Must be read, initialed & signed by Seller before we start a short-sale:
The Seller(s) understand and acknowledge that:
______ 1. Patti Lyles scope of engagement is for the sole purpose of selling the Sellers Property in a short sale. Seller acknowledges that Patti Lyles is in no way representing or acting as legal counsel to Seller. Patti Lyles is not offering any legal advice to Seller. Seller acknowledges that Seller has been advised to seek independent advice of counsel regarding any and all legal issues that may arise as a result of any short sale transaction.
_____ 2. All short sales are solely subject to the approval of all of Seller’s mortgage and/or lien holders associated with the Property.
_____ 3. Patti Lyles does not warrant and cannot guarantee that Seller’s mortgage and/or lien holders will approve the proposed short sale. Seller’s mortgage and/or lien holder(s) are under no obligation to approve the proposed short sale. The decision to approve said short sale rests solely within the discretion of the mortgage and/or lien holder(s). Further, Patti Lyles cannot guarantee and make no representation that it will be able stop, postpone or cancel any foreclosure proceedings initiated by any mortgage and/or lien holder(s).
_____ 4. Seller agrees to provide any and all documents and/or information requested by Patti Lyles for the purpose of processing and selling the proposed short sale. Seller further agrees that it is Seller’s affirmative obligation to immediately notify Patti Lyles of any and all foreclosure proceedings initiated by any party. Seller is responsible to receive and open any and all notifications regarding the subject Property received by mail and/or service of process. If Seller does not reside at the subject Property or there has been a change in Seller’s mailing address, Seller must notify the mortgage and/or lien-holders of the new address to ensure receipt of all notices.
_____ 5. Seller hereby acknowledges that no proceeds from the sale of the subject Property will be received by Seller. All net proceeds from the short sale of Seller’s home, including any refunded insurance premiums, shall be paid to Seller’s mortgage and/or lien holders.
______ 6. Seller acknowledges that the mortgage and/or lien holder(s) may accept Seller’s proposed short sale and issue a lien release while preserving its right to pursue a judgment against Seller for any deficiencies owed as a result of the mortgage and/or lien holder(s) agreement to accept less than a full payoff. Patti Lyles does not warrant and cannot guarantee that a deficiency resulting from the short sale will be forgiven, waived and/or cancelled by the mortgage and/or lien holder(s). Various jurisdictions may be governed by an anti-deficiency statute that prohibits mortgage and/or lien holder(s) from seeking a deficiency judgment against Seller. The scope of Patti Lyles service does not include negotiating settlements in the event the mortgage and/or lien holder(s) seek to recover monies from Seller stemming from a deficiency balance that may exist after closing. Seller further acknowledges that Seller has been advised to seek the advice of legal counsel in Seller’s jurisdiction to determine whether an anti-deficiency statute or various applicable laws govern the recourse rights of mortgage and/or lien holder(s) which may affect the Seller’s decision to proceed with a short sale.
______ 7. The acceptance of a payoff for less than the full amount owed to Seller’s mortgage and/or lien holder(s) may be reported to the credit bureaus, which may negatively impact Seller’s credit rating and serve as an impediment on Seller’s ability to obtain future credit. Patti Lyles does not negotiate with any credit bureau on behalf of Seller.
_____ 8. The mortgage and/or lien holders may forgive a portion or all of Seller’s debt, which may be considered income to Seller. Seller should consult an independent, qualified professional regarding any questions or concerns regarding any potential tax liabilities of a short sale.
______9. Seller is not obligated to pay Patti Lyles in advance for the negotiation of Seller’s payoff(s). Seller acknowledges that Seller understands that Patti Lyles will seek compensation from the mortgage and/or lien holder(s) from the proceeds of the short sale. Patti Lyles will not claim, demand, charge, collect or receive any compensation until after Patti Lyles has fully performed or attempted to perform each and every service in an effort to effectuate the short sale of the Property. Compensation is approved by the mortgage and/or lien holder(s). Compensation is deducted from the net proceeds that the mortgage and/or lien holder(s) have agreed to accept by approving the short sale.
_____ 10. Seller agrees and acknowledges that Patti Lyles has made no promises, guarantees, nor representations made to Seller which are contrary to the disclosures and information contained herein.
Seller(s) have read, understand and acknowledge the foregoing Short Sale Disclosure and fully agree with the terms and conditions contained herein.
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Signature Date
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Signature Date
