(~"OO~i:e~,~.),
dated
D.oeolllllb.or
16,[i)2011
,on P"'l"'rtyPurchase
known as
ThIs!$.
counter
otTer to the:
California Residential
:.~M~~..~n~ll~~~~~~~~~ii~lj1!j!~
A.
Inclu.:lon I~~~'!~~
B.
c.
(Selle,).
I>
by Bli partils.
excluded from the final agr~ement
or another Counter Offer.

lo.n omount(.) will b. adjusted In the .ame proportIon In 11> ,Iginol
OfIor.
to
l'pc.hase P%ice
be $220. 000. .PrO!?!!!%'o/ add:l3.. i . 5020 A S'tr.et:
Sac.l:'ame:tlto.
CA
95B1..9. Se~~er does not accept oontragt i t . 5.9. Gil. P.rop8rf:y wi-I.! remain in a ZllDnth
t:o JDOnth lease, al1d selle%' will SIM:'V'I! t:he ten&nt .. 30 day not.iae to vacate upon
.tea!!!!!!!tdpg sho:rt: SUf!I .approval ~d't:t:..r, buyer .removipa tlle iusp.s!otioll 9O;Q.ti~9!!!l1ay. a.nd
huyeJ;-o :ftu;ds ~o purchase Gtre depes.i t8d in tflsarow.
D.
following oHoched addenda ara Incorporated Into thl. Counter ~r'~'-::-~D~A=dd:.n=d:u:m~N:o~.:::::~========
for
2.
RIGHT TO ACCEPT OT~ER OFF!':fIS: II this Is Seller Counter Oller. (0 Sellor has Iho rtght to ""nllnue to ofrerth. Property 10' sal. or another
IraMaction. and to accept Ilny ether offer at any time prior to Acceptance, aQ deiCribed in paragraph :3 and (Ii) Seller's acceptance of another offer
3.
prior to Buyer's Acceptance of this Counter Offer~ shall revoke this Counter Offer.
EXPIRATlON; This Counter Offer shall be deemed revoked and the deposits, if any, shin be rururned unle:i:i thili Counter Offer Is sighed by the
Buyer or Sell@r to whom it is sent and a Copy of the signed Counter Offer Is pet50rmlly recel ....ed by the person maldng this counter Offer or by
,who Isauthorlzed to receive
______________________________= _______
It, by 5:00 PM on lhelh!J:l! Day Allgr th_Jater date specified in paragraph 5 or, Of checked) by 0
4.
LJ
(If checked:)
AM
PM. This Counw Off~r may b~ ~)(@outed In counterparts.
MULTIPLE COUNTER OfFER: Sellor
10 tnaklng. Counlor O.r(o)

to another prospective buyer,s) on terms that mayor may
Buyer shall not be binding unless and until It subsequently
'no\- bet 1he iame as in thia COunter On'er, Ac:ce~el'lee of thIs Counter Offer by
...~$igne.d by Seller in paragraph 7 be!Qw arll;i
iii
date
or,
~k"
6.
Is
Copy Of the Counter Offer Signed in paragraph 7 is personaUy received by Buyer or by

_..,--,-..,-:,-..,-"-,-,..,---,...,...._,,.,....,.,._-,-_:-=_-::.,--:-..,.-"""--;...._ _ _ _ _ , who 1$ authorized to roco". It, by 5:00 PM
on the thin:! Day Aft.r the later
opeclfled In paragraph 5 (II ohec~.d) by
,date). at
A~ ClPM. Prior to the complet1on of all of these events, Buyer and Seller shall have no duties Qr obligations for the purchase or
sale of the Property. NOTE TO SELLER: Sign and date In paragraph 6to make this COllnter Offer.
, "'AK~S THIS COUNTER OFFER ON
OateTHE
_________________________________
_
OFFER: D BUYER OR 0 saLER
TERMS ABOVE AND ACKNOWLEDGES RECEIPT OF A COPY.
-,,...---CJ
5.
Date ..J.l""2{"'2'-!!O~{~20,ulUl_ _ _ _ _ _ _ _ _ _ _ _ _ _ __
ACCEPT
CE: I/wE accept the above Counter 0., (If chockod [Zj.SUBJECT TO THE ATTACHED COUNTER OFFER) .nd acKnowledge
r""olp
~/
Dot.
12...-"2.:'----"2..)0 t\
Dot.
7.
1MULTII'LECOUNTER
Time
DAMDpM
Time
DAMDpM
OFFER SIGNATURE LINE: By .igning beloW. Seller acceptsll!ls MUI!Ip~e_COU~ler O~er.
NOTE TO SELLER: Do NOT sign in this box until after Buyer 5jgn~ in pal'agtaph $~ {Pi1Iragraph 7 applle$ only If paragraph 41s checked.)
1_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
e.
____________ (d.te), at
Dlt.
Time
DAM []PM
O.t.
To....
AM []PM
'--_ _ 1_ _ _ ) (Initials) Confirmation of AccaptanC8: A Copy of Signed Acceptance was personally re~ived by the maKoIllr of the
Counter Offer, or that person's authOrized agent as specified In paragraph 3 (or, If this Is 8 Multiple Counter Offer, the Buyer or Buyer's authorIzed
ogont pe~1ied in peragraph 4) on (date)
at
DAM
PM. A bln<llng Ag"'......nt
is created when a Copy of Signed Acceptance is personally received by the the maker of the Counter Offer. or that person's: iU.ltho.ued
agent (or, ff this is a Multiple Counter OfferJ the Suyer or Buyer's authorized agent) wheth.er or not confirmed in this document. Completion
of this confirmation is not legally required in order to create a binding Agreement: it is solely Intended to evidence the date that
AcctJptance has occurred.
The copyright laws of the United Slatl!lll (11tle 17 U.S. Coda) forbid the URauthorized reproduction of this tom, or any portion thereof. bv pIlotocopy machine or any other means,
Including fact;tlmlle Qr computerl~ed fonnats. CO!)yrlglrt: 10 19M~2004. CALIFORNIA ASSOCIATlON. OF ReALTORS, INC. ALL Fl:IGH1S ReSERVEO.
THIS FORM HAS 'aEEN APPROVED BY THE CAliFORNIA ASSOCIAnON a= REAl.'rORS (CAR.). NO REPRESENTATION IS MADE AS TO THE !..SGAI. VALID1TY OR
AOEQUAOV OF ~y PROVISION IN ANV SPeOIFIO 'f'rwJSACTION. A REAl.., ESTATE BROI<'EFI: IS THE PERSON OUAUFlEO TO ADVISE ON ~L ESTATE
TRANSACTIONS. IF YOU OES1~fi: l.E"GAl. OR TAX ADVIce, CONSULT AN APPROP~IAn: PROFi:SSIONAl...

This form Is avaIlable for 1.189 by the entire real 93tale industry. lila not Intended 10 Identify the userss a REALTOR!. REAL.TOR Is a registered ctllh!ctJ'IIa membelrShlp rmt!'k
Wh~ may b& utfId only l:ly membttrt of lI'Ilt NATIONAL ASSoctAl1CIN 01" REALTO~ Who :s.tJb5trlbiit to 115 Code Of ethIC:&.
Pub~shod end Dislribulod by:
_
REAL ESTATE BUSINE:ss SSWICES, INC.

j
tt&lJb$lchty,,'tIl~CI!fl~ftuccklJh>norREAt.rcl<$$
R'mitJo"
..
/ml
l:)!j
Data
=~~u\W
[]
<: .. 525 Sooth Virgil Avenue, Loa ~Iee, Califomia 90020
!5:t
CO REVISED 11/1(1 (PAGE 1 OF 1)
COUNTER OFFER (CO PAGE 1 OF 1)

Agant: Daniel Ray Ramsey
Broker: Ramsey Real E$tate an~
Phone: 916-812-3261
r=ax: $16.160..0644
D~v't Corp.. 769 '7th stre~t Sacramento, CA 96a19
81 of 130
Pre\>O,ed U$lng zlpForm(!l .oftware

Borrower: Kyll. . . . . . . ..
Jun.22.2010
PAGE.
07:38 AM
CALIFORNIA
RESIDENTIAL PURCHASE AGREEMENT
AND JOINT ESCROW INSTRUCTIONS
.~
CALIFORNIA
,~ AHOCIAT[ON
, . . OF REALTORS"
1/ 15
For Uso With Slngll!!! Family Rt$Id~1 Property - Attached or Detached
(C"A.R. Fotm RPA-CA. Revised 4110)

1. OFFE~:
A. THIS IS AN OFFER FROM
rsuyer").
Abolqna."",
B. THE REAL PROPERTY TO BE ACQUIRED is described as 5020 A

I
St:reet:
95819
Saoramamnto: Cit
A1>$8$$or'$ P.atoel NQ.
~ituated 111
,California, f'Property").
CQunty of
c.
D. CLOSE OF ESCROW "'all occur 011
(dote) (or
2. AGENCY:
A. DISCLOSURE: Buyer and Seller ea(;h acknowledge prior receipt of a "Disclosure Regarding Real Estate Ageney ReJallol'l$hlps"
(CAR. Form AD).

a. POTENTIALLY COMPi:nNG BUYERS AND SELLERS: Buyer and Seller each acknowledge receipt of a disclosure of the possibility of
multiple representation by the Brokar r(!'praMnting th~t prih(;ipal, This dieclOWl'e may be part of a listing agreement. buyer representation
agreemoot or separaUl dOl.lment (CAR, Form DA), Buyer understands that Broker representing Buyer may also represent other potential
buyers, who may consider, makt;) offer$. ~n Of ublmately 8(lquire the Property. Seller understands that Broker representing SeDer may also
represent other sellel'fl with competing properties of interest to this Buyer.
C. CONFIRMATION: Th~ foUowlng a~ency relationships are hereby confirmed forthis transaction:
Listing Agent
(Print Firm Name) is the agent
of (check ona): 0 the Sener el:lusll/ely; r 0 both U'le Buyer and Seller.
Selling Agent
CUstom Ma1.t::y m1d .Lo.ms
(Printl=irm Name) (ifnot'lhe same as the
lJ$tIng Agent) is the agent of (check one):
the Buyer exclusively; or
the Seller exclusively; or
both the Buyer and SeDer. Real Estate
Brol!rs art;) not partl$$ to the Agreement between Buyer and $eller,
3. FINANCE TERMS: Buyer reprl!!$(!lil;$ that funds will be good when deposited with escrow Holder,
A. INITIAL DEPOSIT.! OeposihhaU be in the ~mol,lnt of " " , ,",.,', ... ,""',.,.".,' .... __ ............ $
,IQ aoo 00
(1) Buyer shall deliver deposit d\retly to ~row HQlder by peroonal check, 0 electronic funds transfer. 0 other
===="";:;;;::-::;::-:-::. within 3 business days after acceptance (or 0 Other
);
OR {2) (If checked) 0 Buyer has given the <leposit by perroonal check (or 0
)
tl) the agent SlJbmitting the offer (or to
made payabl1!!!10
rhe deposit shall be held
ul'lca$hed until A~tal'lee and then deposited with Escrow Hoider (or 0 into Sroker's trust account) within 3
bue:iness- days after Acceptance (or 0 other
).
8. INCREASED DEPOSIT: BUyer e.hall depoe:itwith Escrow Holder an increased deposit in the amount of ........... $ _ _ _ _ _ _ __
),
Days After Acceptance, or 0 ~-"''''''''----:-::---c-:::-::--'''''''''''----.

If a I1quklated <lamMe& clauae is incorporated into this Agreement, Buyer and Seller shaU sign a separate
~quidated damages clause (CAR. Form RID) for any increased deposit at1he time it is deposited.
within
C. LOAN(S):
(1) FIRST LOAN: in the amount of. " ' , " , ............ ,.......
. ....... $ _ _ _ _ _ _ __
This loan win be conventional finanoing or, if checked, 0 FHA, Cl VA, D Seller (CAR. Form SFA),
assumed financing (CAR. Form PAA), 0 Other
. This Joan shall be at a fbted
rate not to exceed
% or, 0 an adjustable rate loan with initial rate not to exceed
%.
Regardless of the type of I(lan, Buyer 5ha1l pay pointe. not to exceed
% of the loan amount.
(2)
SECOND LOAN: Intheamountof ................ , .......... , ............ , . ,",.,"'" $ _ _ _ _ _ _ __
1his loan will be conventional financing or, if el'le(:k~d, 0 seU~r (CAR. F(lrm SFA), 0 a500med fihtmcing
(CAR. Form PAA), 0 other
, ThIs loan shall be at E!I fIXed rate not to exceed
:c--:--,.,- % or, 0 an adjustable rate loan with initial rate not to exceed
%. Regardless, I)f
the type of loan, Buyer shall pay points not to exeeed
% of the loan amount.
(3) fHANA: For any FHA or VA loan specified above, Buyer has 17 (or 0
) Days After Acceptance
to Deliver l;o Seifer written notice (CAR, Form FVA) of any lender-required repairs or costs that Buyer
requestt; Seller to pay for or repair. Seller has no obligation to pay for repairs or satisfy lender requirements
unless otherwIse agreed in writing,
O. ADDITIONAL FINANCING TERMS:
o
o
::::;;lE
E. BAL,ANCE OF PURCHASE PRICE OR DOWN PAYMENT: in the amount of. , , , . , , , , , , , , , , , , " .. , ..... , .... $ _ _ _...1",9",5..Jt0ll.00"-"o,,,o,to be deposited with Escrow Holder within sufficient time to close flserow.
~:;,.
The
~~TAL):
.... )
.................................
QQpyrI.lJht 1_ of the Unitl!d 8tate& (TItle 11 U.<l. Codtl) fom/d the uMulhllrl:!!lId mprodUctk:ln
olj~
~~:~rs :~~.~.;
. . . .;;____
~
farm. or
l!.nr jXI!tlon tIwfwf, by ph9trx:Qpj' mlr;h!nli or .any o!her mliaM, Including f<leD1m/kI or compuMrlzed formats.
Copyrig/ll 0 1991-2010, CAI.lFORNJA ASSOCIATION OF REALTORS, INC, AU. FOOHTS RESERVED.
205 c 000.00
~~WM~
IL.:R~~::::lo~wed~byL:===:..:D::=""'!!..:====.J
RPA'(;A REVISED 4110 (PAGE 1 OF 8)

CAUFORNlA RESIDENTIAL PURCHASE AGREEMENT (RPA.(;A PAGE 1 of 8)
Agent: Guilfory
Broker: Cw;tom Rea
Phone: (916)487-8393
&
Loaru~.
3600 Power h1l''I
R(I~
Fax: (916)487-8280
p",I"''"'' ...[ng zlpF_ . _...
sujte H3 sacramento. CA 95826
82 of 130
Borrower: Kyld. . . . . .
Jun.22.2010
2/ 15
str"et.
5020 A
Property Address:
PAGE.
07:39 AM
Saaramemnto,
CA
95819
Date:
Deaember
16, 2011
G. VE~IFICATION OF DOWN PAYMENT AND CLOSING COSTS: Suyer (Dr Suye(. lender Dr loan broker pursuont to 3H(1)) sholl, within 7 (or
Days After Acceptance, Deliver to Seller written verification of Buyer's down payment and closing costs, (If checked, ~
verifica~on attached.)
H. LOAN TERMS:
(1) LOAN APPUCATIONS: Within 7 (or 0
) Days After Acceptanee, auyer shaU Deliver to SeIer a: letter from lender or loan
bl'Qker stating that, b~d on a review of Buyer's written application and credit report, Buyer is prequalltled or preapprowd tor any NEW loan
specified in 3C ahovE!. (If checked, 0 letter attached,)
(2) LOAN CONTINGENCY: Buyer shall act diligently and in good faith to obtain the designated Joan(s). Obtaining the loan(s) specified above
is a contingency of this Agreement unless otherwIse agreed in writing. Buyer's contractual obligation::J to obtain and provide deposit, balanoe
of down payment and closing cost'$ are not contingenci&& of this. Agreement.
(3) LOAN CONTINGENCY REMOVAL:
(I) Within 17 (or 0
) Days After Acceptancet, Buyer shall, as speci~d In paragraph 14, in wrltlf'lg remove the loan contingency
or canoel this Agreement;
OR (II) (if checked) 0 the Joan contingency shall remain in effect until the designated loah$. are funded.
(4) IXJ NO LOAN CON'J1NGENCY (If ~ecked); Obtaining any loan 'iJPecified above Is NOT ~ <::ontingency of this As(eement. If Buyer dOB!> not
obtain the loan and as a result Buyer doe$ not purchase 1he PrQPerty, Stller may be entitled to Buyer's deposit or other legal remedies.
I. APPRAISAl. CONTINGENCY AND REMOVAL, This Agreement Is (Qr, W<hooked, IXIIs NOT) contingent upon. written approl..1of Ihe Property
by a licen$&d or certified appraiser at nt;> lese. than file specified purchase price, If there is O!I 1o00n contingency, 8uYI!lr'.s removal of the loan
corttlng.ency sl1all be deemed removal of this appraisal CQntlngency (or, 0 if checked, Buyer shall, as specified in paragraph 14B(3)1 in writing
r&mQve the appraisal contingency (lr eancel this Agreement within 11 (or
) Day& After Acceptance). If '!here: hi no loan contingency,
Buyer shall, as specified in paragraph 148(3). in writing remove the appral$al contingenoy or cancel this Agreement within 17 (or
)
Days After Acceptance.
J. !XI A,lL CASH OFFER (If checked): Buyer shaU, within 7 (or 0
) Days After Acceptance, Deliver to Seller wrlttGn lIerification of
SuffICient funds to dose thls nnstl;ction, (If checked, !XI verlficatlOl1 attached.)
K. BUYER STATED FINANCING: SeUl;!!r ha6 relied on Buyer's representation of the type of financing specified (including but not IImi~ed ~O. aG
applicable, amount of down payment~ contingent or non contingent loan. or al! cash). If Buyer sQeks alternate 1inancing, (i) Sellar has no obli!;lation
to cooperate with Buyer's effol't$ to Obtain such financing, e.nd (Ii) Buyer shall also pursue the financing method specified in this Agreemehl:.
Buyer's faJllln!! to ~cUi" alternate financing does not $'XCJJSIi!! Sl,Iyer !Tom the obligation to purcha$e the Property and close escrow as specified in
this Agreement
... ALLOCATION OF COSTS (If hecked); Unless o1he1Wis1!l $petlfled in writing, this paragraph 'Only determines who is to pay for thl!t il"l$pec'tlon. te5l or
service ("Reporf) rnelitioned; it does not datormine who ii'S to pay for any work recommended Qr identified in the Report.
A. INSPECTIONS AND REPORTS:
(1) 0 Buyer 0 Seller shall pay for an inspl!totlon and report for wood destroying pesta end organisms ('Wood Pest RGptlrt") prepared by
{2)
(3)
=-::-_-:::-::".,,-...,.-::-_.,-:-:-_--,,-==,-,-,_-.,._=_,.-__=-""'==_ a registered structural pest control company.

