FIDELITY NATIONAL TITLE

Transcription

1 FIDELITY NATIONAL TITLE We understand Short Sales. Let us help take some of your worries away. CONTACT US TODAY: (702) Direct (702) Fax

2 FIDELITY NATIONAL TITLE AGENT INFORMATION FOR PROCESSING SHORT SALES

3 Dear Agent: Thank you for choosing Fidelity National Title to assist with the processing of your short sale. We are happy to be a part of your team and are here to help! We know that short sales can sometimes be difficult and time intensive. Whether this is your first time involved in a short sale transaction or you are a short sale pro, the process is the same. The way to a successful and quick close is to be as thorough as possible. The most important thing to keep in mind is that Lenders do not process incomplete packages. The fastest way to get to a closing is to provide all requested documents as quickly as possible. n EXPECTATIONS OF THE AGENT n 1. Preparation of Your Seller: Educate and explain the short sale process to your Sellers as thoroughly as possible. Explain that short sales typically take from days and that we are going to do everything we can to move their file as quickly as possible through the Lender s short sale system. It is especially important to let them know that when documents are requested, they should try to provide them as quickly as possible. One of the most common reasons that short sales are delayed is due to missing documents. Let your Sellers know that the Lender(s) will continue to request updated documents (such as bank statements and paystubs) throughout the entire process. They should be prepared by having these available at all times. 2. Listing and the collection of documents: As soon as you take the Listing Agreement your Seller(s) should begin to gather all of the necessary documents. Enclosed in our short sale package is a Seller Checklist of Required Documents which is a thorough list of the documents and forms that the Lender(s) will require. You can provide the documents to our department at the listing stage, as it will be beneficial to review the package for completeness before an offer is received. Please use the Agent Checklist and Seller Checklist forms as guides to help you and the Seller(s) get everything together. Although there may appear to be a duplication of requested information, everything has a purpose. There may be additional Lender-specific forms that will be required, and if that is the case we will let you know. 3. Acceptance of a completed offer: When you accept an offer be sure to review the Purchase Agreement and Addendums for completeness. Contracts are often rejected because addresses are incomplete and information and/or signatures are missing. Be sure to send us the Purchase Agreement and all associated Addendums as soon as you have the fully executed version so that we can immediately set up the file for submission. Letter to Agent

4 4. Communication with the Buyer: Keep the Buyer(s) and their Agent in the loop by keeping them informed of the status of the short sale process. If anything changes with the Buyer that you believe might affect the outcome of the short sale, please let us know immediately. If you are concerned that a Buyer may be backing out or unable to perform, let us know and we can discuss the options. Some Lenders will allow a substituted Buyer and others will not. We can discuss the various options and strategies to result in a successful closing. 5. Negotiation: We will do everything to process the file to result in an approval, but all final decisions about the settlement terms and conditions must be made by the Seller(s) and/or the Agent. We will inform you of any communication from the Lender(s) that requires a response from the Seller(s) or you, as the Agent. Examples of this include such things as a counter to the terms or a request for an agreement to certain terms or a request for the Seller(s) to contribute to the short sale by way of a cash contribution and/or a promissory note. 6. Closing: Once an approval has been received, your Escrow Officer will handle the closing of the file and they will perform the typical closing functions related to the transaction. Please communicate with the Buyer and prepare the Seller to close with a discussion of move-out dates, the final accounting of utility and/or HOA accounts and the timeframe for signing the closing documents. Letter to Agent n EXPECTATIONS OF FIDELITY SHORT SALE DEPARTMENT n 1. Review of Documents: We will review all Seller documents for completeness and advise you of any additional requirements. If you are able to submit the Seller s documents to us during the Listing stage (and prior to receipt of an offer), we can set up and prepare the file for submission once an offer is received. We will contact you and let you know what may still be required and let you know when it can be submitted to the Lender(s). 2. Submission of documents and follow-up: All complete short sale files will be submitted promptly to the Lender(s). We will follow-up with the Lender(s) on a regular basis to insure receipt of documents and through/until final short sale approval. Typical short sales proceed in this manner (although the sequence of events can change depending on Lender, investor and loan-type): - Short sale packager submitted to Lender - Lender checks file for additional and/or missing documents - Once all required documents have been received, Lender assigns a negotiator - The negotiator and/or bank representative orders a valuation (BPO and/or appraisal) - The negotiator reviews and/or analyzes the file based on the offer, the valuation and the hardship basis

