REAL ESTATE PURCHASE AND SALE AGREEMENT

(SHORT SALE)

            THIS REAL ESTATE PURCHASE AND SALE AGREEMENT (hereinafter referred to as the “Agreement”) is hereby entered into by and between ________________________________________ (“Seller”) and Small Family Homes, LLC, an Arizona limited liability company (“Buyer”) as of the ________ day of _____________________, 2008.  Seller and Buyer are referred to throughout this Agreement collectively as the “Parties”.

Recitals

                A.            Whereas, Seller owns all right, title and interest in the real property and improvements made thereto located at ________________________________________________________________ (“Property”);

                B.            Whereas, Seller currently resides in and occupies the Property as its primary residence;

                C.            Whereas, Seller, due to events outside of its control, has fallen behind on its mortgage payments and may be or is in the process of losing the Property to its lender through foreclosure or a trustee sale;

                D.            Whereas, Buyer is in the business of acquiring residential real estate;

                E.            Whereas, Buyer desires to purchase the Property from Seller for _________________________________ dollars ($_______________) (“Purchase Price”), through, what is commonly referred to as a “short sale”. 

                F.             Whereas, Buyer intends to sell the Property to a third party upon execution and performance of this Agreement; and               

                G.            Whereas, Seller and Buyer desire to enter into this Agreement to effectuate the sale of the Property. 

Agreement

                IN CONSIDERATION, of the mutual promises set forth herein and for other good and valuable consideration hereby acknowledged by the Parties, Seller and Buyer agree as follows:

1.             Short Sale:  Seller acknowledges and understands that this Agreement is for the short sale of the Property and that Seller will likely not receive any money or proceeds from the sale of the Property.  Seller has read, acknowledges receipt of and understands the Short Sale Transaction Disclosure attached hereto as Exhibit A and incorporated herein by reference. Seller is advised to consult with independent legal counsel and an accountant prior to executing this Agreement. 

By initialing below, Seller acknowledges a complete understanding and approval of the foregoing Paragraph 1.

                                                                                                                Seller’s Initials ________ / _______

2.             Short Sale Condition Precedent:  Buyer acknowledges that Seller owes more for the Property than the Purchase Price and the Property is encumbered by loans, mortgages, or deeds of trust that exceed the Purchase Price.  Prior to Close of Escrow, and as a condition precedent thereof, Seller and Seller’s lender(s) shall agree to sell the Property for less than the total loan amount(s), including, without limitation, Seller’s lenders right to collect the loan amount from Buyer, including any and all unpaid principal, interest, fees or costs.  Seller and Seller’s lender shall also cause the promissory note, mortgage, or deed of trust to be released from the Property on or before the Close of Escrow.  In the event Seller and Seller’s lender are unable to reach a mutually acceptable agreement concerning

I hardly ever use generic documents as an investor and real estate agent I want to be protected from lawsuits and lack of disclosure. It is expensive having lawyers drawing up every document, however it's critical to have documents to protect you.  It's not only critical you have documents to protect you, it's all critical you as an agent is aware and informed on what documents and contracts are being utilized by most investors.  Here are two pages of an Option Purchase Contract being used by Investors to secure control over short sale properties.

Option Contract for Sale and Purchase

3.         DESCRIPTION OF PROPERTY BEING SOLD:

STREET ADDRESS) CITY/STATE/ZIP:     __________________________________________

Parcel#: ______________________________________________________________________

4.         PURCHASE PRICE

The Purchase Price is $ _______________ or the total purchase price will be the negotiated balances of all liens, mortgages and closing costs. 

SELLER understands that this transaction is a short sale and is contingent upon acceptance of short pay offers that are satisfactory to the buyer as payment in full by all current lienholders and that the SELLER will receive NO funds at closing.  The Option period shall be reasonably extended for the purpose of obtaining said satisfactory approval(s).

The parties acknowledge that the purchase price has been initially based on an estimated negotiated debt at closing.  During negotiations, there may be several different preliminary contracts with different estimated purchase prices submitted by Buyer to the lender(s) until a final discounted figure is accepted.

Accordingly, Seller agrees to authorize Buyer to prepare various negotiating offers with various prices without obtaining Seller’s signature or approval of each and every negotiating offer.

