1. Module 6: Buyers, Buyer’s Agents & HAFA 6-1 77

2. HAFA Significance for Buyers Traditional short sale approval may take long time Buyers back out when wait is too long 6-2 77

3. HAFA Pre-Approval Attractive HAFA approval or disapproval within 10 Biz days HAFA pre-approved homes more attractive to buyers 6-3 77

4. Delays Possible If not HAFA pre-approved: –Seller may choose Alt. RASS process –Servicer may solicit seller into HAFA & Alt RASS –Counsel buyer about HAFA pre- approved properties 6-4 77

5. HAFA Rules for Buyers Arm’s length sale 90 day re-sale restriction Specific wording required in contract 6-5 78

6. HAFA Rules for Buyers (cont’d) No lease-back or buy- back agreements No money to buyer 6-6 78

7. With Buyer’s Offer, Submit: All addenda Proof of Funds Financing pre-approval on buyer’s lender’s letterhead 6-7 If all required items are not in original offer, seller might delay accepting the offer to prevent non-compliance with the 3 Day rule for submission of contract to servicer 78

8. Incomplete Offer Scenarios Seller may reject and another buyer wins the day Submitted, incomplete package rejected by servicer 6-8 79

9. Closing Dates & Time Frames 45 days begins at contract acceptance 20-22 days may elapse before servicer approval 6-9 Plan closing date Line up inspections, surveys, etc. 79

10. Contingencies Standard contingencies acceptable Probable problem contingencies: –Must sell home before closing –Seller pay buyer’s closing costs 6-10 80

11. Closing Costs SSA indicates costs servicer will pay Ask listing agent 6-11 80

12. Is Checklist on MLS? Listing agent may have uploaded list of docs & instructions If so, follow it If not, contact listing agent 6-12 80

13. Meet or Beat List Price? List price is pre-approved Meeting or beating list price almost assures approval 6-13 80

14. Improve Buyer’s Chances Learn HAFA rules Keep required contract language in word processor or standard addendum 6-14 80

15. Counsel the Buyer on… Short sale basics HAFA rules Proof of funds and/or financing pre- approval requirements 6-15 81

16. Counsel the Buyer on… HAFA time lines Likelihood of approval if list price is met Unacceptable contingencies 6-16 81

17. HAFA Listing Remarks Remarks mentioning HAFA may not mean SSA has been issued Don’t assume HAFA pre-approval Ask listing agent 6-17 81

18. How Many Liens? One lien easiest Chances of success diminish with more liens 6-18 81

19. Subordinate Liens Ask listing agent: –How many, including HOA liens? –How much owed? –Status of negotiations? 6-19 81

20. HAFA Workflow Straight & Fast A few curves Twists & Turns 83 6-20

21. HAFA Workflow SSA & RASS 83 6-21

22. Situation #1 Non-HAFA Transactions in Progress Borrower may be offered HAFA opportunity by servicer Seller’s decision 83 Treasury & Fannie Mae Loans 6-22

23. Situation #1 Non-HAFA Transactions in Progress HAFA not available 83 Freddie Mac Loans 6-23

24. Situation #2 Property Currently Listed Determine eligibility Request short sale Follow Situation #3 guidelines 83 6-24

25. Situation #3 Listing Property Today Determine eligibility Request short sale Follow Situation #3 guidelines 83-86 6-25

26. HAFA Workflow Alt. RASS 87 6-26

27. Situation #4 Short Sale Offer Today, Seller Not Pre-Approved Determine eligibility Submit contract with Alt. RASS Follow Situation #4 guidelines (not for Freddie Mac loans) 87-89 6-27