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Jeff Barta - Keller Williams Realty

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Jeff Barta - Keller Williams Realty Powered By Docstoc
					Dear Property Owner,

         This is your Short Sale package ready for completion. It may seem overwhelming and hard to imagine that all this
paperwork needs to be completed for a Short Sale. However, all requested documents are quite necessary in order to negotiate
with the bank. You will need to send as much information as possible to accurately convey your unfortunate situation. The
banks are receiving hundreds of Short Sale requests daily; therefore, the more information you can provide to the bank the
better your odds are of receiving an approval to proceed with the Short Sale.

The following documents are enclosed in this package:

Information

    Alternative to Foreclosure
    The Foreclosure Process
    What is a “Short Sale”?
    Short Sale Expectations and Timeline
    Short Sale Documentation Checklist
    Hardship Letter Guidelines
    Sample Hardship Letters

To Be Completed and/or Executed:

    Advice to Seek Counsel
    Client Information Sheet
    Property Information Sheet
    Foreclosure Disclaimer
    Borrowers Authorization
    Please Do Not Contact
    Financial Statement

Appendix

    Lack of Evidence Disclosure
    IRS New Release
    Mortgage Forgiveness Debt Relief Act
    Information Reference Directory

Please return this package via fax, email, or 1st Class Mail Delivery within 7 days (to the above address) so we may start the
Short Sale process and list your property immediately. Time is of the essence. Please don’t hesitate to call with any questions
you may have; and there are no bad questions. We at Keller Williams are here to help you every step of the way and to make
this as easy as possible for you to move past this current challenge you are facing.


Sincerely,

Jeff Barta




                           FOR LEGAL OR TAX ADVICE, CONSULT YOUR ATTORNEY OR TAX ADVISOR

                             3100 S. Durango Dr. #106 Las Vegas, NV 89117 Phone: 702-235-6930 Fax: 702-212-2223
                                                Client Information
Date: ________________________

Borrower: ____________________________________ Co-Borrower: ___________________________________

Borrower SS #:________________________________ D.O.B.: ______________________

Co-Borrower SS#:_____________________________ D.O.B.: ______________________


Subject Property Address:
_______________________________________________________________________________________________

Mailing Address:
_______________________________________________________________________________________________

Home: ___________________ Cell: ___________________ Email: _____________________________________

Best Method and Time to reach you? ______________________________________________________________




Are Property Taxes Paid Current? YES    NO Is HOA Paid Current      Yes    No    Not Applicable
Name of HOA: ___________________________________ Phone No.: ___________________________________

1ST Lender: ______________________________________ Loan #:_______________________________________

Phone No.:________________________________________ Fax No.:_____________________________________

# Of Late Payments: ______ NOD Filed?           YES Date:_________             NO Notice of Trustee Sale?:       YES   NO

2nd Lender: ______________________________________ Loan #:________________________________________

Phone No.:________________________________________ Fax No.:_____________________________________

# Of Late Payments: ______ NOD Filed?           YES Date:_________             NO Notice of Trustee Sale?:       YES   NO

Any Other Liens? ________________________________________________________________________________

Are you currently living in property?     Yes       No          Is Property Vacant?          Yes      No

If you currently live in property, when are you able to move? __________________________________________




                          FOR LEGAL OR TAX ADVICE, CONSULT YOUR ATTORNEY OR TAX ADVISOR

                            3100 S. Durango Dr. #106 Las Vegas, NV 89117 Phone: 702-235-6930 Fax: 702-212-2223
                                                   Property Information
Subject Property Address: _________________________________ Unit No.: _____________ Bldg. No.: ________________

City: _____________________________________                          State: _____________                     Zip: _____________________

Community Name: _______________________________ Subdivision Name: _________________________________________

Name of HOA: _____________________________________________ Phone No.: _____________________________________

Sub-HOA: _________________________________________________ Phone No.: _____________________________________

Aprox. Sq. Ft.: __________   Lot Sq. Ft: _________
#of Bedrooms: ________ # of Full Baths: ______ # of ½ Baths: ______ # if Bath. Downstairs: ______ (Full                          ½     )

Great Room:          Yes     No         Loft:     Yes       No       # of Dens/Other: _________

Carport?       Yes     No                                                       # of Garage: _______ Converted Garage:           Yes       No

Parking Description:                Open Parking
   Assigned Cov.                    Assigned Un-Cov.
   Assigned Un-Cov.                 Valet Parking                                   Attic                  Entry to House       RV Garage
   No Street Parking                                                                Attached               Exterior Door        Storage
                                                                                    Auto Door              Finished             Workshop
Assoc. /Community Features and Descriptions:
                                                                                    Breezeway              Garage Cooled        Tandem
                                                                                    Detached               Golf Cart Park.
   Age Restricted            Common Wall              Jogging                      Playground                 RV Rest             Storage
   CC&R’s                    Exercise Rm.             Laundry Fac.                 Comm. Pool                 Security            Tennis
   Club House                Gated                    Rec. Room                    Security Syst.             Waterscape          Comm. Club
   Comm. Golf                Guard Gated              Sep. RV Park                 Guest Parking              Pet Friendly        Racquet
   Spa                                                                                                                            None
Assoc. Fee Includes:
   Alarm                     Concierge                Elevator                     Mgmt                        Sewer              Trash
   Water                     Comm. Tax                Recreation Area              Security                    Insurance          Reserve

Master Assoc.              Sub. Assoc.            SID/LID?                     SID/LID :                   Assessment?         Type:
Fee: $_________            Fee: $__________          Yes   No                  $________Annual                Yes    No        M/Q/Y
      M/Q/Y                      M/Q/Y                                         $________Balance            Amount: $______
Annual Tax:                $_______________

Building Description:                                      Property Description:

   1 Story                  2 Story                              Casita                          Guest House
   3 Story                  High Rise                            Custom                          Manufacture
   Loft Living              3 Story +                            Expand                          Guest qt
   Penthouse                Basement                                                             Handicap
   Tri Level                Other
   Studio

                               FOR LEGAL OR TAX ADVICE, CONSULT YOUR ATTORNEY OR TAX ADVISOR

                                  3100 S. Durango Dr. #106 Las Vegas, NV 89117 Phone: 702-235-6930 Fax: 702-212-2223
Please check what Appliances will be sold with property:

   Refrigerator    Dishwasher        Disposal        Washer        Dryer       Microwave            Oven      Other ___________

Type of Oven:
  Built In    Cook Top Gas         Cook Top Elect.          Dbl. Oven          Conv. Oven            Warming Drawer        Stove Elec.
  Stove Gas     None

Interior Descriptions:
   Alarm / L              Drapes                 Pot shelves               Window Cov.
   Alarm / O              Drywall                Shutters                  Partial Win. Cov
   Atrium                 Handicap               Skylight
   Blinds                 Intercom               Sunroom
   Ceiling Fans           Panels                 Unfinished


#of Fireplaces: _______ Location: _______ Type: _________                  House Faces:         N      S     E    W