5.         FINANCING AND INSPECTION PERIOD:  The Property is being sold “As Is” with regard to the physical condition of the Property and any improvements. Seller is giving no warranties to the BUYER as to the physical condition of the real property or any improvements.  BUYER shall have ____ days (the “Financing and Inspection Period”) following the Effective Date to inspect and evaluate the Property.  SELLER shall grant to the BUYER reasonable access to the Property for purposes of inspection and evaluation (such as environmental testing, home inspection, and BPO or appraisals, etc.).  If prior to the end of the Financing and Inspection Period, BUYER gives notice to SELLER that BUYER elects to cancel this Contract (the “Cancellation Notice”), this Contract shall terminate. If BUYER does not deliver the Cancellation Notice the Contract shall continue.

______   This transaction is contingent upon buyer obtaining acceptable financing;

                        OR

______   This is a cash transaction.

6.         REPRESENTATIONS AND WARRANTIES: To induce the BUYER to enter into this Agreement, the SELLER makes the following representations, warranties, and covenants.

A.        The property is being sold “As Is” with regard to the physical condition of any

improvements. Seller is giving no warranties to the BUYER.

I reference about 400 documents, I guess I am a document collector!

Realtors who do short sales, please be aware of your New Short Sale Approval Letter.

We have just been alerted to the fact that Countrywide has a new form of short sale approval letter, in which it now attempts to retain the right to invalidate a transaction for events which may have occurred at the loan’s inception or in our transaction.    This condition was found in paragraph 16 and read as follows:  

“If the property was acquired by any means of fraud, [lender’s name]   reserves the right to pursue any and all actions available to it to pursue any and all actions available to it to offset its losses.   If it is determined that Sellers and/or Buyers participated in any way to the fraud, this short sale will be void, and the Note and Security Instrument will remain in full force and effect.”

Title insurance cannot be issued to either the buyer or the buyer’s lender free and clear of the loan if the lender can assert after close of escrow that money is still due.    There is no workaround to this provision. 

If you receive a short sale approval letter with this condition, advise the Lender that the condition must be removed, in writing, or we cannot close.    If one lender has started inserting this into their short sale approval letter be assured additional lenders will follow suit.

Litton Loan, Foreclosure Sale Alert.

Just wanted to alert everyone that there is a company called First American REO Servicing that claimed and sent notice to the homeowner that they are currently evicting a client (sent a eviction notice). I just so happened to receive an approval on this short sale and it doesn’t have a foreclosure sale date until 5/19. I have confirmed and reconfirmed this about 5 times with the lender Litton Loan, the attorney’s for Litton Loan which is Quality Loans and they have told us to ignore any notices from First American REO Servicing as they have nothing to do with Litton Loan. If your homeowner brings in eviction notices, double check with your lenders and attorneys as this becomes a complete scare to the homeowner.

Another tip from a loan modification and short sale expert!

This is an actual letter from a small business written to his employees.  I am sure many of us who own real estate companies, mortgage companies and have put in many hours, can relate.  One of the best letters I have ever seen, I sent out to all of my employees.

 To All My Valued Employees,

There have been some rumblings around the office about the future of this company, and more specifically, your job. As you know, the Economy has changed for the worse and presents many challenges. However, the good news is this: The economy doesn't pose a threat to your job. What does threaten your job however, is the changing Political landscape in this country.

However, let me tell you some little tidbits of fact which might help you decide what is in your best interest.

First, while it is easy to spew rhetoric that casts employers against employees, you have to understand that for every business owner there is a back story. This back story is often neglected and overshadowed by what you see and hear. Sure, you see me park my Mercedes outside. You've seen my big home at last year's Christmas party. I'm sure; all these flashy icons of luxury conjure up some idealized thoughts about my life.

However, what you don't see is the back story.

I started this company 28 years ago. At that time, I lived in a 300 square foot studio apartment for 3 years. My entire apartment was converted into an office so I could put forth 100% effort into building a company, which by the way, would eventually employ you.

My diet consisted of Ramen Pride noodles because every dollar I spent went back into this company. I drove a rusty Toyota Corolla with a defective transmission. I didn't have time to date. Often times, I stayed home on weekends, while my friends went out drinking and partying. In fact, I was married to my business -- hard work, discipline, and sacrifice.