0 Buyer [j Seller ahall pay to have S&ptlc or private sewage disposal systems pumpQd and
D Buyer 0
InSP,"":ct:ed:..-============
Seller shall pay to hav" domestic wells tested for water potability al'ld productivity _
~:Z:Q:rd
==================
alSclosure ~~o~rt~p~r.~p~.r~O~d~b~Y
0
0.!XI Seller shall pay for OJthenatural
following inspection
Zone or report
(6) D Buyer 0 SeUer shall pay for the folfowlng IIiQPection or report
B, GOVERNMENT REQUIREMENTS AND RETROFIT:
(1) 0 Suyer 0 Sl!Iller shall pay for lij,l'I'Ioke detector installatfon and/or wa~t' heater bra~hg, if required by Law. Prior to CIQse Of Escrow, Seller
shall provJ(:h, Buyer written statement(s} of compliance in aeeQrdance with state and local Law, unless exempt,
(2)
Buyer
Seller shall p~y the> cost of compliance with any other minimum mandatory government retrofit standards, infJ,pections and
reports If required aa a condition of dosing escrow under any laW. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
(4)
(5) 0 Buyer
Suyer
C. ESCROW AND TITLE:
IP~.~y~.:..,:ro:w~1e:.~=======:::=====::::=================
Escrow
shuDshall
be I_
(1) 0
BuyerHolder
W Seiter
(%) 0
IXJ policy
Sellerto be pay
forby
ow'nn:.(=.:.:Jijj:O~ln:':"':.:nc:.~p:o:;cy:.:p:e~:-fie:d~in~p:.:ra:gra:p:h~1~2:E-===:::::===========::
Owner's tiHe
issued
_
(Buyer shaft pay for arry tiHe insurance polley insuring Buyer's IendQr, unfe89 o1herv..;se agreed in writing.)
OTHER COSTS:
Buyer
o.
(1)
(2)
(3)
Buyer
Buyer
shaD
IXI
SeRer shall
shall pay
CQut'!ty
II'$nsfer
or
LII Sener
pay City
tran$f&r
tax taX'
or fee
CJ Buyer 0
(4) 00 Buyer 00 Seller

(5)
te:;::=========================
Seller shall pay Homeowner'a Asaociation ("HOA") transfer fee
HOA
:==============::;::=======:::=
shall pay
payfor anydocument
preparatiM11:
Seller shall
private transfer
fee _ ...
Buyer
(G) 0 Buyer 0 Seller shall pay the cost. not to excl!ted $ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ , of a one-year home warranty plan,
, with the foHowing optional coverages:

Code and Permit upgrad& 0 Other:
Buyer is informed that hQl'/'te wartsnty plans have many optional coveragEis In ackHtion to those fisted above. Buyer is advised [0 IfI\/aatigate
these coverages to determin$ tho$$: thelt may be GlJitable for Buyer.
lesued by
o AlrCondltl~r DPQQlISpa 0
Buyer'.
::~: ~ S.II~(
(7)
Suyer
Soll.r shan pay for
===============================
""'. pay fO')
S.U.r', Initlolo (
I .
CwYris~a) 1G9t-20 O. CAL!fiORNiAASSOCIATION OF REALTORSrll>.INC.
RPA-CA REVISED 4110 (PAGE 2 OF 8)
n!5
. Reviewad
CALIFORNIA RESIDENTIAL PURCHASE ABRE~M~NT (~PA.cA PAGE 2 OF 8)
CalHFA Loan#
022472~3
83 of 130
Oal.
)(
"st
Borrower: Kylel
Jun.22.2010
PAGE.
07:39 AM
';020 A
3/ 15
Str" .. t
Property Address: Sacramsmnto, CA 95819

5. CLOSING AND POSSESSION:
A. Buyer intends (or lXJ does not Ili1end) to occupy 1he Property as Buyer's primary residenoe.
B. SeHer.occupied or vacant property: Possession shan b& de!lvflr(!,d tl) 61.1yer at 5 PM or (
Date: December 16, 2011
AM 0 PM), on the date of ctose:
Of Escrow; D on
; or 0 no later than
Days After Close Of EscrQw. If transfer of 'title
i!nd pO&$eselon do not oCCUr at the same 'time, Buyer and Seller are advised to: (i) ~ntar Into a written oooupancy agreement (C.A.R. Form PAA)
Pl!lfl!lSl'l!Jpn 2); and (il) comult YlIi1h their insurance and legal advlsor'$.
C. T.... nt..,.,.,upie<l property:

(i) Property shall be vacant at teast fi (or 1m
2.4
) DaY$ Prior IQ Cloee Of E&croW, Unless otherwise agreed in writing. Note to Salter:
If you are unable to deliver Propmty vacant in a~ordance whh rent control and other applicable Law, you may be in breach of this:
Agreement.
OR (ill (If checked)
Tenant to remain in possession. (CA.R. Form PAA, paragraph 3)
D. At Close Of E$orow, (n Setler assigns to Buyer any assignable warr.. nty rlghts for Item& Included In the sale, and (ii) SeGer shall Deliver to Buyer
available Copies ofwarraniies. Brokers cannot and will not 4etermlne the aesignQbiOty of any warranties.
E. At Ctose Of Escrow. unless othetWise agreed in writIng. SQller $hall provide keys and/or means to operate all locks, mailboxes, security systems,
alarrn~ and garage door openers_ If Property Is a condominium or 1Qe.ted in a common intere~t subdivision, Buyer may be required to pay 21
deposit to the Homeowners' Association C'HOA,,) to obtain keye. to accessible HOA facilities,
8. STATUTORY DISCLOSURES (INCLUDING LEAlJ.BASED PAINT HAZARD DISCLOSURES) AND CANCELLATION RIGHTS:
A. (1) Seller shall, within the time specified In pl!lragraph 14A, DerIVer to Buyer. if required by Law: (i) Federal Lead-Based Paint Olsclo5Utes (CA.R.
Form FLD) and pamphlet C'Lead Disclosures"); and (if) disclosures or notices required by $ectlon$ 1102 ct, eeq. and 1103 et. seq. of the Civ~
Code ("Statutory Discloe.uresj, Statutory Disclosures include, but !ire no~ limited to, a Real E5tate Transfer Disclosure Statement (,'TDS,,),
Natural Hazard Disclosure Statement C'NHDj, no~ee or actual knowledge Qf release of megal controlled substance, notice of special tax
and/or assessments (or, if aNowed, &Ubstantially equivalent notice regarding the Mello.-Roo:& Community FaelUties Act and Improvement Bond
Act of 1915) and. if Seller hat> actual knowledge, of industrial use and military ordinance location (CA.R. Fonn SPO Of SSO).
(%) Buyer $hall. within the time specified In paragraph 14-9(1). return SIgned Copies of the Statutory and Lead Disclosures to SeUQt'.
(3) In the event Seller. prior to Ck>se Of Escrow, becomes aware of ~dvet'$e conditions materially affecting the Property, or any material
inaccuracy in disclosures, infonnatlon or reprl!t$entatiot'!$ previously provided to Buyer, SeDer shall promptly provide a $Ub$eqUeht or
amended disclosure or tlod~, In writing, CQvering those items. However, i!l subsequent or amended dlsclo$Ure shall not be required for
condltlon$ .and matt.:rlal inaccuraeies of which Buyer is otherwise awar~. or which are disclOSed in reports provided to or obtainMl by
Buyer or ordered and paid for by Buyar _
(4) If any dleoloeure Or notice specified in 6A(1), or subsequent Qr amended disclosure or notice is Delivered to Buyer after the offer 1$ Signed,
aUYer shan have the right to cancel this Agreement Within 3 Cays After Delivery in person, or 5 Days Aftflr DelivaI)' by deposit 11'1 the maij, by
giving written notice of cancellation to Seller or Setler's agent.
(5) Note to Buyer and Seller: Waiver of stal.'Utory and Lead 0i5do5Ures is prohibRed by Law.
B. NATURAL AND ENVlRONMENTAl HAZARDS; Within the time specified in paragraph 14A, Seller shall, If reqtJlred by Law; (i) Oeliver 10 Buyer
earthquake guides (and qU~Qnnsire) and environmental ha2srds booklet; (II) even if exempt from the obligation to provide a NHD, disclose if
the. Property Is located in a Special Flood Hazard Area; Potentle.1 FloodirIQ (Inundation) Area; Very High Fire Hazillrd Zon.e; State Fire
Responsibility Area; Earthquake F~ult Zone; Seismic Hazard Zone; and (iii) disclose any other zone as required by Law and provide any other
infonnation requlrad for those ZOhee,
C. WITHHOLDINO TAXES: Within tho time $pCcified in paragraph 14A~ to avoid requIred wlthholdlns, S~ler shall Deliver 10 Buyer or qualified
substitute, an affidavit sufflclal'lt to QQmply with federal (FIRPTA) and California withholding Law, (C.A.R, ~orm AS or as).
D. MEGAN'S LAW DATABASE OfSC1.OSURE: Notice: Pursuant to Section 290.46 of the Penal Code, infonnation about :speclfled reglstered sex
offenders is made available to the public vIa an In~ernet Web eite maintained by the Department of Justice at W\W{,l'I1egans!aw.ca.gov. Depending
on an offender's crimInal history, this information will include either the address ~t which the offender resides or 1he oommunity of resida:nce and
ZIP Code in which he or she resides. {Neither Seller nor Brokers are- required to check this website. jf Buyer wan~ further 1nformation, Broker
reCQmmends 1hat Buyer obtain information from this website during Buyer's inspection contingency period. Brokers. do not have expertise in this
area_)
7. CONDOMINIUM/PLANIllED DEVELOPMENT DISCLOSURI'S:
A. SELLER HAS: 7 (or 0
) Days After Acceptance to disclose to Suyer whether the Property is a condorn~nlum, or 1$ located In a
planned devtllopm~nt or Other oommon Interest subdivision (CAR. Form SPQ or 8S0).
)
6. If the Property is. a condomirdum or 1$ located In a planned development or o1her common interest subdlvl&lon, Sellet has 3 (or 0
Days Aft~r Aot!!ptance 'to request from the HOA (C.A.R. t:orm HOA): (I) Coplel;i. of any doouments. required by Law; (ii) disclosure- of any pending
or anticipated olaim or litigation by or against the HOA; (II~ a statement containing 'the location and number of deslgnatad paf1(lng and storage
spaces:; (tv) Copies of the most recent 12 months of HOA minutes for regular and special meetings; and (v) the names and contact information of
aU HOAs governing the Property (cotlectlvely, ''CI Disclosures"). Seller shall itemize and Deliver to Buyer all CI Disolosures received from the HOA
and any CI Disclosures In Sellar's, possession. Buyer's approval of CI Disclosures Is a contlngeny of this Agreement as specified in paragraph
148(3).
8. ITEMS U\lCLUDED IN AND EXCLUDED FROM PURCHASE PRICE:
A. NOTE TO BUYER. AND SELLER: tterns list~d as it'tctu.ded or e~luded in the MLS, flyers or marketing mat$l'lalli ilIr~ not iMluded in the purchase
price or excluded from the sale unles~ speolfled In SB of C.
B. ITEMS INCLUDED IN SALE:
(1) All EXISTING fl"""oo and flttings that are attached to the Proporty;
(2) EXiSTING elGCtrloal, macl1anical, lighting, plumbing and heating fixturtlls, ooHllig moo, fireplace inserts, gas logs and gratt!$, s(llar $"y$teme,
built-In appliances, window and door screens, awnings, shult$f'S., wllidQW CQverings, attaohed Hoor coverings, television antl;lnnaa, l3atellite
dishes, private- Il'Itegrated telephone systems, air coolersicondilloners, ~oQlIspa eqUipment, garage door opene:rstremot$' controj'S, maUbtlx,
in-ground landscaping, 1rae&lshrubs, water sQfteners, water purifiers, security systE.!tt1aial.errti!J.; (If checked Cl stove(s), 0 refrlgerator(s); and
(3) rhe following additional jtems:
(4) Seller represents that all items Ittcluded in the purchase price, unI@ss otherwise specified, are owned by Seller.
(6) AU items included shall be tran ...ferred free of liens. and without SeUer warranty.
C. ITEMS EXCLUDED FROM SALE: Unleee otherwise specified, audio and video componenw. (such as flat screen lVs Bnd speakers) are excluded
if any such Item Is not Itself attached to the Property, even jf a bracket or other mechanism attached to the component Is attached 10 the Property;
ond
Buyer's Initiala (
--4-
& . . . . . ](==_:-::
C<lpysl(;hte 1991-201U, OALFORNIAASSOCIA.TION OF REAl.TORS, INC.
)(
ICR~""'~'_~~bY:,.====::...':Da:=:"~====:J.
RPA-CA kEVISED 4110 (PAGE 3 Of $)

CALI~ORNIA
Seller's Inltial$ (
RI'SIDENTIAL PURCHASE AGREEMENT (RPA-CA PAGE 3 OF 8)
84of130
Ast
Borrower:
Kyle~S
IIIII111P
Jun.22.2010
PAGE.
07:40 AM
5020 A
4/ 15
5tr.... t
f'roperty Address; Sacri!lllemnto,
CA
95819
D~e;December
15,2011
9. CONDrnON OF PROPERTY: Unless otherwise agr..d; 0) 1118 Property Is sold (a) in its PRESENT physical ("".is") condilion as of the dote 01
Accaptanca and (b) subject to Buyer's Investigation rightc; (if) the Property, in<OlOOlng pool, spa, landscaping and grounds, Is. 10 be maintained in
substantially the same condition as on tho date of hoeptanee; and (IH) aN debris and PE!lrsonai property not included In the sale shall be removed by
Seller by Close 01 Escrow.

A. SeDer .haD. within the time speclfled In paregmph 14A. DISCLOSE KNO\I\tN MATERIAL FACTS AND DEFECTS affecUng the Property. including
known InsurallC$ claims within 1he pasr: flva years:, and make any and all olher d~rosures required by law.
B. Buyer has the right to inspect the property arJd, as specified in paragraph 149, based upon information discovered in thasa Inspections: (i} canoel
(hit; Agreement; or (fi) request that seller make Repairs or take other action.
C. Buyer is strongly adYised to conduct investigations of tha entire Property in order to d&tarm~e its present condition. S~Uer may not be
aware of all defects affecting the Property Or other tactol'$ that BlIyer considors important. Property improvamants may not be built
according to code, in compllanoe with current Law, or have had permits Issued.
10. BUYER'S INVESnGATION OF PROPERTY AND MATTERS AFFECnNG PROPERTY:
A. Buyer'S acceptance of the condition of, and any ather matter affecting the Property. is a contingency (If this Agreement as: specified In this
paragraph and paragraph 14B. WithIn the time specified in paragraph 149(1). Buyer shall have the right. at Buyer's expense unless othelWiae
.agreed. to conduct inspections, hwe$tl~tiomi:, tests, surveys and other studie8 ("Buyer Investlgatlons'), including. but not ~mited to, tile right to:
(i) inspect for tead-based paint and other lead.-based paint hazarda.; (ii) ioopect for wood dMtroylng pests and organisms; (iii) review the
registered sex offender database', (Iv) conflnn the insurablHty of Buyer and the Property~ and (v) satisfy Buyer as to any matter speelDad in the
attaehed Buyer's Inspection Advisory (OAR. Form BIA}. Without Sellet's prior written consent, Buyer shall neither make nor cause to be made: (i)
invm;ive or destructive BLlYer Investigations; or (ii) insp@ctlons by My governmental buildlng or :z;onlng inspector or government employee, unless
required by Law.
B. Seller shall make the Property avaHable for aft Buyer Investigations. Buyer shalf (i) as specified in paragrl!lph 148, complete Buyer Investigations
and, either remove the contingency or cancel thiG Agreement, and (iI) give Seller, at nQ 1J0st, compfete Copies 01 aU Investigation reports obtained
by Buyer, which obligation shaD survive the tEtrrnlrnrtion of this Agreement.
c. Seller !$han have water, gas) electricity and aU operable pilot lights on for Buyer's '"veatlgations and through the dat~ possession is made
available to Buyer.
D. Suyer indemnity and Seller prvtection for entry upon property: BUyer 8hall: (i~ keep the Property free and clear of liens; (Ii) repair aD damage
arisin9 from Buyer Investigatiomli and (iii) indemnify and hold Seifer harmless from all resu!ti:ng llabNityl Glairns~ demands, damages and costs of
Buyer'S investlgallons. Buyer shall carry, or aUye( 6hall require anyone acting on Buyer's behalf to cany, polJch~$ of Uability, workers
compensation and other applicable Insurance, defending and protecting SaUer from liability for any injuries to persons or property oclJuning during
any euyer Investigations or work done on the Property at Buyer's olfection prlor to CIQSI!! Of E$Crow. Sener is advised that certain protf;!Ctions may
be afforded Seller by reoording a ~NQUca of NQn~Tesponsibitity" (C.A.R. Form NNR) for B~er InvestigatiOns and work done 01'1 the Property lilt
Buyer's direction. Buyer's obligations under this pari!lgraph shall survive the termination or oancellatton of this Agreement and Close of Escrow.
11. SELLER DISCLOSURES; ADDENDA; ADVISORIES; OTHER TERMS:
A. seller DiSclosures (if checked): seller shall, within the time specified in paragraph 14A. complele and provide Buyer wilh .:
SeRer Pro
Clul!!stlonnalre CAR. Form SPQ
OR
0 $u lemental Contractual and Statuto Dl&olOEiure C.A.~. !=orm SSO
S. Addenda if chocked :
Addendum #
(CAR. Form ADM
WQod Destroying ~est Inspedion and ARocation of Cost Addendum (CArt. Fonn WPA)
j
o Purchasfl Agr~Gment Addendum (C.A.R Form PAA)

o Short Sale Addendum (CAR. Fonn SSA)
C. Advisories (If chocked):

Pr(lbate Advl
C.A.~. Porro PAK
0 Statewide Su er and Seller Advf$
n"stAdVloOry (CAR. Form TA)
D. OttlerTerms: fp'Psrty to
0 Septio, Well and Property Monument Addef'\dum (OAR.. Form SWPI}
0 Other
121 Buye(. Inspection Ad...o" (CAft Fo"" SIA)
CAR. Form SBSA
0 ReO Advisory (CAR. Form REO)

,be
rmrgh'ltlfld I'AS IS"
12. TITLE AIIIO VESnNG,

A. Within the 'lime specified In paragraph 14, al.lYer shall be provided a current preUmlnary title report, whih 60011 include a search of the General
Index. Seller shall within 7 Days After ACC0ptaMe 9iYe Escrow Hotder a completed statement of Information. The preliminary report is only an
offer by the title insurer to issue a poUey of title insurance and may not contain every Item affecting title. Buyerls review of the preliminary report
and any other matters which may affect title are a contingency of this Agreement as specified In paragraph 149.
B. Title is taken In Ita present condition subject to all encumbrances, easemlilntJ, covenants, conditions, restrictions, rights and other matteI'S,
whether of record or not, ss of the date Qf Acceptance except (i) monetary liens of record l..Inle$S Buyer is assuming those obligations or takIng
the Froperty subject to those obligations.; and (II) those matters which Seller has agreed to remove in writfng.
C. WithIn the time $peeitied in pl11lTl11Igmph 14A, Seller has a duty to disclose to aWli!r ~II matters known to Seller affecting title, whether of record or
not.
D. At Close Of Escrow, Buyer shaH receive a grant deed conveying tiHe (or, for stock cooperative or long~term lease, an as5ignment of stock
oertificate or of Seller's leasehold Intef!M;t). lneludihg oil, mineral and water rights if currently ownec:t by seiter. Title shaH vest as designated in
Buy.r'. supplemental escrow inslructlons. TH~ MANNER OF TAKING nTlE MAY HAVE SIGNIFICANT LEGAL AND TAX CONSEQUENCES.
CONSULT AN APPROPRIATE PROFESSIONAL.
E. Buyer shaU receive a CLTAlAl..TA Homeowner'$ Polly of T"rtle insurance. A title company, at Buyer's request, can provide infonnation about the
ava~ability. desirabnity, coverage, survey requlremel'l~, and cost of various title insurance coverages 2t'ld el1dONJElmente.. If Buyer desires tiUe
vemge other 1han that required by this paragraph, Buyer Me.fl ins1n.ic'l Escrow Holder in writing and pay any Increase in coet.
13. SALE OF BUYER'S PROPERTY:
A. Ti')ls Agreement ia NOT contingent upon
sale of any property owned by Buyer.
OR B. D (If ~he~k/l!d): 1pe attached addendum (CAR. Form COP) res~rdln9 Ih~ CQntingen~ for the sale of property owned by Buyer Is Int::orporated
the
IntOthis~
Buyer's Inlllolo (
8011. Imtials
"-) (
COPYf1gMO 19912 1(). CAUFORNlAASSOCJATlON OF REAl.TORS. INC
RPA-CA. REVISED 4110 (PAGE 4 OF 8)
(h15
. Reviewed by
CALIFORNIA RESIDENTIAL PURCHASE AGREEMENT (RPAoCA PAGE 4 OF 8)
8501130
)(
Cite
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I
.
:a-=-'
=R~N~
A"
Borrower: Kyle
Jun.22.2010
PAGE.
07:41 AM
5020 A
5/ 15
Str...,t
Property Addrea.; Sacramemnto, CA
95819
14. TIME PERIOI)S; REMOVAL OF CONTINGENCIES; CANCELLATION RIGHTS: Tho following timo poriods may only be oxl1mdad, allBAJd,
modified or c;;hanged by mutual written agreement. Any removal of contingencies or cancallation under 'this paragraph by either Buyer or
Seller must be exercised in good faith and in writing (CA.R. Fonn CR or
ee).
A. SELLER. HAS: 7 (or f!]
5
) Days After Acceptance to Delver to Buytr all Reports, dlseloaures and information fOT which Seller is
responsible under paragraphs 4, eA, Band C, 7A, SA, 11A and S, and 12. Buyer may give Seller a Notice to Seller to Perform (CAR. Fonn NSP)
if Seller has not Delivered the items with'" the time specified.
B. (1) BUYER HAS: 17 (or 1m
8
) Days: After Acceptance. lIn1e::18 otherwise agreed in WJiting, to:
U) complete aD Buyer Investigations: approve all disclosures, reports and other applicable information, which Buyer receives from S4;ij!er; and
approve all other matters affecting the Property; and
(ii) DelivM to Seller Signed COplM of Statutory and l.Md Disclosures Delivered by Seller in accordance with paragraph SA.
(2) Within the 11m" specffied In 14B(1), Buyer may request that Seller make repairs or take any other action regarding 1he Property (C.A.R. Form
RR). Sener has no obligation to agree to or respond to Buyer's requests.
(3) WHhin the time specified in 148(1) (or =ilFi otherwise speclfled In this ~l'eement), Buyer shaU Deaver to SeDer either {O a removal of the
appilcable contingency (CA.R. Form CR), or (ii) a cancellation (C.A.~. Form ee) of this Agreement based upon a contil'lgeney <)f S,,1Ier'f>
fall~r(l to DeUver the $p(lelfled iteMs, However, if any report. dis.closure or inronnation for which SeUer is responsible Is not DeHvered within the
time specified in 14A, ihen Buyer has 6 (or 0
) Da~ After Delivery of any such items, or the time specified in 14B(1), whichever
is later, to Oe5ver to Seiter a removal of the applicable contingency or cancl;!llatiol"l of thl$ Agreement.
(4) Continuation of Contingency: Even after the end of t/'Ia time $pEIlfled in 14B(1) and befure Seller cancels this Agreement, if at all, pursuant
to 14C, Buyflr retains the right to E!ith$l' (Q In writing remove remaining contingencies, or (ii) .cancel this Agreement based upon a remalnlng
eomlngency or Seller'$ failUre tl;) Deliver the specified terms, Once Buyer's written removal of all contlngEmcies Is OeUvered 11;1 Seller, Seller
may not cancel this Agreement pursuant to 14C(1),
C. SELLER RIGHT TO CANCEL,
(1) Seller right to Cancelj Buyer Contingcmcies: If. wI1:hln time speelfled In this. Agreement, Buyer does not, in writing, Deliver to Seller a
removal ofUle applicable contingency or ancellatiOll Qf1tli$ Agreement1hen Seller, after first Delivering to Buyer a Notice to BUY$(" to Perform
(CA.R. Form NBP) may c:aJ'lcel this Agreement. In such event, Seller shaH authorize return of Buye(s depos~,
(2) Sel~er right to Cancel: Buyer Contract Obligations: SeJler, after first Delivering to Buyer a NBP may (lancei thi1J ~r'eell'lent for' elhy of the
followilg reasons: (~ if Buyer fails to deposit funds as required by 3A or 38; (II) if the funds deposited pursuant to 3A ar 3B are not good when
deposiled; ~Iij ~ Buyer falls to Oell'l., a notice of FHA or VA oools or terms as required by 3C(3) (C.A.R. Form FVA); (IV) II Boy., falls 10
Deliver a letter as required by 3H; (\1') if Buyer fails to Deliver verification as required by 3G or 3J; (vi) if Seller reasonably disapproves of the
verification provided by 30: or 3J; (vii) if Buyer faDs to rewm Statutory and Lead Disclosures ;as rElqulred by pamgtaph 6A(2); or (viii) if Buyer
fails to sign or initial a separate liquidated damage fonn for ~I"J ineraased deposit a$ required by paragraphs as and 25. In suoh event, Seller
shall autllorize retum of B~$ depo&it.
(3) Nolie<> To Buyar To Porto"": The NBP "'aM; (I) be in writing; (iii be signed by SeUer; and (Iii) give Buyer .t I.ast 2 (or 0
) DaY"
After DerlVery (or until1he time specified in the appUeable paragraph, whichever oceurs last) to take the applicable action. ANBP may not be
Der[llered any earlier than 2 Day$ Prior to. the expiration of the applicable time for Buyer to removl!t a col'ltlngttney or cancel this Agreement or
m..1a. obug.1lon specified in 14C(2),