5 - The negotiator counters or accepts the offer - An approval is issued 3. Communication with the Agent: The Agent will receive regular, weekly status updates. We follow up on every file, every week even if there is no activity from the lender. Any critical information requiring a Seller and/or Agent response will be communicated to you promptly. If at any time you wish to direct the to cease communicating with the Lender(s) and/or you want to communicate with the Lender directly, we will follow your instructions. Please note: If you have an urgent matter, such as submitting documentation on a deadline, please us with the word URGENT in the subject line of your . Please reserve this for true emergency situations. 4. Approval, extensions and closing: Our goal is to close the short sale file. Once an approval has been issued it will immediately be communicated to the Agent and Escrow Officer. While the Escrow Officer will technically take over the file in order to close it, we will track the approval dates and request any approval extensions that may be required. Best wishes for a successful closing! Sincerely, Fidelity National Title Fidelity National Title reminds you that we are not a financial advisor, attorney or accountant and cannot provide tax or legal advice in connection with any consequences of a short sale and strongly advises the Seller(s) to seek guidance from an attorney and/or tax advisor and/or CPA before proceeding with a short sale transaction. Letter to Agent

6 w w w AGENT CHECKLIST OF REQUIRED DOCUMENTS w w w For a successful submission please be as thorough as possible! *** No Electronic Signatures Please! *** Agent Contact Information (If you are not currently working with a Fidelity Escrow Officer please let us know and we will refer you to the right person!) Listing Agreement Purchase Contract (Please be sure the contract includes the complete address, with city, state and zip wherever required) All Addendums to the Purchase Contract Buyer Proof of Funds: 1 st page of a bank statement within last 30 days Buyer Preapproval letter: current within last 30 days MLS Comps (5-6) Buyer Equator Processing (for Equator files) Photo of front of property in jpeg format (for Equator files) REQUIRED DOCUMENTS FOR EQUATOR FILES In order to process a short sale offer in Equator we will need the following information Equator access is required for the following lenders: ASC Bank of America Carrington Mortgage Chase GMAC Homeward Residential Nationstar Wells Fargo All Equator files require: Name of Listing Agent Equator login address Equator Password Agent Equator Access Form All BofA files require: Agent Equator Access Form BofA Authorization Buyer Equator Form BofA Buyers Disclosure Photo of front of property in jpeg format BofA Addendum w REMINDERS AND TIPS w We want to process your short sale file as quickly as possible and we are here to help. The more complete the package - the faster it can be processed. Please add our short sale processing in your Equator account by q logging into your Personal Profile Settings If you receive an directly from the bank negotiator, please forward to our short sale q department at immediately upon receipt q If you require a specific lender package, just let us know. We will send it to you by . Checklist for Agent SS Documents

7 w w w AGENT INFORMATION w w w Agent Contact Information Name License # Company Address State ZIP Work Phone Cell Phone Fax address Assistant name Asst Phone Asst Escrow Officer name Equator Information Equator access is required for the following lenders: ASC GMAC Homeward Residential Carrington Mortgage Nationstar Chase Wells Fargo Equator login: login Password *** Please add our () to your account Go to: My Account - Profile - Communication *** If you receive an from the negotiator and/or bank contact please forward to us immediately so we can assist and update your file! w w CONTACT US w w Questions? Need a file prequel? Need a Short sale package? Contact: Diane Schramel (702) Diane.Schramel@fnf.com Send all docs in pdf format to: Short Sale Information Sheet

8 *** BANK AND FINANCIAL INSTITUTION *** AUTHORIZATION TO RELEASE INFORMATION Date ATTN: Short Sale and/or Loss Mitigation 1 st Lien: Loan Number: 2 nd Lien: Loan Number: Seller(s): Property Address: City State Zip To Whom It May Concern: I/We hereby give my/our permission to anyone and everyone affiliated with your company to communicate with my/our representatives: DESIGNATED REPRESENTATIVES Fidelity National Title and any and all Real Estate Agent: employees including: Heather Whelan Diane Schramel Escrow Officer: 6180 Brent Thurman Way Suite #160 (702) (702) Fax I/We further give my/our permission for any and all employees of your company to communicate in the exact same manner, and provide them any and all information that you would normally extend to me/us to request, obtain and verify any and all mortgage loan information including, but not limited to payoff, arrearage, and reinstatement amounts as well as financial history. The information obtained is to be used for the purpose of facilitating the resolution of my/our short sale. This authorization shall remain in effect until revoked in writing by either borrower(s) or Designated Agent(s). Thank you for your assistance. Seller Date Seller Date Printed Name Printed Name Social Security Number Social Security Number Authorization