House Views:                                                    Flooring Description:
  City                   Green Park                                 Carpet                    Hardwood
  Golf Course            Strip                                      Ceramic                   Mex. Tile
  Lake                   Other ___________                          Concrete                  Vinyl
  Mountains                                                         Marble                    Other ____________
Exterior Description:
   Balcony                BBQ Stub               Bi-BBQ Stub               Court Yard
   Dog Run                Priv Tennis            Covered Patio             Circular Drive
   Patio                  Priv. Yard             Deck                      Secure Entrance
   Porch                  RV Hook-up             Enclosed Patio            Skirting
   Encl. Porch            Sec. Bars              Green House               Other __________

Landscaping Description
  Bubbler Drip             Fruit                    Shrubs
  Desert Front             Garden                   Side Sprinkler
  Desert Back              Front Lawn               Synthetic Grass
  Front Sprinkler          Back Lawn                Waterscape
  Back Sprinkler           Rock                     Fountain

Heating Desc.                                                          Cooling System:
  2 Units +               Combo                  Wood Burning            2 Units+                          Combo            Window
  Central                 Wall                   Solar                   Central                           Evap           Ground Mounted:
  None                    Gas                    Elec.                   None                              Refridg.         Yes   No

Utility                                                                                       Water                   Sewer:
   220 Gar                  Cable Avail             No Elect              Sat. Dish             Comm. Well               Public
   Above Ground             Cable Wire              No Gas                Underground           Public                   Septic
   All Elect                Generator               No Phone                                    Well



                            FOR LEGAL OR TAX ADVICE, CONSULT YOUR ATTORNEY OR TAX ADVISOR

                             3100 S. Durango Dr. #106 Las Vegas, NV 89117 Phone: 702-235-6930 Fax: 702-212-2223
Private Pool:   Yes    No Private Spa:       Yes       No       Length: _________ Width: ___________

Pool Description:                                                                     Spa Description
  Above Ground             Fiber Glass                    Sep Fence                     Above Ground           Swim Spa
  Auto Cover               Heated                         Solar Cover                   Ceramic                Waterfall
  Beach                    Indoor                         Waterfall                     Fiberglass             In Ground
  Ceramic                  In ground                      Other ______                  Indoor                 Out Door
  Disappearing Edge        Pool/Spa Combo

Lot Description:
   Less than ¼ Acre      Existing easement             Corner                    Sep. RV Parking
   ¼-1 Acre              Cul de Sac                    Lake Front                Subdivision
   1-5 Acre              Golf Front                    Mountain                  Zero
   2 Lots+               Horses                        Paved Road                Un-Paved
   5 Acres+              Ir-regular                    RV/Boat

Roof Description:
  Tile / Tile Like       Metal                         Asphalt
  Compos                 Pitched                       Tropic
  Flat                   Shake                         Other ______
  Foam Like              Slate
  Mansard                Tar&Gra

Room Descriptions:
Living Room:
Dimensions _______       Front of House                  Additional Description: _________________________
   Built In Bookcase     Rear of House
                                                         _______________________________________________
   Entertain. Center     Sunken
   Entry Foyer           Other: __________               _______________________________________________
   Formal                None                            _______________________________________________

Family Room:
Dimensions _______       Wet Bar                       Additional Description: _________________________
  2+ Family Rooms        Built In Bookcase
                                                       _______________________________________________
  Downstairs             Other:__________
  Sep Family Room        None                          _______________________________________________
  Upstairs                                             _______________________________________________

Great Room:     Yes    No
Dimensions _______      Wet Bar                        Additional Description: _________________________
   Built In Bookcase    Other: __________              _______________________________________________
   Downstairs           None                           _______________________________________________
   Entertain. Center
                                                       _______________________________________________
   Upstairs
Dining Room: Dimensions: ____________
   Area                  Formal                           Kitchen. Dining                    Other: _______
   Breakfast Bar         Hutch                            Living Dining                      None


                        FOR LEGAL OR TAX ADVICE, CONSULT YOUR ATTORNEY OR TAX ADVISOR

                          3100 S. Durango Dr. #106 Las Vegas, NV 89117 Phone: 702-235-6930 Fax: 702-212-2223
Kitchen:     Dimensions: ___________
   Brick                   Hardwood                         Pantry                        Walk In Pantry
   Breakfast Bar            Island                          Recessed Lighting             Vinyl
   Carpet                   Laminate Counters               Island                        Other
   Concrete                 Mexican Counters                Slade Counters
   Custom Cabinets          Marble Counters                 Tile Counters
   Garden Window            Marble Stained                  Tile Flooring
   Granite Counters         Nook                            Track Lighting

Master Bedroom: Dimensions: ____________                                                        Master Bath:
  2 Master Bed.      Entertain. Center                             Walk In Closet                 Bathtub         Steam
  Built In Bookcase  Master Downstairs                             Upstairs                       Dbl. Sink       Tub Jet
  Balcony            Mirror Door                                   Other _________                Vanity          Tub/Shower Combo
  Ceiling Fan        Separate From Other Beds.                                                    Sauna           Shower
  Dressing Room      Sitting Room
                                                                                                                  Other:_____________
2nd Bedroom                                                       3rd Bedroom
   Ceiling Fan           Tel. Jack                                   Ceiling Fan                 Tel. Jack
   Built In Shelves      TV Cable                                    Built In Shelves            TV Cable
   Downstairs            Upstairs                                    Downstairs                  Upstairs
   Mirror Closet         W/Bathroom                                  Mirror Closet               W/Bathroom
   Walk In Closet        Other:_____________                         Walk In Closet              Other:_____________


4th Bedroom:                                                    5th Bedroom:
    Ceiling Fan          Tel. Jack                                  Ceiling Fan                  Tel. Jack
    Built In Shelves     TV Cable                                   Built In Shelves             TV Cable
    Downstairs           Upstairs                                   Downstairs                   Upstairs
    Mirror Closet        W/Bathroom                                 Mirror Closet                W/Bathroom
    Walk In Closet       Other:_____________                        Walk In Closet               Other:_____________

Furnished?      Yes    No      Partial

Occupancy:    Owner        Tenant         Vacant               If Tenant: Will Tenant Cooperate w/ Showings of Property?
May we place a lockbox and sign on property?                       Yes    No
   Yes     No
Contact Name: _____________________________                    Tenant Name: _______________________________________
Phone #____________________________________                    Phone #: ____________________________________________
Showing / Restrictions Instructions:                           Showing / Restrictions Instructions:
____________________________________________                   _____________________________________________________
____________________________________________                   _____________________________________________________

Additional Details you would like to note on listing: _________________________________________________________
________________________________________________________________________________________________________
________________________________________________________________________________________________________
________________________________________________________________________________________________________
________________________________________________________________________________________________________
________________________________________________________________________________________________________


                         FOR LEGAL OR TAX ADVICE, CONSULT YOUR ATTORNEY OR TAX ADVISOR

                            3100 S. Durango Dr. #106 Las Vegas, NV 89117 Phone: 702-235-6930 Fax: 702-212-2223
                                       Alternatives to Foreclosure
So, your house is in foreclosure….now what?? Try to look at the situation without attaching your emotions. Viewing the
situation from a strictly business perspective, you may be able to more successfully analyze which option might best suit your
needs and move you toward resolving your financial difficulty. One very important thing to remember; Time is of the essence,
so sit , take serious stock of your situation, make a decision, and take quick action in order to allow yourself enough time to
complete the chosen process.