D. EFFECT OF BUYER'S REMOVAL OF CONtiNGENCIES: If Buyer removes, In writing, any eontlngency or Gancellation rights, unless otherwise
specified in a separate written agreement between Buyer and Seller, Buyer $hall '1Vith regard to that contingency or canceHation right conclusively
be deemed to have: (i) completed aU Buyer Investigations, and revieW of reports and other applicable- infonnation and disclosures; (I.) erected to
proceed with the transalon; and (iii) assumed all liability, responsibility and expense for Repairs or cQrrectlol'l$ or for Inability ro obtain financing.
E. CLOSE OF ESCROW: Berore SeHer or Buyer may cancel this Agreement for failure of the other party to close escrow pursuant to this
Agreement, SeHer or Buyer must first give ~ other a demand to close escrow (CAR Form DCE).
f~ EFFECT Of CANCELLATION ON DEPOSITS: If Buyar or Seiter gives \Nf'ltten notlee of oancellation pursuant to rights duly exercised under the
terms. of this Agreement, Buyer and Seller agree to Sign mutual Iflli;;tfUtions w cancel the sale and escrow and release deposits, if any, to the
party entitled to the funds, 1!lS$ fees and eoGt& Incurred by that party, Fees and cos1s may be payable to $ervlce pro\liders and vendors for
s>!!lrvice$ and products provided during escrow. Release of funds will requif't ntlItual SIgned releu5Q ins-trulltlons from Buyer and Seller,
judll;iw decision or arbitration award. A Buy-er or Sellar may be: subject to it I;ivil penalty of up to $1,000 for refusal to sign 'Souch
instructions if no good fai1h dispute exists as to who Is. entitled to the deposited funds. (Civil Cods 10.57 .3).
15. REPAIRS: Repairs shal( be oompleted prior to finat verification of condition UI'l\a$S otherwise agreed in writing. Repairs to be performed at SeD&r's
BXpemfJ: may be performed by Seller or through others, provided ~I-!~ the work comprtes with applicable Law, Includ[ng governmental permit,
InspectlOll and approval requirements. Repairs shaD be performed In a "ood. $killful manner with materials of quality and appearal'let;l (In'lp=il~ble to
existing materials. It is understood that exaet restoration of appearance or cosmetic items following all Repairs may not be possible. Seller shall; (i)
obtain receipts for Repairs performtild by QmE!~; (ii) prepare a written statement indicating the Repairs pari(lrt't'lE;ld by Seifer and the date of such
Repairs; and (iii) provide Copies of receipts and statements to Buyer prior to final verification of eonctltlol'l.
16. FINAL VERIFICAnON OF CONDITION: Buyer s"'all have the right to make a final inspection of the Property within 5 (-or
) Days Prior
to Close Of escrow, NOT AS A CONTINGENCY OF THE SALE, but solely to confirm; (i) the Property Is maintaIned pur!iluant ~o paragraf)n 9; (Ii)
Repairs have been completed as agreed: atl1d (UI) sellar has complied with SeDer's other obHgations under this Agreement (CAR. Form VP).
11. PRORATIONS OF PROPERTY TAXES "1110 OTHER ITEMS: unless otherwise ag,eed in writing, the foBowing 110ms shan be PAID CURRENT and
prorated between Buyer and SeUer as Qf Close Of Escrow: real property taxes and assessments, Intar~et, rents, HOA regular, special, and emergency
dues and assessments Imposed prior to Close Of Escrow, premiums on insuran$ a$$umed by Buyer, payments on bonds and assessmoemf$
assumed by Buyer, and payments on Mello~oos and other Speelal AfiSGSsment District bonds and assessments "that are a current Uen. The following;
items $halt b~ ~umed by auyer WITHOUT CREDIT toward the putharre price; prorated payments on MeUo-Roo$ and other Speelal Assessment
Ol$trict bonds. anti assessments and HOA special Mt;~menl;$ 1hat ;;,re ~ current lien but not yet due. Prope:rty wRl be reasse5Sed upon change 01
ownerehip. Any supplemental tax bDIs shall be pa.id \lII$ follows; (i) for periods after Close Of Escrow, by Buyer; and (ii) for periods prior to Close Of
I:.scrow. by Seller (see CAR Fonn SPT or S8SA for further information), TAX BILLS ISSUED AFTER CLOSE Of! esc~ow SHALL BE HANDLED
DIRECTLY aeTWEEN BUYER AND SELLER. Prorations shaD be made based on a 3O-day tnonth
./
Buye", Initials
(~J----
)(
Sene"o Inl1lal. (
OopyrtghtO 199120tO. CALJFORNlAASSOCIATIQfII OF REAl.T<mse, INC.
(R8VI.nd by
RPA.cA REVISED 4110 (pAG~ 5 OF 8)
Date
CALIFORNIA RESIDENTIAL PURCHASE AGR~EM~NT (RPAoCA PAGE 5 OF 8)
86 of 130
Borrower: Kyle
.111111'
Jun.22.2010
PAGE.
07:41 AM
5020 A Street
Property Address: Sacrrunemnto, CA
95819
6/ 15
18. SELECTtoN OF SERVICE PROVIDERS. Brokers do not guarantee 'the performance of any vendors, service. or Product provfders. ("Providers').
whether referrelj by Broker or selected by Buyer, Seller or other person. Buyer and Seiter may select ANY Providers of their own choosing.
it. MULnPLE USTiNo SERVICE rNlLS")~ Brokers are authorized to report to the MLS a pending sale and, upon Close Of Escrow, the aales price and
other terme of this 1ra~ctlon shall bet provided to the MLS to be published and disseminated to persons and etrtmes al.JttlorJzed to use 1hf!:
information on terms Qpproved by the MLS.
ZO. EQUAL HOUSING OPPORTUNITY: The Property is sold in compliance wfIh federal, state and local anti-discriminatJon Laws.
21, ATTORNEY FeeS! In any aotlQI'l. proceeding, or arbitration between Buyer and Seller arising out of (his Agreement, the preva~ing 8u~r Or SeDer
shaD be entitled to reasonable attorney fees and costs from the nOl'l-prevamng Buyer or Seller, except as provided in paragrelph 26A.
22. D~FINJTlONS: As us.d In IIlls Agreement:
A. "A~ptal1Ce'j means thE\' time the offer or final counter offer Is accepted in wrltlns bye party and Is delivered to and personally receIved by the
other party Or that party's authorized agent in accordance with the terms of 1his offer or a final counter offer.
8. CAR. Form" means the specific form referenced or ano~r <comparable Form agreed to by the parties.
C_ "Cion Of Escrow" means the date the grant deed, or other evidence of1ransfar of title, is recorded.
D. "Copyh means copy by any means including photocopy, NCR, faceJmile and electronil::.
E. "Days" means calendar days. However, After A<::ceptance, tha last Day for performance of any act required by this Agreement (including Close
Of E&foW) shall not Include any Saturday, Sunday, or legal holiday and shall instead be the next Day.
F. "Oay$ After"' means the epec:itled numbElr of calendar days after the occurrence oHhe event specified, not taunting the calendar date on which
the ej)ecffied event occurs, and ending at 11 :59PM on the final day.
G, "Days Prior" means the specified number of calendar days before the occurrenoa (:If the event specified, not taunting the calendar date on which
the specified event 1$ scheduled 10 occur.
H. "Deliverlt, 'IDalivared" or "Delivery", regardh!!:S$ of the method uS$d (i.e. messenger, mail, ama~, fax. other), means and eha~ be effectivA uPQtl
0) personal receipt by Buyer or Seller or the Individual Real Estate Lk:ensee tor that principal a$ $pecified in paragrapn 0 of the section titled RQal
E$tate Brokers on pagl!l 8; OR (ii) if checked, 0 per the attached addendum (CAR. Form RDN).
I. "Elactronlc Copy" or "SlactrQnlc: Signature" means, i!J& applicable! an electronic copy or signature complying with California Law. Buyer and
Seller agree that electronic meerm will not be lf$(!d by either party to modify or alter the contl!lnt Or integrity of this Agreement without the
knowledge and consent of the other party.
J. "Law" means any law, code, sta1ute, ordinance, regulation, rule or order, which is adopted by a controlling Cityl county, statt!!l or federal legislative,
judicial or exeeutiVe bodY or agency.
K. "Repairs" means any rapalr$ (inc~uding pest control), alterations, replacements, mOdifications or retrofitting of the Property provided for under thie
Agreement
L. i'SignBd" m~ans elther iii handwritten or electronic signature on an original ~C)Cument, Copy or any counterpm.
23. BROKER COMPENSATION: Seller or Buyer, or both, as appllcablli!l, agrees to pay compensation to Broker as specified in a $eparate written
agre&ment between Broker and that Seller or auyer. Compensation Is payable upon Close Of Escrow, or If eecrow does not close, as othelWiae
specIfIed In the agreement between Broker and that Seller or Buyer.
24. JOINT ESCROW INSTRUCTIONS TO ESCROW HOLDER:
A. The following par.Qgraph$, or applicable porlions thereof, of 1his Agreement eQt1stltUte the joint escrow inst~on$ of Buyer and Seller
to. Eserow Holder, which Escrow Halder Is tc use along with any related counter offers and addenda, and ~ny ~dditional mutual instructions to
close the eat:row: 1. 3, 4, 6C, 11 Band 0, 12, 138. 1041=", 17,22, 23, 24,28,30, and paragraph D of the section titled R.eal Estate Srokers on page
8. if a Copy of the separate compensation agreement(s) provided for In paragraph 23, or paragraph 0 of the section titled Real Estate Brokers on
page 8 is deposited wi1h Escrow Holdet by Broker, Escrow Holdar shall accept such agreement(s) and payout of Buyer's Of Seller's funds, or
both, as applicable, the respe:etive Broker's compensation provided for 'In wch agreement(s). The terms and conditions of this Agreement not
$peQifioaUy referenced above, in the spelMled paragraphs are additional m~1:t$1'$ fot the information of Escrow Hot4$r, but about which Escrow
Holder need not be concerned. Buyer end Seller will receive Escrow Holder's. general provisions directly from Escrow Holder and wilt execute
such provieions upon Escrow Hold0r's reql,l$!it To the extent the general provisions are h'lOnuistent or conflict with this Agreement, the general
ptovisioll5 will control as to "the duties and obligations of Escrow Holder only. euyer and Seller WIll execute additional instructlQns, dcumente and
forme. provided by Escrow Holder that (lire reasonably necessary to close the escrow.
e, A CQPY of this Agreement shall be dellvere:id to Sacrow Holder within 3 business days. after Aceeptahce (or 0 """"''''''_-:-:-::---::-:"""''=_-:--,
""_-,,_,.-:=-____.,-__;--:-;_--=--::--::-_--:-::-.,,-_-;:-..,..-=__=). Eserow Holder shaH provide SeDer'S Sfatement of
Information to Title company when received from Seller, Buyer and SeDer authorize Escrow Holder to accept and rely on Copies and Signatures
as defined in this Agreement as orfginals, to open escrow and for other purposes of escrow. The validity of this Agreement as between Buyer and
Seller i$ not .ct-ed by Whether or when Escrow Holder Signs th~ Agreement.
c. Brokers are r! party to the- escrow for the soie purpose of compensation pWl'?!IIJant to paragraphs 23 and paragrapl'1 D of the settl!)n titled Real
Estate Brokers on page 8. Buyer and Se~er irrevocably assign 10 Brokers compensation specified in paragraphs 23, respectively, and irrevocably
instruct Escrow Ho!det tc disburse those funds to Brokers at Close Of Escrow or pursuant to any other mutually executed cancellation agreement.
Comperr&atlol1 Il"I$truotione; can be amended or revoked only ~ !;he written consent of Brokers. Buyer and &!Iller shall release and hold harmless
Escrow Holder from any liability resulting from escrow Holder's payment to Br(lker($) of compensation pursuant to this. AgrflElment. Escrow Holder
shaD immediately notify Brokers: 0) if 6uyer!s initial or any additional depO$lt 1$ not made pursuant to this Agreeml!lnt, or Is 1"I0t good at time of
deposit with Est.:row Holder, or (II) If either Buyer or Seller instruct Escrow Holder to cancel ~row.
D. A Copy of any amendment that affects any paragraph of this Agreement for which Escrow Holder /1;; responsible shall be delivered to Escrow
Holder within 2 business days after mutua! execution of the amendment.
Boyer', lnitiol.
(~l( _~__
soU ..... lnitiol. (
)(
Q(lpyrIgh! G 1991.2010. CALIFORNIA ASSOCIATlON OF REALTOM. INC.
RPA-GA REI/ISED 4110 (PAGE G OF 8) Print Date

CAUFORIllIA RESlO~NTIAL PURCHASE AGREEMENT (RPAc.o.
87 of 130
PAG~
6 OF 8)
Ast
Borrower: K y l e - '
Jun.22.2010
PAGE.
07:42 AM
5020 A
7/ 15
Street
Property Address: Sj!cram...."to, CA
95819
Date: December 1.6, 2011
25. LIQUIDATED DAMAGES: If Buyer fails to complete this purchase because of Buyer's default, Seller shall "'tain as
liquldatad damages, the deposit actually paid. If the Property i. a dwelling with no more than four units one of which &.yer
lnlflnds to occupy, then the amount retained shall be no more than 3% of the purchase price. Any exc~ss shall be returned
to Buyer. Re!ea$& of funds will require mutual, Sign&<! release Instructions from both Buyer and Seller judicial decision or
arbitration award. AT TIME OF THE INCREASED DEPOSIT BUYeR AND SELLER SHAll SIGN A SEPARATE UQUIDATED
M RID).
DAMAGES PROVISION FOR ANY INCREASeD DEPOSIT. (C.A.R. F
~B~U~y.=r~"~ln~h~~=~~~==~~~::::;:==S~.~I~lor~S~ln~m~a~~~~~~~2:::::~;]
26. DISPUTI' RESOLUTION:

A. MEDIA1l0N: Buyer and Seller agree to mediate any dispute or claim <:trising between them out of this Agreement, (lr any resulting transaction~
before resorting to ;arbitration or court action. Buyer and Seller also Qgree to mediate any disputes or claims wifb Broker(5), who, in writing,
agree to such mediation prior toj or within a reasoflable time after, the dispute or claim is Pl'B$ented to tha Broker. Mediation fae-s.1f any)
shall ~ divided equally among the parties involved. If, for any dispute or claim to which this paragraph app~e$, :my party (i) commences an action
withoU1 first attempting to resolve the matter through mediation, or (ii) before cc>mmencement of ~n action} refuses to mediate after a request has
been made, then 'that party shall not be 81ldtled to recover attomey fees, even if they would otherwise be available to that party in any such action.
THIS MEDIATION PROVISION APPLIES WHETHER OR NOT THE ARBITRATION PROVISION IS INITIALED. ExIion. from this mediation
.g.,.,mont oro __ lIIed In parograph 26C.
B. ARBITRATION OF DISPUTES:
Buyer and Seller 8grae that any dispute or claim in Law or equity arising between them out of this Agreement or any
resulting transactio~, which Is not settled through mediation, shall be doclded by neutral, binding arbitration. 8tJyer and
Saller also agf'G8 to arbitrate any disputes or claims with Broker(s}, who, in writing, Jlgree to such arbitration prior to, or
within oS reasonable time after, the dispLtte or claim is pl"1!sentecl to the Broker. The arbitrator shall be. retired Judge Of
j"stice, or an attorney with at lea$! 5 years of residential real estat" Law experience, unless the patties mutually ag"''' to
a different arbitrator. The parties shall have the right to discovery in accordanc" with Code of Civil Procedure 1283.0S,
In all other ""peets, the arbitration shall be conducted in accordance with Title 9 of Part 3 of !he Code of Civil
Procedure. Judgment upon the award of the arbitrat0r(,,) may be entered into any court having junsdlctlon. enforcement
of this agreement to arbitrate shan be govemed by the Federa' Arbitration Act, Exclusions from this arbitration
agreement are specified in parallraph 26C.
"NOTICE: BY INITIALING IN THE SPACE BelOW YOU ARe AGREEING TO HAVE ANY DISPUTE ARISING OUT
OF THe MATTERS INCLUDeD IN THE 'ARBITRATION OF DISPUTES' PROVISION DECIDED BY NEUTRAL ARBITRATION
AS PROVIDED BY CALIFORNIA LAW AND YOU ARE GIVING UP ANY RIGHTS YOU MIGHT POSSESS TO HAVE THE
DISPUTe liTIGATED IN A COURT OR JURY TRIAL. BY INITIALING IN THE SPACE BeLOW YOU ARE GIVING UP YOUR
JUDICIAL RIGHTS TO DISCOVERY AND APPEAL, UNLESS THOSe RIGHTS ARE SPeCIFICALLY INCLUDED IN THE
'ARBITRATION OF DISPUTES' PROVISION. IF YOU REFUSE TO SUBMIT TO ARBITRATION AFTER AGREEING TO THIS
PROVISION, YOU MAY BE COMPELLED TO ARBITRATE UNDER THE AUTHORITY OF THE CAUFORNIA CODE OF CMl
PROCEDURI'. YOUR AGREEMENT TO THIS ARBITRATION PROVISION IS VOLUNTARY."
"WE HAVe READ AND UNDERSTAND THE FOREGOING AND AGREE TO SUBMIT DISPUTES ARISING OUT
OF THE MATTERS INCLUDED IN THE 'ARBITRATION OF DISP TeS' PROVISION TO NEUTRAL ARBITRATION."
Sello"'s 1"1tla~
Initials
)'j3
----,
C. ADDITIONAL MEDIATION AND ARElITRATION TERMS:

(1) EXCLUSIONS: The follow~ matters shall be- exctuded from madilltion and arbitration: (i) a judicial or non-judlcial foreclosure or
othet action or procoedlng 10 enforce a dHd of tru$t, mo~aSiI& or Installment land sale contract.as dafinad In Civil Code 2t8Sj (ii,
an unlawful detainer actJoOj (liij the filing or enforcQment (If a mechanic's lionj and (Iv) any matter that Is within the Jurisdiction of a
probate, small claims or bankruptcy (:;ourt. The filing of a court action to enabla thtl racordlhd of a notice of pending action, for
order of attachment, ~ivlffiJhip, injunction, or other pl'OVisionaJ remedies, sM11 not constitute a waiver or viQlation of the
madlatiDn and arbitration provisions.
(2) BROKERS: BrokEli'S shall not be obligated or compelled to mediate or arbitratE! unless they agra& to do so In writing. Any Broker(s)
partlelpatihg In mediation or arbitration $hlilll not be deemed a party t() the Agreement.
27. TERMS AND CONDITIONS OF OFFER:
This 1$ a., offer to purchase the Prop~rty 01'1 the above terms and conditions. The Uquidated damages paragri31ph or the IiIrbitration of disputes
paragraph is incorporated in this Agreement if Initialed by aU parties or if incorporated by mUll#lI $greement in a counter offer or addandtlm. If at least
one but not ail parries InI1ia:1 such paragraph(s}, a counter offer is required Uf'l'tIl agreement Is r&QQhed. Seller has the right to contInu~ to- Qffer theProperty for sale and to accept any other offer at any time prior to nollfi~tiOh of Acceptance. If this offer 1$ accepted and Buyer subse(JJeni:Iy defaUlts,
Buyer may be responsible for payment cf Brokers' compensation. Thi$ Agreement and any supplement, addendum or modification, Including any
Copy, may be Signed In two or mote counterparts! aD of which shall constitute one and the same writing.
28. TIME OF SSSENCE; ENTIRE CONTRACT; CHANGES: TIme Is of the sliilsenoe. AU understandings between the parties are incorporated Irl this.
Agreement, Its terms are Intended by the parties as a final, complete ~nd exclusive expression of their Agreement with respect to its subject matter,
and may not be contradicted by evidence of any prior agreement or contemporaneous oral agreement. If any provlslon or th~ Agreement is held to be
ineffective or Invalid, tile remaining provisions wRi MVertheless be given full force and effect. Except as otherwise speclft~d, this Agreement shall be
interpreted and dlsputas shall be resolved in accordance with the laws of the State of Cantomla. Nl!I!lUter lt1i5 Agreement nor any provisioll in it
may be extended, amended, modHied, altenKl or changed, ex.:ept In writing Signed by Buyer and Seller.
Buye~s
Initials (
k-) (____
)(
COpyrlghtf<> 1S91_2010, CALlFORNlAASSOCIATION oi= REALTOR6,INC.
RPACA RElISED .110 (PAGE 7 OF 8)

CALIFORNIA RI'SlDENTIAL PURCHAst; AGREEMENT (RPAoCA PAGE 7 OF 8)
88of130
As.t
Borrower;
Kyl~
Jun.22.2010
PAGE.
07:43 AM
5020 A
Street:
CI!.
property Address: Sacramemnto,
8/ 15
!l:;819
29. EXPIRAnON OF OFFER: This off.rsholl be deemed revoked 000 the depos~ shall be returned unless the offer is Signed by Seller and
Signed offer is personally received by Buyer, or by
authorized to receive itl by 5:00 PM