9 FIDELITY NATIONAL TITLE SELLER INFORMATION FOR PROCESSING SHORT SALES

10 Dear Homeowner: Fidelity National Title of Nevada is pleased to have the opportunity to assist your Agent with the short sale of your property. We understand short sales can be cumbersome, time intensive and may even be stressful for a Homeowner. We are here to help process the required documents and navigate through a complicated system. w Required Short Sale Forms and Documents: Attached is a checklist of documents that will be required to process your short sale. Please provide all of the documents and forms requested and keep in mind that Lenders do not review incomplete packages. Save all of your income documents (paystubs, earning statements, etc.) and bank statements each month. Updated documents may be required throughout the process, so please have your documents available when needed. w Additional Fees: Your Short Sale lender will pay many of the fees associated with your transaction but there may be additional charges assessed by other parties in this transaction. These may include (but are not limited to) handling and processing fees charged by your Lender(s), document and demand fees charged by your Homeowner s Association, and fees to maintain certain accounts related to your property (i.e.; trash, utilities and Homeowner s Association dues). w Legal and Tax Consequences: There can be legal and tax consequences associated with a short sale. We advise you to consult with an attorney and a tax accountant before entering into a Short Sale transaction. Your Lender(s) may require a monetary settlement, a promissory note and /or a combination of both and this could result in a deficiency judgment. You must discuss and agree to any terms imposed by your Lender(s). In the event any negotiations are needed, your Real Estate Agent will contact you. Cover Letter

11 w Be Patient and Contact Your Agent with Questions: Please be patient throughout this process. At times you may feel things are going too slow, but remember this is not a regular transaction and can take longer to complete. Short sales require your full cooperation! Please feel free to contact your Agent or Broker should you have any questions about any specific requirements that are not shown here. Sincerely, Fidelity National Title Cover Letter

12 SHORT SALE FREQUENTLY ASKED QUESTIONS 1. What is a short sale? A short sale is the sale of a property wherein the sales proceeds do not fully pay off the existing loan(s) so the lender(s) accepts a discounted payoff to fully satisfy the loan. The property is sold for less than is owed and foreclosure is avoided. 2. Why would a bank (lender) agree to a short sale? There are many reasons but the overriding reason is a financial one. There are maintenance and administrative costs associated with foreclosure and resale, and it could cost a bank a significant amount of money to proceed with a foreclosure. It is often a more cost-effective solution to accept a short sale. 3. Is a short sale right for me? Mortgage lenders are increasingly willing to work with borrowers faced with a financial hardship to accept a discounted payoff on a mortgage. If you are faced with a hardship that makes it likely you will be unable to meet your obligation on your mortgage, chances are that your lender would prefer to settle the matter with you as opposed to taking the property through foreclosure. As you consider the option of pursuing a short sale, remember your lender is looking to limit any potential loss on your loan. By completing a short sale, your lender has arrived at a solution that is, for them, much better than a foreclosure. Bottom line, your lender wants to work with you. 4. If I do a short sale, how much will I have to pay to sell my home? The majority of fees associated with a short sale are paid by the lender, including sales commissions and title and escrow fees. There may also be additional fees charged by other parties to the transaction including a homeowners association and utility accounts that may be required to maintain the property prior to sale. In some instances, depending on the type of loan and specific investor, a Seller could be required to participate in the short sale with a cash contribution or a promissory note. All of these costs are subject to your approval and the short sale cannot proceed until you have fully agreed to the terms, costs and conditions. 5. I am current on my mortgage will my lender consider a short sale? The answer is: maybe. Some lenders (and investors) will accept a short sale file for approval on loans that are not delinquent. Other lenders will not accept the file until the loan is delinquent. The issue always comes down to your specific type of hardship. It is important to fully explain your hardship and why you are unable to continue to maintain your current mortgage. 6. I am concerned about my credit, how will a short sale affect my credit? In the course of getting your short sale approved you may miss your mortgage payments, and these will show on your credit. But once the short sale transaction is completed you can avoid foreclosure, which is far more damaging to your credit than a short sale. By avoiding foreclosure, you will likely be able to resume normal borrowing (car loans, credit cards, consumer goods, etc.) relatively quickly. Frequently Asked Questions

13 7. I have two loans, can I still do a short sale? We can work with both lenders (many times the same lender holds the 1st and the 2nd loans) to put together a short sale transaction. Even if the value of the home is below the balance of the 1st mortgage, we can normally get both lenders to cooperate. In the end, neither lender wants to own another home through foreclosure. 8. How does a short sale impact me (the Seller)? Even though the Seller is forbidden from receiving any proceeds from the sale of the home in a short sale, there are benefits: A short sale is the lesser of two evils. If you cannot afford to remain in the premises, the Lender will repossess the property through foreclosure proceedings. A short sale can save you many months of stress and uncertainty. While a foreclosure can be devastating to the credit of a defaulting Homeowner, with a short sale your credit may be restored in as little as eighteen months. 9. What are the drawbacks to a short sale? The note may be considered paid in full and remain fully in force. The Lender who accepts the short sale may legally pursue you for the difference between the amount owed and the amount paid, (referred to as a deficiency). The IRS will consider debt forgiveness as income and the Homeowner will receive a 1099 resulting in a possible tax liability. If the property is your primary residence, however, the Mortgage Debt Relief Act of 2007 (which is good through the end of 2013) will allow you to exclude income from the discharge of debt. You should always check with your CPA and/or tax professional regarding any tax consequences. The Lender may reserve the right to report this transaction to the appropriate credit bureaus which can negatively affect the Homeowner s credit. 10. Can I file for Bankruptcy and still do a short sale? You can do a short sale while you are in Bankruptcy if the sale is approved by the bankruptcy court, however the Bank may or may not proceed with the short sale. You will need to discuss this with an attorney. Fidelity National Title of Nevada is not a financial advisor, attorney or accountant and cannot provide tax or legal advice in connection with any consequences of a short sale and advises the Seller(s) to seek guidance from an attorney and/or tax advisor and/or CPA before proceeding with the short sale. Frequently Asked Questions

