email: date of approval - investorcarrot · the fha pre-foreclosure sale addendum must be signed by...

Email: Date Of Approval: 12/8/2016

RE: LoanCare Loan#

Borrower(s):

Property Address:

St Louis MO 63118

Purchaser:

Dear Sir or Madam,

The Pre Foreclosure Sale that you requested on the aforementioned property has been

approved, subject to the following terms:

1. The closing date should occur on or before

2. Pre Foreclosure Settlement Statement:

Gross Sales Price:

Total Closing Costs: (Seller cannot exceed this amount; this includes all

taxes, title & title insurance, and any HOA assessments)

Lien discharge (N/A)

Broker Commission: (Must Not Exceed This Amount)

PFS Seller Incentive: (Must Not Exceed This Amount)

Net Sales Proceeds: (No Less will be ACCEPTED)

3. In the event there is a TAX CREDIT at closing, the amount is to be added to the

approved net proceeds.

4. The Closing Disclosure Statement must be signed by all buyers, sellers and settlement agent –

regardless of the laws of that state (see attached example).

5. The FHA PRE-FORECLOSURE SALE ADDENDUM must be signed by all

sellers and buyers, and also the buyer’s and seller’s agent. All signatures must be

notarized including the agents.

6. For FHA Insured Loans only(Seller) – Closing worksheet must be initialed by the seller and

then signed by both the seller’s agent/broker and by the closing agent in the

appropriate boxes.

7. All Extension requests MUST be submitted in writing for approval.

$100,000.00

1/25/2017

Pennsylvania Ave

$6,000.00

$3,000.00

$87,120.00

$3,880.00

$0.00

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8. NO ELECTRONIC OR RUBBER STAMPED SIGNATURES WILL BE ACCEPTED (ie. If original signatures are not

affixed to the listing agreement & purchase contract and received prior to closing; this approval letter is null and void. If original

signatures are not affixed to the Arm’s Length Affidavit & Final closing disclosure statement this letter is null and void and short-sale

funds will be returned.)

9. If an addendum has not been provided with the FHA required addendum clause, the borrower’s representative will provide such

addendum prior to closing with the following required addendum clause: “Seller may cancel this agreement prior to the ending

date of the listing period without advance notice to the broker, and without payment of a commission or any other

consideration if the property is conveyed to the mortgage insurer or the mortgage holder.”

10. If a promissory note was requested, the original must be executed and delivered with the entire closing package to our office.

11. If a Power of Attorney is required, it must be presented, reviewed and approved prior to final approval of the short-sale offer.

If presented after final approval, the Short-sale Approval letter is Null and Void.

12. The net amount will be accepted as final payment and the lien released, an IRS 1099C will be filed at year end in accordance

with IRS regulations. Once we receive the acceptable sales proceeds and all required documentation, the mortgage of record

will be released. Your compliance with this approval, coupled with the release of the mortgage, shall waive the investor's

(and all other interested parties') right to seek payment of the remaining deficiency balance of the original mortgage note.

13. If you would like to Bank Wire the short-sale funds, see below instructions:

Wells Fargo Bank

301 South College St.

Charlotte, NC 28288 – 10013

ABA: 121000248

Account Name: LoanCare

Clearing Account Number: 2000037424631

14. We will notify the major credit reporting agencies to reflect this loan as "account paid in full with less than full balance".

Closing Instructions:

Closing should not be scheduled until Final Closing Disclosure Statement is approved by servicer/lender.

Closing should occur within 48 hours after FINAL Closing disclosure statement is approved.

24 hours after closing or sooner, a copy of the proceeds check/wire, executed Final Closing Disclosure

Statement, Pre-Foreclosure Sale Addendum and the Closing cost Worksheet

Must be email to

to avoid return of the check/wire and transaction being considered Null & Void.

If mailing check, be sure to include ALL executed documents and a copy of the proceeds check/wire to the

address shown below:

If the above instructions are NOT followed, we will not be able to accept the short sale funds.

Should you have any questions, please email me.

Sincerely,

Loss Mitigation Specialist

LoanCare

Attn: Peggy Gary

3637 Sentara Way

Virginia Beach, VA 23452

Page 3 of 11

Please type the below wording onto the Closing Disclosure Statement and have all parties sign

CLOSING DISCLOSURE STATEMENT

BUYERS & SELLERS:

I have carefully reviewed the Closing Disclosure Statement and to the best of my knowledge and belief, it is a true and

accurate statement of all receipts and disbursements made on my account or by me in this transaction. I further certify that

I have received a copy of the Closing Disclosure Statement

______________________________________________ _____________________________________________

Buyer Date Seller Date

______________________________________________ _____________________________________________

Buyer Date Seller Date

SETTLEMENT AGENT:

The Closing Disclosure Statement which I have prepared is a true and accurate account of this transaction. I have caused or

will cause funds to be disbursed in accordance with this statement

______________________________________________

Settlement Agent Date

___________________________________________________________________________________________________

WARNING: IT IS A CRIME TO KNOWLINGLY MAKE FALSE STATEMENTS TO THE UNITED STATES ON THIS OR

ANY OTHER SIMILAR FORM. PENALTIES UPON CONVICTION CAN INCLUDE A FINE AND IMPRISONMENT.

FOR DETAILS SEE: TITLE 18 U.S. CODE SECTION 1001 AND SECTION 1010

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FHA PRE-FORECLOSURE SALE ADDENDUM

Mortgagee: Mortgagee Loan Number:

2609 Pennsylvania Ave St Louis MO 63118

Date of Purchase Contract:

11/2/2016

Seller: Buyer:

Seller: Buyer:

Seller’s Agent/Listing Agent: Buyer’s Agent:

Escrow Closing Agent: Transaction Facilitator/Negotiator:

___________________________________ __________________________________

(PRINT NAME) (PRINT NAME) If applicable

Address of Property:

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AnthonyAllen

Highlight

This Pre-Foreclosure Sale Addendum (“Addendum”) is given by the Seller(s), Buyer(s),

Agent(s), and Facilitator/Negotiator to the Mortgagee of the mortgage loan secured by the

Property (“Mortgage”) in consideration for the mutual and respective benefits to be derived

from the pre-foreclosure sale of the Property.