                                       9 Options when facing Foreclosure:

    1.   Do Nothing: If a homeowner does nothing, they most likely will lose their home at a foreclosure auction. Loan
         applications generally ask if the applicant has ever had a foreclosure. Credit reports also disclose this damaging
         information. Therefore, doing nothing may not be the best option.
    2.   Payoff/Refinance: A homeowner may pay off the entire loan amount plus any default amount and fees. Usually this is
         accomplished through a refinance of the debt. New debt may be at a higher interest rate and there may be a
         prepayment penalty because of the recent default. If you choose this option you will want to make sure there is equity
         in the home.
    3.   Reinstatement: A homeowner may choose to pay the entire default amount plus interest, attorney fees, late fees, taxes,
         missed payments, and any other potential fees.
    4.   Loan Modification: A homeowner may utilize the existing mortgage company to refinance the debt or extend the
         terms of the loan. This may allow the homeowner to catch up at a more affordable level. To qualify, you must prove
         to the lender you have fixed the problems that caused the late payment.
    5.   Forbearance: The lender may be able to arrange a repayment plan based on the homeowners financial situation. The
         lender may even be able to provide a temporary payment reduction or suspension of payments. The lender will require
         information to show that the homeowner is able to meet the new payment plan requirements.
    6.   Partial Claims: A homeowner may apply for a loan from the lender to pay off a 2nd loan demand. This includes back
         payments, costs, and fees.
    7.   Deed in Lieu of Foreclosure: A homeowner may give the property back to the bank instead of waiting for the bank to
         foreclose. Banks generally require all mortgage payments and taxes be current and home to be well maintained. Most
         loan applications ask if the applicant has ever provided a deed in lieu of foreclosure.
    8.   Bankruptcy: A homeowner should consult with a qualified bankruptcy attorney prior to selecting this option. There
         are three types of bankruptcy options:
                   Chapter 7 (Liquidation) To settle personal debt.
                   Chapter 11 (Business Reorganization) A business debt solution.
                   Chapter 13 (Wage Earner Plan) A payment plan to pay off debts in 3-5 years.
    9.   Sale: If the property has equity (money remaining after all loans, closing costs, and monetary encumbrances are paid),
         the homeowner may sell the home without lender approval through the home sale process. In this case the
         homeowner will receive cash from the sale, paid at close of escrow. On the other hand, if the amount owed on the
         loan is MORE than the property’s current market value, a Short Sale can be negotiated with your lender.




                           FOR LEGAL OR TAX ADVICE, CONSULT YOUR ATTORNEY OR TAX ADVISOR

                             3100 S. Durango Dr. #106 Las Vegas, NV 89117 Phone: 702-235-6930 Fax: 702-212-2223
                                              The Foreclosure Process

                                                          Mortgage Payments
                                                        become DELINQUENT

               Notice of Default (NOD)                    Notice of Trustee Sale                          Trustee Sale
               (Recorded and mailed)                     (Published and Mailed)                       21 Days after 90th Day

              “Reinstatement Period”                     “Redemption Period”
             From 1-35 Days after NOD                   Starts Day 36 after NOD
[----------------------------------------------------------------------------------------------------]
                               Approximately 3 MONTHS

To Reinstate:                               To Redeem:                                         Home Sold:
   •    Trustee Fees                              •    Entire Loan Amount                             •    No Right of Redemption
   •    Back Payments                             •    Back Payments
   •    Allowable Expenses                        •    Allowable Expenses


Summary:
   1.   Trustee collects all necessary documents, orders a title search, and identifies all lien holders and other parties entitled to
        receive a “Notice of Foreclosure.”
   2.   “Notice of Default” is prepared, recorded, published, posted and mailed to all concerned parties.
   3.   Trustor (Borrower) has 35 days from the mailing of the Notice to reinstate the loan plus all expenses.
   4.   Once the 35 days has expired, the Trustor enters the second phase of the foreclosure and has an additional 75 days to
        redeem the property by paying the full amount of the loan plus all allowable expenses to date of payment.
   5.   Approximately 80 days into the process, the trustee will begin publication of the “Notice of Trustee Sale.” The notice
        must be advertised for 3 consecutive weeks. “The Notice of Trustee Sale” must also be posted in three public places for
        21 successive days.
   6.   Trustee Sale is held on the exact day stated in the “Notice of Trustee Sale”. The sale deprives the homeowner of all
        interest in the property and there is no right of redemption in the state of Nevada.
   7.   If there are no bidders at the “Trustee Sale”, the property is now owned by the bank.
   8.   If there is a successful bidder, that person becomes the new owner and has immediate rights to the property. If the
        occupants refuse to move, legal action may be taken for an eviction.




                           FOR LEGAL OR TAX ADVICE, CONSULT YOUR ATTORNEY OR TAX ADVISOR

                             3100 S. Durango Dr. #106 Las Vegas, NV 89117 Phone: 702-235-6930 Fax: 702-212-2223
                          Disclosure for Foreclosure or Short Sale

_______ _______ I understand Keller Williams Realty Las Vegas and its associates will attempt to successfully market my
property in order to save my home from foreclosure.

_______ _______ In the event of a short sale, I understand there is no guarantee the lien holder on my property will approve a
payment for less than the full amount due on the loan.

_______ _______ I understand that I am unlikely to receive any cash compensation from this transaction.

_______ _______ I have been advised that there may be tax or legal ramifications associated with saving my home from
foreclosure and I should seek advice from an attorney or tax advisor. Keller Williams Realty Las Vegas and its associates are
not attorneys or certified public accountants.

_______ _______ I understand every effort will be made to obtain full release/payoff status of my loan. Keller Williams and its
associates cannot guarantee any future actions of the lien holder regarding lender-initiated judgment for a loan deficiency as a
result of a short sale.

_______ _______ I understand an associate with Keller Williams Realty Las Vegas may be a bidder for the subject property at
a trustee’s sale and, if successful, may ultimately resell the property for a profit.

_______ _______ I understand Keller Williams Realty Las Vegas and its associates may become the listing brokerage for the
lien holder if the property is taken through foreclosure.



