Comment

Comment by Stephanie Summers on July 23, 2013 at 5:02pm

I was required to to complete the addendum or I wouldn't get approval. There is no need for the buyer to freak out. Plenty of sellers walk away from a sale with money in their pocket. (That's the purpose of sales-to make money.) Sellers incentive in line 506 and nary a concern from the buyer's fha lender. 

Comment by joe beauchamp on July 23, 2013 at 4:27pm

Theresa, I have never had to put the FHA incentive into an addendum / contract. It is absolutely none of the buyer's business (except he'll see it at closing anyway). Do you have the buyer sign off on the seller's tax return or other financials? I don't think so. The incentive is a very clear HUD guideline not subject to the buyer. If you have the buyer sign this WRONG document, you better get permission from the seller first because you are breaching your financial responsibility by disclosing his financial picture on some whim from someone who doesn't know the HUD rules. We overdo a lot of stuff to keep uninformed pinheads at banks happy and to keep things moving. Be careful here. We have a closing tomorrow BofA/FHA with everything approved (HUD-1 this afternoon) and NO such document. [Is your seller going to sue you or report you to the real estate commission when your buyer walks because you freaked him out (as you said)? Clear this up with ANY closing officer at BofA or talk to a HUD ANALYST - not HUD phone answerer before you put the noose around your neck.]

Comment by Nolberto on July 23, 2013 at 4:12pm

It's a difficult one. FHA and  or the lender will decline if any proceeds go to the buyer in the 500 section.Although, the best and smoothly way to do it is placing this in the 1400 section as POC (pay outside of Closing) to other party instead  of  buyer  as an agreement to closing (Have the closing title agent to create an invoice for all to sign or who is going to pay).  I hope it helps...

Comment by Theresa McDonald on July 23, 2013 at 2:13pm

Yeah I did question why buyer has to sign it at all.  I am sure buyer is going to freak - he has been ready to close for 60 days, and now to learn that seller is getting this...  Anyway LA thought it was that the incentive has to be disclosed to buyer which does make sense.  And yes I would have thought the same - it just goes on the HUD and reduces the net to the lender.  Pretty sure that is what I have done before.  FHA sales I have done before were much simpler than this seems to be.  LA, WF and Equator all working at cross purposes, and we somehow never get to a closing point.

Comment by Stephanie Summers on July 23, 2013 at 1:45pm

Disclosure. I had to write it up on one of mine. If it's a BAC short sale just thank the good Lord that they've acutally gotten to this point! You must have a better processor than I do. I'm about to start three more FHA short sales with them and I'm dreading it....

Comment by Thom Colby CA Brkr 888-391-5245 on July 23, 2013 at 1:41pm

It just goes on the HUD in the 500 lines as HUD Incentive to Seller $1,000 - or $750 if they don't get it done on time.

Comment by Thom Colby CA Brkr 888-391-5245 on July 23, 2013 at 1:40pm

Theresa - Why does the BUYER have to sign this ?  It should be between the Seller and the Lender - it has absolutely nothing to do with the Buyer unless the Buyer is paying it - be careful.

Comment by Theresa McDonald on July 23, 2013 at 1:38pm

Thank you thank you thank you!  Going to draw it up myself.

Comment by Stephanie Summers on July 23, 2013 at 1:34pm

Listing agent should specify from where the incentive is coming. "Seller to receive $1,000 seller incentive at successful closing from "their lender" per ATP guidelines. Same thing if they go beyond the deadline for receiving the $1,000 and the amount is reduced to $750. 

Comment by Theresa McDonald on July 23, 2013 at 1:08pm

LA is now asking that buyer sign an amendment to contract to the effect that seller is to receive an incentive of $1,000.  LA is all confused about how to word this - shouldn't FHA or WF provide the language?  DO you know of such an addendum?  What LA has drafted for buyer to sign simply says "Seller to receive $1,000 seller incentive".  I know my buyer is going to have a question about that.

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