14 w w w SELLER CHECKLIST OF REQUIRED DOCUMENTS w w w For a successful submission please be as thorough as possible! Authorization, Acknowledgement and Intake Short Sale Acknowledgement: signed and dated Bank Authorization to Release Information: sign and dated Short Sale Information Form Bank of America Authorization and Release: if your loan is with BofA Income Documentation (Please submit all that apply) Two (2) most recent Pay Stubs (2 for each Borrower) if you are a wage earner Unemployment Statement for 2 recent months - if you are receiving Unemployment Retirement, pension and/or annuity statements for 2 most recent months Disability statement for 2 most recent months If self-employed: P & L Statement for most recent 6 months, signed and dated If you have NO income: provide a Letter of explanation, signed and dated If you receive rental income: provide all rental agreements Financial Worksheet Financial Statement: completed in entirety, signed and dated. This document should be as complete as possible and include all monthly expenses. Specific bank Financial Worksheet: may be provided to you for completion if required Hardship Letter Write a Hardship letter using the Hardship Letter Guidelines, explaining why you are experiencing a financial hardship and are requesting a short sale. It must be signed and dated by all Borrowers. Supporting Documents Two (2) most recent bank statements for all accounts, all pages; must indicate your name and account number); if you transfer funds to/from different bank accounts you must provide all accounts If you have no bank account: provide a Letter of Explanation, signed and dated Two (2) most current Tax Returns, all pages; page 2 of returns must be signed If you did not file a recent tax return, provide proof of extension 4506T- Request for Transcript of Tax Return: signed and dated Dodd Frank form: signed and dated Most recent mortgage statement(s) for all liens no matter how old (this is extremely important) Current HOA statement (if applicable) Current Utility bill (showing Borrower name and property address) Checklist for Seller Documents

15 SHORT SALE ACKNOWLEDGEMENT Fidelity National Title Agency of Nevada, Inc. has been selected to provide support services in connection with the processing of the short sale for the property located at: Address City State Zip The Seller(s) of the above property does hereby acknowledge that: 1) A short sale is a sale of mortgaged property where the Seller s lender(s) agrees to receive less than the full amount outstanding on the loan and release the property from the lien of the mortgage. In a short sale the Seller(s) is usually not permitted to receive any cash proceeds from the sale of the property (except for any lender agreed-to incentives), not permitted to remain in the property past the closing date and not permitted to retain any interest in the property. 2) As the escrow holder in this transaction, Fidelity National Title Agency of Nevada, Inc. is acting solely as a neutral third party and is not responsible for the negotiation of a short sale agreement on behalf of the Seller(s). Fidelity National Title Agency of Nevada, Inc. will assist in obtaining short sale approval by collecting and submitting documents to the Lender(s) and communicating with the Real Estate Agent. Seller(s) understands that the submission of documents does not guarantee that the Lender(s) will consider and/or approve the short sale. 3) There may be risks involved with a short sale including but not limited to: negative financial and/or credit consequences, potential tax liability, a possible cash contribution and/or unsecured promissory note for all or a portion of the balance due and the possibility that the Lender(s) may or may not waive the remaining deficiency balance. Additionally, the Lender(s) may pursue a foreclosure if mortgage payments on the loan are missed. 4) Fidelity National Title Agency of Nevada, Inc. is not a financial advisor, attorney or accountant and cannot provide tax or legal advice in connection with any consequences of a short sale and advises the Seller(s) to seek guidance from an attorney and/or tax advisor and/or CPA before proceeding with the short sale. 5) The Seller(s) does hereby waive and release Fidelity National Title Agency of Nevada, Inc., and the Real Estate Agent(s) representing the Seller on this short sale transaction, from any liability associated with the short sale of this property related to the above possible consequences and/or any other potential negative consequences that may be experienced as a result of this short sale. Short Sale Acknowledgement (2 pages) 1

