Seller should be aware that the current fair market value of the Property may be insufficient to discharge all debts and obligations owed to creditors secured by liens on the Property (Lien holder(s)), as well as pay real estate commissions and other customary and necessary costs of sale.

Seller is be aware that sale of the Property is likely to require approval by one or more Lien holder(s) to the extent such Lien holder(s) is not paid in full.

Credit Considerations A short sale may adversely affect Seller's credit score. Additionally, even if a Lien holder(s) agrees to a request for a short sale, such Lien holder(s) may not agree to forgive the debt entirely and may require Seller to pay the difference as a personal obligation. If the loan is insured by the FHA or guaranteed by the VA, Seller may be required by these entities to pay the difference.

Tax Considerations A short sale in which a portion of the debt is forgiven or waived by a Lien holder(s) may be treated as income to Seller for income tax purposes.

Lien holder(s) Considerations Seller acknowledges that a request for short sale is subject to approval by all applicable Lien holder(s) and a Lien holder(s) is not obligated to accept a short sale requested by Seller.

Lien holder(s) may impose conditions prior to consideration or approval of a short sale request, such as obtaining a new appraisal, requiring Seller to demonstrate hardship, or providing copies of tax returns, pay stubs or other financial information.

Other Options Seller acknowledges that there may be options other than a short sale, such as loan modification, revised repayment plan, refinance, or entry into a Lien holders loan mitigation program, if available.

Seller authorizes Listing Firm to communicate with Lien holder(s) regarding the details of the request to release liens and the possibility of Lien holder(s) accepting less than the total amount owed in exchange for a release of the liens. Seller will also deliver written instruction to Lien holder(s) authorizing Lien holder(s) to discuss details of Seller's loan with Listing Firm.

Seller is aware that the decision of Lien holder(s) is not within the Listing Firm's control. Listing Firm shall not be liable for any loss, damage or harm to Seller resulting from, and Seller shall indemnify, defend and hold Listing Firm harmless from (a) Listing Firm's communications with a Lien holder(s); (b) a Lien holders rejection of the short sale request; (c) failure of a Lien holder(s) to make a decision in a timely manner; (d) untimely, inaccurate or incomplete information provided by Seller to Listing Firm; and (e) imposition of terms or conditions by Lien holder(s).

Seller shall cooperate with Listing Firm's efforts to negotiate a reduced payoff amount and/or releases of liens on the Property by executing or providing documentation required by Lien holder(s) in order to review or process the short sale request. Seller agrees to respond to Listing Firm's requests promptly, accurately and completely. Listing Firm shall not be responsible for verifying any information provided by Seller.

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