Meanwhile, my friends got jobs they worked 40 hours a week and made a modest $50K a year and spent every dime they earned. They drove flashy cars and lived in expensive homes and wore fancy designer clothes. Instead of hitting the Nordstrom's for the latest hot fashion item, I was trolling through the Goodwill store extracting any clothing item that didn't look like it was birthed in the 70's.

My friends refinanced their mortgages and lived a life of luxury. I, however, did not. I put my time, my money, and my life into a business with a vision that eventually, some day, I too, will be able to afford these luxuries my friends supposedly had. So, while you physically arrive at the office at 9 am, mentally check in at about noon, and then leave at  5 pm, I don't.

There is no "off" button for me. When you leave the office, you are done and you have a weekend all to yourself. I unfortunately do not have the freedom. I eat, and breathe this company every minute of the day. There is no rest. There is no weekend. There is no happy hour. Every day this business is attached to my hip like a 1 year old special-needs child. You, of course, only see the fruits of that garden -- the nice house, the Mercedes, the vacations...  You never realize the back story and the sacrifices I've made.

Now, the economy is falling apart and I, the guy that made all the right decisions and saved his money, have to bail-out all the people who didn't.  The people that overspent their paychecks suddenly feel entitled to the same luxuries that I earned and sacrificed a decade of my life for.

Yes, business ownership has its benefits but the price I've paid is steep and not without wounds.

Unfortunately, the cost of running this business, and employing you, is starting to eclipse the threshold of marginal benefit and let me tell you why:

I am being taxed to death and the government thinks I don't pay enough. I have state taxes. Federal taxes. Property taxes. Sales and use taxes.  Payroll taxes. Workers compensation taxes. Unemployment taxes. Taxes on taxes. I have to hire a tax man to manage all these taxes and then guess what? I have to pay taxes for employing him. Government mandates and regulations and all the accounting that goes with it, now occupy most of my time. On Oct 15th, I wrote a check to the US Treasury for $288,000 for quarterly taxes. You know what my "stimulus" check was? Zero. Nada. Zilch.  The question I have is this: Who is stimulating the economy? Me, the guy who has provided 14 people good paying jobs and serves over 2,200,000 people per year with a flourishing business? Or, the single mother sitting at home pregnant with her fourth child waiting for her next welfare check?  Obviously, government feels the latter is the economic stimulus of this country.

The fact is, if I deducted (Read: Stole) 50% of your paycheck you'd quit and you wouldn't work here. I mean, why should you? That's nuts. Who wants to get rewarded only 50% of their hard work? Well, I agree which is why your job is in jeopardy.

Here is what many of you don't understand ... to stimulate the economy you need to stimulate what runs the economy. Had suddenly government mandated to me that I didn't need to pay taxes, guess what? Instead of depositing that $288,000 into the Washington black-hole, I would have spent it, hired more employees, and generated substantial economic growth. My employees would have enjoyed the wealth of that tax cut in the form of promotions and better salaries. But you can forget it now.

When you have a comatose man on the verge of death, you don't defibrillate and shock his thumb thinking that will bring him back to life, do you? Or, do you defibrillate his heart? Business is at the heart of America and always has been. To restart it, you must stimulate it, not kill it.  Suddenly, the power brokers in Washington believe the poor of America are the essential drivers of the American economic engine. Nothing could be further from the truth and this is the type of change you can keep.

So where am I going with all this?  It's quite simple.  If any new taxes are levied on me, my company, my reaction will be swift and simple. I fire you. I fire your co-workers. You can then plead with the government to pay for your mortgage, your SUV, and your child's future. Frankly, it isn't my problem anymore.

Then, I will close this company down, move to another country, and retire.  You see, I'm done. I'm done with a country that penalizes the productive and gives to the unproductive. My motivation to work and to provide jobs will be destroyed, and with it, will be my citizenship.

If you lose your job, it won't be at the hands of the economy; it will be at the hands of a political hurricane that swept through this country, steam rolled the constitution, and will have changed its landscape forever. If that happens, you can find me sitting on a beach, retired, and with no employees to worry about...

 Signed,

 Your boss

I just hung up with Chase (subprime), and due to the new Affordability Loan Modification Program just released, Chase has placed a hold on all loan modification requests.  This hold can be as long as next week.  The reason for this is, they are updating their policy procedures because they are still uncertain of what documentation the government/investors will require from the homeowner in order for them to be considered for this program.  The documentation may consist of more, or less, but until they are certain all requests are on hold.  Chase is also going paperless and has a new fax number to fax in your documents.  This fax number is 888-219-7813. 