16 By signing this Acknowledgement the Seller does hereby certify that all documentation and information provided is accurate and true. Seller Signature Date Print Name Seller Signature Date Print Name Short Sale Acknowledgement (2 pages) 2

17 *** BANK AND FINANCIAL INSTITUTION *** AUTHORIZATION TO RELEASE INFORMATION Date ATTN: Short Sale and/or Loss Mitigation 1 st Lien: Loan Number: 2 nd Lien: Loan Number: Seller(s): Property Address: City State Zip To Whom It May Concern: I/We hereby give my/our permission to anyone and everyone affiliated with your company to communicate with my/our representatives: DESIGNATED REPRESENTATIVES Fidelity National Title and any and all Real Estate Agent: employees including: Heather Whelan Diane Schramel Escrow Officer: 6180 Brent Thurman Way Suite #160 (702) (702) Fax I/We further give my/our permission for any and all employees of your company to communicate in the exact same manner, and provide them any and all information that you would normally extend to me/us to request, obtain and verify any and all mortgage loan information including, but not limited to payoff, arrearage, and reinstatement amounts as well as financial history. The information obtained is to be used for the purpose of facilitating the resolution of my/our short sale. This authorization shall remain in effect until revoked in writing by either borrower(s) or Designated Agent(s). Thank you for your assistance. Seller Date Seller Date Printed Name Printed Name Social Security Number Social Security Number Authorization

18 w w w SHORT SALE INFORMATION SHEETw w w SELLER INFORMATION Seller #1 Seller #2 Name Name Property Address SS # Date of Birth SS# Date of Birth Mailing Address (if different): Mailing Address (if different): Ho Ph # Cell # Ho Ph # Cell # Address: Address: Are you in active BK? No Yes If yes, attorney s name: PROPERTY AND MORTGAGE INFORMATION Primary Residence Investment Home Second Home Property is: Owner Occupied Tenant Occupied Vacant As of what date: 1 st Lender Loan # Approx. Balance $ Monthly Payment: $ Are mortgage payments current? Yes No Date of last mortgage payment: 1 st Loan is: Conventional FHA VA Mortgage Insurance 2 nd Lender Loan # Approx. Balance $ Monthly Payment: $ Are mortgage payments current? Yes No Date of last mortgage payment: 2 nd loan is: Fixed loan Home Equity Line of Credit Private Loan HOA: Yes No Name: Are HOA dues current? Yes No Are taxes and insurance impounded? Yes No Are taxes past due? Yes No Does Property Require repairs? Yes No Estimated repair cost: $ AGENT INFORMATION Agent Name: Cell # Agent Assistant Name: Cell # address: address: Short Sale Information Sheet

19 w w w FINANCIAL STATEMENT w w w Section A BORROWER AND CO-BORROWER INFORMATION Date Loan Number Property Address City State Zip Property is:q Primary Residence q 2 nd Home q Investment Total number of persons at this address: Borrower Name Social Security Number Date of Birth Mailing Address City State Zip Home Phone Work Phone Employer s Name Length of Employment Monthly Net/Take Home Pay Additional Monthly Income (Describe) Co-Borrower Name Social Security Number Date of Birth Mailing Address City State Zip Home Phone Work Phone Employer s Name Length of Employment Monthly Net/Take Home Pay Additional Monthly Income (Describe) ASSETS Est. Value Balance Due Net Value Home (Property Being Short Sold) $ $ $ Other Real Estate: Other Real Estate: Other Real Estate: Cash Checking Savings Retirement Accounts Stocks/Bonds/CD s Automobile #1 Automobile #2 Other (Describe) Total Assets $ MONTHLY INCOME Borrower Co-Borrower Wages/Salary (Gross) Wages/Salary (Gross) Child support/alimony Child support/alimony Disability Disability Social Security Social Security Pension/Retirement Pension/Retirement Self-employment, Tips, Commissions Self-employment, Tips, Commissions Rental Income Rental Income Unemployment Unemployment Other: Other: Total Borrower Income $ Total Co-Borrower Income $ Total Income for Both $ Financial Statement 2 Pages 1

