Short Sale Affidavit


As relates to a certain real estate purchase contract dated _____/_____/_____ concerning the

following Mortgaged Premises;

Property address: ______________________________

______________________________

under which the existing Lender(s) has agreed to accept less than full payoff of the debt owed

in exchange for release of the Mortgaged Premises (a short sale), each of the signatories

hereto hereby certify and affirm under penalty of perjury, that to the best of their knowledge

and belief;

(a) The sale of the Mortgaged Premises is an "arm's length" transaction, between the

parties who are unrelated and unaffiliated by family, marriage, or commercial enterprise;

(b) There are no agreements, understandings or contracts between the parties that the

Seller will remain in the Mortgaged Premises as a tenant or later obtain title or

ownership of the Mortgaged Premises,;

(c) Neither the Borrower(s) nor the purchaser(s) will receive any funds or commissions from

the sale of the Mortgaged Premises, except as allowed by the short sale approval letter

(if applicable);

(d) There are no agreements, understandings or contracts relating to the current sale or

subsequent sale of the Mortgaged Premises that have not been disclosed to the Lender;

(e) None of the signatories will receive any proceeds or other remuneration from this

transaction except as set forth on the Settlement Statement; and

(f) None of the signatories have knowledge of any offer to purchase the Mortgaged

Premises for a higher purchase price than the purchase price contained in the certain

real estate purchase contract referenced above that has not been presented to the

Lender(s).

Buyer(s) further certify and affirm under penalty of perjury, that;

(g) the property will not be sold within 90 days of the closing date of the subject real estate

purchase contract; and

(h) the property will not be rented to the Seller after the closing of the subject real estate

purchase contract.

Each signatory also understands, agrees and intends that the Lender, any Investor (in

particular Freddie Mac if applicable), Insurer or Guarantor, of the subject Mortgage are relying

upon the statements made in the affidavit as consideration for the reduction of the payoff

amount of the Mortgage and agreement to the sale of the Mortgaged Premises and agrees to

indemnify the Lender, any Investor (in particular Freddie Mac, if applicable), Insurer or

Guarantor, of the subject Mortgage for any and all loss resulting from any negligent or

intentional misrepresentation made in the affidavit including, but not limited, to repayment of the

amount of the reduced payoff of the Mortgage. Each signatory further understands that a

misrepresentation may subject the responsible party to civil and/or criminal liability and agrees

that this certification will survive the closing of the transaction.

_____________________________ ______________________________

(Seller) Date (Seller) Date

_____________________________ ______________________________

Print Name Print Name

-----------------------------------------------------------------------------------------------------------------

_____________________________ ______________________________

(Seller’s Broker) Date (Buyer’s Broker) Date

____________________________ ______________________________

Print Name and Company Name Print Name and Company Name

-----------------------------------------------------------------------------------------------------------------

_____________________________ ______________________________

(Buyer) Date (Buyer) Date

_____________________________ ______________________________

Print Name Print Name

-----------------------------------------------------------------------------------------------------------------

_____________________________ ______________________________

(Settlement Agent) Date

_____________________________ ______________________________

Print Name and Company Name Print Name and Company Name

_____________________________ ______________________________

Print Company Address Print Company Address

-----------------------------------------------------------------------------------------------------------------

Note to Settlement Agent;

ALL SIGNATURES MUST BE ACKNOWLEDGED BEFORE A NOTARY PUBLIC AND

DOCUMENTARY EVIDENCE ATTACHED HERETO IN ACCORDANCE WITH THE

REQUIREMENTS OF YOUR STATE LAWS

(Transaction Facilitator, if any) Date

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Well said my friend.  I think I am done for the evening, good night to all!

Beverly Cibulsky said:

This has been one heck of a topic! I think we have all learned a little something out of this, which most important.

Keep in mind, members, we are from everywhere in the nation, and Real Estate things tend to vary! Everyone's market is unique! Even the simplest real estate transaction exposes up to liability, and ya know what? you can have all the "disclosures, hold harmless, whatever! It will not protect you from a law suit! It may ultimately help!!! yes, but "any one can sue anyone, for anything! It is the nature of our business!!! (So back to the somebody wants some of my commission discussion!!! we earn every penny!)

 

Short Sales are not for the weak at heart! They are also different from State to State. This addendum and others like it, is trying to prevent the sleezy dealings that are going on! (sad part is I am not really sympathetic to all these lenders, who may be getting... ummm ripped off now, after because of their practices may have created this mess)

You need to understand that the "arms length" forms, cover all these things that have and unfortunately will continue to happen. Yes, in the past, brothers, uncles, second cousins, good friends, have contracted to buy the property, buy it and the seller rents back. Or the relative buys it, flips it and the former owner and relative split the profit! Then, there are the "investors" that have convinced the seller to deed the property to them, then, stratically "wreck" the home so that when a BPO is done the damage is noted, and meanwhile the carpeting, missing Doors, toilets and kitchen cabinets are in some warehouse!

SO!

 -Dont take a short sale where the seller already has a plan for a relative or friend to buy the property

-Dont be party to a transaction where the buyer's agent buyer, wants the seller to rent from them.