_________________________________________________________________________________________
Property Address



_________________________________________________________________________________________
Signature                                  Print                               Date



____________________________________________________ ____________________________________
Signature                                  Print                                Date



_________________________________________________________________________________________
Keller Williams Associate                  Print                               Date




                           FOR LEGAL OR TAX ADVICE, CONSULT YOUR ATTORNEY OR TAX ADVISOR

                             3100 S. Durango Dr. #106 Las Vegas, NV 89117 Phone: 702-235-6930 Fax: 702-212-2223
                                             What is a “Short Sale”?
WHAT IS A SHORT SALE? A “Short Sale” (Also referred to as: “Negotiated Settlement”, “Short Pay” or “Pre-Foreclosure”)
occurs when a Lender agrees to accept less than the amount owed on the original note or total payoff, as an alternative to
foreclosure. If the property is worth less than the amount owed on the loan, even a foreclosure would result in a loss for the
Lender. Often a Lender’s bottom line will dictate the benefits of accepting less money in a sale now versus the cost of the
foreclosure process and selling the home as its new owner.
HOW LONG WILL IT TAKE? The Short Sale negotiation process can be rather lengthy. It may take several weeks to
several months for an approval. Many Lenders will have several layers of bureaucracy, insurers, and investors to maneuver
through in order to get a Short Sale approved. It is important to be patient during this long process.
BUY MY HOUSE IS GOING TO FORECLOSURE, WILL I HAVE ENOUGH TIME? Maybe - maybe not. Accepting a
buyer’s offer WILL NOT automatically stop the foreclosure process. However, many times a Lender can be persuaded to delay
the foreclosure to allow an attempt to negotiate the Short Sale. There are no guarantees, but many sellers have been successful..
CAN I STAY IN THE HOUSE? The key word in a “Short Sale” is sale. The purpose of a Short Sale is to get the property sold
prior to foreclosure. This is not a program that will stop a foreclosure and allow you to keep the house indefinitely. If
successful, a new buyer will move into the home. Therefore, you should most certainly begin making plans to vacate the
property.
HOW DO I KNOW THIS WILL WORK? There are no guarantees. No promises will be made. A missed payment means
the Lender has the option to foreclosure. Presenting alternatives to the Lender that highlight the benefits of the Short Sale as
opposed to moving forward with a foreclosure is part of the negotiating process. We are skilled at what we do, but NO
GUARANTEES will be made concerning the Lender’s acceptance of the Short Sale.
WILL I GET ANY MONEY FROM THE SALE? No. A universal requirement of Lenders when approving a Short Sale is
that the owner/ borrower will not get any proceeds from the sale of the property. The Lender will be accepting a loss on your
loan; they will most certainly not allow you to profit from the situation.
WHAT HAPPENS IF THIS DOESN’T WORK? Your house will likely go to foreclosure. A Short Sale is something tried
after you have exhausted your other options.
WHAT IS A “RELEASE”? A Lender may offer a “release” which is a security instrument against the property in exchange for
a repayment of less than the total amount of the loan. A release will allow the property to be sold without paying off the
obligations of the loan. However, the loan is not satisfied. Advantages: A successful Short Sale will allow the property to be
sold thus avoiding foreclosure. Disadvantages: The remaining debt on the property (sometimes called a “deficiency”) still exists.
You are still liable for the loan and still owe the money to the Lender. Reality: The Nevada Revised Statutes allow certain time
periods for first and subordinate lien holders to pursue a deficiency judgment. Keller Williams and its associates recommend
sellers seek the advice of a qualified expert on deficiency judgments.
WHAT IS A SATISFACTION? A Lender may agree to accept less than owed as complete and total satisfaction of the loan
and release its lien against the property. Advantages: Your note and obligation to the Lender are satisfied for less than you owed.
When the property is sold, the debt is paid off completely. Disadvantages: You may have some tax consequences as a result of
the debt relief. Keller Williams and its associates recommend you discuss potential consequences with a qualified tax advisor.
HOW CAN I HELP? The Lender will require a review of a financial package that usually includes: two (2) months of bank
statements, two (2) months of paycheck stubs, two (2) years of tax returns, a Financial Worksheet and possibly other
information. The leading reason for delay and eventual denial of a short sale approval by the Lender is due to the Seller’s
failure to cooperate and/or deliver the necessary documents in a timely manner. To help your success in this Short Sale, please
immediately collect as much of this information as possible, complete the attached “Financial Worksheet”, and return it to this
office. These things will help increase your likelihood of a successful Short Sale.




                            FOR LEGAL OR TAX ADVICE, CONSULT YOUR ATTORNEY OR TAX ADVISOR

                              3100 S. Durango Dr. #106 Las Vegas, NV 89117 Phone: 702-235-6930 Fax: 702-212-2223
                                   Short Sale Expectations and Timeline
Marketing your home:
Your home will be shown to both investors and traditional buyers. During this process your home could be shown several
times in one day. The goal is to get the highest and best offer in the shortest time possible. Those viewing or calling to view
your home have been instructed not to bother you with questions regarding the short sale so feel free to decline to answer any
questions put to you.
The Offer:
Once an offer is received on your property you and your agent will schedule an appointment to review the terms and sign the
Purchase Agreement. The offer and all supporting documentation from you (called the “Short Sale package”) will be submitted
to the Lender(s) for review and (hopefully) approval. Escrow will be opened and the terms of the Purchase Agreement will be
followed. Your property will be put into Contingent status in the MLS, with “short sale approval” as the contingency.
The Process:
Once the offer(s) have been sent to the lender(s), the Short Sale process can take anywhere from several weeks to several
months. This timeline varies with each Lender. Your agent will discuss update options and your preferred method of contact.
Due to the high volume of calls from prospects, clients, agents, escrow offices, and Lenders, please be aware that response time
can occasionally be delayed. It is a stressful time and every effort within our control will be made to keep stress at a minimum.
After review of the Short Sale package, a BPO (Broker Price Opinion) will be ordered by the Lender. This provides market
activity and price comparables to aid the Lender in computing net proceeds. If there are subordinate loans such as a second or a
HELOC (Home Equity Line of Credit) negotiations with each Lender must be successful for a full Short Sale approval.
The Approval:
When the Short Sale package has been approved by the Lender, you will be notified and will have the opportunity to review the
Lender’s terms of the approval. The buyer will have the same opportunity. Any new terms required by the Lender will be added
to the Purchase Agreement with an addendum signed by both parties. If either the buyer or seller reject the Lender’s terms then
the transaction will cancel and the property will be put back into available status in the MLS. If both agree, the transaction will
proceed to close, following the terms of the Purchase Agreement.

The Lender may demand to close escrow anywhere from 10-30 days from the date of the approval, so all parties must be
prepared to complete the obligations of the Purchase Agreement.
** If the escrow does not close on time, the lender may decide to proceed with foreclosure thus severing the opportunity for all
parties involved to complete a successful transaction. **
The Close of Escrow:
You, as the seller, will make an appointment to sign seller documents at the escrow office. Please bring a government issued
identification such as a driver’s license, passport, or military ID. Also bring all keys to the property, garage door openers, and
any other applicable property items for the buyers.




                            FOR LEGAL OR TAX ADVICE, CONSULT YOUR ATTORNEY OR TAX ADVISOR

                              3100 S. Durango Dr. #106 Las Vegas, NV 89117 Phone: 702-235-6930 Fax: 702-212-2223
                        Required Short Sale Documentation Checklist:

                Please gather all of the critical documents listed below PRIOR to your Listing Appointment


            o     Advice to Seek Counsel Disclosure
            o     Client Information Sheet
            o     Property Information Sheet (4 pages)
            o     Foreclosure Disclaimer
            o     Borrower’s Authorization Form(s)
            o     Please Do Not Contact Me Form
            o     Financial Statement Sheet
            o     Hardship Letter (Examples Enclosed)
            o     Most recent Mortgage Statement(s)
            o     Copies of last 2 months Pay Stubs or letter of explanation
            o     Copies of last 2 months Bank Statement or letter of explanation
            o     Copies of last 2 Years Tax Returns or letter of explanation
            o     Copies of last 2 HOA Statements (if applicable)




** If you should have any questions or are missing any of the above mentioned documents, please call for further assistance
prior to your Listing Appointment.




