Monthly Newsletter From The Bank Of America.. Info on Short Sales Foreclosures

 

This blog will discuss several key items.

 

  • With the increase of FHA preforeclosure sales, We would like to take the opportunity to help you understand how different the FHA process is from traditional short sales.
  • About half of first time homebuyers are from the low-to-moderate income bracket which makes it difficult to save money for cost associated with buying a home. Here, we will discuss programs that will assist with down payments and/or closing costs in conjunction with a Bank of America first mortgage.
  • Chances are you use an iPad or other tablet as part of doing business. Do you know about the acceptable courtesy standards that are expected when you use this tool in public? Read on to find out more.

 

Understand the FHA short sale process
 
short sales help

All short sales are not alike – especially when an FHA-insured mortgage is involved. FHA short sales must advance through a very exact and systemized process. Here’s what you need to know

Before a short sale can be initiated — The U.S. Department of Housing and Urban Development (HUD) requires that the homeowner be reviewed for all home retention options (modification) before a short sale is pursued. This 30- to 90-day process seeks to determine whether a legitimate hardship exists and if a short sale is appropriate. The review also will certify that the home has not been rented for more than 18 months and is being maintained, that there is a marketable title, and that the property has only one FHA-insured loan.

A listing agreement or offer is not required in order for the homeowners to be approved. Once the homeowner is approved to short sell their home, foreclosure is put on hold and the homeowner receives an Approval to Participate (ATP) letter. Bank of America does not begin negotiating the purchase contract until after the homeowner is approved to participate and has returned a signed “wet ink” copy of the ATP within seven days of the date of issuance. If the ATP is not returned within seven days, the agreement will be canceled.

Homeowner involvement — FHA short sales must be initiated by the homeowner, not an agent. Homeowner should contact their assigned Customer Relationship Manager (CRM).

The homeowners are also required to actively participate in the short sale process, including returning documents within the required time frames and maintaining contact with the mortgage servicer.
HUD dictates the amount of incentives payable to the seller, and additional short sale relocation assistance incentives do not apply. Seller incentives will be applied to any second liens greater than $1,500, and after the second lien has been paid, any surplus will be paid to the seller.

Agent involvement — They will work with the homeowner to make sure the following items are organized and completed once the ATP has been executed and returned to them. First, they will thoroughly review the Welcome Package with the homeowner. Then begin gathering the documents necessary for the process, being sure they are signed and dated where necessary. These include:

  • Pay stubs (dates, amounts, names, institutions)
  • Bank statements (all pages, accounts, and borrowers)
  • Hardship letter
  • Occupancy certificate
  • Marketable title

 

Important information about the three HUD forms which are key to the FHA short sale process:

1. Approval to Participate – HUD approval for the sellers to short sale their home: HUD – 90045 Form

  • Must be signed and returned within seven days of issuance
  • Lists property at “as-is” value within seven days with a licensed real estate agent who is not related to the seller
  • Incorporates a 120-day marketing period in which the appraisal remains valid
  • Requires an arms-length transaction
  • Certifies property maintenance and occupancy
  • Requires the following language in the listing agreement: "Seller may cancel this Agreement prior to the ending date of the listing period without advance notice to the Broker, and without payment of a commission or any other consideration if the property is conveyed to the mortgage insurer or the mortgage holder.

 

2. Sales Contract Review – HUD approval for the buyer to purchase the short sale: HUD – 90051 Form

  • Requires the following language in the purchase contract: “Sale is contingent upon the seller obtaining the prior written approval of Bank of America.”
  • Lists property at “as-is” value within seven days with a licensed real estate agent who is not related to the seller
  • Defines net sale proceeds
  • Requires an arms-length transaction
  • Requires an arms-length transaction
  • Includes the outright sale of premises (not assignable)
  • Permits customary and reasonable settlement costs

 

3. Closing Worksheet – HUDs approval to close the short sale: HUD – 90052 Form

  • Includes homeowner/seller initials
  • Includes closing agent, listing agent signatures and date
  • Requires that the homeowner/seller be 31 days delinquent
  • Requires submission of clean HUD-1 forms three to five days before close to receive closing instructions
  • Should be returned to Bank of America after Close of Escrow (including executed closing documents)
  • Requires borrower(s) to sign Unearned Premium statement

 

Resources for homebuyers with modest incomes
 

Consumers with low- to- moderate incomes comprise about half of today’s first-time homebuyers.

Bank of America participates in a variety of affordable housing assistance programs for qualified buyers, including down payment and/or closing cost assistance, Mortgage Credit Certificates (MCCs), nonprofit and government agency grants, inclusionary zoning, and employer-assisted housing. Our expert mortgage loan officers (MLOs) are able to quickly narrow down the more than 2,500 approved programs provided by employers, nonprofit, or government agencies across the nation that can provide your homebuyer with down payment or closing cost assistance and that can be used with a government loan.

In addition, our MLOs can provide a listing of the Connect to Own® housing counselors who offer pre-purchase education and counseling to prospective homebuyers. Pre-purchase education and counseling may be a requirement for customers looking to acquire down payment or closing cost assistance.

 

 
Tablet etiquette for professionals
 

With this dramatic increase in the use of tablets for business come questions about the rules for courteously using these devices. Coined “tabletiquette,” the acceptable social behavior for using tablets in public goes beyond what we’ve come to accept as courteous use for cellphones.

Be screen-wise. First, unlike your cellphone, smartphone, or electronic reader, you should think of your tablet as an open e-book. If you set it down during a meeting, closing, or showing, be aware that it’s very easy for someone to glance over and see what you have loaded on it or, worse, if you walk away from it, to do a very quick search and see your recent browsing history. It’s best to keep the tablet screen clean and professional looking: clear it of icons related to your personal life or at least move them away from the screen center.

Appropiate Use. It’s acceptable to use your tablet in a meeting if you’re leading the meeting. However, if you’re not the leader, don’t automatically assume that tapping away on your screen is appropriate. For example, if you arrive at a showing and the listing agent is present, explain that you will be taking notes about the home’s features on your tablet.

Get permission. Because your tablet has more functionality than a typical pad of paper (i.e., you can use it to take photographs or make audio recordings) don’t assume you can make use of that technology without permission. Before taking photographs or recording a discussion, ask permission of those who may be in the frame or on the recording.

Dont let it become a distraction. Your tablet is a great business tool, but it can become a distracting addiction. Make courtesy to the people around you your top priority. As with any mobile device, don’t busy yourself with your tablet in the middle of a closing (unless you need information stored on it related to the closing), while your buyers are looking at a house, or when you’re driving.

 

Its a common knowledge that buying the right luxury property or selling your current property depends a great deal on finding the right Real Estate Proffesional.

The Snyder Group provides Luxury Real Estate Services throughout the entire Clark County. We consistently represent the most significant Homes For Sale in the different Las Vegas Communities such as Summerlin and The Sun Cities.
 
Our real estate agents have a wealth of local knowledge and experience in all the facets of residential real estate whether looking for a large custom home or a condo on the famed Las Vegas Strip – Our agents know our area the best. If you want more information, Contact The Snyder Group for a free consultation and we'll be happy to listen. 
 
This was drafted from The Bank of America's Monthly Newsletter. To see the original article Click Here

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