Table of Contents
Preface xi
Introduction xiii
Chapter 1 Know the Players 1
Lender 1
Real Estate Broker 3
Escrow or Closing Agent 3
Trustee 3
Others 3
Summary 4
Chapter 2 Short Sale 5
What Is a Short Sale? 6
Deficiency 6
Considering a Short Sale 7
HAFA 8
Deed-in-Lieu of Foreclosure 9
Summary 9
Chapter 3 Buyer Beware 11
The Long Short Sale 11
The Need for Teamwork 12
Making an Offer 12
Buyer Financing 13
Property Condition 14
Other Liens 14
Tenants 15
HAFA Agreements 16
Short Sale Notice 16
Acknoivledgment of Request for Short Sale 16
Contract Contingencies 17
Buyer Financing 17
Sale of Property 17
Closing Deadline 17
Lender Nonapproval or Approval of a Competing Offer 17
Cancellation by the Seller 17
Cancellation by the Buyer 17
Summary 17
Chapter 4 Managing the Short Sale 19
Intitiating HAFA 19
Lenders and HAFA 20
A Borrower's Eligibility of HAFA 20
Evaluation of HAFA Eligibility 21
Listing Price 22
Borrower Protections 23
Release of Liability 24
Suspension of Foreclosure 25
Relocation Assistance 25
Short Sale Notice 26
Terminating the SSN 28
Approval of a Short Sale 28
Alternative: Start with the Sales Contract 29
Deed-in-Lieu of Foreclosure 30
Short Sale versus Modification 30
Summary 30
Chapter 5 Escalation 33
Resources 34
Escalated Cases 34
Third-Party Escalation 35
Servicer Compliance 37
Resolution 37
Suspension of Foreclosure Sale 37
Summary 38
Chapter 6 Consequences 39
Deficiency Liability 39
Tax Liability 40
Principal Residence Exemption 40
Qualified Debt Exemption 41
Debt Forgiveness Exemption 41
Insolvency 41
Bankruptcy 42
Credit Reporting 42
Summary 43
Chapter 7 Conclusion 45
Appendix A Request for Mortgage Assistance 49
Appendix B Hardship Affidavit 57
Appendix C Dodd-Frank Certification 61
Appendix D IRS Form 4506-T 63
Appendix E IRS Form 4506T-EZ 67
Appendix F Short Sale Notice 71
Appendix G Acknowledgment of Request for Short Sale 81
Appendix H Non-owner Occupant (Tenant) Certification 87
Appendix I Third party Authorization 91
Appendix J Escalation by Third Party 95
Appendix K Making Home Affordable Programs 97
Appendix L Scam Avoidance 99
Appendix M Glossary of Terms 103
Index 113
About the Author 117