                            FOR LEGAL OR TAX ADVICE, CONSULT YOUR ATTORNEY OR TAX ADVISOR

                             3100 S. Durango Dr. #106 Las Vegas, NV 89117 Phone: 702-235-6930 Fax: 702-212-2223
                                        Hardship Letter Guidelines
The goal of the Hardship Letter is to have the seller explain their situation to the Lender. It should be kept to one page and
should be clear, concise, and easy to read. It would be good to begin the letter with some version of “I’m sorry” and then
continue to explain the items below. Your letter should be honest and from the heart.

1. Hardships – What are your hardships (current and past)? Examples of such are: unemployment, car accident, medical
problems (personal or family related), divorce, death, etc. Go into a little detail about each hardship; include some of the
following in your message if it applies:

    A. Why you will not be able bring yourself current again on your loan.
    B. You do not have enough income to make these payments any longer.
    C. You are leaving the property.

2. Your Assets – Explain that you have no assets with which to continue paying.

3. Any Signed Exemptions of Documents – If you do not have bank statements, pay stubs, or tax returns, you will need to
explain the reason in more detail in your letter as to “why” you can not provide these documents (i.e. “I’ve been unemployed
for 6 months and have not been able to find work”). In addition to the Hardship Letter you will need to complete the “Lack of
Evidence” Disclosure Form enclosed in appendix of this package.

**Note - realize that if you don’t have tax returns the Lender will ask for Extension Filings. If you don’t have Extension Filings
either, you must explain why in this letter (i.e. “I haven’t filed my tax returns for the past 2 years and I failed to file extensions
as well).

4. Bankruptcy – You could also mention “I don’t want to have to file bankruptcy”.




                          Please see the following page for Hardship Letter Examples




                            FOR LEGAL OR TAX ADVICE, CONSULT YOUR ATTORNEY OR TAX ADVISOR

                              3100 S. Durango Dr. #106 Las Vegas, NV 89117 Phone: 702-235-6930 Fax: 702-212-2223
                                          Sample #1 Hardship Letter

                 *{Remember, YOU must prepare your own Hardship Letter to the Lender (s)}*
                            ** {a letter for Each Lender MUST be included} **



<Date>
<Lender Name>
<Loan Number>

To Whom It May Concern:

This is a very difficult thing to write. I have always been able to pay my debts in the past
and am truly sorry that I cannot do so now. I am now facing foreclosure. My inability to
keep up with the monthly payments is the result of <Loss of Job, Illness, Accident, Death or Disability
of Wage Earner – Describe in detail what your hardship is>


I am not in a position to continue making my mortgage payments. This was not at all
what I intended but I have come to the conclusion that this short sale is my only option to
avoid a foreclosure sale that will further damage my credit.

I respectfully request that you consider this offer and work with my agent to negotiate a
short sale transaction. Your help and consideration in this matter are very much
appreciated.

Sincerely,

John Doe (actual signature)


John Doe (printed name)



                        FOR LEGAL OR TAX ADVICE, CONSULT YOUR ATTORNEY OR TAX ADVISOR

                         3100 S. Durango Dr. #106 Las Vegas, NV 89117 Phone: 702-235-6930 Fax: 702-212-2223
                                           Sample #2 Hardship Letter

                 *{Remember, YOU must prepare your own Hardship Letter to the Lender (s)}*
                            **{ A letter for Each Lender MUST be included}**


<Date>

<Lender Name>
<Loan Number>

Dear Sir or Madam,

I am writing to ask for your help. Circumstances beyond my control have recently caused my
life to change. A year ago when I bought my dream home, my kids and I were happy to be
living in <Where you live> and everything was going well. A couple of months ago ….[Give them a
story of what happened…lost job…somebody became ill, mom deeded you in another state, business failed, kids
having problems in school, needed help…the more details the better; tell your story how it is.]
As a result I cannot continue to make the payment on my house. I have tried different
avenues prior to offering my house for sale in this current market. The house has been listed for
<time period> and all of the offers received were much below the payoff amount of my loan.
The offer sent with this letter is one of the better offers I seen. Please, please, please work
with this buyer. This buyer may be the only saving grace keeping me from the necessity of
filing bankruptcy.

I am a responsible person who has always paid my bills and I am afraid of what will happen if
this does not work. Your consideration is GREATLY appreciated!

Sincerely,

Jane Doe [signature]


Jane Doe [printed name]




                       FOR LEGAL OR TAX ADVICE, CONSULT YOUR ATTORNEY OR TAX ADVISOR

                          3100 S. Durango Dr. #106 Las Vegas, NV 89117 Phone: 702-235-6930 Fax: 702-212-2223
                                                     Financial Statement
    Date: __________________                                               Property Address: ___________________________________

    Borrower: _________________________________________                    Co-Borrower: _______________________________________

    Employed?:        Yes    No                                            Employed?:          Yes       No

    Place of Employment? _____________________________                     Place of Employment? _____________________________

    Mailing Address: ____________________________________                  Total No. of Persons in Household? ___________

Assets:
                        Estimated                                         Estimated
Type:                   Value:              Type:                         Value:
Home                                        Checking Account(s)
                                            Savings/Money
Other Real Estate                           Market
Other Real Estate                           IRA/Keogh
Other Investments                           Stocks/Bonds/CD's
Automobile (# ___ )                         Other

Total Assets:
Monthly Income:                             After taxes
Net/Take
Home          Job 1                          Job 2                  Child Support               Alimony                   Other Income:
Borrower:
Co-Borrower:

Total Income:


Monthly Expenses:
                                            Monthly                                             Est.          Past Due
Category                Description         Payment                 Balance Due                 Value         ( Y or N)   If yes, # of Months
Subject Property        1st Mtg.
                        2nd Mtg.
Other Properties        Other Mtg.
                        Rent Paid
Dues                    HOA
                        Auto 2/ Lease
                        Gasoline
                        Maintenance
                        Insurance
                               FOR LEGAL OR TAX ADVICE, CONSULT YOUR ATTORNEY OR TAX ADVISOR

                                  3100 S. Durango Dr. #106 Las Vegas, NV 89117 Phone: 702-235-6930 Fax: 702-212-2223
                                         Monthly                                             Est.          Past Due
Category            Description          Payment                 Balance Due                 Value         ( Y or N)   If yes, # of Months
Other Loans         Student Loans
                    Finance Co.
                    Installment
Credit Cards        Visa
                    MasterCard
                    Discover
                    Other:
                    Other:
Utilities           Elec./Heating
                    Water/Sewer/
                    Trash
                    Telephone
                    Cable
Insurance           Health & Dental
                    Life
Medical (No Cov.)   Doctor/Dentist
                    Medication
                    Hospital
Entertainment
Food                Family
Support             Alimony
                    Child
Childcare           Day Care
Other:




Total Monthly
Expenses:




