All Forum Posts by: Nick Reuter

Oh and here is the link for the HUD PDF directly in this thread:

http://www.hud.gov/offices/hsg/sfh/waivpropflip2010.pdf

Here is a synopsis of what I pulled out of the rules:

1. Effective 2/1/2010
2. Transactions must be arms length – no inappropriate collusion and no identity of interest between the buyer and seller or other parties. This can be determined using the following:
1. Seller holds title to the property
2. LLC’s, Corporations, or Trusts which are sellers are operating within the law
3. No pattern of previous flipping exists for the same property within a 12-month time frame
4. Property was marketed openly and fairly via MLS, auction, FSBO (for sale by owner) or developer marketing
3. In cases in which the sales price of the property is 20 percent or more above the seller’s acquisition cost, the waiver will only apply if the lender:
1. Justifies the increase in value by retaining loan file supporting documentation and / or a second appraisal that verifies the seller has completed sufficient renovation / repair / renhabilitation work
2. Orders a property inspection and provides inspection to the purchaser prior to closing. FHA approved inspectors are not required. Inspection must include, at a minimum:
1. Structural inspection, including roof, foundation, floors, ceiling, walls, and roof
2. Exterior, including siding, doors, windows, decks, balconies, walkways, an driveways
3. Plumbing, electrical, heating, and air conditioning systems
4. Insulation and ventilation systems, including fireplaces and fuel burning appliances
4. Waiver is limited to forward mortgages, and does not apply to Home Equity Conversion Mortgage (HECM) for Purchase program

Did anyone see this blog post elsewhere on the web? I found the commentary on the post to be fascinating.
http://agentgenius.com/real-estate-mortgage-economy/mortgage/is-a-short-sale-backlash-starting-against-bank-of-america/#comment-44300

I just started with Wordpress recently. I like it a lot - check out my blog - [LINK REMOVED, use link in signature]

I would like to over time integrate it better with the rest of the site, but it works pretty well so far!

For hosting, I am self-hosting this site on a dedicated server, but I have had great luck previously with Hostgator.com

There are several software companies out there ranging from reasonably priced to astronomical. Your volume will really determine your need.

That's a shame. I'm trying to work on software and ultimately the goal is to link directly in with systems to make processing easier. I might have to try and get a hold of someone at REOTrans although I know that is likely much easier said than done :)

Been reading up on this in the past day or two. Fascinating. Arebanks compelled to perform in this plan, or is the only incentive the $1500

Here is the URL for the PDF document itself:
https://www.hmpadmin.com/portal/docs/hamp_servicer/sd0909.pdf

Found some more information on it.

* Who
o Must be the homeowner’s principal residence.
o The homeowner is delinquent on the mortgage, or default is imminent
o The loan was made before Jan. 1 this year and is less than $729,750
o The borrowers’ total monthly mortgage payment exceeds 31 percent of their pre-tax income

* What
o Deadlines
o Standardized Paperwork
o $1000 to lenders
o $1500 to sellers for moving costs
o Up to $3k for subordinate lienholders
o No foreclosure can occur during the short sale agreement period
o Mortgage servicers may not lower real estate agent commissions

* When
o April 2010

Terrence, I think you are right. What is the buy-in for this? I haven't figured that out yet. Is $1000 enough for lenders as an incentive? It sure sounds good on the surface.

Not sure if everyone saw this but Reuters had a big article yesterday on short sales.

http://www.reuters.com/article/bondsNews/idUSN3046464720091130

Some highlights:
1. Subordinate lien holders have a cap of $3000
2. Borrowers receive $1500 in relocation expenses
3. Incentives to the bank and to the investor
4. 10 day window to accept the short sale by the bank
5. The borrower must be fully released from the debt
6. Prohibits mortgage servicers from reducing agent commissions

What do you guys all think of this? I tried to find the actual legislation this morning but only found earlier HAMP information that pertained more to loan modifications for homeowners, not short sale scenarios. I'll look again later this morning.