~~__~~~~~__~~~~~~~~__~~___ OAMO
a Copy
~~~~_________ ~,.w.
Buyer has read and acknowledges receipt of a Copy of the offer and agrees to the above confirmation of agency
Date 12~18
.20
o.
Date
BUYER,
,. - If?
BUYER
~Iah
(Print namol
------------------------
~r_h==~------------------------------(Print namol
(Add.....)
Additional Signature Addendum attached (CAR. Form ASA).

30. ACCEPTANCE OF OFFER: Seller warrsnb3. that Seller is the owner of the Property, or has the authority to exeollte this. Agreement. Seller accepts the
above IJffer. agrees to eell the Property on the ab.;we terms and conditions, and agrees to the above confirmation of agency relationshIps. Seller has
read and acknowledges receipt of a Copy of this Agreement, and authorizes Brokerto DerIVer a Signed Copy to Buyer.
DawIlil
(If checked) SUBJECT TO ATTACHEO COUNTER OFFER (CAR. Fonn COl

Dare D~~T:E~D~::1:2:(:2=Q=(::2:Q:":"============~
$ELLe~
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
(Print namel
(Address)
o Addmo.nal Signature Addendum attached (CAR. Form ASA).
( _ 1 ___ )
(lh~,.I.)
CONFIRMATION OF ACCEPTANCE: A Copy 01 Signed Acc.ptance ~a'; .~'''GC,nally received by Buyer Of Buyer'. au1horized
agent
(date)
at
A binding Ag......".nt hi .""""" when
of
1$
agent whe1her or not eonfinnad in
of this
a binding Agreement It is solely
on
A. Real Estate Brokers are not parties to the Agreement between Buyer and Seller.
8. Agency relationships are confirmed as stated in pDl'a(lmph 2.
C. 11 specified in paragraph 3A(2), Agent who. stbmftted the offer for Buyer aeiq10wfedges receipt of depo&it.
O. eOO~ERATINB BROKER COMPENSATION: Usdng Br(ll(er agreea to pay Cooperating Broker (Selling Firm) and Cooperating Broker agrees to
accept, out of Listing 6roker's proceeds in escrow: (I) the amount specified In the MLS, pro'Jlded Cooperating Broker is a Participant of the MLS in
which the Property is offered for sale or a reciprocal MlS; or (II)
(if chl1:cked) the amount specified 11'1 a ~parate written agreement (C,A.R, Form
CaC) between Listing Broker and Cooperating Broker. Declaration of Licen&fl and Tax (C-A.R, Form DLT) may be used to document that tax reporting
will
or that an e:<ernption exists,
DREUc.
Date
Escrow Holder acknowledges rec&lpt of a Copy Qf this ~reemerrt, (If checked,
a dll!lposlt 11'1 the amount of $
),
"co~u~n~te~r;O:fI;.r~n:u:m:b:.~r.~d~=.:;::::;::::;:;::;:;=.:;,~D~s~e~1I~er'~s~statement
of Informatio.n and 0 othar"""-,,,::-:::-::::-=.:-=.:;:-::;;-:;-:;:;:--.::::::::::-=
':::
' and agrees to act as Escrow Holder subject to paragraph 24 of this Agreement, any
supplemental escrow instructions and the terms of Escrow HoJder'$ general provl~;JoM if any,
eScrow Holder is advls&d that the date of C()rltirmation of AQoepiance of the Agreement as between Buyer and Seller ~ _ _ _ _ _ _ _ _ __
Escrow Holder
Escrow #
By
Date
Address
Phone/FailE-mad
EscrQW Holder is
PRESENTAnON OF OFFER: ( ---:;:::::::::-;::::::::==::;::-_) Lloting Broker pre_eo this offer to SeRer on _ _ _ _ _ _ _ _ _ _ _ (dolo).
R"-'''CTION OF OFFER: '_-.;::;;:-..:.
) No counter offer is being made. This offer was rejected by Seller on _ _ _ _ _ _ _ _ _ _ (date).
,
CONSUl..
Thils" form is
mom~1'$ of thlil
'-",ro,,,,:io,i
I.. ,
6F"E;illo:iiii";;';~~';;;;,;;;;;;i.-c:~;;,;kHI;jntlfy tI\I!J U:KIr' Z1';S II ~EAt.TOR*. REAL.TOR Is a rogl6Wr~ eoUeetlVe mtimb6rshlp mark whlct! !,I'U!"y bD
~Chk~
Ll.IIQd
only by
Published 00' OIsln1)UIed by:
U
,
(
REAL ESTATE BUSINESS SERVICES, INC.

a $l.ibtidisryofthe Califomifl Association of REALTORS
525 Sculh VwgU Avonu., Loa Angoloo, c.liIom~ 90020
REVISION DATE 4/10
CAUFORNIA RESIDENTIAL PURCHASE AGREEMENT (RPA-CA PAGE 8 OF 8)
8901130
Asl
Borrower: Kyle471111 '.
Jun.22.2010
PAGE.
07:43 AM
CALIFORNIA
ASSOCIATION
OF REALTORS
Property Address: 5020 A
stx.."e,
9/ 15
BUYER'S INSPECTION ADVISORY

(C.A.R. Fonn BIA-A, Revised 10/02)
Saer_to, CA
95819
("Property").
A. IMPORTANCE OF PROPERTY INVESTIGATION: The physical condition of the land and Improv.m;tnts being purchased Is not
guaranteed by enher Seller or Brokers. For this reason, you should conduct thorough investigations of the Property personally and with
professionals who should provide written reports of their investigations. A general physical inspection typically does not cover all aspects
of the Property nor items affecting the Property that are not physically located on the Properly. If the professionals recommend further
investigations, including a recommendation by a pest control operator to in.pect inaccassibie areas of the Property, you should contact
qualified "xperts to conduct such additional investigations.
B. BUYER RIGHTS AIIID DUTIES: yOU have an affirmative duty to exercise r"a.ona~le care to protect yourself, including discovery of
the legal, practical and technical implications of disclosed facts, and the investigation and verification of information and fact. that you
know or that are within your diligent attention and observation. The purchase agreement gives )<">u the right to investigate the Property. If
you exercise this right, and you should, you must do so In accordance with the terms of that agreement. This is the best way for you to
protect yourseW, It is extremely important for you to read all wr~ten reports provided by professionals and to discuss the result. of
inspections with the profeional who conducted the inspection. You have the right to request that Seller make repairs, correctiOns or
take other action based upon items discovered in your investigations or disclosed by Seller. If Seller is unwilling or unable to satisfy your
requests, or you do nol want to purchase the Property In its disclosed and discovered condnion, you have the right to cancel the
agreement if you act within specific time periOds, If you do not oeoeel the agreement in a timely and proper manner, you may be in
breach of contract.
C. SELLER RIGHTS AND DUTIES: S.II", is required to disclose to you malerlal facts known to him/her that affect the value or
desirability of the Property. However, Seller may not be aware of some Property defects or conditions. Seller does not have an obligation
to inspect the Property for your benefit nor i. Seller obligated to repair, correct or otherwise cure known defects Ihat are disclOsed to you
or previously unknown defects that are discovered by you or your inspectors during esorow. The purchase agreement obligates Seller to
make the Property ava,abte to you for investigations.
D. BROKER OBLIGATIONS: Brokers do not have .xpertise in .11 areas and therefor. cannot advise you on many items, such as soil
stability, geologic or environmental conditions, hazardous or illegal controlled substances, structurel conditions of 1I1e foundation or other
improvements, or the condition of the roof l plumbing, heating, air conditioning. electrical. sewer, septic, waste disposal, or other system.
The only way to aocurately determine the condition of the Property Is through an inspecllon by an appropriate professional selected by
you. If Broker gives yOu referrals to such profes.ionals, Broker does not guarentee their performance. You may seleCl any professional
of your choosing. In sales involving residential dwellings with no more than four units. Brokers have a duty to make a diligent visu~1
in.pection of the accessible areas of the Property and to disclose the results of that inspection. However, as some Properly defect. or
conditions may not be discoverable from a visual Inspection, it is possible Brokers ans not aware of them. If you have entered inlo a
written agreement with a Broker, the specific terms of that agreemenl will determine the nature and exlent of that Broker's duty to you.
YOU ARE STRONGLY ADVISED TO INVESTIGATE THE CONDITION AND SUITABILITY OF ALL ASPECTS OF THE PROPERTY, IF
YOU DO NOT DO SO, YOU ARE ACTING AGAINST THE ADVICE OF BROKERS.
E. YOU ARE ADVISED TO CONDUCT INVESTIGAllONS OF THE ENTIRE PROPERTY, INCLUDING, BUT NOT LIMITED TO THE
FOLLOWING:
1, GENERAL CONDITION OF THE PROPERTY, ITS SYSTEMS AND CDMPONENTS: Foundation, roof, plumbing, heating, air
conditioning, electrical, mechanioal, security, pool/spa, other structural and non~structural systems and oomponents, fixtures,
built-in appliances, any personal property included in the sale, and energy efficiency of the Property, (Structural eng in""", are best
suited to determine pOSSible design or construction defects, and whether improvements are structurally sound.)
2. SQUARE FOOlAGE, AGE, BOUNDARIES: Square footago, room dimensions, lot size, age of improvement. and boundaries. Any
numerical statements regarding the nem. are APPROXIMATIONS ONLY and have not been verified by Sell"r and cannot be
verified by BrOkers. Fences, hedges, wallS, retaining walls and other natural or constructed barriers or markers do not necessarily
identify true Property bOl.lndaries, (Professionals s(..Ich as appraisers, architects. surveyors and civil engineers are best suited to
determine square footage, dimensions and boundari.s of the Properly.)
3. WOOD DESTROYING PESTS: Presence of, or conditions likely to lead to the presence of wood destroying pests and Qrganisms
and other infestation or infection. Inspection reports covering these items can be separated into two sections: Section 1 identifies
areas Where infestation or infection is evident. Section 2 identifies areas where there Bre conditions likely to lead to infesta.tion or
infection. A registered structural pest control company Is best suited to perform these inspections.
4. SOIL STABILITY: Existence of fill or compacted soil, expansive or contracting soil, susceptibility to slippage, settling or movement,
end the adequacy of drainage. (Geotechnical engiflool'$ are best suited to de1erminE;1 such conditions, eause~ and remedies.)
/t
Tn. copjright lows of 1110 Urlted States (Title 17 U.S. Code) forbid 1I1e
unauthorized reproductWn of this form, or any portion thereof, by photocopy
maohlne or any other means, including facsim~e or computerl2Ad formate:.
Copyright C 1991-2004, CALIFOR.NIA ASSOCIATION OF REALTORS>,
Suyer's Initials ~) (
SellE.l(slnitials (\'
)(
INC. ALL RIGHTS RES~RVED.

BIA-A REVISED 10/02 (PAGE 1 OF 2)
Agent: Guillory
Brokar: custom Real
. ~~vlowod by
BUYER'S INSPECTION ADVISORY BIA-A PAGE 1 OF 2

Phone: (916)487-8393
Fax: (816)487-828n
.& Loans 360D Power Inn Road $Uite H3 Sacrarnonto, CA $5$26
90 of 130
Date
)
)
I
.
(5)
_
rF4~I}OJJtW
Prepared using zJpFonn 50fiware
Borrower : Kyl~&IIIIS
IIIIJI
Jun.22.2010
PAGE. 10/ 15
07:44 AM
Property Address; 5020 A
St:.t:'lHoi:( Sa.cr.'UllNmto, CA
Date: ptS'N"AAr
95B19
16
zqu
5. ROOF: Present condition, age, leaks, and remaining useful life. (Roofing contractors are best suited to determine these cooditions.)
6. POOUSPA: Cracks, leaks or operational problems. (Pool contractors are best suited to determine these cond~ions.)
7. WASTE DISPOSAl-.! Type, size, adequacy, capacity and condition of sewer and septic systems and components, connection to
sewer, and applicable fees.
8. WATI:R AND UTILITES; WELL SYSTEMS AND COMPONENTS: Water and utility availability, use restrictions and costs. Water
quality, adequacy, condition, and performance of well systems and components.
9. ENVIRONMENTAL HAZARDS: Potential environmental hazards, induding, b~t nol limited to, asbestos, lead-based paint and other
lead contamination, radon, methane, other gases, fuel Qil or Chemi$1 storage tanks, contaminated soil or water, hazardous waste,
waste disposal sites, electromagnetic fields, nuclear source., and other substances, materials, produQIS, or conditions (inCluding
mold (airborne, toxic or otherwise), fungus or similar contaminants). (For more Information on these 11ems, you may consult an
appropriate professional or read the booklets "Environmental HaZl1rds; A Guid& for Homeowners, Buyers, Landlords and Tenants,"
"Protect Your Family From Lead in Your Home" or both.)
10, EARTHQUAKES AND FLOODING: Susceptibility of the Property to earthquake/seismic hazards and propensity of the Property to
flood. (A Geologist Or GeotljCfinicai Engineer i. best suHed to provide information on the.e conditions.)
11. FIRE, HAZARD AND OTHER INSURANCE: The availability and co.l of necessal)' or deSired insurance may val)'. The locetion of
the Property in a seismiC, flood or fire hater<! zone, and other condition., such as the age of the Property and the claims hlstol)' of
the Property and Buyer~ may affect the availability and need for certain types of insurance, Buyer should explore insurance options
ear1y as this information may affect other deciSions, inCluding th~ removal of loan and inspection contingencIes. (An insurance agent
is best suited to provide information on these conditions,)
12. BUILDING PERMITS, ZONING AND GOVERNMENTAl.. REQUIRI:MI:NTS: Permits, Inspections, cert~icate., zoning, other
governmental limitations! restrictions, and requirements affecting the current or future use of the Property, its development or size.
(Such information is available from appropriate govemmental agencies and private Information providers, Brokers are not qualified to
review or interpret any such information.)
13. RENTAL PROPERTY REsTRICTIONS: Some cities and counties impose restriction. that limit the amount of rent that can be
charged, the maximum number of occupants; and the right of a landlord 10 terminate a tenancy, Oeadbolt or other locks and ~r1ty
systems for doors and windows, induding window bars, should be examined 10 determine whether they satisfy legal requirements.
(Govemment agencies can provide infolTJ'lation about these restrictions and other requirements.)
14. SECURITY AND SAFETY: State and local Law may require the installation of barriers, access alarms, self-latching mechanisms
and/or other measures to decrease the risk to children and other persons of existing swimming pools and hot tubs, as well as various
fire safety and other measures conceming other features of the Property. Compliance requirements differ from city to city and county
to counly. Unless specifically agreed, the Property may not be in compliance wilh these requirements. (Local govemment agencies
can provide information about these restrictions and other requirements.)
15. NI:IGHBDRHOOD, AREA, SUBDIVISION CONDITIONs; PERSONAL FACTORS: Neighborhood or area conditions, including
schools, proximity and adequacy of law enforcement, crime statistics, the proximity of registered felons or offenders, fire protection.
other government services, availability, adequacy and cotst of any speed~wired, wireless intemet connections or other
telecommunications or other techno!ogy services and instatJations, proximity to commercial, industrial or agriculh"r$1 actiVities,
existing and proposed transportation, construction and development Ihat may affect nol.e, view, or lraffic, airport noise, noise or odor
from any source, wild and domestic animals, other nuisances, hazards, or circumstanoes, protectert species, wetland properties,
botanical diseases, historic or other governmentally protected sites or Improvements, cemeteries, facilities and condition of common
areas of common inta",.t subdivisions, and possible lack of compliance with any goveming documents or Homeowners' Association
requirements, conditions and influences of significance to certain cultures and/or religions, and personal needs, requirements and
preferences of B~r.
Buyer and SeHer acknowledge and agree that Broker: (I) Does not decide what price Buyer should payor Seher should accept; iii) Does not
guarantee 1I1e condition of the Property; (iii) Does not guarantee the performance, adequacy or completenl!SS of Inspections, services, products Qr
rElpalrs provided or made by Seller or others; (jv) Does no~ hav$ an ob~gati.on to conduct an inspection of common areas or areas off the sUe of tI1e
Property; (v) Shall not be responslblt;! forldentifving defects on the Property, in common areas, or offslte unll!I$$ $ueh defects are visually observable
by an inspection of reasonabiy accessible areas of the Property or are knoWn to Broker; (vi) Shan not be responslble for inspecting pl.lbUe records Qr'
permits concerning th$ title or use of Property; (vii) Shall not be responsible for Identifying the location of boundary lines or other items affecting 1it1e;
(viii) Shall not be responsible for v&rlfylng square f()otase, rE!!preeentations of others or'mformation (:ontained In hwestigatiah reports, Multiple U$ing
Service, adVertisements, flyers or other promotiol1lid material; (ix) Shall not be responsible for providing legal or tax atWlce regarding any aspect of a
'b'an$ac~on entered into by Buyer or Seller; and (x) Shall not be responsible for providing other advice or infonnation that exceeds '!he knowledge,
education and experience required to perform raal eette licensed acti'tIity. Buyer and Seller agree to $eek legal, lax, ineurlil:nce, title and other
desired assI$tance ffol'rl appropriate professionals.
By signing below, Buyar ond Seiler each acknowledge that they have "'ad, understand, accept and have received a Copy of
this Ad Is
uyer' ncC)uraged to read it carefully.
;2- J - -;2DII
===::::----____---,~-Buyer Signature
Data
Seller Signature
Date
12/20/2011
Seller Signature
Date
THIS FORM HAS aseN AF>PRO~O BY THE CALIfORNIA ASSOCIATION OF FU!Al,.TOF($I!P (CA.R.). NO REPRESENTATION IS MADE AS TO THe 1.5GAI. VAIJOlj'( OR
ADEQUACY OF ArN PROVISION IN ANY SpeCIFIC TRANSACTION, A REAL ESTATE BRO~R 1$ THE pe~$ON aUAUFtED TO ADVISE ON REAL ESTATE
TRANSACTfONS. IF YOU DESIRE LEGAL OR TAX AOVICE:, CONSUl.T AN APPROPRIATE PROFESSIONAL
Thl$ form it; aIJalbtble fur In!;e by !he entif"e real estate industry, It (s not
to jdentify the user sa a REALTOR, REA!.TOR it a ~Istered collective mambernhip mark
A=
mnded
whic>l m.y "" uW o,,,y by "",,"be.. ""'e NATIONAL ASSOCVlTION OF REAL TORS """ .U..cnbs to '" Code" E",;c..
I]
"
Pubfished and Distributed by:

REAl ESTATESU$INE$$SERVICE$. INC.
I aviewedbY
8s:JbaJdWy{J'th80slHomfa~oIREALTORse
c .. 525 SouUl VirgIl Avonue, L.0t;: Anll8les. cmFomia9U020
BtA-A REVISEO 10102 (PAGE 2 OF 2j
0 Ie
8
EClW.lliUfS!IIC
QPPOR'TUNITY
As<
BUYER'S INSPECTiON ADVISoRY (BIA-A PAGE 2 OF 2)
91 of 130
Borrower:
KYle~
PAGE. 11/ 15
Jun.22. 2010
...... .....
~
07:45 AM
P~01
Borrower: Kyle'. . . . . .
c
92 of 130
Jun.22.2010
PAGE. 12/ 15
07:45 AM
916
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4225
Confirmatfon of Fund Activity

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Account Numbf1r
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\'OUT 1!CIIl1 ~. all ~ he~ if! 1M BtMUllt 'lito VIlllch you exCMIIgW sna,'., ,nay n," 00 exchanlJed for SO calenlllll" da'illlmm II\e
ilOIlSlctlon ,IlII11Qf tile e~, YO<IlIlay exchange I"io Money Malket fund, Inc. or (:'$~ ReseTi'll'" at ."y time; 1lQwe\Hll. IllI of Ihft sh.1''''' 'n tho;
"IO!l6Y "",!l<ota"COOnlWm _ be :IUbJ....! "'. ,",w hdd 1"'1\0<1 1",:lO ""lenlfar days I"." ,,'" tll",..w:t,," d.1fI of It1at UIdIange,
, ',><Il<!11 ~;ur 811a~ ytJ\11I\1I"f Illy a rnn4l"""nI, rieferroo SAle, dllllllr.. For the CI'H1IWJ!\1l1 rt.feHed '-11"8 oharge all!! QIIlI)r fae&, see HIe
"'ip6I)lUS
93 of 130
Borrower: Kylelc. . . . .
Jun.22.2010
PAGE. 13/ 15
07:45 AM
..
CALifORNIA
,~ ASSOCIATION
~ Of REALTORS"
SHORT SALE INFORMATION AND ADVISORY

(C.A.R. Fonn SSIA, Revised 11/11)
This Short Sale Informalion and Advisory is imamled to give general information regarding short salas, their palenlial impacl, and the
rights and responsibilities of the parties involved. It is not intended .s legal advice for any particular property owner or buyer. Seller
and Buyer should consult with their own professional advisors for legal, tax, credit and personal advice. Real estate brokers cannot
and will not provide such advice.
1. WHAT IS A SHORT SALE: A short sale is the name used to describe a real estatetransaCllon where the sellers len<ler(s) agree to
allow the property owner 10 sell the property for les. than the amount of Ihe loan(s) secured by the property. The consenl of the
sellor's lender(s) is necessary because wilhoul it Ihere woul<i not be enough money from the sale to pay off the lender{s} in full and
to pay other ca.t. of lhe .ale. As a resull, the len<ler's lien(s) would remain on tnle, and the seller would be unable to transfer tale
10 the buyer free of monetary liens. (Properties thai are worth less than Ihe amount owed to the secured lender(s) are often
2.
referred to as being "underwater'" or distressed properties).

AL TERNATlVES TO A SHORT SALE: OWners of distressed or underwater properties are faced with dlfflcuH choices that could
have finanCial and emotional consequences. Any of the following Or other alternatives potentially have negative tax or credit
consequences, or both, for the owner:
A. A loan modification is an arrangement between a borrower and a lendei'. It can involve a reduction in the interest rate on the
loan. a defermenl in payments on the loan, an extension of time to pay back. the loan, a reduction in pnncipal of the loan, a
combination of these possibilfties, or other changes to Ihe repayment plan. A loan modification requires the consent of both