                           FOR LEGAL OR TAX ADVICE, CONSULT YOUR ATTORNEY OR TAX ADVISOR

                               3100 S. Durango Dr. #106 Las Vegas, NV 89117 Phone: 702-235-6930 Fax: 702-212-2223
Authorization for the following Mortgage Company(s) to release Information
    To the listed Real Estate Agents/Brokers(s)/Financial Consultants
September 22, 2010

I(We)                                                                                                     ,
The undersigned, am(are) the owner(s) of the real property commonly known as


(Property address)

I(We) am(are) the Borrower(s) on the loan(s) listed below:

                                                       ,                                                  ,
(Name of 1st mortgage lender)                                      (Loan number)

                                                       ,                                                  ,
(Name of additional mortgage lender)                               (Loan number)

I (We) authorize and instruct the above mentioned Lender(s) to promptly deliver ANY and ALL information requested by my
(our) Real Estate Broker(s)/Agent(s), Financial Counselor(s) and/or authorized representative(s) as follows:

Name(s): Jeff Barta, Erin Camp and/or Chuck Ward

Company Name(s): Keller Williams Realty Las Vegas_____________________________________________________________

Address: 3100 S Durango #106 Las Vegas, NV 89117                   _______________________________________________________

Phone: 702-235-6930_______ Fax: 702-212-2223__________ E-Mail: jeff@jeffbartalasvegas.com______________________

I(We) understand and agree that this Authorization is made for the purpose of exploring the possibility of completing a Short
Sale of the above referenced property. I(We) agree that my(our) representative(s) designated above will be solely responsible for
negotiating a Short Sale transaction with the Lenders. Neither Keller Williams Realty Las Vegas not its associates make any
representations on the advisability of a short sale. I(We) have been advised to seek counsel from a qualified professional (tax
attorney or certified public accountant) for the determination of any tax consequences related to a Short Sale transaction.

                                                 This authorization does not expire.

X                                                       / ______________ / ______________ / ______________
    Borrower (Sign & Print)                               Date:            D.O.B.            Last (4) off SS#




X                                                      /                    _ / ______________ / _______________
    Co-Borrower (Sign & Print)                             Date:                 D.O.B.          Last (4) of SS#




                           FOR LEGAL OR TAX ADVICE, CONSULT YOUR ATTORNEY OR TAX ADVISOR

                              3100 S. Durango Dr. #106 Las Vegas, NV 89117 Phone: 702-235-6930 Fax: 702-212-2223
                                 Please Do Not Contact Me by Phone
First Loan #:     ______________________              Second Loan #: ______________________

First Lender:     ______________________              Second Lender: ______________________

Property Address: __________________________________________________________________

According to the Truth In Lending law I have the right to request that you, my lender, not contact me by phone regarding the
default status of my loan. I do not wish to speak to any collection agents about this account. Please make any future
communication with me in writing. If you must contact someone regarding this account, please contact to my Real Estate
Agent:

Name Jeff Barta                                                 ___________________________________________
Company Keller Williams Realty Las Vegas________________________________________________________
Address3100 S Durango Dr #106, Las Vegas, NV 89117_____________________________________________
Phone _702-235-6930___________ Fax _702-212-2223________________
Email __jeff@jeffbartalasvegas.com_____________________________________________________________

The information obtained by my agent is to be used for the purpose of facilitating the resolution of my Short Sale transaction for
the above property.


__________________________________________________
Borrower

__________________________________________________                                   _________________
Printed Name                                                                         Date

Last 4 of SS#: ______________________________                   D.O.B. : _____________________


__________________________________________________
Co-Borrower

__________________________________________________                                   _________________
Printed Name                                                                         Date

Last 4 of SS#: ______________________________                   D.O.B. : _____________________




                           FOR LEGAL OR TAX ADVICE, CONSULT YOUR ATTORNEY OR TAX ADVISOR

                             3100 S. Durango Dr. #106 Las Vegas, NV 89117 Phone: 702-235-6930 Fax: 702-212-2223
                                            Advice to Seek Counsel
The undersigned parties hereby acknowledge that they have been advised to seek counsel and have been given ample time and
opportunity to review their tax status, present and future, with their attorney or accountant of choice to determinate the
sufficiency of their choices for the protection of their interests.

No representation has been made by Keller Williams Realty Las Vegas or its associates as to the legal or tax consequences of
their decision to proceed with a Short Sale transaction. Furthermore, all parties indemnify and hold Keller Williams Realty Las
Vegas and its associates harmless from any claims or liability in connection with this Short Sale transaction.



X                                                      _____________________                    _________________
    Borrower (Sign & Print)                                                                     Date:



X                                                      _____________________                                       ___
    Co-Borrower (Sign & Print)                                                                  Date:




                           FOR LEGAL OR TAX ADVICE, CONSULT YOUR ATTORNEY OR TAX ADVISOR

                              3100 S. Durango Dr. #106 Las Vegas, NV 89117 Phone: 702-235-6930 Fax: 702-212-2223
                              Appendix
                 Lack of Evidence Disclosure
                  •
                   • IRS News Release
      •    IRS Mortgage Forgiveness Debt Relief Act
          • Directory of References and Help Lines




FOR LEGAL OR TAX ADVICE, CONSULT YOUR ATTORNEY OR TAX ADVISOR

 3100 S. Durango Dr. #106 Las Vegas, NV 89117 Phone: 702-235-6930 Fax: 702-212-2223
                            Lack of Evidence Disclosure

                                  Copies of last 2 Pay Stubs

              I am (We are ) unemployed and have no Pay Stubs to Provide.

        ___________________________________________
        Borrower

        ___________________________________________
        Co-Borrower

                   Copies of last 2 Months Bank Statements

I (We) no longer have a checking account. I (We) are unable to provide Bank Statements.

        ___________________________________________
        Borrower

        ___________________________________________
        Co-Borrower

                         Copies of last 2 Years Tax Returns

I (We) have not completed (my (our) taxes for the past 2 years and have filed no extensions.

        _________________________________________
        Borrower

        _________________________________________
        Co-Borrower




              FOR LEGAL OR TAX ADVICE, CONSULT YOUR ATTORNEY OR TAX ADVISOR

                3100 S. Durango Dr. #106 Las Vegas, NV 89117 Phone: 702-235-6930 Fax: 702-212-2223
I.R.S News Release
    Mortgage Workouts, Now Tax-Free for Many Homeowners; Claim
                 Relief on Newly-Revised IRS Form
Updated with FAQs at bottom — Feb. 28, 2008
Updated with new link — Dec. 11, 2008   IR-2008-17, Feb. 12, 2008

WASHINGTON — Homeowners whose mortgage debt was partly or entirely forgiven during 2007 may be able to claim special tax relief by filling out
newly-revised Form 982 and attaching it to their 2007 federal income tax return, according to the Internal Revenue Service.

Normally, debt forgiveness results in taxable income. But under the Mortgage Forgiveness Debt Relief Act of 2007, enacted Dec. 20, taxpayers may
exclude debt forgiven on their principal residence if the balance of their loan was less than $2 million. The limit is $1 million for a married person filing a
separate return. Details are on Form 982 and its instructions, available now on this Web site.

“The new law contains important provisions for struggling homeowners,” said Acting IRS Commissioner Linda Stiff. “We urge people with mortgage
problems to take full advantage of the valuable tax relief available.”

