BOA $20K incentive and PMI

Client is now considering a short sale because he rec'd letter from BOA that he might be able to receive "up to $20,000" if he short sells. The "up to" is one concern of his. Does anyone know what criteria the servicer/lender uses to determine how much $ incentive will finally be offered and whatever that amount is, will it actually be given in  writing (before a HUD)?   There is also PMI involved - - does the PMI company have any say in the determination of the amount of the incentive or are PMI's  companies nixing incentives altogether?  The PMI company happens to be PMI Mortgage Insurance Co - - the one that Arizona Dept of Insurance just  took over.PMI Mortgage Insurance Co link

Thanks in advance for your comments! They're much appreciated!

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Permalink Reply by Cody Lampariello on October 31, 2011 at 8:23am

 

I am working on a few of these files now but I don't have any decent progress as of yet. I would be interested to hear anyone elses progress. As of now my understanding is as follows:

Approval is based on them being able to qualify for: HAFA, Fannia Mae Co-Op, other BoA programs

Joan, this means the PMI company may become an issue because like in most HAFA files if they ask for a prom note or cash to close the deal is dead.

Since the program is designed around being submitted without buyers the dollar amount of the incentive if one is given should be known well before any kind of final HUD is being prepared.

My advice: Have your client submit and see what happens. If they don't like the terms they don't have to close.  

Permalink Reply by Joan Lorberbaum Moore on October 31, 2011 at 5:18pm

Thanks, Cody!

I hope you'll keep me and all of us up to date as your transactions progress.

Permalink Reply by Eric Mieles on November 1, 2011 at 3:38pm
I'm hearing and seeing 5% of the principal balance for Aug is a rough estimate of what there qualifying for as well as having to be qualified for one of the programs Cody mentioned.it worries me a bit because I HATE doing shorts where the lender dictates the value. It always leaves the chance of us playing catch up and never bridging the gap however were stuck because we want to get this money for our sellers!

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