So for those of you who know the PFS program very well I have a question you know on the ATP how it states language like this
Acceptable Terms of Sale
Program criteria require that “net” amount payable to
HUD as a result of this sale, after allowable expenses will be
at least $X from 10/26/11 to 11/24/11, $X
from 11/25/11 to 12/24/11, and $X until the
expiration date of 02/22/12.
My questions is at what point does FHA consider the effective date on the offer and how it relates to the "net" amount HUD receives? Is it the date the offer is accepted by the seller or is the date the contract is closed?
Thanks for all the help!
The tiered net proceeds clock starts ticking on the day the ATP is issued.
I had this situation. The "binding agreement date" or the date that the offer was accepted by all parties was a week shy of us going from 86% ti 84% net to HUD. I was told then that it was the date that the contract was accepted not closed that matters to HUD and the net amount. Be very careful with your calculations because HUD is serious about the "net"
I've overcome this and have had the lower net approved on several occasions when a Contract was presented to the Servicer prior to being in the lower tiered net time frame.
I've found that most servicers consider it to it be the date on the contract or the date the seller accepts the offer or maybe even the date the servicer receives the offer. I believe HUD intends it to be the date of closing as that is the way the ATP and mortgagee letters read.
So my negotiator at US Bank responded to my question by saying this
"yes...the clock starts when the ATP is issued"