The late-December enactment means that reporting procedures for this law change were not incorporated into tax-preparation software or IRS forms. For
that reason, people using tax software should check with their provider for updates that include the revised Form 982. Similarly, the IRS is now updating
its systems and expects to begin accepting electronically-filed returns that include Form 982 by March 3. The paper Form 982 is now being accepted, but
the IRS reminds affected taxpayers to consider filing electronically, which greatly reduces errors and speeds refunds.

The new law applies to debt forgiven in 2007, 2008 or 2009. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in
connection with a foreclosure, may qualify for this relief. In most cases, eligible homeowners only need to fill out a few lines on Form 982 (specifically,
lines 1e, 2 and 10b).

The debt must have been used to buy, build or substantially improve the taxpayer's principal residence and must have been secured by that residence. Debt
used to refinance qualifying debt is also eligible for the exclusion, but only up to the amount of the old mortgage principal, just before the refinancing.

Debt forgiven on second homes, rental property, business property, credit cards or car loans does not qualify for the new tax-relief provision. In some
cases, however, other kinds of tax relief, based on insolvency, for example, may be available. See Form 982 for details.

Borrowers whose debt is reduced or eliminated receive a year-end statement (Form 1099-C) from their lender. For debt cancelled in 2007, the lender was
required to provide this form to the borrower by Jan. 31, 2008. By law, this form must show the amount of debt forgiven and the fair market value of any
property given up through foreclosure.

The IRS urges borrowers to check the Form 1099-C carefully. Notify the lender immediately if any of the information shown is incorrect. Borrowers
should pay particular attention to the amount of debt forgiven (Box 2) and the value listed for their home ( Box 7).

Note: Legislation enacted in October 2008 extended this relief through 2012. Thus this relief now applies to debt forgiven in calendar years 2007 through
2012.




                                  FOR LEGAL OR TAX ADVICE, CONSULT YOUR ATTORNEY OR TAX ADVISOR

                                    3100 S. Durango Dr. #106 Las Vegas, NV 89117 Phone: 702-235-6930 Fax: 702-212-2223
                       (The following article can be found at www.irs.gov/individuals/article)
                        The Mortgage Forgiveness Debt Relief Act and Debt Cancellation

If you owe a debt to someone else and they cancel or forgive that debt, the canceled amount may be taxable.
The Mortgage Debt Relief Act of 2007 generally allows taxpayers to exclude income from the discharge of debt on their principal residence.
Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, qualifies for the relief.
This provision applies to debt forgiven in calendar years 2007 through 2012. Up to $2 million of forgiven debt is eligible for this exclusion ($1
million if married filing separately). The exclusion does not apply if the discharge is due to services performed for the lender or any other
reason not directly related to a decline in the home’s value or the taxpayer’s financial condition.
More information, including detailed examples can be found in Publication 4681, Canceled Debts, Foreclosures, Repossessions, and
Abandonments. Also see IRS news release IR-2008-17.
The following are the most commonly asked questions and answers about The Mortgage Forgiveness Debt Relief Act and debt cancellation:
What is Cancellation of Debt?
If you borrow money from a commercial lender and the lender later cancels or forgives the debt, you may have to include the cancelled
amount in income for tax purposes, depending on the circumstances. When you borrowed the money you were not required to include the
loan proceeds in income because you had an obligation to repay the lender. When that obligation is subsequently forgiven, the amount you
received as loan proceeds is normally reportable as income because you no longer have an obligation to repay the lender. The lender is usually
required to report the amount of the canceled debt to you and the IRS on a Form 1099-C, Cancellation of Debt.
Here’s a very simplified example. You borrow $10,000 and default on the loan after paying back $2,000. If the lender is unable to collect the
remaining debt from you, there is a cancellation of debt of $8,000, which generally is taxable income to you.
Is Cancellation of Debt income always taxable?
Not always. There are some exceptions. The most common situations when cancellation of debt income is not taxable involve:

    •    Qualified principal residence indebtedness: This is the exception created by the Mortgage Debt Relief Act of 2007 and applies to
         most homeowners.
    •    Bankruptcy: Debts discharged through bankruptcy are not considered taxable income.
    •    Insolvency: If you are insolvent when the debt is cancelled, some or all of the cancelled debt may not be taxable to you. You are
         insolvent when your total debts are more than the fair market value of your total assets.
    •    Certain farm debts: If you incurred the debt directly in operation of a farm, more than half your income from the prior three years
         was from farming, and the loan was owed to a person or agency regularly engaged in lending, your cancelled debt is generally not
         considered taxable income.
    •    Non-recourse loans: A non-recourse loan is a loan for which the lender’s only remedy in case of default is to repossess the property
         being financed or used as collateral. That is, the lender cannot pursue you personally in case of default. Forgiveness of a non-
         recourse loan resulting from a foreclosure does not result in cancellation of debt income. However, it may result in other tax
         consequences.

These exceptions are discussed in detail in Publication 4681.
What is the Mortgage Forgiveness Debt Relief Act of 2007?
The Mortgage Forgiveness Debt Relief Act of 2007 was enacted on December 20, 2007 (see News Release IR-2008-17). Generally, the Act
allows exclusion of income realized as a result of modification of the terms of the mortgage, or foreclosure on your principal residence.
What does exclusion of income mean?
Normally, debt that is forgiven or cancelled by a lender must be included as income on your tax return and is taxable. But the Mortgage
Forgiveness Debt Relief Act allows you to exclude certain cancelled debt on your principal residence from income. Debt reduced through
mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, qualifies for the relief.
Does the Mortgage Forgiveness Debt Relief Act apply to all forgiven or cancelled debts?
No. The Act applies only to forgiven or cancelled debt used to buy, build or substantially improve your principal residence, or to refinance
debt incurred for those purposes. In addition, the debt must be secured by the home. This is known as qualified principal residence
indebtedness. The maximum amount you can treat as qualified principal residence indebtedness is $2 million or $1 million if married filing
separately.
Does the Mortgage Forgiveness Debt Relief Act apply to debt incurred to refinance a home?
Debt used to refinance your home qualifies for this exclusion, but only to the extent that the principal balance of the old mortgage,
immediately before the refinancing, would have qualified. For more information, including an example, see Publication 4681.
How long is this special relief in effect?
It applies to qualified principal residence indebtedness forgiven in calendar years 2007 through 2012.
                               FOR LEGAL OR TAX ADVICE, CONSULT YOUR ATTORNEY OR TAX ADVISOR

