Replies to This Discussion

Permalink Reply by Kevin - Greenville, SC on November 15, 2011 at 8:13am

I've ask Matt Martin with HUD to chime in out this.  Googled it, but found nothing.

Permalink Reply by Beverly Cibulsky on November 15, 2011 at 8:22am

Kevin you are the best!

I havent found anything on this either!

Permalink Reply by Celeste ODea on November 15, 2011 at 8:29am

I just sent BOA the same question.  Our seller received a letter indicating that they are getting a $4,000 incentive, but no one seems to know how to handle it.  Maybe I will find out soon and pass it along.  Having an issue with BOA and my FHA PFS right now.  Have had the ATP signed for nearly a month and nothing has happened.  Negotiator just dropped the ball and went on vacation.  The person filling in for her is on maternity leave.  I've left VMs for the Negotiator's supervisor and the mother-to-be's supervisor with NO response - a week later, still nothing.  Sent a note to VP of Short Sales (Dawson_ one week ago, no response.  Her assistant was suppose to follow up with her emails while she was out of town; no response from her either.    Does anyone have the email address for Bob Hora, the new Sr VP of Short Sales and REOs???  He has his on staff of Negotiators and I need to get to him quickly.

Permalink Reply by Kevin - Greenville, SC on November 15, 2011 at 8:46am

Celeste,

 

Nothing is suppose to really happen after an ATP has been issued (on the Servicer(s) end) until you have a contract on the property.

Permalink Reply by Kevin - Greenville, SC on November 15, 2011 at 8:30am

Here is the answer Matt Martin provided -

 

'HUD is not offering any additional incentive above the $1,000 or $750.  On certain Bank of America loans, BOA is paying an additional incentive amount up to $3,000 due to a settlement with HUD on those loans.  It is not on all BOA loans'

Permalink Reply by Beverly Cibulsky on November 15, 2011 at 9:06am

Very interesting!

Thanks again Kevin, and thanks Celeste. By all means keep us posted.

This will be a BOA also (already with an offer). So kinda need to know how to address this on the HUD1.

Have I said lately that I love Short Sale Superstars!

Permalink Reply by Kevin - Greenville, SC on November 16, 2011 at 5:30am

http://www.scribd.com/doc/72922602/BOA-FHA-PFS-Incentive-HUD-1-on

Permalink Reply by Celeste ODea on November 15, 2011 at 10:50am

I have a contract at the full amount HUD wants, and the bank has all of the documentation.  ATP says we have to close by January 12, so why can we just go to closing?  This homeowner gets a $4,000 incentive, and normally the $750 or $1,000 is put in the 400 series of the HUD-1, but BOA is offering $3,000 in addition and not sure if that even goes on the HUD-1.

Permalink Reply by Kevin - Greenville, SC on November 16, 2011 at 5:30am

Yes, the additional BOA incentive will need to go on the HUD-1.  I would suggest somewhere in the 500 block.

 

http://www.scribd.com/doc/72922602/BOA-FHA-PFS-Incentive-HUD-1-on

 

Has BOA issued the approval of the contract?  

Permalink Reply by Celeste ODea on November 16, 2011 at 6:51am

For those few homeowners who are fortunate to get this additional incentive, it is put on Line 506 of the HUD as "Seller Incentive."  Now, since this $4,000 incentive exceeds the $750 or $1,000 that HUD allows, the negotiator needs to get a Variance from HUD.  Worst case scenariom this approval process will take up to 3 weeks, so it's important that as soon as your seller receives this letter that you have another HUD-1 prepared and submitted so that the Variance can be requested as soon as possible.  Any non-allowable expenses are subtracted from the $4,000.  The link that Kevin Lancaster sent out further explains it.  If you didn't get it, here is the link he distributed:  http://www.scribd.com/doc/72922602/BOA-FHA-PFS-Incentive-HUD-1-on

Permalink Reply by Kevin - Greenville, SC on December 10, 2011 at 6:18pm

http://www.scribd.com/doc/74913610/BOA-PFS-Incentive

Permalink Reply by Celeste ODea on November 16, 2011 at 7:00am

The additional $4,000 seller incentive goes on Line 506 as "Seller Incentive."   As soon as your seller receives this letter from BOA, you need to have a new HUD-1 prepared and submitted to your negotiator and send with the letter. The amount exceeds what HUD has approved on the ATP ($750 or $1,000), so the negotiator needs to get a Variance from HUD because it lessens HUDs bottom line.  This approval takes approximately 3 weeks (worst case scenario).  Kevin Lancaster sent out a good link regarding this.  This Variance process may delay your closing, so be sure you do another Addendum to extend the closing date, etc. 

 

If there are any non-allowables on your HUD (warranty, seller closing help, 2nd liens, etc.), the costs for these will be deducted from this incentive and the seller will get the difference.  The document link explains this in further detail.

 

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