lender and borrower.
B. A foreclo&ure Is a legal process through which the lender acquires title to the property from a borrower who has slopped
malting payments on a loan. The lender can foreclose Whether or not the borrower con.ents.
A dQQd in liau of foreclosure occurs when the borrower offers to transfer the property to the tender, in lieu of the lender
having to go through the foreclosure process. and the lender agrees to accept title to the property from the borrower and
forgives the debt. A deed in lieu of foreclosure requires the consent of both lender and borrower.
D. Bankruptcy i$ a legal aClion typically flied by a borrower to have debt(s) discharged. An automatic stay occurs as soon as a
borrower files bankruptcy, staying all actions against the borrower. While a petition for bankruptcy can have the effect of
delaying a foredos:ure, it does not necessarily prevent a foreclosure from eventually occurring. No lender consent i$ required
for a borrower to file bankruptcy.
3. LENDER AGREEMENT TO SHORT SALE; In order for a short sale to be completa<l, the lender(s}, at a minimum, must agree to
release the property from the lender(s} Uen(s) to allow the sale. The lender(s} mayor may not agree to ra<luce the amount owed to
satisfy the deb\. If not, the lender(s) may continue to pursue the borrower for payment of the balance of the debt Prior to granting
approval of the sale, the lender(s) may require the borrower to disclose all of the borrower's assets. They may 'equire that the
borrower liquidale olhor assets. They may require thai the borrower sign an agreement to repay some or aU of Ihe debt at some
laler time. They mey require that the borrower secure the unpaid debt with other sets owned by 1I1e borrower. Additionally. they
will generally ,-$qUire that the transaCllon be arm's length, and that all terms of any benefit conferred on the seller be fully disclosed
and that Ihe Seller cannot stay in the Property following Ihe Sale. Finally, many filiit lien holders wililimil the amount they will allow
to be paid to a second lienhOlder, further complicating negotiation" for the short sale. The lender will usually submij a "term sheet"
to the borrower indicating the term. to which lender(s) will agree. If the Seller and Buyer do not modify their contract to comply with
the lender(s) terms, the lender(s) may not permH the short sale to proceed. Selier I. strongly advised to seek legal and tax advice
regarding review of the term .heet. Brokers cannot ano will not give legal or lax advice on the lender's term sheet or it. effect on
the Buyer and Seller's agreement or on the consequences to Buyers and Seller. should they proceed to clos". There Is no
assurance that once thelender(s) have begun short sale negotiations, they will discontinue the foreciosure process.
4. SELLER'S CONTINUING LIABILITY ON THE DEBT: Many borrowers who attempt a short sale are concerned with whether th..
borrower is released from any further liability to Ihe lender(s) or whether the lender can pursue the borrower for any unpaid balance
of the debt. Some ",fer to conlinuing liability as a deficiency judgement. Generally speaking. a deficiency judgement is the right of
a lender to pursue the borrower for the difference between the amount the lender receives and the amount the borrower Owes on
the debt. Deficiency judgements in C~lifornia are prohibited in certain circumstances .
C.
",.r.lnlti.~-
.0
)( )
5""",.,1_. ( ....!,nJ5-"-___ )( _____
""py~g~ntted
The
Stat (TWo 17 U.S. Code) forbid the
unauthorized reproduction of thi$ form, Or any portion thereof, tty photocopy
maehlne or any other means, including facsimile: or computerized formats.
Copyright 1!Il2010-2011, CALIFORNIA ASSOCIATION OF ReALTORS.
IR.~'-bY
INC. ALL RIGHTS RESERVE".

SstA REVISED 11/11 (PAGE 1 OF 3)
SHORT SALE INFORMATION AND ADVISORY (SSIA PAGE 1 OF 3)
Agent: . Guinory
8n)ker:; CU$tom Real
Phon.~ (916)487 ~393

Fax: (9:1&)487.8280
$lIite 113 S~r.amento, CA 95826
P'repared using zipFonn $ottware
& loans. 3600 Power tnn ROd((
94 of 130
Jun.22.2010
PAGE. 14/ 15
07:46 AM
5020 A
street:
Property Address: li<!crzmemntc.
CA
Date; DecEUl2l:>er 16, 2011
95819
A. Short Sale:
1. Beginning July 15, 2011, Code of Civil Praoedure 580e any lender who approves a short sale is not permitted to seek or
collecl a deficiency against the borrower ff Ihe loan is secured by a Trusl Deed on residential property containing 14 units. This
law may not be waived. The July 15, 2011 law does nol apply to (I) lienholders on other types of property, or (ii) a borrower
who has comm~ted fraud or waste or (iii) borrowers who are oorporations, lim~ed liability companies, or limited partnerships.
Prior to this I~w coming in10 effect, from January 1, 2011 the restriction on lenders seeking deficiencies for approved short
sales only applied to lenders holding a first trust deed on residential 1-4 un~.
2, For properties or borrowers to whictl CCP 580e does not apply, some lenders in negotiating a short sale will want Ihe owner 10
sign a note for Ihe balance of the unpaid prinolpal. Other lenders will release the li.n only but not forgive the underlying debt.
Some lenders will "reserve their rights." Thus, in these sitUations whether lender retain. tho right to pursue a deficiency
following a short sale becomes a negotiable term for each sale.
3. Sellar is encouraged to (i) obtain a written agreement from lender(s) or other applicable lien holders addressing whether and
to what extent Seiler will be released from any monetary or other claim, obligation, or liability upon approval of the .hort s.le,
an<1 (;;) have that written agreement reviewed by an attorney, CPA or other appropriate professional of seller's choosing,
B. Foreclosure
1, Purcha.... Money Loans; Loans given by lenders to purchase 1-4 unit properties, one of which will be occupied by the
borrower, and sellar-financed purchases are subject to "purchase money" anti-defidaJicy protection rules. Generally, this
means th.t the lender oannot pursue the borrower for any deficiency after the property is foreclD$ild upon by the selier or
lender, whether the $eller or lender uses a non-judicial trustee sale or a judicial foreclosure. Refinancing a purchase money
loan causes It to lose any purchase money protection it might have.
2. Trustee Sales: If a lender foreclos". by no,,"judicial trustee sale instead of by Judicial foreclosure, that lender is barred from
seeking any deficiency from the borrower after the trustee sale, even If the loan was not purchase money.
3. Refinanced Liens: The anti-deficiency protections become much less clear for loans that are refinanced. Generally, loans that
are refinanced lose their "purohase money" protection. Lenders extending refinances may be able to pursue a deficiency
judgment against the borrower directly follOwing" judicial foredosure.
4. Junior Liens: The anti-deficiency protections for Junior Liens are also somewhat unclear. Junior liens used to purchase the
r.sidence (such as 90110 first and second) would have "purchase money" protection generally. However, junior lien. that are
refinanoed or junior liens that are used to take out equity do not have "purchase money" protection. Suctl "non purctlase
money" junior lienholders may be able to pursue a deficiency jUdgement against the borrower directly after a Trustee sale by a
senior lienholder or after a judicial foreclosure by the junior lienholder. Although the law is not entirely cle.r, home equity loans
(HELOCs) may fall into this category.
5. other Liens! Many other types of liens may be recorded on titles including. without limitation, homeowners association liens.
JUdgement liens, iax liens, and child support liens. Generally foreolosures by any lienholders senior to such liens do not protect
the owner of the property from later legal action by the lienholder to collect on the obligation.
5. CREDIT AND TAX CONSEQUENCES:
A. CREDIT: All of the owne~s options discussed above will most likely have a negative impact on the owne~$ "",dit and on the
owner's ability to finance or purchase property for some time. The credit impact and length of time the owner would have difficulty
in obtaining a loan to purchase property again, or 10 be ~pproved for any other credit transactions such as obtaining a credit card,
leasing an apartment, or even to gain employment, v.ries. Lenders may view short sales and alternatives differently daponding on
their Own underwriting guidelines and those established by governm"ntal or quasi-govemmental bodie . TQ find out more
information about the impact to your credit score, go to www.myfico.com.
B, TAX; With some exoeptions, a reduction or discharge of a debl obligation by a lender rasults in income to the borrower. The
income might not be taxable if the debt was being used to purchase, build, or substantially improve a borrower's principal
residence. Another exception exists if the forgiveness of debt results from a situation where the lender is barred by law from
collecting the debt, as in a foreclosure of p~rchase money debt. Insolvency and bankruptcy rules can also shield a borrower from
forgiveness of debt income, Generally, when any debt is forgiven by lender, they are required to provide the borrower a 1099
and it will be up to the borrower to make- the proper claim on their tax return to avoid debt forgiveness income. Some of these
rules are temporary, and state laws and federal laws differ, Broker has advised Seller that if Lender agrees to acoept less than full
paymen~ the difference may re.ult in taxable income to Seller even though Selier does not receive any cash proceeds from the
sale. Seller may also be taxed on the gain in value of the Property from the date of Seller'. purchase to the date of sale,
regardless of the amount of any existing Loans/Liens.
C. PROFESSIONAL ADVICE, Seller advised to discuss with an attomey, CPA or other professional of Seller's choosing before (i)
aocepting any offer to present to lender or{ii) agreeing to any ctlanges requested by lender to an already acoepted contracl
6. POTENTIAL IMPROPRIETIES: It is an unfortunate reality that many persons, inoluding r...1 estate licensees, mortgage lenders, and
attomeys, among others! have taken advantage of owners of underwater or distressed properties. Some or the schemes present
themselves as "rescues" of the homeowner, promising to let them stay in the property, to protect their credit, or to provide payments to
them after olosing, and usually outside of the escrow. Both the Califomia Department of Real Estate (ORE) (http://www.dre.oa.gov)and
the callfomla Attornay Genaral (hltp:llwww.ag.oa.gov) have i..uad written warning' of potential red flags in short sales and other
resoue schemes. Some of these red flags are:
Buy.'slnitiel.
~.)(
_ _ _ __
Seller's Initials (
IRe.vi8Wed by
Copyright 0 2010-2011, CALIFORNIA ASSOCIATION OF R!:ALTORS, INC.

SSIA REVISED 11111 (PAGE 2 OF 3)
SHORT SALE INFORMATION AND ADVISORY (SSIA PAGE 2 OF 3)
95 of 130
)(----
Dote
Ast
Borrower: Kylellllll iII
Jun.22.2010
07:46 AM
PAGE. 15/ 15
5020 A Street
Property Address: SacralMnmtQ, C'A
A.
95Szg
I!L 2011
Date: Degen",..r
No license: The DRE believes that a real estate license is generelly required to negotiate any short sale;
B. MARS: Short sale negotiators who do not represent the Seller or Buyer in a short sale are generally required to comply with
the Mortgage Assistance Relief Services rules and provide required disclosures and notice. to the Seller.
Up-front fae$: No real estate licensee can collect any upfront or advance fee Without having flrst obtained a "no objection"
letter from the DRE and no upfront rees may be taken for arranging a loan modification;
D. Surcharges: Charges by third parties that are not disclosed to the short sale lender and usually paid outside of escrow;
E. 3rd Party negotiations: The licensing and fee reqUirements above apply whether the negotialion occurs Ihrough a Broker.
representing the Seller or Buyer in the transaction, or a 3r(l party short sale Mgoliator. A. with other real estale activi\;'. short
sale negotialor fee. are negoliable and not set by law. The exislence, fee and licensed status of any 3rd party short sale
~egotiator shall be disclosed to the lender and must be approved by the lender as part of the overall compensation to be paid
C.
in the short sale transaction,
Straw buyers and house flipping: Buyers misrepresent the value of the property to the short sale lender and flip the property
to another buyer already in place;
G. other: Other potential red flags include: guarantees to stop the foreclosure; instructions not to contact the lender; transfer of
title prior to close (often to a trust) as a condition of negotiating with the lender; the buyer is an LLC; the buyer wanls a power
of altomey from the .eller; ana the buyer hires the Ihird party negotiator or wants to negotiate direclly With the lender.
While most of the .,.ctlvities on th~ above list on 1heir face are not fraudulent, they serve as waming signs that the owner and the
real estate agents involved should proceed with cautior'\.
F.
7.
BUYER CONSIDERATIONS: Shorl sales are often difficult lransactions laking considerably longer that a typicol reel estate
transaction to complele. There is no guarantee that the lender or lenders will agree to the lerms of the purchase offer or that they
will respond in any timely fashion or even r~spond al all. There is no guarantee Ihat the seUer will agree to any terms proposed by
the lander as a condition of releasing the lien or the debt on the property. Buyers may expend money on Inspections, Joan
applications. escrow fees and other coslS thaI they will nol be able 10 recover from anyone if the lender does nol approve the
Iran.oclion. Buyers may also have difficulty oblaining the relurn of their deposit in escrow. if the seller becomes noncommunicative
during the short sal. process. Generally, sellers also have Ihe right to continue to give offers to their lender(s) even if they have a
contract wilh an existing buyer, Brokers cannot give any assurances as to what will happen. Buyer. are strongly cautioned that any
undisclosed and unapproved payments 10 junior lienholders or to seller or to outside third party ne90~ators may be " form of lender
fraud. Buyers are also strongly cautioned that writing offers on more than one short .ale property with the intent 10 purchase only
one such property could be a misrepresentation giving rise to legal claims by the Seller Including a claim for the buyer's deposit.
8.
BROKER ROLE: A real .slate broker cannot give legal or tax advice in connection wHh any of the options available to the
borrower nor can the broker suggest what is the best course of action for the owner. Unfortunately, the owner is faced with
extremely difficult choices having a lasting Impact on Ihe owner. Owners are strongly caulioned that they must seek legal and lax
advice in what is not only a choice impacting taxes and credit, but also personal iS$l,IsS affal;ting the owner and often the owner's
family. The broker's role is to assist the owner with the actual sale of the property in a short sale transaction, not to provide legal or
tax advice or to guarantee the best possible outcome for the parties, or to assure the buyer Ihat any particular transaction will be
completed. Brokers do not. and cannot. assure that either Ihe SeHer or the Buyer will perform on their agreement or that the
lender(s) will agree to any of the tanns presented. Brokers are not a party to the contract between Buyer and Seller.
9.
BROKER AUTHORITY: Seller authori",' Broker 10: (1) market Ihe Property for sale. (2) contacl lenders concerning lender's
approval of a Short Sale (CAR. Form ARC) and Seller agrees 10 give Broker any necessary information to negotiale with lenders,
and (3) advertise In the MLS and other advertiSing medium thaI the Property transfer, sales pnce and payment of commiSSions are
Se:~~j:t~:~e:ders ap .. Z::_~::t_C~Q~~~te. Brok.r may c"ncellh.listing agreome:
TloCflP're
te
18
g011
OSelJer o Buyer _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Date _ _ _ _ _ _ _ __
o Seller 0 Buyer
Dale
~-~_--------------------_ Date ~1-2-(2-0-1-2-0-1-1----Real Estate Mer (semniff~!Z.~~""'4

.."'\"....R"'1"t"'Y:....il""
..d"-'Lo""'AA""'''L..._~_ _ _~_~~~_~~_~~~_~~_ _~_
Ii1I Seller 0 Buyer

By (Agent)
ql, ( l"lJIX~L
;cPael
Cily
Address .3600 Fmm tpll Bd Iff1
Telephone (n61247~6048
&.JPJt='mt:o
Qde.lg
State
Date
_~~_ _~_~_ _
CA.
ZIp
~_-,9,"<",8",g..
5_ _
E~majl mic:b:aelodemeyahoa. coiD.
Fax (216/487-8280
Real Estat$ BroKer (Listing Firm) Ramsey Real Estate and Dev.
Sy(Agent} Daniel Ramsey
'-1>
Address 759 47th Street

Telephone
916-737-5656
- _ _ _~_~_~_ _ _~~_~_Date 12/20/20)J
Fax
City
~-'S"a!.\c'"'r"'a"'m!Se"'n"t"'o_ _ _ _ State -"CAa--__ Zip
916-760-0575
E-mail
95819
reo@ramseyrealestateqroup.com
Pubishod and Distributod by:

REAL ESTATE BUSINESS SERVICES.INC.
, ""'dklry of the Califomi. A,scciatioo of REALTORSIII

[]
,0$
525 South Virgil A,enue.

Angelos. C.I~ni. 90020
CoPVTigh\ II:) 2010.201 t. CAliFORNIA ASSOCIATION OF REALTORS, INC.
SSIA REVISED 11111 (PAGE 3 OF 3)
I ~"'_ b
Data
~::~!.Y====::=~=:;::=::::...J
SHORT SALE INFORMATION AND ADVISORY (881A PAGE 3 OF 3)
96 of 130
tEl
&UoI. Hotnt/C
~ffil~r\jHI1'J
Ast
S1I
Borrower: Kyl . .
OMB Approval No. 25020265
A.
ESTIMATED
Settlement Statemen t (HUD-l)
Seller Side Only
B.:!'l:1!e of Loan
1. FHA
VA
RHS
ConvUnins
6.
Fil~
Number:
i. Loan NUlnbC!r:
a.
lV1or!gag~
InsuraL1c~ CJ$~
Number:
407-9140-
Conv Ins.
C. NOIe: This form is furnished t() give you a srnte=t of actu,~1 ~ettleme11! COSlS. AmOWl15 paid tQ and by ~l settlement agent ~rt' shown. ItelTls marked
"(p.o.c.)"' W~rE' paid outside the closing: they ore ShOWil here for InfomlJtlon~1 purpo'>t':S and are not incl\lded In rh~ toWls.
D. Name & Address of Borrower:
~OLGHA.SEM
.0. BOX 421

pRANGEVALE, CA 95662
p. Property Location:
020AST
ACRAMENTO, CA 95819
I i.- Summar;.. of Borrower's-TranSactions

100. Gross _AmoUn1: Due frOm Borl"ower
101. Contract sales rice
102. Personal we
103. Settlement charges to borrower (llne 1400)
104.
105.
k~ Name & Address of Seller:
YLE
f 020
A ST.
b;ASH TRANSACTION
Name & Address of Lender:
ACRAMENTO, CA 95819-2223
L Settlement Date:
H. Settlement Agent:
LACERTITLECONWANY
isbursemem Dare:
so GLENN DRNE SUITE 12D,

OLSOM, CA 95630, 916-353-1953
Pla~ of Settlement:
50 GLENN DRIVE SUITE 120
CLSOM, CA 95630
....
....
'I
'
......
ecordingiClosing Date:
March 2 2012
K. -Summarv of SeUer'~_TraDsactions
400. Gross Amount D.Je:to SeDer.
401. COntract sales rice
402. Personal property
207,000.00
403.
404.
405.
Adjustment for items paid bv seller in advance

106. Cityftown taxes
107. County taxes
108. Assessments
Adiustments for items paid bv seller in advance

406. City!mwn taxes
407. County taxes
408. Assessments
109.
110.
111.
112.
120. Gross Amount Due from Borl"ower
409.
200. -AmolUlts-:Paii:Jbv or in-Behalf of Borrower

201. Deposit or earnest money
202. Principal atmUnt of new loan(s)
203. Existing loan(s) taken subject to
204.
205.
206.
207.
208.
209.
500. Reductions Iri AmOWlt Due 1:0 Seller

501. Excess deposit (see instructions)
502. Settlement cha rges to seller (line 1400)
503. Existing loan(s) taken subject to
504. Payoff of first roortgage loan SHORT SALE LENDER
505. Payoff of second mortgage loan
506.
507.
508.
509.
Ad'ustments for items unpaid bv seIler

210. Cit frown taxes
211. COUll
""'~
212. Assessments
213.
214.
215.
216.
217.
218.
219.
Adjustments for items unpaid bv seller

510. Ci !town taxes
511. Coun ,~~
512. Assessments
513.
514.
515.
516.
517.
518.
519.
220. Total Paid by/for Borrower
520. Total Reduction Amount Due Seller
3()0..' -CaSh at-SettIementfrom'to Borrower
301. Gross amount due from borrower (line 120)

302 Less amounts aid b ffor borrower (line 220)
600. -Cash-at SettlementtMrOl'll Selle:r

601. Gross amount due to seller (\lne 420)
602. Less reductions in amount due seller line 520)
303. Cash Borl"ower
603. Cash TO Seller
410.
411.
412.
420. Gross Amount Due to Seller
207,000.00
18,389.46
188,610.54
207,000.00
207,000.00
(207.000.00)
The Public Reporting Burden for this collection of information is estimated at 35 minutes per respons e for collecting, reviewing, and
reporting the data. This agency may not collect this information, and you are not required to complete this form, unless it displays a
currently valid O:MB control numbe T. No confidentiality is assured; this disclosure is mandatory. This is designed to provide the parties to
a RESPA covered transaction with information during the settlement process.
Previous editions are obsolete
Page 1 of 4 12/22/2011. 9;25:25 al21p12

w
(12f.!009)
97 of 130
Borrower: Kyl.'. . . . ...
E ,crow N urnb er: 4079140

-
r.: Settlement Chal
lis
700. Total Real 'Estate .Broker Fees

Division of commissions line 700) as follows:
701. Listing Agent Commission S7'..45.00 to RAMSEY REAL ESTATE & DEVELOPEMENT CORP
702, Sellinl1, Al1,ent Commission $5175.00 to CUSTOM REAL TV AND LOANS
703. Commission aid at settlement
Paid From
Borrower's Funds
at Settlement
Paid From