20 w w w FINANCIAL STATEMENT w w w SECTION B Subject Property Other Properties Dues/Property Expenses Vehicle Expenses Credit Cards Other Loans Utility Expenses MONTHLY EXPENSES Housing Insurance First Mortgage Health Insurance Second Mortgage Dental (Not deducted from Other Mortgage(s) Life payroll) Rent/Lease Paid Other: HOA Dues Total Insurance $ Maintenance/Repairs Medical Total Housing $ Medical Doctor/Dentist Automobile (Not covered by Medication Auto 1/Lease insurance) Hospital Auto 2/Lease Total Medical $ Gasoline Child Care/Family Support Maintenance/Repairs Child Support Insurance Child Care Child Care Total Auto $ Alimony Credit Cards Family Support Family Visa Other Mastercard Total Care and Support $ Discover Food and Personal American Express Food Family Food Other: Clothes Other: Clothing Laundry/Dry Cleaning Total Credit Cards $ Education Tuition/Housing Other Loans Church/Charity Donations Student Loans Entertainment Entertainment Finance Company Other Explain Other Installment Other Total Other Loans $ Total Food and Personal $ Utilities ***Summary*** Electricity/Gas Water/Sewer/Trash Total NET Income $ Cable Internet Total Expenses Telephone Total Utilities $ Monthly Shortage $ w w w FINANCIAL STATEMENT w w w Section C ACKNOWLEDGEMENT I (We) understand that the financial information provided is true and correct as of the date set forth next to my/our signature(s). I (We) understand and acknowledge any action taken by the lender(s) of my(our) mortgage loan on my (our) behalf will be made in strict reliance on the financial information provided and it is understood that any intentional and/or negligent misrepresentation of the information contained herein may result in civil liability and/or criminal penalties. Borrower Signature Date Co-Borrower Signature Date Financial Statement 2 Pages 2

21 HARDSHIP LETTER GUIDELINES The hardship letter is probably the most important document a Homeowner will submit to the short sale lender(s). It gives the Homeowner an opportunity to explain the events that caused them to fall behind on the mortgage payments and tells the lender the Homeowner s story. When writing a hardship letter, remember you are telling your story to a real person who is going to read your letter. The hardship letter should be thorough, yet concise, and contain the following information written in your own words: 1. What are your hardships (current and past) that changed your financial situation and affected your ability to pay the mortgage? Examples are: loss of job or reduction in income, business failure, medical problems (personal or family), death of a spouse or family member, divorce/separation, job relocation, military service, mortgage adjustments causing an increase in payments, excessive credit card debt, etc. 2. Explain the events that caused you to become delinquent in your house payments, state specific dates and list events in chronological order if possible. 3. Explain any actions you have taken to overcome your financial challenges. 4. If you are trying to avoid bankruptcy or foreclosure, state: I don t want to have to file bankruptcy or go into foreclosure. 5. Make a formal request for consideration of a short sale. 6. The letter must be signed and dated by the Borrower and Co-Borrower on the loan. NOTE: ***Declining property value is not a hardship!*** To Whom It May Concern: Sample Hardship Letter I purchased my home in 2004 and we had the income at the time to support the mortgage. In November of 2008 I was in a serious car accident and could no longer work. My wife struggled to keep our family afloat but she worked in the construction industry as a secretary and was laid off in She has since been working as a temp and over the past 2 years we have exhausted all of our savings, retirement funds and children s college funds. We requested a refinance of our loan and a loan modification but the bank denied our requests. We are not in a position to continue making the mortgage payment but are trying to avoid bankruptcy and/or foreclosure. We are requesting that you please consider us for a short sale as we feel it the best option for the bank and for us. Thank you for your help and consideration in this matter. Sincerely, Mr. and Mrs. Homeowner 2/14/2015 Hardship Letter Guidelines