NOW, THEREFORE, the Seller(s), Buyer(s), Agent(s), and Facilitator/Negotiator do hereby

represent, warrant and agree under the pains and penalties of perjury, to the best of each

signatory's knowledge and belief, as follows:

(a) The sale of the Property is an “arm's length” transaction, between Seller(s) and

Buyer(s) who are unrelated and unaffiliated by family, marriage, or commercial enterprise.

Additionally, the transaction is characterized by a selling price and other conditions that would

prevail in an open market environment and there are no hidden terms or special understandings

that exist between any of the parties involved in the transaction including, but not limited to the

buyer, seller, appraiser, broker, sales agent (including, but not limited to the listing agent and

seller’s agent), closing agent and mortgagee;

(b) Any relationship or affiliation by family, marriage, or commercial enterprise to the

Seller(s) or Buyer(s) by other parties involved in the sale of the Property has been disclosed to

the Mortgagee;

(c) There are no agreements, understandings or contracts between the Seller(s) and

Buyer(s) that the Seller(s) will remain in the Property as tenants or later obtain title or

ownership of the Property, except that the Sellers(s) are permitted to remain as tenants in the

Property for a short term, as is common and customary in the market but no longer than ninety

(90) days, in order to facilitate relocation;

(d) Neither the Sellers(s) nor the Buyer(s) will receive any funds or commissions from the

sale of the Property except that the Seller(s) may receive a payment if it is offered by the

Mortgagee, and, if the payment is made at closing of the sale of the Property, reflected on the

HUD-1 Settlement Statement;

(e) There are no agreements, understandings, current or pending higher offers, or contracts

relating to the current sale or subsequent sale of the Property that have not been disclosed to

the Mortgagee;

(f) The current sale transaction is a market real estate transaction, and the buyer is making

an outright purchase of real property;

(g) The current sale transaction will be recorded;

(h) All amounts to be paid to any person or entity, including holders of other liens on the

Property, in connection with the pre-foreclosure sale have been disclosed to and approved by

the Mortgagee and will be reflected on the HUD-1 Settlement Statement;

(i) Each signatory understands, agrees and intends that the Mortgagee is relying upon the

statements made in this Addendum as consideration for the reduction of the payoff amount of

the Mortgage and agreement to the sale of the Property;

(j) A signatory who makes a negligent or intentional misrepresentation agrees to

indemnify the Mortgagee for any and all loss resulting from the misrepresentation including,

but not limited to, repayment of the amount of the reduced payoff of the Mortgage;

(k) This Addendum and all representations, warranties and statements made herein will

survive the closing of the pre-foreclosure sale transaction;

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(l) Except for the real estate agents and brokers identified in this Addendum, the signatories

to this agreement can only serve in one capacity in order to be in compliance with HUD's

policies on conflicts of interest and arms-length transactions;

(m) The Listing Agent and Listing Broker certify that the subject property was initially listed

in the Multiple Listing Service (MLS) for a period of 15 calendar days before any offers

were evaluated;

(n) If multiple offers were under consideration at the time the offer was submitted for

acceptance, the Listing Agent and Listing Broker certify that, of all of the offers meeting

HUD's guidelines, this offer yielded the highest net return; and

(o) Each signatory certifies that all the information stated herein, as well as any

information provided in the accompaniment herewith, is true and accurate. HUD will

prosecute false claims and statements. Conviction may result in criminal and/or civil penalties.

(18 U.S.C. 1001. 1010. 1012; 31 U.S.C. 3729. 3802)

(Seller’s Signature) By: _____________________________________________

(Seller’s Signature) By: _____________________________________________

IN WITNESS WHEREOF, I have subscribed my name this ____ day of ___________, 20____.

(Seller’s Agent/Listing Agent’s Signature) By: ____________________________________

IN WITNESS WHEREOF, I have subscribed my name this ____ day of ____________, 20____.

(Buyer’s Signature) By: _____________________________________________

(Buyer’s Signature) By: _____________________________________________


(Buyer’s Agent’s Signature) By: ____________________________________


(Escrow Closing Agent’s Signature) By: _________________________________________


(Transaction Facilitator’s Signature (if applicable)) By: _____________________________

IN WITNESS WHEREOF, I have subscribed my name this ____ day of ____________, 20____.

Page 7 of 11

NOTARY CERTIFICATION

STATE OF

COUNTY OF

On _________________________, before me, _________________________________, Notary Public,

personally appeared ________________________________, who proved to me on the basis of

satisfactory evidence to be the person(s) whose name is subscribed to the within instrument and

acknowledged to me that he/she/they executed the same in his/her/their authorized capacity, and that

by his/her/their signature on the instrument the person, or the entity upon behalf of which the person

acted, executed the instrument.

I certify UNDER PENALTY OF PERJURY under the laws of the State of ___________________ that the

foregoing paragraph is true and correct.

WITNESS my hand and official seal.

STATE OF

COUNTY OF










Signature

Signature

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STATE OF

COUNTY OF










Signature

STATE OF

COUNTY OF

On _________________________, before me, _______________________________, Notary Public,

personally appeared , who proved to me on the basis of








Signature

STATE OF

COUNTY OF










Signature

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STATE OF

COUNTY OF










Signature

STATE OF

COUNTY OF










Signature

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