Seller's Funds at
Settlement
12,420.00
704.
800." Items"Fa able.in Comection with Loan
80l. Our origination charge
802. Your credit or char e (points) for the ecific interest rate dxlse n
803. Your ad'usted origination dlarges
804. Appraisal fee
805. Credit repor t
806. TaxseNice
807. Flood certification
808.
9OO.IteuisRe u.iredb .Lender to Be Paid in Advance
(from GFE #1)

(fromGFE#2.)
(from GFEA)
from GFE #3)
{from GFE #3)
(from GFE #3
(from GFE #3)
{fromGFE
#10
(from GFE #3)
(fromGFE
#11)
901. Daily Interest Charges
902.
e insurance remium
903. Homeowner's insurance
904.
1000 "Reserves De osited with Lender
1001. Initial deposit for your escrow accoun t
1002. Homeowners insurance
e insurance
1003.
1004. Pro
""~
1005.
(from GFE #9)
1006.
1007. A
re ate Adjusonent
1100. Title Charges

Title selVices and lenders title insurance
Settlement or cJosin fee to PLACER TITLE COMPANY
Owner's title insurance to PLACER TITLE COMPANY
Lenders title insurance
Lender's title lio limit
1106. Owner's title policy limit
1107. Ageni's portion of the toral title insurance remium
1108. Underwriter's portion of the total title insurance premium
1109.
1200 .:Q:Ne rumen tRecol'din and Transfer Char ~
1201. Government recordin
"""",$
1202. ~$S).oo
-"",$
1203. Transfer taxes
,,$
1204. Ci ICoun taxlstam s Deed $796.95
M
, $
1205. State taJd
ored $
Mo"
1206.
1300. Additional-Settlement Cbar
1301. Required services that ou can shop for
1302 Hazard Disclosure to NHD COMPANY ~ NEED INVOICE
1303. SHORT SALE PROCESSING FEE to NEED INVOICE
1304. Taxes to be Paid: 2nd Install, $1716.51 201112012 TAXES to
SACRAMENTO COUNTY TAX COLLECTOR
1305.
(from GFE #4)
1101.
1102
1103.
1104.
1105.
"'"
210.00
1,335.00
932.00
(from GFE #5)
(from GFE #7)

30.00
(from GFE #8)

796.95
(from GFE #61

99.00
850.00
1,716.51
114XI. "Total Settlement. Char!! s (enter on lines 103. Section] and sm. SectionK)
Page 2 of 4 - 1212212011- 9:25:46 a121p12
18,389A6
O:lilucll .....",tpl,cl""
(l2f.2oo9)
S8 of 130
Borrower:
Kyl"llill
Escrow Number: 407-9140-
HUD CERTIFICATION OF SELLER

I have carefully reviewed the HUD-I Settlement Statement and to the best of my knowledge and belief, it is a true and
accurate statement of all receipts and disbursements made on my account or by me in this transaction. I further certify that I
have received a copy of the HUD-I Settlement Statement.
By:~~~~==~~______________
KYLEA.BRYANT
The HUD-I Settlement Statement which I have prepared is a true and accurate account of this transaction. I have caused or
will cause the funds to be disbursed in accordance with this statement.
By:
~SE~TTL~~E~M~E~N~T~A~G~E~N~T~-------------------------
DATE
WARNING: IT IS A CRIME TO KNOWINGLY MAKE FALSE STATEMENTS TO THE UNITED STATES ON THIS ORANY
SIMILAR FORM. PENALTIES UPON CONVICTION CAN INCLUDE A FINE AND nvrPRISONMENT. FOR DETAILS SEE
TITLE 18: U.S. CODE SECTION 1001 AND SECTION 1010.
Page 3 of 4 - 1212212011- 9:27:43 al2/pl.2.
O:\hotll ...... pl.<loc
(1212009)
99 of 130
Borrower: Kyle
III
Escrow Number: 407-9140Additional seUerslbuyersllender overflow
Initials:
Page 4 of 4 - 12/22/2011- 9:29:59 a12/p12
O:lhudlsestpl.doc
(1212009)
10001130
Borrower: Kyle . . . . . .itt
FILE NUMBER 407-9140

BREAKD:::WN OF PAYOFF ctiI HUD line 504
Payoff
to:
SHORT SALE LENDER
Description
Loan #:
TOTAL PAYOFF
Total as shown on HUD line 504
Foun HOD. PAYOfF
188,610.54
NEGOTIATED SHORT PAYOFF
188,610.54
188,610.54
(12/2009)
Last Update by Cindy Perez on 12-22-2011 09:25AM
101 of 130
Borrower: Kylelll'
PLACER TITLE COMPANY

Seller's Estimated Net Sheet
Estimated Closing Date: 03022012
Escrow Officer:
Cindy Perez I Karla Caceres
Date:
12222011 09:34AM
Net Sheet# 4079140
Seller(s):
KYLE A. BRYANT
Sales Property: 5020 AST

SACRAMENTO, CA 95819
Item
Charges
Credits
Sales Price
207,000,00
Existing Loan: SHORT SALE LENDER

188,610.54
NEGOTIATED SHORT PAYOFF
Total Existing Loan Cllarges &. Credits

Listing Agent Commission 3.50% RAMSEY REAL ESTATE
Selling Agent Commission
Recording Fees
Escrow Fee
DEVELQPEMENT CORP
2.50% CUSTCM REALTY AND LOl\NS
2010 CLTA!ALTA Homeowner's Policy
County Transfer Tax

City Transfer Taxes
&.
5,175.00
932.00
227.70
PlACER TITLE CCMPANY
PLACER TITLE ca1I?ANY

CITY OF SACRAMENTO
569.25
30.00
1,335.00
Grant D2ed (Est.) PLACER TITLE CCMPANY
PIJI..cER TITLE ca.1PANY
Fed Ex/UPS/OVernight Mail
Signing\Notary Fee
PL.!<CER TITLE Ca-JPANY
ESTIMA.!'E - PAY
~l<CJ'UAL
Taxes to be Paid:
2nd Install, $1716.512011/2012 TAXES
Hazard Disclosure
NHD Ca.lPANY - NEED INVOICE
SHORT SALE PROCESSL\lG FEE
1BB,610.54
7,245.00
SACAAMENTO COUNTY TAX COLLECTOR
NEED INVOICE
60.00
150.00
1,716.51
99.00
850.00
------------- -------------Totals
207,000.00
207,000.00
The title and escrow cbarges listed above are based on the Sales Price and/or coverage amounts
shown above and the tenns provided to escrow. Samples of a few additional services which will
increase the above estimate are below.
,
,
,
,
,
,
Additional or secondary fmancing

My endorsements requested by lender
Payment through escrow of any unsecured/credit debt.
Recording fees are charged by the recorders office based on numb.er of pages in a
document and subject to change. The amounts shown are estimated.
Overnight fees are subject to change based on services requested.
Document preparation fees are charged for additional documents prepared by us. Some
typical additional documents are Powers of Attorney, InteNpousal deeds, Subordinations,
Requests for notice.
Outside or out of town signing services.
If any of the above services are needed and have not been shown in the above estimate it is
important you advise your escrow officer immediately.

Note: Title and Escrow Services are posted with the Department of Insurance. They can not be
waived or adjusted.
Initials:
102 of 130
Borrower:
K}iAlIIIIIIIIIIIID
PLACER TiTlE COMPANY
RAMSEY REAL ESTATE & DEVELOPEMENT CORP

759 47TH STREET
SACRAMENTO, CA 95819
KELLIBOEHM
December 22,2011
Order No.:
Reference:
407-9140
Property Address:
5020 A ST, SACRAMENTO, CA 95819
Thank you for letting us be of service to you. Enclosed are the reports
requested on the above referenced property. If you have any questions
concerning this report, please contact the office shown on the first page
of the report.
5828 Lonetree Blvd., Snite 200, Rocklin, CA 95765 - (916) 624-8141 Fax (916) 624-7383
1030f130
Borrower: Kyle

CUSTOMER DISTRIBUTION
Date: 12-22-2011
Order Number:
Cust. Ref.:
407-9140
Property Address:
RAMSEY REAL ESTATE & DEVELOPEMENT CORP

759 47TH STREET
SACRAMENTO. CA 95819
Attn: KELL! BOEHM
Phone: 916-947-9814
Fax: 916-760-0575
CUSTOM REALTY AND LOANS

3600 POWER INN ROAD #H3
SACRAMENTO. CA 95825
Attn: MICHAEL ODEM
Phone: 916-247-6048
Fax: 916-487-8280
Copies: 1
EMail: kelli@ramseyrealestategroup.com
E-Mail
Copies: 1
EMail: michaeiodem@yahoo.com
E-Mail
TO COME
KYLEtiI. . . .
5020 A ST
SACRAMENTO, CA 95819-2223
ABOLGHASEM"
P,O, BOX 421
ORANGEVALE, CA 95662
Copies: 1
MAIL

950 GLENN DRIVE
SUITE 120
FOLSOM, CA 95630
Attn: Cindy Perez I Karla Caceres
Phone: 916-353-1953
Fax: 916-353-1073
Copies: 1
EMail: 407c@placertitie.com
DELIVZRr
10401130
Borrower: Kyle (

Preliminary Report
Order No. 407-9140
Issued By:
950 GLENN DRIVE
SUITE 120
FOLSOM, CA 95630
Escrow Officer: Cindy Perez I Karla Caceres
Phone: 916-353-1953
Fax: 916-353_1073
Escrow Officer Email: 407c@placertitle.com
Email LoanDocsTo:407edocs@placertitle.com
Customer Reference:
Property Address:
In response to the above referenced application for a policy of title insurance, PLACER TITLE COMPANY
hereby reports that it is prepared to issue, or cause to he issued, through one of its authorized underwriters, as of the
date hereof, a Policy or Policies of Title Insurance describing the land and tbe estate or interest therein hereinafter set
fortb, insuring against loss which may be sustained by reason of any defect, lien or encumbrance not shown or referred
to as an Exception below or not excluded from coverage pursuant to the printed Schedules, Conditions and Stipulations
of said Policy forms.
The printed Exceptions and Exclusions from the coverage and Limitations on Covered Risks of said Policy or Policies
are set forth in the attached. The policy to be issued may contain an arbitration clause. When the Amount of Insurance
is less than tbat set forth in the arbitration clause, all arbitrable matters ~aI1 be arbitrated at the option of either the
Company or the Insured as the exclusive remedy of the parties. Limitations on Covered Risks applicable to the CLTA
and ALTA Homeowner's Policies of Title Insurance which establish a Deductible Amount and a Maximum Dollar Limit
of Liability for certain coverages are also set forth in the attached. Copies of the Policy forms sbould be read. They are
available from the office which issued this report.
PLEASE READ THE EXCEPTIONS SHOWN OR REFERRED TO BELOW AND THE EXCEPTIONS AND
EXCLUSIONS SET FORTH IN THE ATTACHED CAREFULLY. THE EXCEPTIONS AND EXCLUSIONS
ARE MEANT TO PROVIDE YOU WITH NOTICE OF MATTERS WmCH ARE NOT COVERED UNDER
THE TERMS OF TITLE INSURANCE POLICY AND SHOULD BE CAREFULLY CONSIDERED.
IT IS IMPORTANT TO NOTE THAT TmS PRELIMINARY REPORT IS NOT A WRITTEN REPRESENTATION AS TO THE CONDITION OF TITLE AND MAY NOT LIST ALL LIENS, DEFECTS AND ENCUMBRANCES AFFECTING TITLE TO THE LAND.
This report (and any supplements or amendments hereto) is issued solely for the purpose of facilitating the issuance of a
policy of title insurance and no liability is assumed hereby. If it is desired that liability be assumed prior to the issuance
of a policy of title insurance, a Binder or Commitment should be requested.
December 14, 2011 at 7:30 a.m.

Brian Stearns
Title Officer:
Dated as of
PRELIM (i!.cvl. .... d 2005)
CLT A Preliminary Report
105 of 130
Borrower: Kyle
Order No. 407-9140
The form of policy of title insurance contemplated by tlds report is:

2006 ALTA Owners Standard Coverage Policy (6117/06)
2006 ALTA Loan Extended Coverage Policy (6/17106)
The estate or interest in the land hereinafter described or referred to covered by tlds Report is:
A FEE SIMPLE
Title to said estate or interest at the date hereof is vested in:

KYLE
A SINGLE MAN
The land referred to herein is described as follows:

SEE EXHIBIT "A" ATTACHED
PRELIM.A
Ca/HFA Loan# 022472-3
CL TA Preliminary Report
1060f130
Borrower: Ky/
&
Order No. 407-9140
EXHIBIT "A"
LEGAL DESCRIPTION
THE LAND DESCRIBED HEREIN IS SITUATED IN THE STATE OF CALIFORNIA, COUNTY OF
SACRAMENTO, CITY OF SACRAMENTO, AND IS DESCRIBED AS FOLLOWS:
LOT 17, AS SHOWN ON THE "PLAT OF COLOMA TERRACE UNIT NO.5", RECORDED IN THE
OFFICE OF THE COUNTY RECORDER OF SACRAMENTO COUNTY, APRIL 26, 1947, IN BOOK 26
OF MAPS, MAP NO.6.
APN: 004-0092-013
PRE.LEGAl',.
CLTA Preliminary Report

1070f130
Borrower: Kyle
Order No. 407-9140

EXCEPTIONS
At the date hereof exceptions to coverage in addition to the printed Exceptions and Exclusions in
said policy form would be as follows:
1.
TAXES, SPECIAL AND GENERAL, ASSESSMENT DISTRICTS AND SERVICE AREAS FOR
THE FISCAL YEAR 2011-2012:
1ST lNSTALLMENT: $1,716.51
PAID
2ND INSTALLMENT: $1,716.51
OPEN
ASSESSED VALUATIONS:
LAND: $210,442.00
IMPROVEMENTS: $83,300.00
EXEMPTION: $0.00
PARCEL NO.: 004-0092-013
CODE AREA: 03-005
ASSESSMENT NO.: 11040729
NOTE: FIRST lNSTALLMENT IS DUE NOVEMBER 1 AND DELINQUENT DECEMBER 10.
SECOND lNSTALLMENT IS DUE FEBRUARY 1 AND DELlNQUENT APRIL 10.
THE lNSTALLMENTS SHOWN ABOVE REFLECT A CHARGE OF $37.19, PER INSTALLMENT
FOR PAYMENTS TO SACRAMENTO CITY LIGHTING & LANDSCAPING, AND A CHARGE OF
$14.34, PER lNSTALLMENT FOR PAYMENTS TO SAFCA CONSOLIDATED CAPITAL A.D.
2.
THE LIEN OF SUPPLEMENTAL TAXES, IF ANY, ASSESSED PURSUANT TO THE

PROVISIONS OF CHAPTER 3.5, (COMMENCING WITH SECTION 75) OF THE REVENUE
AND TAXATION CODE, OF THE STATE OF CALIFORNIA.
3.
THE HEREIN DESCRIBED PROPERTY LIES WITHIN THE BOUNDARIES OF THE SAFCA
CONSOLIDATED CAPITAL A.D. , A 1915 ACT BOND, AND IS SUBJECT TO THE
LIENS OF SAID DISTRICT. THIS BOND IS PAID WITH CURRENT TAXES, AND IF
TAXES ARE PAID CURRENT, THEN THE BOND IS CURRENT. FOR PAY OFF AMOUNTS,
PLEASE NOTIFY ESCROW IN ADVANCE OF CLOSING. ANY PAY OFF AMOUNTS GNEN
ARE BASED ON FULL PAYMENT OF CURRENT TAXES.
4.
ANY UNPAID AMOUNTS NOW OWlNG FOR UTILITIES, OF RECORD OR NOT, DUE THE
COUNTY OF SACRAMENTO OR ANY CITY IN WHICH THE PROPERTY IS LOCATED.
AMOUNTS MAYBE ASCERTAINED BY CONTACTING THE COUNTY OF SACRAMENTO AT
916-875-5555 OR THE APPROPRIATE CITY OFFICE.
5.
DEDICATIONS AS SET FORTH AND SHOWN ON THE OFFICIAL MAP OF SAID

SUBDNISION AS FOLLOWS:
A. UTILITY EASEMENTS OVER THE SOUTHWESTERLY 5 FEET AND THE
NORTHEASTERLY 2 FEET
108 of 130
Borrower: Kyle
Order No.
407-9140
EXCEPTIONS
(Continned)
B.
6.
SET BACK OVER THE NORTHEASTERLY 25 FEET
TERMS, PROVlSIONS, COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS,

PROVIDED IN THE COVENANTS, CONDITIONS AND RESTRICTIONS, BUT OMITTING
ANY COVENANT, CONDITION OR RESTRICTION, IF ANY, BASED ON RACE, COLOR,
RELIGION, SEX, HANDICAP, FAMILIAL STATUS OR NATIONAL ORIGIN UNLESS AND
ONLY TO THE EXTENT THAT THE COVENANT, CONDITION OR RESTRICTION (A) IS
EXEMPT UNDER TITLE 42 OF THE UNITED STATES CODE, OR (B) RELATES TO
HANDICAP, BUT DOES NOT DISCRIMINATE AGAINST HANDICAPPED PERSONS, IN
DOCUMENT RECORDED IN BOOK 1367, PAGE 408, OFFICIAL RECORDS.
NOTE: SECTION 12956.1 OF THE GOVERNMENT CODE PROVIDES THE FOLLOWING:
IF TillS DOCUMENT CONTAINS ANY RESTRICTION BASED ON RACE, COLOR,
RELIGION, SEX, FAMILIAL STATUS, MARITAL STATUS, DISABILITY, NATIONAL
ORIGIN OR ANCESTRY, THAT RESTRICTION VlOLATES STATE AND FEDERAL FAIR
HOUSING LAWS AND IS VOID, AND MAY BE REMOVED PURSUANT TO SECTION
12956.1 OF THE GOVERNMENT CODE. LAWFUL RESTRICTIONS UNDER STATE AND
FEDERAL LAW ON THE AGE OF OCCUPANTS IN SENIOR HOUSING OR HOUSING FOR
OLDER PERSONS SHALL NOT BE CONSTRUED AS RESTRICTIONS BASED ON FAMILIAL
STATUS.
CONTAINS: MORTGAGEE PROTECTION CLAUSE.
7.
DEED OF TRUST TO SECURE AN INDEBTEDNESS OF $301,500.00, DATED NOVEMBER

21,2006, RECORDED NOVEMBER 28,2006, AS BOOK 20061128, PAGE 1747,
OFFICIAL RECORDS.
TRUSTOR:
KYLE ALAN BRYANT
TRUSTEE:
NATIONAL CITY BANK
BENEFICIARY:
NATIONAL CITY MORTGAGE A DIVISION OF NATIONAL CITY
BANK
LOAN NO.:
0004975330
THE BENEFICIAL INTEREST UNDER SAID DEED OF TRUST WAS ASSIGNED OF RECORD
TO CALIFORNIA HOUSING FINANCINE AGENCY, BY ASSIGNMENT RECORDED DECEMBER
05,2006, AS BOOK 20061205, PAGE 548, OFFICIAL RECORDS.
8.
THE REQUIREMENT THAT A CONFIDENTIAL STATEMENT OF IDENTITY BE SUBMITTED

FROM KYLE ALAN BRYANT.
ADDITIONAL MATTERS MAY BE REFLECTED AS EXCEPTIONS DEPENDING ON THE
IDENTITY OF SAID PARTY OR PARTIES.
************************* SPECIAL INFORMATION *************************
109 of 130
Borrower: Kyle
Order No.
407-9140
EXCEPTIONS
(Continued)
*** CHAIN OF TITLE REPORT:

ACCORDING TO THE PUBLIC RECORDS, NO DEEDS CONVEYING THE PROPERTY
DESCRIBED IN THIS REPORT HAVE BEEN RECORDED WITHIN A PERIOD OF 2 YEARS
PRIOR TO THE DATE OF THIS REPORT, EXCEPT AS SHOWN HEREIN: NONE
*** LENDER'S SUPPLEMENTAL ADDRESS REPORT:

THE ABOVE NUMBERED REPORT IS HEREBY MODIFIED AND/OR SUPPLEMENTED TO
REFLECT THE FOLLOWING ADDITIONAL ITEMS RELATING TO THE ISSUANCE OF AN
AMERICAN LAND TITLE ASSOCIATION LOAN FORM POLICY:
PLACER TITLE COMPANY STATES THAT THE HEREIN DESCRIBED PROPERTY IS A
SINGLE FAMILY RESIDENCE AND THAT THE PROPERTY ADDRESS IS:
*** NOTICE REGARDING FUNDS DEPOSITED IN ESCROW:

CALIFORNIA INSURANCE CODE SECTION 12413.1 REGULATES THE DISBURSEMENT OF
ESCROW AND SUB-ESCROW FUNDS BY TITLE COMPANIES. OF THE LAW REQUIRES
THAT FUNDS BE DEPOSITED IN THE TITLE COMPANY ESCROW ACCOUNT AND
AVAILABLE FOR WITHDRAWAL PRIOR TO DISBURSEMENT. FUNDS DEPOSITED WITH
THE COMPANY BY WIRE TRANSFER MAY BE DISBURSED UPON RECEIPT. FUNDS
DEPOSITED WITH THE COMPANY VIA CASHIER'S OR TELLER'S CHECKS DRAWN ON A
CALIFORNIA BASED BANK MAY BE DISBURSED THE NEXT BUSINESS DAY AFTER THE
DAY OF DEPOSIT. IF FUNDS ARE DEPOSITED WITH THE COMPANY BY OTHER
METHODS, RECORDING AND/OR DISBURSEMENT MAY BE DELAYED.
NOTE: AUTOMATED CLEARING HOUSE (ACH) TRANSFERS ARE NOT ACCEPTED IN LIEU
OF WIRED FUNDS AND WILL BE REJECTED, EXCEPT WHEN RECEIVED FROM A
GOVERNMENTAL AGENCY.
*** CANCELLATION NOTE:

THIS REPORT IS SUBJECT TO A MINIMUM CANCELLATION CHARGE OF $400.00 AS
REQUIRED BY SECTION 12404 OF INSURANCE CODE AND RULE BULLETIN NO.
NS-35E.
*** NOTE: THE FOLLOWING UNDERWRITER HAS BEEN SELECTED FOR THIS
TRANSACTION:
CLTA Preliminary Report

110of130
Borrower: K y l e _
Order No.
407-9140
EXCEPTIONS
(Continued)
OLD REPUBLIC NATIONAL TITLE INSURANCE COMPANY
sellS:;
CL TA Preliminary Report
111 of 130
Borrower: Kyle
DISCLOSURE OF DISCOUNTS:
You may be entitled to a discount on your title premiums andlor escrow fees if you meet any
of the following conditions:
1.
You are an employee of the title insurer or Placer Title and the property is your primary
residence; or
2.
Tbe transactions is a loan, the purpose of which is to rebuild the improvements on the
property as a result of a goverumentally declared disaster; or
3.
The property is being purchased or encumbered by a religious, charitable or nonprofit

organization for its use within the normal activities for which such entity was intended.
Please advise the company if you believe any of the above discounts apply.
LENDER'S NOTE:
APPROVAL FOR THE ISSUANCE OF THE 1910 ALTA LENDER'S POLICY FORM MUST BE
REQUESTED AND APPROVED PRIOR TO CLOSE OF ESCROW. ALL OTHER FORMS OF
FULL COVERAGE LOAN POLICIES THAT ARE AUTHORIZED TO BE ISSUED ARE THE
1992 AND 2006 POLICIES.
BUYER'S NOTE:
If an ALTA Residential Owner's Policy is requested and if the property described herein is
determined to be eligible for this policy, the following Exceptions From Coverage will appear
in the policy:
1. Taxes or assessments which are not shown as liens by the public records or by the records
of any taxing authority.
2. (a) Water rights, claims or title to water; (b) reservations or exceptions in patents
or in Acts authorizing the issuance thereof; (c) unpatented miuing claims; whether or
not the matters excepted under (a), (b) or (c) are shown by the public records.
3. Any rights, interests or claims of parties in possession of the land which are not
shown by the public records.
4. Any easements or liens not shown by the public records. This exception does not limit the
lien coverage in Item 8 of the Covered Title Risks.
5. Any facts about the land which a correct survey would disclose and which are not shown by
the public records. This exception does not limit the forced removal coverage in Item 12
of the Covered Title Risks.
l:'RE:LIM.NOl'ES (Rev.
9/09)
112 of 130
Borrower: K y l e " - "
CLTA PRELIMINARY REPORT FORM

Exhibit A (Revised 6-3-11)
CALIFORNIA LAND TITLE ASSOCIATION STANDARD COVERAGE POLICY - 1990
EXCLUSIONS FROM COVERAGE
The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage,
costs, attorneys' fees or expenses which arise by reason of:
1.
2.
3.
4.
5.
6.
(a) Any law, ordinance or governmental regnlation (including but not limited to building or zouing laws, ordinances,
or regnlations) restricting, regulating, prohibiting or relating (i) the occupancy, use, or enjoyment of the land;
(ii) the character, dimensions or location of any improvement now or hereafter erected on the land; (iii) a separation
in ownership or a change in the dimensions or area of the land or any parcel of which the land is or was a part; or
(iv) enviromnental protection, or the effect of any violation of these laws, ordinances or governmental regulations,
except to the extent that a notice of the enforcement thereof or a notice of a defect, lien, or encumbrance resulting
from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy.
(b) Any governmental police power not excluded by (a) above, except to the extent that a notice of the exercise thereof
or notice of a defect, lien or encmnbrance resulting from a violation or alleged violation affecting the land has been
recorded in the public records at Date of Policy.
Rights of eminent domain unless notice of the exercise thereof has been recorded in the public records at Date of Policy,
but not excluding from coverage any taking which has occurred prior to Date of Policy which would be binding on the
rights of a purchaser for value without knowledge.
Defects, liens, encumbrances, adverse claims or other matters:
(a) whether or not recorded in the public records at Date of Policy, but created, suffered, assumed or agreed to by the
insured claimant;
(b) not known to the Company, not recorded in the public records at Date of Policy, but known to the insured claimant
and not disclosed in writing to the Company by the insured claimant prior to the date the insured claimant became an
insured under this policy;
(c) resulting in no loss or damage to the insured claimant;
(d) attaching or created subsequent to Date of Policy; or
(e) resulting in loss or damage which would not have been sustained if the insured claimant had paid value for the insured
mortgage or for the estate or interest insured by this policy.
Unenforceability of the lien of the insured mortgage because of the inability or failure of the insured at Date of Policy, or
the inability or failure of any subsequent owner of the indebtedness, to comply with the applicable doing business laws
