Short Sale Program- Additional Information

1. You cannot list the property with or sell it to anyone that you are related to or have a close personal or business relationship with. In legal language, it must be an “arm’s length transaction.” If you have a real estate license, you can not earn commission by listing your own property. You may not have any agreements to receive a portion of the commission or the sales price after closing. Any buyer of your property must agree to not sell the home within 90 calendar days of the date it is sold by you. You may not have any expectation that you will be able to buy or rent [servicer may delete "or rent" in accordance with investor guidelines] your house back after the closing. Any knowing violation of the arm’s length transaction prohibition may be violation of federal law.
2. We will need to talk to your broker and others involved in the sale. By signing this Agreement, you are authorizing us to communicate and share personal financial information about your mortgage, credit history, subordinate liens, and plans for relocation with your broker and other third parties that could be involved in the transaction including employees of the United States Treasury and its financial agents, Fannie Mae and Freddie Mac.
3. The difference between the remaining amount of principal you owe and the amount that we receive from the sale must be reported to the Internal Revenue Service (IRS) of Form 1099C, as debt forgiveness. In some cases, debt forgiveness could be taxed as income. The amount we pay you for moving expenses may also be reported as income. We suggest that you contact the IRS on your tax preparer to determine if you may have any tax liability.
4. We will follow standard industry practice and report to the major credit reporting agencies that your mortgage was settled for less that the full payment. We have no control over, or responsibility for the impact of this report on your credit score. To learn more about the potential impact of a short sale on your credit, you may want to go to http://www.ftc.gov/bcp/edu/pubs/consumer/credit.cre24.shtm.