                                 3100 S. Durango Dr. #106 Las Vegas, NV 89117 Phone: 702-235-6930 Fax: 702-212-2223
Is there a limit on the amount of forgiven qualified principal residence indebtedness that can be excluded from income?
The maximum amount you can treat as qualified principal residence indebtedness is $2 million ($1 million if married filing separately for the
tax year), at the time the loan was forgiven. If the balance was greater, see the instructions to Form 982 and the detailed example in
Publication 4681.
If the forgiven debt is excluded from income, do I have to report it on my tax return?
Yes. The amount of debt forgiven must be reported on Form 982 and this form must be attached to your tax return.
Do I have to complete the entire Form 982?
No. Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Adjustment), is used for other purposes in
addition to reporting the exclusion of forgiveness of qualified principal residence indebtedness. If you are using the form only to report the
exclusion of forgiveness of qualified principal residence indebtedness as the result of foreclosure on your principal residence, you only need to
complete lines 1e and 2. If you kept ownership of your home and modification of the terms of your mortgage resulted in the forgiveness of
qualified principal residence indebtedness, complete lines 1e, 2, and 10b. Attach the Form 982 to your tax return.
Where can I get this form?
If you use a computer to fill out your return, check your tax-preparation software. You can also download the form at IRS.gov, or call 1-800-
829-3676. If you call to order, please allow 7-10 days for delivery.
How do I know or find out how much debt was forgiven?
Your lender should send a Form 1099-C, Cancellation of Debt, by February 2, 2009. The amount of debt forgiven or cancelled will be shown
in box 2. If this debt is all qualified principal residence indebtedness, the amount shown in box 2 will generally be the amount that you enter
on lines 2 and 10b, if applicable, on Form 982.
Can I exclude debt forgiven on my second home, credit card or car loans?
Not under this provision. Only cancelled debt used to buy, build or improve your principal residence or refinance debt incurred for those
purposes qualifies for this exclusion. See Publication 4681 for further details.
If part of the forgiven debt doesn't qualify for exclusion from income under this provision, is it possible that it may qualify for exclusion
under a different provision?
Yes. The forgiven debt may qualify under the insolvency exclusion. Normally, you are not required to include forgiven debts in income to the
extent that you are insolvent. You are insolvent when your total liabilities exceed your total assets. The forgiven debt may also qualify for
exclusion if the debt was discharged in a Title 11 bankruptcy proceeding or if the debt is qualified farm indebtedness or qualified real property
business indebtedness. If you believe you qualify for any of these exceptions, see the instructions for Form 982. Publication 4681 discusses
each of these exceptions and includes examples.
I lost money on the foreclosure of my home. Can I claim a loss on my tax return?

No. Losses from the sale or foreclosure of personal property are not deductible.
If I sold my home at a loss and the remaining loan is forgiven, does this constitute a cancellation of debt?
Yes. To the extent that a loan from a lender is not fully satisfied and a lender cancels the unsatisfied debt, you have cancellation of
indebtedness income. If the amount forgiven or canceled is $600 or more, the lender must generally issue Form 1099-C, Cancellation
of Debt, showing the amount of debt canceled. However, you may be able to exclude part or all of this income if the debt was qualified
principal residence indebtedness, you were insolvent immediately before the discharge, or if the debt was canceled in a title 11
bankruptcy case. An exclusion is also available for the cancellation of certain nonbusiness debts of a qualified individual as a result of
a disaster in a Midwestern disaster area. See Form 982 for details.
If the remaining balance owed on my mortgage loan that I was personally liable for was canceled after my foreclosure, may I still exclude
the canceled debt from income under the qualified principal residence exclusion, even though I no longer own my residence?
Yes, as long as the canceled debt was qualified principal residence indebtedness. See Example 2 on page 13 of Publication 4681,
Canceled Debts, Foreclosures, Repossessions, and Abandonments.
Will I receive notification of cancellation of debt from my lender?
Yes. Lenders are required to send Form 1099-C, Cancellation of Debt, when they cancel any debt of $600 or more. The amount
cancelled will be in box 2 of the form.
What if I disagree with the amount in box 2?
Contact your lender to work out any discrepancies and have the lender issue a corrected Form 1099-C.
Are there any publications I can read for more information?
Yes.
(1) Publication 4681, Canceled Debts, Foreclosures, Repossessions, and Abandonments (for Individuals) is new and addresses in a
single document the tax consequences of cancellation of debt issues.
(2) See the IRS news release IR-2008-17 with additional questions and answers on IRS.gov .Page Last Reviewed or Updated: May 19, 2009




                               FOR LEGAL OR TAX ADVICE, CONSULT YOUR ATTORNEY OR TAX ADVISOR

                                 3100 S. Durango Dr. #106 Las Vegas, NV 89117 Phone: 702-235-6930 Fax: 702-212-2223
                           Directory of References and Help Lines:
Homeowner’s Assistant Foreclosure Line                                                Mortgage Lending Division
Ph. 1-888-995-HOPE                                                                    Ph. 702-486-0780
Website: www.995hope.org                                                              Website: www.mld.nv.gov

US Dept. of Housing & Urban Development                                               Attorneys
Ph. 1-202-708-1112                                                                         Hutchison & Steffen
                                                                                           Website: www.hutchlegal.com
HUD-Approved Housing Counseling Agency                                                     Ph. 702-385-2500
Ph. 1-800-569-4287
                                                                                             Spencer Judd (MacDonald & Judd)
Fair Housing Administration                                                                  Email: spencer@jsmjlaw.com
Ph. 1-800-Call-FHA                                                                           Ph. 702-682-4750
Website: www.fha.gov
                                                                                             Albright Stoddard Warnick
Consumer Credit Counseling Services of Southern Nevada                                       Website: www.albrightstoddard.com
Ph. 702-364-0344 or 1-800-451-4505                                                           Ph. 702-384-7111
Website: www.cccsnevada.org
                                                                                             MacDonald & Judd
Nevada Legal Services, Inc.                                                                  spencer@jsmjlaw.com
Ph. 702-386-0404                                                                             Ph. 702-606-4357

Woman’s Development Center                                                                   Stephanie Clement
Ph. 702-796-7770                                                                             Ph. 702-341-6997
Housing Authority of the City of N. Las Vegas                                                David R. Fischer & Associates
Ph. 702-649-2451 Ext. 124                                                                    Website: www.fischerlawlv.com
                                                                                             Ph. 702-547-3944
Nevada Fair Housing
Ph. 702-731-6095                                                                      Certified Public Accountants
Website: www.nfhc.org or www.hud.gov/foreclosure                                            Randall S. van Reken
                                                                                            Website: www.taxmaninc.com
Fortress Credit Services                                                                    Ph. 702-364-2520
Ph. 702-363-7977
                                                                                             Payan & Frost
Credit Learning Systems                                                                      Website: www.p2cpa.com
Ph. 702-320-5445                                                                             Ph. 702-233-9526
Law Offices of Segal, Cohen & Landis LLP                                                     Lisa Jones
(Samuel C. Landis, Attorney at Law,                                                          lisa@vegas-cpa.com
Specializing in Taxation Master Laws)                                                        Ph. 702-255-2330
Ph. 1-310-285-3999
Integrated Tax Solutions                                                                     Ron Harris
Ph. 702-284-5611 or 1-800-508-1892                                                           Ph. 702-496-9472
Freddie Mac                                                                                  Sid Packer
(Senior Delinquency Resolution Manager: Robin Strout Migala)                                 702-366-1143
Ph. 703-918-8065 or 1-800-424-5401
Website: www.freddiemac.com

                           FOR LEGAL OR TAX ADVICE, CONSULT YOUR ATTORNEY OR TAX ADVISOR

                              3100 S. Durango Dr. #106 Las Vegas, NV 89117 Phone: 702-235-6930 Fax: 702-212-2223

				
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