22 Form 4506-T (Rev. January 2012) Department of the Treasury Internal Revenue Service Request for Transcript of Tax Return Request may be rejected if the form is incomplete or illegible. OMB No Tip. Use Form 4506-T to order a transcript or other return information free of charge. See the product list below. You can quickly request transcripts by using our automated self-help service tools. Please visit us at IRS.gov and click on "Order a Transcript" or call If you need a copy of your return, use Form 4506, Request for Copy of Tax Return. There is a fee to get a copy of your return. 1a Name shown on tax return. If a joint return, enter the name shown first. 1b First social security number on tax return, individual taxpayer identification number, or employer identification number (see instructions) 2a If a joint return, enter spouse s name shown on tax return. 2b Second social security number or individual taxpayer identification number if joint tax return 3 Current name, address (including apt., room, or suite no.), city, state, and ZIP code (see instructions) 4 Previous address shown on the last return filed if different from line 3 (see instructions) 5 If the transcript or tax information is to be mailed to a third party (such as a mortgage company), enter the third party s name, address, and telephone number. Caution. If the tax transcript is being mailed to a third party, ensure that you have filled in lines 6 through 9 before signing. Sign and date the form once you have filled in these lines. Completing these steps helps to protect your privacy. Once the IRS discloses your IRS transcript to the third party listed on line 5, the IRS has no control over what the third party does with the information. If you would like to limit the third party's authority to disclose your transcript information, you can specify this limitation in your written agreement with the third party. 6 Transcript requested. Enter the tax form number here (1040, 1065, 1120, etc.) and check the appropriate box below. Enter only one tax form number per request. a b Return Transcript, which includes most of the line items of a tax return as filed with the IRS. A tax return transcript does not reflect changes made to the account after the return is processed. Transcripts are only available for the following returns: Form 1040 series, Form 1065, Form 1120, Form 1120A, Form 1120H, Form 1120L, and Form 1120S. Return transcripts are available for the current year and returns processed during the prior 3 processing years. Most requests will be processed within 10 business days Account Transcript, which contains information on the financial status of the account, such as payments made on the account, penalty assessments, and adjustments made by you or the IRS after the return was filed. Return information is limited to items such as tax liability and estimated tax payments. Account transcripts are available for most returns. Most requests will be processed within 30 calendar days. c Record of Account, which provides the most detailed information as it is a combination of the Return Transcript and the Account Transcript. Available for current year and 3 prior tax years. Most requests will be processed within 30 calendar days Verification of Nonfiling, which is proof from the IRS that you did not file a return for the year. Current year requests are only available after June 15th. There are no availability restrictions on prior year requests. Most requests will be processed within 10 business days.. 8 Form W-2, Form 1099 series, Form 1098 series, or Form 5498 series transcript. The IRS can provide a transcript that includes data from these information returns. State or local information is not included with the Form W-2 information. The IRS may be able to provide this transcript information for up to 10 years. Information for the current year is generally not available until the year after it is filed with the IRS. For example, W-2 information for 2010, filed in 2011, will not be available from the IRS until If you need W-2 information for retirement purposes, you should contact the Social Security Administration at Most requests will be processed within 45 days... Caution. If you need a copy of Form W-2 or Form 1099, you should first contact the payer. To get a copy of the Form W-2 or Form 1099 filed with your return, you must use Form 4506 and request a copy of your return, which includes all attachments. 9 Year or period requested. Enter the ending date of the year or period, using the mm/dd/yyyy format. If you are requesting more than four years or periods, you must attach another Form 4506-T. For requests relating to quarterly tax returns, such as Form 941, you must enter each quarter or tax period separately. Check this box if you have notified the IRS or the IRS has notified you that one of the years for which you are requesting a transcript involved identity theft on your federal tax return Caution. Do not sign this form unless all applicable lines have been completed. Signature of taxpayer(s). I declare that I am either the taxpayer whose name is shown on line 1a or 2a, or a person authorized to obtain the tax information requested. If the request applies to a joint return, either husband or wife must sign. If signed by a corporate officer, partner, guardian, tax matters partner, executor, receiver, administrator, trustee, or party other than the taxpayer, I certify that I have the authority to execute Form 4506-T on behalf of the taxpayer. Note. For transcripts being sent to a third party, this form must be received within 120 days of the signature date. Phone number of taxpayer on line 1a or 2a Sign Here Signature (see instructions) Title (if line 1a above is a corporation, partnership, estate, or trust) Date Spouse s signature For Privacy Act and Paperwork Reduction Act Notice, see page 2. Cat. No N Form 4506-T (Rev ) Date