of the state in which the land is situated.
Invalidity or unenforceability of the lien of the insured mortgage, or claim thereof, which arises out of the transaction
evidenced by the insured mortgage and is based upon usury or any consumer credit protection or troth in lending law.
Any claim, which arises out of the transaction vesting in the insured the estate of interest insured by this policy or the
transaction creating the interest of the insured lender, by reason of the operation of federal bankruptcy, state insolvency
or similar creditors' rights laws.
EXCEPTIONS FROM COVERAGE - SCHEDULE B, PART I
This policy does not insure against loss or damage (and the Company will not pay costs, attorneys' fees or expenses) which
arise by reason of:
I. Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or
assessments on real property or by the public records.
Proceedings by a public agency which may result in taxes or assessments, or notices of such proceedings, whether or not
shown by the records of such agency or by the public records.
2. Any facts, rights, interests, or claims which are not shown by the public records but which could be ascertained by an
inspection of the land or which may be asserted by persons in possession thereof.
3. Easements, liens or encumbrances, or claims thereof, not shown by the public records.
4. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct survey
would disclose, and which are not shown by the public records.
5. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance
thereof; (c) water rights, claims or title to water, whether or not the matters excepted under (a), (b) or (c)
are shown by the public records.
6. Any lien or right to a lien for services, labor or material not shown by the public records.
PROll.IM.Sl.2011
PAGE I OF 6
1130f130
Borrower: Kyle ..
CLTA HOMEOWNER'S POLICY OF TITLE INSURANCE (02-03-10)

ALTA HOMEOWNER'S POLICY OF TITLE INSURANCE
EXCLUSIONS
In addition to the Exceptions in Schedule B, You are uot insured against loss, costs, attorneys' fees, and expenses
resulting from:
1. Governmental police power, and the existence or violation of those portions of any law or govermnent regulation
concerning: a. building; b. zoning; c. land use; d. improvements on the Land; e. land division; and f. environmental protection. This Exclusion does not limit the coverage described in Covered Risk 8.a., 14, 15, 16, 18, 19,
20, 23 or 27.
2. The failure of Your existing structures, or any part of them, to be constructed in accordance with applicable
building codes. This Exclusion does not limit the coverage described in Covered Risk 14 or 15.
3. The right to take the Land by condemning it. This Exclusion does not limit the coverage described in Covered
Risk 17.
4. Risks: a. that are created, allowed, or agreed to by You, whether or not they are recorded in the Public Records;
b. that are Known to You at the Policy Date, but not to Us, unless they are recorded in the Public Records at the
Policy Date; c. that result in no loss to You; or d. that fIrst occur after the Policy Date - this does not limit
the coverage described in Covered Risk 7, 8.e., 25, 26, 27 or 28.
5. Failure to pay value for Your Title.
6. Lack of a right: a. to any Land outside the area specifIcally described and referred to in paragraph 3 of Schedule
A; and b. in streets, alleys, or waterways that touch the Land. This Exclusion does not limit the coverage described
in Covered Risk 11 or 21.
7. The transfer of the Title to You is invalid as preferential transfer or as a fraudulent transfer or conveyance under
federal bankruptcy, state insolvency, or similar creditors' rights laws.
LIMITATIONS ON COVERED RISKS
Your insurance for the follOWing Covered Risks is limited on the Owner's Coverage Statement as follows:
For Covered Risk 16, 18, 19, and 21 Your Deductible Amount and Our Maximum Dollar Limit of
Liability shown in Schedule A.
The deductible aroounts and maximum dollar limits shown on Schedule A are as follows:
Your Deductible Amount
Covered Risk 16:

Covered Risk 18:
Covered Risk 19:
Covered Risk 21:
J?m:r.nI.S2.2011
1% of Policy Amount or <,-_ __

(whichever is less)
1% of Policy Amount or $,----_ _
(whichever is less)
(whichever is less)
(whichever is less)
Our Maximum Dollar

Limit of Liability
$_-$_--
$_--
$_--
PAGE20F6
114of130
S3I....
Borrower: Kyl ....
AMERICAN LAND TITLE ASSOCIATION

RESIDENTIAL TITLE INSURANCE POLICY (6-1-87)
EXCLUSIONS
In addition to the Exceptions in Schedule B, you are not insured against loss, costs, attorneys' fees, and expenses
resulting from:
1.
Governmental police power, and the existence or violation of any law or government regulation. This includes
building and zouing ordinances and also laws and regulations concerning:
Land use
* Improvements on the land
*
*
Land division
Environmental protection
This exclusion does not apply to violations or the enforcement of these matters which appear in the public
records at Policy Date.
This exclusion does not limit the zoning coverage described in Items 12 and 13 of Covered Title Risks.
2. The right to take the land by condemning it, unless:
*
*
*
a notice of exercising the right appears in the public records

on the Policy Date
the taking happened prior to the Policy Date and is binding on you if you bought the land without
knowing of the taking
3. Title Risks:
*
*
that are created, allowed, or agreed to by you

that are known to you, but not to us, on the Policy Date -- unless they appeared in the public records
* that result in no loss to you
* that first affect your title after the Policy Date -- this does not limit the labor and material lien
coverage in Item 8 of Covered Title Risks
4. FaUure to pay value for your title.
5. Lack of a right:
* to any land outside the area specifically described and referred to in Item 3 of Schedule A
OR
in streets, alleys, or waterways that touch your land
This exclusion does not limit the access coverage in Item 5 of Covered Title Risks.
PRELnI:.S~.2011
PAGE30F6
115 of 130
Borrower: Kyl~
2006 ALTA LOAN POLICY (06/17/06)

The following matters are expressly excluded from the coverage of this policy, and the Company will not pay loss or damage,
costs, attorneys' fees, or expenses that arise by reason of:
1.
2.
3.
4.
5.
6.
7.
(a) Any law, onlinance, permit, or governmental regnlation (including those relating to building and zoning) restricting,
regnlating, prohibiting, or relating to
(i) the occupancy, use, or enjoyment of the Land;
(ti) the character, dimensions, or location of any improvement erected on the Land;
(iii) the subdivision of land; or
(iv) enviromnental protection;
or the effect of any violation of these laws, ordinances, or governmental regulations, This Exclusion 1(a) does not modify or
limit the coverage provided under Covered Risk 5,
(b) Any governmental police power. This Exclusion 1(b) does not modify or limit the coverage provided under Covered
Risk 6.
Rights of eminent domain. This Exclusion does not modify or limit the coverage provided under Covered Risk 7 or 8.
Defects, liens, encumbrances, adverse claims, or other matters
(a) created, suffered, assumed, or agreed to by the Insured Claimant;
(b) not Known to the Company, not recorded in the Public Records at Date of Policy, but Known to the Insured Claimant
and not disclosed in writing to the Company by the Insured Claimant prior to the date the Insured Claimant became an
Insured under this policy;
(c) resulting in no loss or damage to the Insured Claimant;
(d) attaching or created subsequent to Date of Policy (however, this does not modify or limit the coverage provided under
Covered Risk 11, 13, or 14); or
(e) resulting in loss or damage that would not have been sustained if the Insured Claimant had paid value for the Insured
Mortgage.
Unenforceability of the lien of the Insured Mortgage because of the inability or failure of an Insured to comply with
applicable doing-business laws of the state where the Land is situated.
Invalidity or unenforceability in whole or in part of the lien of the Insured Mortgage that arises out of the transaction
evidenced by the Insured Mortgage and is based upon usury or any consumer credit protection or truth-in-lending law.
Any claim, by reason of the operation of federal bankrnptcy, state insolvency, or similar creditors' rights laws, that the
transaction creating the lien of the Insured Mortgage, is
(a) a fraudulent conveyance or fraudulent transfer, or
(b) a preferential transfer for any reason not stated in Covered Risk 13(b) of this policy.
Any lien on the Title for real estate taxes or assessments imposed by governmental authority and created or attaching between
Date of Policy and the date of recording of the Insured Mortgage in the Public Records. This Exclusion does not modify or
limit the coverage provided under Covered Risk 11 (b).
The above policy form may be issued to afford either Standard Coverage or Extended Coverage. In addition to the above
Exclusions from Coverage, the Exceptions from Coverage in a Standard Coverage policy will also include the follOWing Exceptions
from Coverage:
EXCEPTIONS FROM COVERAGE
This policy does not insure against loss or damage (and the Company will not pay costs, attorneys' fees or expenses) that arise by
reason of:
1. (a) Taxes or assessments that are not shown as existing liens by the records of any taxing authority that levies taxes or
assessments on real property or by the Public Records; (b) proceedings by a public agency that may result in taxes or
assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the Public Records.
2. Any facts, rights, interests, or claims that are not shown by the Public Records but that could be ascertained by an inspection
of the Land or that may be asserted by persons in possession of the Land.
3. Easements, liens or encumbrances, or claims thereof, not shown by the Public Records.
4. Any encroachment, encumbrance, violation, variation, or adverse circumstance affecting the Title that would be disclosed by an
accurate and complete land survey of the Land and not shown by the Public Records.
5. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) water
rights, claims or title to water, whether or not the matters excepted under (a), (b), or (c) are shown by the Public Records.
6. Any lien or right to a lien for services, labor or material not shown by the public records.
mua.nl. S4.2011
PAGE40F6
1160f130
Borrower:
Kyle",.IIII11.
2006 ALTA OWNER'S POLICY (06/17/06)

The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or daroage, costs,
attorneys' fees or expenses which arise by reason of:
1.
2.
3.
4.
5.
(a) Any law, ordinance, permit, or governmental regolation (including those relating to building and zoning) restricting,
regolating, prohibiting, or relating to
(i) the occupancy, use, or enjoyment of the Land;
(ii) the character, dimensions, or location of any improvement erected on the Land;
(iii) the subdivision of land; or
(iv) enviroumental protection;
or the effect of any violation of these laws, ordinances, or goverumental regulations. This Exclusion 1(a) does not modify
or limit the coverage provided under Covered Risk 5.
(b) Any governmental police power. This Exclusion l(b) does not modify or limit the coverage provided under Covered Risk 6
Rights of eminent domain unless notice of the exercise thereof has been recorded in the public records at Date of Policy,
but not excluding from coverage any taking which has occurred prior to Date of Policy which would be binding on the rights
of a purchaser for value without knowledge.
Defects, liens, encumbrances, adverse clatms, or other matters
(b) not Known to the Company, not recorded in the Public Records at Date of Policy, but Known to the Insured Claimant and
not disclosed in writing to the Company by the Insured Claimant prior to the date the Insured Claimant becaroe an Insured
under this policy;
(c) resulting in no loss or daroage to the Insured Claimant;
Covered Risk 9 and 10); or
(e) resulting in loss or daroage that would not have been sustained if the Insured Claimant had paid value for the Title.
Any claim, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors' rights laws, that the
transaction vesting the Title as shown in Schedule A, is
(a) a fraudulent conveyance or fraudulent transfer; or
(b) a preferential transfer for any reason not stated in Covered Risk 9 of this policy.
Any lien on the Title for real estate taxes or assessments imposed by governmental authority and created or attaching between
Date of Policy and the date ofrecording of the deed or other instrument of transfer in the Public Records that vests Title as
shown in Schedule A.
The above policy form may be issued to afford either Standard Coverage or Extended Coverage. In addition to the above
Exclusions from Coverage, the Exceptions from Coverage in a Standard Coverage policy will also include the following Exceptions
from Coverage:
EXCEPTIONS FROM COVERAGE
This policy does not insure against loss or damage (and the Company will not pay costs, attorneys' fees or expenses) that arise
by reason of:
I.
2.
3.
4.
5.
6.
(a) Taxes or assessments that are not shown as existing liens by the records of any taxing authority that levies taxes or
assessments on real properly or by the Public Records; (b) proceedings by a public agency that may result in taxes or
assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the Public Records.
Any facts, rights, interests, or claims that are not shown in the Public Records but that could be ascertained by an inspection of
the Land or that may be asserted by persons in possession of the Land.
Easements, liens or encumbrances, or clatms thereof, not shown by the Public Records.
Any encroachment, encumbrance, violation, variation, or adverse circumstance affecting the Title that would be disclosed by an
accurate and complete land survey of the Land and that are not shown by the Public Records.
(a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) water
rights, claims or title to water, whether or not the matters excepted under (a), (b), or (c) are shown by the Public Records.
Any lien or right to a lien for services, labor or material not shown by the public records.
PRELIM.SS.2011
PAGE50F6
11701130
Borrower: K Y I ' - '
ALTA EXPANDED COVERAGE RESIDENTIAL LOAN POLICY (7-26-10)

The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs,
attorneys' fees or expenses which arise by reason of:
l.
(a) Any law, ordinance, permit, or governmental regnlation (including those relating to building and zoning) restricting,
regnlating, prohibiting, or relating to
(i)
the occupancy, use, or enjoyment of the Land;
(ii) the character, dimensions, or location of any improvement erected on the Land;
(iii) the subdivision ofland; or
(iv) enviromuental protection;
or the effect of any violation of these laws, ordinances, or governmental regnlations. This Exclusion 1(a) does not
modify or limit the coverage prOvided under Covered Risk 5,6, 13(c), 13(d), 14 or 16.
(b) Any governmental police power. This Exclusion 1(b) does not modify or limit the coverage provided under Covered
Risk 5, 6, 13(c), 13(d), 14 or 16.
2.
Rights of eminent domain. This Exclusion does not modify or limit the coverage provided under Covered Risk 7 or 8.
3. Defects, liens, encumbrances, adverse claims, or other matters

(b) not Known to the Company, not recorded in the Public Records at Date of Policy, but Known to the Insured
Claimant and not disclosed in writing to the Company by the Insured Claimant prior to the date the Insured
Claimant became an Insured under this policy;
(c) resulting in no loss or damage to the Insured Claimant;
Covered Risk 11, 16, 17, 18, 19,20,21,22, 23, 24, 27 or 28); or
(e) resulting in loss or damage that would not have been sustained if the Insured Claimant had paid value for the Insured
Mortgage.
4.
Unenforceability of the lien of the Insured Mortgage because of the inability or failure of an Insured to comply with
applicable doing-business laws of the state where the Land is situated.
5. Invalidity or unenforceability in whole or in part of the lien of the Insured Mortgage that arises out of the transaction
evidenced by the Insured Mortgage and is based upon usury, or any consumer credit protection or truth-in-lending law.
This Exclusion does not modify or limit the coverage provided in Covered Risk 26.
6. Any claim of invalidity, unenforceability or lack of priority of the lien of the Insured Mortgage as to Advances or
modifications made after the Insured has Knowledge that the vestee shown in Schedule A is no longer the owner of the estate
or interest covered by this policy. This Exclusion does not modify or limit the coverage provided in Covered Risk 11.
7. Any lien on the Title for real estate taxes or assessments imposed by governmental authority and created or attaching
subsequent to Date of Policy. This Exclusion does not modify or limit the coverage provided in Covered Risk 11(b) or 25.
8. The failure of the residential structure, or any portion of it, to have been constructed before, on or after Date of Policy
in accordance with applicable building codes. This Exclusion does not modify or limit the coverage provided in Covered
Risk 5 or 6.
9. Any claim, by reason of the operation offederal bankruptcy, state insolvency, or similar creditors' rights laws, that the
transaction creating the lien of the Insured Mortgage, is
(a) a fraudulent conveyance or fraudulent transfer, or
(b) a preferential transfer for any reason not stated in Covered Risk 27(b) of this policy.
mu:LnI.Sg.2011
PAGE60F6
11801130
Borrower: Kyle~
NOTICE
FEDERAL FOREIGN INVESTMENT IN REAL PROPERTY TAX ACT OF 1980 (FIRPTA)
Upon the sale of United States real property, by a non-resident alien, foreign corporation, partnership or trust, the Foreign Investment in Real
Property Tax Act of 1980 (FIRPTA), and as revised by the Tax Refonn Act of1984 (26 USCA 897 (C)(I)(A)(I) and 26 USCA 1445) requires
the transferee (Buyer) of real property to withhold Internal Revenue Service income taxes in an amount equal to ten (10%) percent of the sale
price from seller's proceeds, if ANY of the following conditions are met:
(1) The selling price is greater than $300,000.00
(2) The selling price is less than $300,000 AND the purchaser does not intend to occupy the property as his residence for at
least 50% of the time of the first two 12 month periods following the date of transfer.
Withholding is not required if both of the following conditions are met:
(1) The selling price is less than $300,000
and
(2) The Buyer is acquiring the property as his residence, and the buyer or other qualifying family member will occupy the
property for at least 50% of the time during each of the first 12-month periods following transfer of title to the buyer.
If the purchaser who is required to withhold income tax from the seller fails to do so, the purchaser is subject to fines and penalties as
provided under Internal Revenue Code Section 1445. The seller may request a waiver or a reduced withholding amount by submitting a
written request for a "qualifying statement" or "withholding certificate" (Form 8288-B) to:
Director, Internal Revenue Service
Philadelphia Service Center
P.O. Box 21086
Philadelphia, PA 19114-0586
Escrow Holder will, upon written instructions from the purchaser, withhold Federal Income Tax from the seller and will deposit said tax with the
Internal Revenue Service, together with IRS Forms 8288 and 8288-A. The fee charged for this service is $25.00 payable to the escrow
holder.
CALIFORNIA WITHHOLDING
In accordance with Sections 18662 and 18668 of the Revenue and Taxation Code, a transferee (Buyer) may be required to withhold an
amount equal to 3 113 percent of the sales price or an alternative withholding amount certified to by the seller in the case of a disposition
of California real property interest by either:
1. A seller who is an individual or when the disbursement instructions authorize the proceeds to be sent to a financial intermediary or
the seller, OR
2. A corporate seller that has no permanent place of business in California.
The buyer may become subject to penalty for failure to withhold an amount equal to the greater of 10 percent of the amount required to be
withheld or five hundred dollars ($500).
However, notwithstanding any other provision included in the California statutes referenced above, no buyer will be required to withhold any
amount or be subject to penalty for failure to withhold if:
1. The sales price of the California real property conveyed does not exceed one hundred thousand dollars ($100,000.00), OR
2. The seller exceutes a written certificate, under the penalty ofpetjwy, of any of the following:
A. The property qualifies as the seller's (or decedent's, if being sold by the decedent's estate) principal residence within the meaning
ofInternal Revenue Code (IRe) Section 121; or
B.
The seller is (or decedent, if being sold by the decedent's estate) last used the property as the seller's (decedent's) principal residence