WARNING-  be very careful when submitting your packages over to Chase.  As some of you have already experienced, if Chase does not have a complete, up-to-date package, your file will be declined and kick out with no call to you, the negotiator.  I am told, that they have too many requests in, and it is too much to call for updating documentation, so be prepared.

The Foreclosure Business has always been business, and yes I know this is America, but where is the ethics.  I work with distressed homeowners, and have recently begin placing those homeowners in rentals once the homeowner short sale there property or unfortunately loose there property to foreclosure.  I think it's important for those that are realtors to make the public aware of the foreclosure, loan modification and short sale scams out there.  There are particular scams effecting renters.  There are a few that I am going to list that actually effects the homeowner.

These are all scams that have not made it to the forefront yet.  Not common knowledge. I am also creating a website foreclosure-rentals.com and foreclosure-rentals.net just to help homeowners and renters find properties to rent.

Room For Rent Scam

Person rents a home from unsuspecting homeowner while property is in foreclosure. While property is in foreclosure, person places rooms for rent on craigslist or in paper and rents out each room for 500 to 700 a piece while paying the homeowner 5 to 6 hundred a month for the property.  The person then puts a renter in charge and collects the rent.

Cash for Keys - Lender Scam

Person finds homeowner two or three weeks away from foreclosure, offers to pay homeowner 100 or 200 bucks to enter in 12 month lease, homeowner signs lease even though he knows the property is going to auction soon, the individual then waits with lease in hand until property forecloses and realtor approaches the property, individual pops up and informs the REO realtor that he has a 12 month lease and attends on occupying property. The bank then gives the "renter" cash for the keys and release the lease.

There are a variety of scams going around with renters and homeowners in foreclosure. I will be posting more on foreclosure-rentals.com

If you know of any more scams going on, please feel free to post them in the comment section. We need to have these out in the opens so people have the information.

Recently I purchased a vanity number 1-800-Sell-Now. 

Vanity numbers in the past worked really well!  In my opinion things have changed!  No I am not talking about Obama Bailout Plan, or having A Black President, I am talking about using Vanity Numbers for marketing!

Real Estate In Phoenix, has always been very competitive, i mean the realtors, investors, lenders are all great at marketing. I thought I was very smart.  Well these smart phones isn't that smart anymore. I will explain why very soon, well call me if you can and we can talk about it.

In the past I could post bandit signs out, do radio ads, TV ads and i would receive thousands of calls, I mean 1-800-Sell-Now is a very marketable number.  Can anyone tell me why I stated that things have changed?

Those dayum PDA phones, you can't figure out what numbers are what! :)  If you have a BlackBerry Smart Phone, please look at your phone and let me know if you can dial 1-800-Sell-Now?

Now I spent money on radio ads and bandit signs, plaster 1-800-Sell-Now around town, I found out people wanted to call, but they couldn't figure out the number, go figure. I guess I was dumber then my smart phone, and realized people passing by bandit signs can't figure out my number even with there Smart Phone!

Things have changed!

Life use to be so simple!

(this blog was for entertainment purposes, but you can still call me 24 hours a day.)  1 800-Sell-Now

 A Company That Process Loan Modifications

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Stop worrying; it is TOTALLY possible to outsource your Loan Modifications to a reputable company with thousands of approvals, resulting in satisfied customers. Our track record is unmatched; we guarantee you will gain more referrals letting our Company process all of your Loan Modifications. 

Don’t make the mistake and call us, when you are already bombarded with too many incoming files. Many customers choose to use us as there company is growing.  If you have been in the loan modification business long, you realize finding good negotiators is hard to fine.  Hiring people off the street is just going to bring you future problems.  

Why establish a Human Resource department which is constantly hire new negotiators to take care of all the incoming files.  If you haven’t hired a human resource department yet, you are still growing, word to the wise, once you have hired a Human Resource department you have let the loan modification get out of control.  If you don’t have a Human Resource department, you will soon need one, as a growing loan modification company.   Cut your cost, by outsourcing your files to Arizona Short Sale Office. 

