Replies to This Discussion

Permalink Reply by Celeste ODea on November 25, 2011 at 6:14am

HUD is not offering the additional incentive, BOA is, and the bank has to get a Variance from HUD for this amount because it lowers HUDs approved net.  HUD offers a max of $1,000 based on their guidelines.  Also, if it's a cash or conventional buyer, HUD will not pay any closing help; if it's an FHA buyer, they will pay up to 1% of the SP toward closing, but that amount is reduced from the HUD incentive of $1,000. (Not much of an "incentive" in my opinion.)  On my transaction, BOA just told me that it will take a little longer than expected to get the Variance from HUD for the 4,000 they are offering to the seller, but we only have until January 12 to close.  Now I have another issue, I have to put the property back on the market because my cash buyer is $10,000 short in cash to close. Ugh!

Permalink Reply by Celeste ODea on November 29, 2011 at 7:41am

Ahh... great info.  I'm still waiting to hear how BOA is to handle it.  I'll be pro-active and have a revised HUD done to show it this way.  Many thanks, Kevin.

Permalink Reply by Kevin - Greenville, SC on December 1, 2011 at 6:56am

According to my negotiator it doesn't lower the net and therefore will not require a variance since it's to be reflected on line 403.

 

Hi Kevin,

 

 'I have been given instructions on how the HUD1 needs to read per the increased incentive. Please make sure to delete the “FHA sellers incentive”'.

 

-line 403, Cash from BAC, $4000

 

Permalink Reply by Michael Schneider on December 3, 2011 at 6:02am

Thanks Kevin for the info.  You are very generous with sharing valuable information.  I'd just like to acknowledge you for that. Again, thank you.

Permalink Reply by Celeste ODea on December 11, 2011 at 3:39am

With my current transaction, I was just told to put the $4,000 incentive on Line 506 and it must specifically read:  Seller Incentive - BAC Transition Assistance.  I just revised my HUD-1 Friday, so I will let you know how it goes.  Before this, I was told by BAC to put it on Line 403.  So, who knows.  Guess they revised the guidelines(?)

Permalink Reply by Celeste ODea on December 11, 2011 at 3:41am

I was just told on Friday to put the $4,000 incentive on Line 506 and that it must read exactly as:  "Seller Incentive - BAC Transition Assistance."   Modified the HUD-1 and submitted it, so we'll see.

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