-Dont list a property for your former buyer less than the allocated 90days, and God forbid, dont put it in the MLS remarks

-Dont submit an offer to get approved for a buyer who wants you to market it and simaltanmy close, with another buyer at a higher price! (A few Connecticut agents got snagged royally for this, and they truly deserved what they got)

 

Basically, I would not have any problem with that disclosure, as I am very ethical and choose to not venture into Gray Areas!

 

Come on Harry. I've never smited you......YET :)

OK... what the heck is "smited"?

Yes I am not a social "network" butterfly!

Rita, I just spoke with KWRI and  they have informed me that no one at KWRI has reviewed the Nash Law Firm document until now, I sent it to them.  Nash Law Firm does not represent Keller Williams Coporate...... "Jeff, This Wells and BOA Affidavit was already reviewed and anotated by KW Corporate Attorneys  Nash Law following is KW Corp Response:"

I would be more than happy to share the correspondence that I got from KWRI about this.  Someone along the way is giving you bad information.  Did this letter come from your regional director or did someone send this to you from KWRI?
Rita Legan said:

Ok, I have no knowledge and no liability, but do I or my brokerage want to go through the legal processes of proving this? I think lenders are trying to put the deepest pockets on the hook. I will rely on my corporate brokerage and their legal eagles.

Hi Jeff,

This is the email I received from my broker. If you share your email I will also send you the BOA Broker Affvidavit with Nash Law Firm Markup's.

Hi All,

 

New developments have come about regarding short sales, specifically Bank of America and Wells Fargo. In the attached      addenda, I have provided copies of both banks' newly "required" additions to the purchase agreement. The Bank of America document is marked up with legal counsels highlights and comments.

 

UNDER ADVICE FROM OUR ATTORNEY AND REGIONAL LEADERSHIP, UNDER NO CIRCUMSTANCES ARE YOU TO SIGN THESE DOCUMENTS REGARDLESS OF THE BANK'S UNWILLINGNESS TO PROCEED OTHERWISE.

 

I cannot stress to you the importance of this information. These two banks are now requiring the brokers involved to become actual parties to the transaction, placing you and our brokerage at significant risk. In addition, there are other portions of the agreement that increase your risk exposure.

WHAT TO DO: If you are presented with these documents as a requirement of a short sale approval, notify us immediately and DO NOT SIGN. In addition, if you are currently working on a BOA or Wells short sale, be prepared in advance by letting us know. It is not guaranteed, however we have been advised that in many cases, if a short sale negotiator or attorney is involved, they will close the transaction without these documents. Our market center is working to provide you with resources in this arena. NO REAL ESTATE AGENT IS LICENSED TO PRACTICE LAW IN THE STATE OF OHIO. A simple referral to another agent who is experienced with short sales is NOT sufficient. We highly recommend your sellers seek legal counsel for this service or use a company such as Mortgage Mitigators.

 

Be particularly cautious when agreeing to short sale addenda. The broker should never be an actual party to the transaction.

Thank you for your professionalism in this area!
I have the Nash Law Firm document, I will forward the email that I recieved from KWRI that states that Nash Law Firm does not represent KWRI.  I found it interesting that Nash Law Firm just happens to negotiate short sales :)  It is definately in their best interest to make sure that none of us want to work short sales.  Check your email.

Rita Legan said:

Hi Jeff,

This is the email I received from my broker. If you share your email I will also send you the BOA Broker Affvidavit with Nash Law Firm Markup's.

Hi All,

 

New developments have come about regarding short sales, specifically Bank of America and Wells Fargo. In the attached      addenda, I have provided copies of both banks' newly "required" additions to the purchase agreement. The Bank of America document is marked up with legal counsels highlights and comments.

 

UNDER ADVICE FROM OUR ATTORNEY AND REGIONAL LEADERSHIP, UNDER NO CIRCUMSTANCES ARE YOU TO SIGN THESE DOCUMENTS REGARDLESS OF THE BANK'S UNWILLINGNESS TO PROCEED OTHERWISE.

 

I cannot stress to you the importance of this information. These two banks are now requiring the brokers involved to become actual parties to the transaction, placing you and our brokerage at significant risk. In addition, there are other portions of the agreement that increase your risk exposure.

WHAT TO DO: If you are presented with these documents as a requirement of a short sale approval, notify us immediately and DO NOT SIGN. In addition, if you are currently working on a BOA or Wells short sale, be prepared in advance by letting us know. It is not guaranteed, however we have been advised that in many cases, if a short sale negotiator or attorney is involved, they will close the transaction without these documents. Our market center is working to provide you with resources in this arena. NO REAL ESTATE AGENT IS LICENSED TO PRACTICE LAW IN THE STATE OF OHIO. A simple referral to another agent who is experienced with short sales is NOT sufficient. We highly recommend your sellers seek legal counsel for this service or use a company such as Mortgage Mitigators.

 

Be particularly cautious when agreeing to short sale addenda. The broker should never be an actual party to the transaction.

Thank you for your professionalism in this area!

Rita:

 

Just wanted to let you know that the law firm I work with is fixing to challenge BOA on this affidavit..we are doing a ss on a property with them that has a f/c date of 8/2/11..they have requested the addendum from us, plus some other documentation.  We are going to submit everything, but the addendum.  I know everyone has been following this topic pretty closely, so I will let you know how it turns out...once we get their initial reaction, our game plan is to start sending in a formal letter from the attorney, advising on why we are not going to sign the addendum...

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