 A common problem in the Loan Modification Business is the inability to keep up with the pace of acquiring new customers, and not enough “experience” negotiators available to keep up with the amount of business.  There is an increase of competition in the Loan Modification Business, and newer companies are getting shut down faster, as the Attorney General’s are looking to investigate and shut down companies who are not able to prove or document the actions that they have taken to assist EVERY customer. 

Please be careful, It only takes one customer to bring your loan modification company to a stretching halt!  One complaint to the Department of Real Estate or Attorney General may result in a company shut down.  Avoid complaints and outsource your loan modification processing to a company that has a proven process able to accommodate all of your loan modifications.  Never lose track of another auction date again, avoid angry customers calling in requesting a full refund, better yet, threatening to sue because you weren’t able to help them.  

We provide customer service to your existing customers, eliminating the constant stream of calls to your office.  We also provide 24 hour access online to each and every customer.    In the loan modification business, avoid the he-said-she-said problem that often occurs between client and employee.  We track and record every customer call.  Eliminate the risk of refunds.  Do you know if your employees are fighting for each and every one of your customers?  We get each and every one of your customers the best deal possible.  We also answer every one of your customer’s calls; we have the loan modification processing down pat. 

Eliminate the inability to get anything done due to the high maintenance customers who call every hour on the hour.  If you put out fires on a daily basis, our Loan Modification Processing will eliminate that aspect of your business.  Are your negotiators spending half there day searching the internet while on hold?  Get the peace of mind knowing that negotiators are working on your files 10 to 12 hours a day, that’s all we do.  We have gotten over a thousand approvals in the last 12 months; we are high volume processing office.   Separate your company, thousands of Loan Modification Companies are popping up, and thousands are being investigated due to inability to satisfy 100% of their customers.  We realize what’s going on in the market place and have full time staff in place to accommodate the processing of loan modifications.

Its easy for you stand out above the rest and become one of the most respected and referred loan modification services.  Loan modification results will be the de factor aspect of your business separating you from the competition, we can help you!  We guarantee once you start sending files to Arizona Short Sale Office for processing you will get more customer referrals then you have ever had.  We have the track record, but most importantly we successfully negotiate loan modifications for our company and yours!  Our process is remarkable.

Track your customers online with our online tracking system. We have successfully negotiate thousands of approvals,  our process is revolutionary and will eliminate any of your customers being lost in the shuffle.  Save money and get results faster with Arizona Short Sale Office, Loan Modification Processing center.

For volume processing please email or call for discount processing.

A minimum of ten files to get started.

Please email for details.  Don’t wait contact us now!

Managing Partner
www.ArizonaShortSaleOffice.com
marc@arizonashortsaleoffice.com
Office 602-710-2480
fax 888-403-7798

My name is Jamar James a realtor who specializes in working with homeowners in foreclosure. With the amount of foreclosures in Arizona, I have a confession.  Some realtors can't afford to help the homeowners avoid foreclosures.  I have been hired by many homeowners to list their homes and conduct short sales on their behalf.  What I have noticed is, I UNFORTUNATELY, was NOT there first choice!   I have not been the first realtors in many of those instances, and it's unfortunate! 

They had hired other realtors that could not sell their home, not to discredit the home, or the realtor, however,  the realtors weren't able to (1) service the home for proper marketing, (2) place a lock box on the property, and (3) market the property in the newspaper or any other "paid" advertisings.  

The economy is hurting the realtors ability to do there job. More then ever the 20% of the realtors are selling 80% of the properties just because they have the financial resources and they are able to do "regular realtor" activities.

I have worked with Homeowners in Foreclosure For Five Years now and there is two things a realtor must do, one is communicate honestly, the second is place the homeowner needs first.  I call this Jamar James foreclosure marketing tips.

Homeowners must understand if a realtor has 40 listings, he must be able to afford 40 lockboxes, signs, and marketing for those homes.  Nowadays there are realtors with 100 listings with no pictures on MLS, no signs, and no way to communicate to the world that they have listings.  If your working short sales, (more then 20 short sales) you must have a staff.  I personally have a staff of 12 to negotiate and market my properties. This is a service to the homeowners. 

Realtors must become more selective and remember to provide the service to the homeowner. We can't take a chance with homeowner's pre-foreclosure homes. We must do our duty as realtors and think of the homeowner first.