23 Form 4506-T (Rev ) Page 2 Section references are to the Internal Revenue Code unless otherwise noted. What's New The IRS has created a page on IRS.gov for information about Form 4506-T at Information about any recent developments affecting Form 4506-T (such as legislation enacted after we released it) will be posted on that page. General Instructions CAUTION. Do not sign this form unless all applicable lines have been completed. Purpose of form. Use Form 4506-T to request tax return information. You can also designate (on line 5) a third party to receive the information. Taxpayers using a tax year beginning in one calendar year and ending in the following year (fiscal tax year) must file Form 4506-T to request a return transcript. Note. If you are unsure of which type of transcript you need, request the Record of Account, as it provides the most detailed information. Tip. Use Form 4506, Request for Copy of Tax Return, to request copies of tax returns. Where to file. Mail or fax Form 4506-T to the address below for the state you lived in, or the state your business was in, when that return was filed. There are two address charts: one for individual transcripts (Form 1040 series and Form W-2) and one for all other transcripts. If you are requesting more than one transcript or other product and the chart below shows two different addresses, send your request to the address based on the address of your most recent return. Automated transcript request. You can quickly request transcripts by using our automated self-help service tools. Please visit us at IRS.gov and click on Order a Transcript or call Chart for individual transcripts (Form 1040 series and Form W-2 and Form 1099) If you filed an individual return and lived in: Alabama, Kentucky, Louisiana, Mississippi, Tennessee, Texas, a foreign country, American Samoa, Puerto Rico, Guam, the Commonwealth of the Northern Mariana Islands, the U.S. Virgin Islands, or A.P.O. or F.P.O. address Alaska, Arizona, Arkansas, California, Colorado, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Montana, Nebraska, Nevada, New Mexico, North Dakota, Oklahoma, Oregon, South Dakota, Utah, Washington, Wisconsin, Wyoming Connecticut, Delaware, District of Columbia, Florida, Georgia, Maine, Maryland, Massachusetts, Missouri, New Hampshire, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, South Carolina, Vermont, Virginia, West Virginia Mail or fax to the Internal Revenue Service at: RAIVS Team Stop 6716 AUSC Austin, TX RAIVS Team Stop Fresno, CA RAIVS Team Stop 6705 P-6 Kansas City, MO Chart for all other transcripts If you lived in or your business was in: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Florida, Hawaii, Idaho, Iowa, Kansas, Louisiana, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Mexico, North Dakota, Oklahoma, Oregon, South Dakota, Texas, Utah, Washington, Wyoming, a foreign country, or A.P.O. or F.P.O. address Connecticut, Delaware, District of Columbia, Georgia, Illinois, Indiana, Kentucky, Maine, Maryland, Massachusetts, Michigan, New Hampshire, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, South Carolina, Tennessee, Vermont, Virginia, West Virginia, Wisconsin Mail or fax to the Internal Revenue Service at: RAIVS Team P.O. Box 9941 Mail Stop 6734 Ogden, UT RAIVS Team P.O. Box Stop 2800 F Cincinnati, OH Line 1b. Enter your employer identification number (EIN) if your request relates to a business return. Otherwise, enter the first social security number (SSN) or your individual taxpayer identification number (ITIN) shown on the return. For example, if you are requesting Form 1040 that includes Schedule C (Form 1040), enter your SSN. Line 3. Enter your current address. If you use a P. O. box, include it on this line. Line 4. Enter the address shown on the last return filed if different from the address entered on line 3. Note. If the address on lines 3 and 4 are different and you have not changed your address with the IRS, file Form 8822, Change of Address. Line 6. Enter only one tax form number per request. Signature and date. Form 4506-T must be signed and dated by the taxpayer listed on line 1a or 2a. If you completed line 5 requesting the information be sent to a third party, the IRS must receive Form 4506-T within 120 days of the date signed by the taxpayer or it will be rejected. Ensure that all applicable lines are completed before signing. Individuals. Transcripts of jointly filed tax returns may be furnished to either spouse. Only one signature is required. Sign Form 4506-T exactly as your name appeared on the original return. If you changed your name, also sign your current name. Corporations. Generally, Form 4506-T can be signed by: (1) an officer having legal authority to bind the corporation, (2) any person designated by the board of directors or other governing body, or (3) any officer or employee on written request by any principal officer and attested to by the secretary or other officer. Partnerships. Generally, Form 4506-T can be signed by any person who was a member of the partnership during any part of the tax period requested on line 9. All others. See section 6103(e) if the taxpayer has died, is insolvent, is a dissolved corporation, or if a trustee, guardian, executor, receiver, or administrator is acting for the taxpayer. Documentation. For entities other than individuals, you must attach the authorization document. For example, this could be the letter from the principal officer authorizing an employee of the corporation or the letters testamentary authorizing an individual to act for an estate. Privacy Act and Paperwork Reduction Act Notice. We ask for the information on this form to establish your right to gain access to the requested tax information under the Internal Revenue Code. We need this information to properly identify the tax information and respond to your request. You are not required to request any transcript; if you do request a transcript, sections 6103 and 6109 and their regulations require you to provide this information, including your SSN or EIN. If you do not provide this information, we may not be able to process your request. Providing false or fraudulent information may subject you to penalties. Routine uses of this information include giving it to the Department of Justice for civil and criminal litigation, and cities, states, the District of Columbia, and U.S. commonwealths and possessions for use in administering their tax laws. We may also disclose this information to other countries under a tax treaty, to federal and state agencies to enforce federal nontax criminal laws, or to federal law enforcement and intelligence agencies to combat terrorism. You are not required to provide the information requested on a form that is subject to the Paperwork Reduction Act unless the form displays a valid OMB control number. Books or records relating to a form or its instructions must be retained as long as their contents may become material in the administration of any Internal Revenue law. Generally, tax returns and return information are confidential, as required by section The time needed to complete and file Form 4506-T will vary depending on individual circumstances. The estimated average time is: Learning about the law or the form, 10 min.; Preparing the form, 12 min.; and Copying, assembling, and sending the form to the IRS, 20 min. If you have comments concerning the accuracy of these time estimates or suggestions for making Form 4506-T simpler, we would be happy to hear from you. You can write to: Internal Revenue Service Tax Products Coordinating Committee SE:W:CAR:MP:T:M:S 1111 Constitution Ave. NW, IR-6526 Washington, DC Do not send the form to this address. Instead, see Where to file on this page.

24