T. Aragon LLC
Short Sale Negotiation Service Membership Agreement

This agreement is between T. Aragon LLC (hereafter referred to as Service Provider) and the person or entity registering online to become a member of the Short Sale Negotiation program offered by the Service Provider (hereafter referred to as Member).

  1. The service provided by the Service Provider to the Member is Short Sale negotiation. A Short Sale is a negotiated real estate transaction in which the proceeds from the sale are insufficient to satisfy the liens on the property. The lien holders (usually mortgage companies) agree to accept less than what they are contractually due to facilitate a pre-foreclosure sale.
  2. The Member hereby agrees that negotiating a Short Sale is difficult and the lender has sole discretion as to whether or not a Short Sale is approved. The Member hereby agrees that it is likely that many Short Sales will not be approved.
  3. The Member hereby agrees that the percentage of discount on a Short Sale is the discretion of the lender and there are many factors involved. However, the following outlines the typical discount percentages with major determining factors:
    1. The typical discount on a home in good condition and in a good location (a pretty house) is 10% to 15% of the value.
    2. Greater discount percentages can be achieved with the proper justification. 15% to 30% discounts can be achieved on properties with problems (ugly houses with significant repairs needed, bad locations, etc.).
    3. Discounts greater than 30% are typically achieved on very ugly houses.
    4. As the desired discount percentage increases, the justification required to the lender will increase commensurately.
    5. All documents the Member must use to submit a Short Sale to the Service Provider for negotiation. Any Order may be denied at the sole discretion of the Service Provider for any reason.
  4. For all Short Sales, the Member must be the purchaser of the property and not any third party including partners or associates.
  5. Document requirements may change at any time and must be submitted as necessary to obtain short sale approval. A complete list of required documents is clearly listed on the membership site.
  6. Once negotiations begin on any Short Sale, only the Service Provider can contact the lender. The Member hereby agrees that any contact to the lender by the Member, homeowner, Realtors, or any other third party can jeopardize negotiations and negotiation efforts may be discontinued at the discretion of the Service Provider.
  7. It is the responsibility of the Member to communicate with the homeowner to gather documents. The Service Provider may directly communicate with the homeowner in many cases for efficiency; however, it is the responsibility of the Member.
  8. It is the responsibility of the Member to meet the BPO or appraisal agent at the property. The BPO may be influenced using techniques specified by the Service Provider.
  9. If any Short Sale is denied, it is the responsibility of the Member to inform the homeowner of the situation. Furthermore, it is the responsibility of the Member to inform the homeowner that the Member is not going to purchase the property for any reason (including a change of mind regarding pursuit of the Short Sale opportunity).
  10. Before any closing, the Member agrees to deliver a preliminary settlement statement to the Service Provider to ensure the proper allocation of fees.
  11. The Service Provider will provide an online tracking system (Tracking System) that will be used by the Member to track activity and status of Short Sale Work Orders. The Member will have a User ID and Password created at the time of registration.
  12. The Member agrees that the Tracking System is for use directly by the Member. The User ID and Password to access the Tracking System cannot be shared with anyone else, including the homeowners, Realtors, third parties, partners, and associates.
  13. The Member agrees not to charge the homeowners for Short Sale negotiation services.
  14. The Service Provider can terminate this agreement in writing and all work will cease due to non-payment of fees or repeated non-compliance by the Member on the terms and conditions in this agreement.
  15. The Member can terminate this agreement in writing at any time for any reason.
  16. Member hereby expressly agrees to indemnify and hold harmless the Service Provider, its successors, or assigns against all suits, actions, claims, demands, losses, or damages suffered by the Member, homeowner and other parties including but not limited to Realtors, brokers, title companies, and closing agents that arise from foreclosure, Short Sale negotiations, or other activities associated with this agreement between the Member and Service Provider.