within the meaning of IRC Section 121 without regard to the two-year time period; or
C.
The seller has a loss or zero gain for California income tax purposes on this sale; or
D.
The property is being compulsorily or involuntarily converted and the seller intends to acquire property that is similar or related in service
or use to qualify for non-recognition of gain for California income tax purposes under IRC Section 1033; or
E.
If the transfer qualifies for non-recognition treatment under IRC Section 351 (transfer to a corporation controlled by the transferor) or IRC
Section 721 (contribution to a partnership in exchange for a partnership interest); or

F.
The seller is a corporation (or an LLC classified as a corporation for federal and California income tax purposes that is either qualified
through the California Secretary of State or has a permanent place of Business in California; or
G.
The seller is a partnership (or an LLC that is not a disregarded single member LLC and is classified as a partnership for federal and California
income tax purposes) with recorded title to the property in the name of the partnership of LLC; or
H.
The seller is a tax-exempt entity under either California or federal law; or
I.
The seller is an insurance company, individual retirement account, qualified penSion/profit sharing plan, or charitable remainder trust; or
J.
The transfer qualifies as a simultaneous like-kind exchange within the meaning ofIRC Section 1031; or
K.
The transfer qualifies as a deferred like-kind exchange within the meaning of IRC Section 1031; or
L.
The transfer of this property will be an installment sale that you will report as such for California tax purposes and the buyer has agreed to
withhold on each principal payment instead of withholding the full amount at the time of transfer.
The Seller is subject to penalty for knOWingly filing a fraudulent certificate for the purpose of avoiding the withholding requirement.
119 of 130
Borrower: Kyl ..
.......
NOTICE
DEPOSIT OF FUNDS AND DISBURSEMENT DISCLOSURE
Unless you elect otherwise (as described below), all funds received by PLACER TITLE COMPANY
(the "Company") io escrow will be deposited with other escrow funds io one or more non-interest bearing escrow accounts
of the Company io a fmancial institution selected by the Company. The depositor acknowledges that the deposit of funds
in a non-interest bearing demand account by Escrow Holder may result in said company receiving a range of economic benefits
from the bank io the form of services, credits, considerations, or other things of value. The depositor hereby specifically
waives any claim to such econontic benefits payable to Escrow Holder resulting fmm non-ioterest bearing deposits. Unless
you direct the Company to open an ioterest-bearing account (as described below). the Company shall have no obligation to
account to you io any marmer for the value of, or to compensate any party for, any benefit received by the Company and/or its
affiliated company. Any such benefits shall be deemed additional compensation of the Company for its services io connection
with the escrow.
If you elect, funds deposited by you prior to the close of escrow may be placed io an iodividual ioterest-bearing account
arrangement that the Company has established with one of its financial institutions. You do not have an opportunity to earn
interest on the funds deposited by a lender. If you elect to earn interest through this special account arrangement, the
Company will cbarge you an additional fee of $50.00 for the establishment and maintenance of the account. This fee
compensates the Company for the costs associated with opening and managiog the interest-bearing account, preparing
correspondence/documentation, transferriog funds, maintainiog appropriate records for audit/reconciliation purposes, and
filing any required tax withholding statements. It is important that you consider this cost in your decision sioce the cost
may exceed the interest you earn.
Funds deposited io an ioterest-bearing account will be withdrawn from such account and deposited io the Company's general
escrow trust account approximately two busioess days prior to the scheduled close of escrow or other disbursement of such
funds. If you wish to have your funds placed in an ioterest bearing account (with an accompanying charge of $50.00),
please mark below, sign and return this form to your escrow officer. In addition, you must complete and return IRS Form
W-9. If you do not not want to have your funds deposited in an ioterest-bearing account, you do not need to sign or return this
notice and the Company will understand you to have elected to have your funds deposited in a non-interest bearing account.
If you change your ntind and later wish to have your funds placed in an interest-bearing account, please contact your escrow
officer.
The funds you deposit are insured only to the lintit provided by the Federal Deposit Insurance Corporation.
PLEASE CONSIDER THIS MY/OUR INSTRUCTION TO PLACE MY/OUR DEPOSIT(S) IN

A SEGREGATED, INTEREST-BEARING ACCOUNT. IIWE UNDERSTAND THAT AN ADDITIONAL
FEE OF $50.00 WILL BE CHARGED FOR THIS SERVICE. IIWE HAVE READ AND UNDERSTAND
ALL OF THE ABOVE INFORMATION.
Signature
Date
Signature
Date
DEPOSIT. NOTICE (3/2005)
1200f130
Borrower: Kyl~
PRIVACY POLICY NOTICE

Purpose Of This Notice
Title V of the Granun-Leach-Bliley Act (GLBA) generally prohibits any financial institution, directly or through its
affiliates, from sharing nonpublic personal information about you with a nonaffiliated third party unless the institution
proVides you with a notice of its privacy policies and practices, such as the type of information that it collects about
you and the categories of a persons or entities to whom it may be disclosed. In compliance with the GLBA, we are
providing you with this document, which notifies you of the privacy policies and practices of:
Commonwealth Land Title Insurance Company

Fidelity National Title Insurance Company
First American Title Insurance Company
First American Title Insurance Company of New York
Lawyers Title Insurance Corporation
Montana Title and Escrow Company
National Closing Solutions
National Closing Solutions of Alabama, LLC
NCS Exchange Professionals
North Idaho Title Insurance Company
Old Republic National Title Insurance Company
Placer Title Company

Placer Title Insurance Agency of Utah
Stewart Title Guaranty Company
Stewart Title Insurance Company
Targhee National Title
American General Title Insurance Company
Ticor Title Insurance Company
Transnation Title Insurance Company
United General Title Insurance Company
Westcor Land Title Insurance Company
Wyoming Title and Escrow Company
We may collect nonpublic personal information about you from the following sources:
*
*
*
*
Information we receive from you, such as on applications or other forms.

Information about your transactions we secure from our files, of from our affiliates or others.
Information we receive from a consumer reporting agency.
Information we receive from others involved in your transaction, such as the real estate agent or lender.
Unless it is specifically stated otherwise in an amended Privacy Policy Notice, no additional nonpublic personal
information will be collected about you.
We may disclose any of the above information that we collect about our customers or former customers to our affiliates
or to nonaffiliated third parties as permitted by law.
We also may disclose this information about our customers or former customers to the follOwing types of nonaffiliated
companies that perform marketing services on our behalf or with whom we have joint marketing agreements:
Financial service providers such as companies engaged in banking, consuraer finances, securities and
Nonfinancial companies such as envelope stuffers and other fulfillment service providers.
insurance.
WE DO NOT DISCLOSE ANY NONPUBLIC PERSONAL INFORMATION ABOUT YOU WITH ANYONE FOR
ANY PURPOSE THAT IS NOT SPECIFICALLY PERMITTED BY LAW.
We restrict access to nonpublic personal information about you to those employees who need to know that information
in order to provide products or services to you. We maintain physical, electronic and procedural safeguards that comply
with federal regulations to guard your nonpublic personal information.
PRIV1!.CY (Rov. 10/2011)
121 of 130
Borrower: Kyle 11
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PLACEN 'TITLE COM PAN';"
\
_
It is
merely furnished as a convenience to locate
the land in relation to adjoining streets and
other lands and not to guarantee any diary OF SACR~MNro
mensions. distances, bearings or acreage. Assessor'$ Me p Bk. 4-Pg.09
'. " ,"Imp.ortant This plat is not a survey,

@!
County of Sacramento, Calif,

NOTE-Asaa.tol.. Srad. NumbefJ Shown In el1llll.s.
Amtuar'.s Parnl Numhets5holn in Circles..
a
-.
'?
.~"
o
.3
;;.
J:
iii
RESIDENTIAL BROKER PRICE OPINION

Loan #
This SPO is the
REO#:
PROPERTY ADDRESS:
181 Initial
0 2nd Opinion 0 Updated
5020 A Street
SALES
Exterior Only
DATE
12/2212011
iiiiiiiiiiL========
REPRESENTATIV"E~'~
_S~'~'~"'~m~'~"~to~.~C~A~9~5~8~19,---_ _ _ _ _ _ _ BORROWER'S NAME:
_ Kyle
FIRM NAME:
Ramsey Real Estate and Development Corp.
COMPLETED BY:
Daniel Ray Ramsey Jr.
PHONE NO.
9167375656
FAX NO.
9167601839
I.
GENERAL MARKET CONDITIONS
!iil
!iil
!iil
0
0
Current market condition:

Employment conditions:
Market price of this type property has:
0
0
Depressed
Declining
Siable
8.29
Decreased
Increased
!81
Normal supply
oversupply
Approximate number of comparable units for sale in neighborhood:
II.
in past
in past
Stable
Improving
Excellent
Increasing
12
months
months
Remained stable
Estimated percentages of owner vs. tenants in neighborhood:

There is a
0
0
Slow
55
% owner occupant
_4C5=---_ _ _ % tenant
shortage of comparable listings in the neighborhood
16
No. of competing listings in neighborhood that are REO or Corporate owned:
10
No. of boarded or blocked-up homes:
SUBJECT MARKETABILITY
Range of values in the neighborhood is $
The subject is an 0 over improvement
214900
NOffilal marketing time in the area is:
231,000
to $
under improvement
55
Appropriate improvement for the neighborhood.
days.
Are all types of financing available for the property?

181 Yes
0 No
If no, explain
Has the property been on the marketin the last 12 months?
181 Yes
0 No
If yes, $
239,900 list price (include MLS printout)
It was recently listed and we now have an accepted offer, submitted for a short sale
To the best of your knowiedge, why did it not sell?
approval on 12/2212011
E8J single family detached
mobile home
condo
0 co-op
Unit Type:
single family attached
townhouse
modular
annually
Current? 0 Yes
Dmonthly
ONo
Fee delinquent? $ 0
If condo or other association exists: Fee S 0
SUBJECT
5020ASt
COMPARABLE NUMBER 1
1.1 mi REO/CorpD
$ NJA
Price/Gross Living Area
$ 252.53 Sq. Ft.
Sale Date &

Da s on Market
Leasehold/Fee Simole
Lot Size
View
Design and Appeal
Quality of Construc~on
Year Built
Condition
Above Grade
Room Count
Gross LivinQ Area
Basement & Finished
Rooms Below Grade
Functional Utilitv
Heating/Cooling
0.8 mi REO/CorpD
$ 227,500
I $ 222,000
Sale Price
Sales or Financing
Concessions
Location (Citv/Rural)
COMPARABLE NUMBER 2
641 54th St
130 TIvoli Way
Proximitv to Subject
VALUE ADJUSTMENTS
"-,
$ 250.28 Sq. Ft..
Suburban
Fee Simple
4835
Tract
Cottage/Bungalo
w-Ave~Qe
Framae~:oodAvera e
63 years
Average
,~,
e.,.
e."
950 Sq. Ft.
DESCRIPTION
ConvNo Seller
Concessions
07/08/11
nDOM
+(_)Adjustment
Suburban
Fee Simple
OESCRIPTION
Cash-Wrth Seller
Concessions
COMPARABLE NUMBER 3
677 551~ St
0.9 mi REO/CorpD
$ 230,000
$ 278.45 Sq.
Ft.
10/12/11
84DOM
$ 287.97 Sq. Ft.
8/10/11
82DOM
800M
DESCRIPTION
No",
III. COMPETITIVE CLOSED SALES

Address
Tennis
Other
0 Pool
Insurance
0
Landscape
Name: ...:N:o~"~e______________________ Phone No.:
The fee includes: 0

Association Contact:
ITEM
+(-)Adjustment
-1585
Suburban
Fee Simple
DESCRIPTION
FHA WithSelier
Concessions
5881
4966
Teact
Cottag~nu"ngal
ow-Avera e
Cottag~~"ungalo
w-Avera e
Ranch-Average
Frame-Average
Frame, Wood
Frame
66 years
Average
69 years
Average
68 years
Average
'"~
2
-.
""5
887 Sq. Ft.
,,~
"'"
1
Total Bdm;
e",
1
790 Sq. Ft.
826 Sq. Ft.

None
None
None
None
y"
y"
y"
Window/Furnace
Floor
Central
-8000
Central
Dual Pane
Partial
1 Attached, 2
Detached
y"
-8000
Central
-8000
-1500
Dual Pane Full
-3000
-10000
1 car attached
Energy Efficient Items
None
None
Garage/Carport
1 car attached
2 car detached
Patio, Fireplace
Fireplace
Patio, Fireplace
Patio, Fireplace
Rear Fence
None
Rear Fence
None
Rear Fence
None
Porches, Patio, Deck

Firenlacels1, etc.
Fence, Pool, etc.
Other
Net Ad'. total
Adjusted Sales Price of
Comparable
Rear Fence
None
0+0.
-5000
$ -13,000
0+181-
$209,000
$-21,085
$206,415
123 of 130
-6900
Suburban
Fee Simple
5532
Tract
Teact
'''"5
+(-)AdJustment
181+0-
$-17,900
$212,100
Borrower: Kyle
IIIIB
Fannie Mae Revised 03199
Page 1 of2
Loan #
REO#
Occupancy Status: Occupied
IV. MARKETING STRATEGY
181 As-is 0
Minimal Lender Required Repairs
Repaired
[8J Vacant
Most likely Buyer:
[8J
Unknown
Owner occupant
Investor
V. REPAIRS
Itemize ALL repairs needed to bring property from its present "as is" condition to average marketable condition forthe neighborhood.
Check those repairs you recommend that we perfonn for most successful marketing of the property.
0
0
0
0
0
Install new windows

install central heat and air system
interior Qaint
0
0
0
0
0
$
$
$
$
$
GRAND TOTAL FOR ALL REPAIRS $ 13200

VI. COMPETITIVE LISTINGS
ITEM
5020 A Street
SUBJECT
COMPARABLE NUMBER 1
Address
Proximity to Subject
iF.
List Price
$ 239,900
Price/Gross living Area
$ 252.53 Sq.Ft.
$ 210.78 Sq.Ft.
Data and/or
Verification Sources
MLS
MLS
VALUE ADJUSTMENTS
0.6 mi REO/CorpD
"'.
Concessions
X',;
'"
I' /);"
1/"/,"")".1
I',
$ 222.79 Sq.Ft.
'1
$ 214,900
I ..
$231.57 Sq.Ft.
MLS
DESCRIPTION
+ (')AOluotmon!
.2 mi REO/CorpD
"<.;
$ 219,000
MLS
DESCRIPTION
COMPARABLE NUMBER. 3
4825 Brand Way
1.3 mi REO/CorpD
,i,' ' .''.",.'(d $ 215,000
DESCRIPTION
Sales or Financing
Days on Market and
Date on Market
COMPARABLE NUMBER. 2
200 39th SI
5530 E St
DESCRIPTION
+1-)MluOlmont
Conv-No Seller
Concessions
Conv-No Seller
Concessions
Conv-No Seller
Concessions
72 DOM
10/10/11
167DOM
07/07/11
7DOM
12114/11
Location (City/Rural)
Suburban
Suburban
Suburban
Suburban
Leasehold/Fee
Simple
Fee Simple
Fee Simple
Fee Simple
Fee Simple
Lot Size
4835
5053
3354
5968
View
Tmot
Tract
Tract
Tract
+(IMloolrn".,'
Cottage/Bungalow-
Cottage/Bungalow-
Cottage/Bungalow_
CottagefBungalow-
Frame, Wood-
Frame-Average
Frame-Average
Wood-Average
Year Built
1948
1948
1941
1947
Condition
Average
Average
Average
Average
Design and Appeal

Quality of COnstruction
".
5 i2
,,~
Above Grade
Room Count
Gross Livin~ Area
Basement & Finished
Rooms Below Grade
"."
1
T~
,,~
950 Sq. Ft.
"'"
1
Total
,,~
None
"'~
2
983 Sq. Ft
1020 Sq. Ft.
None
Total
"""
Baths
928 Sq. Ft
None
None
Ye,
Ye,
Window/Fumace
Central
..s000
Central
-8000
Central
-8000
Energy Efficient Items
None
Dual Pane Full
-3000
Ceiling Fan(s)
-3000
Dual Pane Fulll
-3000
Garage/Carport
1 car attached
1 car detached
none
5000
1 car attached
Porches, Patio, Deck

Fireplace(s), etc.
Patio, Fireplace
Fireplace
Patio, Fireplace
Patio, Fireplace
Fence, Pool, etc.
Rear Fence
Rear Fence
Rear Fence
Rear Fence
Other
None
None
None
Functional Utility
Heating/Cooling
...
Net Adj. (total)

Adjusted Sales Price
of Comparable
Ye,
0+ 0-
i:1';!'i!\{( . ..' I";."!!!';!':,;,
Ye,
-11,000
None
$-11,000
0+ 0- -
$204.000
.. /.j/il2.
0+ 0-
$-6000
$213,000
\,"'.
$0
$203,900
VI. THE MARKET VALUE (The value must fall within the indicated value of the Competitive Closed Sales).
Market Value
208,000
Suggested List Price

220,000
AS IS
REPAIRED
-'2=3"'5,7
00= 0 ' - - - - - - -
245,000
30 Quick Sale Value
-"20=5~,O=0~0'-_ _ _ __
215,000
Last Sale of Subject. Price 335,000
Date 11/21/2006
COMMENTS (Include specific positives/negatives. special concems, encroachments, easements, water rights, environmental concems, flood zones, etc.
Attach addendum if additional space is needed.)
Property is in average condition and is situated in quiet and desirable East Sacramento neighborhood. It has a large raised patio and backyard with
mature trees and sprinkler system. Great view of the quiet neighborhood in the front with a large front yard as well. Lot position is good within the
neighborhood, as it is not located on a street with lots of through traffic, or near the railroad tracks that border the area. Most other homes in the area
have been renovated to include central heat and air and dual pane windows at a minimum. The subject has not, so this does affect the value, as all sold
and actives comps have those two features. The kitchen and bathroom are also original or partially renovated, so that affects the value as well.
The median home cost in this area is $323,300, as there are much larger homes in the area that have been renovated and added onto that are on larger
lois, or on more desirable streets. Home depreciation the last year has been -8.29 percent. The unemployment rate in this area is 14.70 percent(U.S.
124 of 130
Borrower: Kyl . .'. . . . . . .
avg. is 9.10%). Recent job growth is negative and jobs have decreased by 3.19 percent. (bestplaces.net)
Signature:
Date:
Daniel Ray Ramsey Jr.
Fannie Mae Revised 03/99
Page 2 of 2
125 of 130
12/2212011
CMS Publishing Company 1 800235-1600 [0399]
Borrower: Kyle A
Photo Addendum
Property: 5020 A Street, Sacramento, CA 95819
Interior BPO - dated 12.22.2011
Description: kitchen
Description: family room
Description: hallway
126 of 130
Borrower: Kyle
Pro ert Photos

Description: Kitchen view 2
Description: bedroom one, view 1
Description: bedroom one, view 2
1270f130
Borrower: Kyle ~
Pro ert Photos

Description: garage
Description: backyard 1
Description: back of house

Description: backyard 2
Description: patio
1280f130
Borrower : ~y'le ~
Sold Com arables

5020 A street, Sacramento, CA 95819
Comp 3: Sold 3
1290f130
Borrower: Kyle
~
Listing Comparables
5020 A street, sacramento, CA 95819
Camp 1: Active 1
Camp 2: Active 2
Camp 3: Active 3
CalHFA Laan# 022472-3
130 of 130
Borrower: Kyle

Short Sales Handbook

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Short Sales Handbook

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Day 1: Preparing for Success

What, Why, Who?

What Is a Real Estate Short Sale?

A real estate short sale is based on the simple concept of a settlement.

7 Days to Success with Short Sales

The Foreclosure Timeline

Day 1: Preparing for Success

Why Are We Hearing So Much About

7 Days to Success with Short Sales

Unprecedented numbers of homeowners today are in so much debt and

Who Really Benefits from a Short Sale?

Day 1: Preparing for Success

Ii:] Homeowners Win!-Homeowners are able to sell their property

Ii:] Buyers Win!-Buyers are able to acquire a property at a good

Ii:] Lenders Win!-Lenders mitigate their loss by getting the majority

Incur the cost of eviction and repossession

Carty the cost of the property during the foreclosure

Incur the expense of repairs and improvements in order to

7 Days to Success with Short Sales

result in an additional drop of approximately 9% in property value and

Owner owes more than

Seller submits a Short

A Buyer makes an offer

Seller aceepts offer /

If approved, the sale

Day 1: Preparing for Success

"I neClr of ClgeV\,ts wno stvvcggle ClloV\,g wLtn CI SOfa

7 Days to Success with Short Sales

Steps in the Short Sale Process

The Short Sale Process

A negotiator is assigned. This can take 30 to 60 days.

The bank issues a short sale approval letter.

After all this, the Buyer may still decide to cancel

7 Days to Success with Short Sales

2. Administrative and Organizational Skills

is more litigious. Strong administrative and organizatiollill skills will help

3. Negotiating Skills, Patience, and Tenadty

Day 1: Preparing for Success

7 Days to Success with Short Sales

The Short Sale Process

As you will learn, Step 1: Pre-Qualify the Prospect is the most

Day 2: Pre-Qualifyingthe Short Sale Prospect

since government-insured loans are handled a bit differendy, we'll spend

7 Days to Success with Short Sales

Start the Process with

Where 00 You Find Short Sale Prospects?

Day 2: Pre-Quafifying the Short Sale Prospect

The Purpose of Pre-Qualification

When I was less experienced with short selling, my pre-qualification step

7 Days to Success with Short Sales

a miscommunication or an oversight. This is particularly true for short

Day 2: Pre-Qualifying the Short Sale Prospect

The Four Most Important

The homeowner must be experiencing a hatdship.

The homeowner must owe more than the home is worth.

The homeowner must be in arreats (past due) on their

The homeowner must be able to show that they can no

7 Days to Success with Short Sales

Criteria #1: Hardship

Temporarily out of work for any reason

New job tbat pays less

Mort"oage payment increases

Property tax increases

Additional family members in household (new baby,

~D&O~~~:"~':'I~r=:.':O~';,'iOCl, ~:.o:="ga~=.In"g":.I"" ofal~~~":; ~':'~~0CI10 obl4l 1