Just in from Bank of America.... Comment with your thoughts below...
Original link Fannie Mae and Freddie Mac short sale changes
Content:
1/18/2013
Fannie Mae and Freddie Mac announced changes to their servicing requirements for short sales. Please see below for some key changes that all parties involved in a short sale should be aware of. These changes apply to all Fannie Mae and Freddie Mac short sales; with an offer and without an offer.
Note: The above restrictions will run with the land and are not personal to the grantee.
Below is an example on how to calculate the 120%
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Note: If the borrower receives relocation assistance from a source other than Fannie Mae / Freddie Mac or the Servicer, the difference in the relocation assistance amount up to the $3,000 incentive maximum may be provided. If the borrower will receive relocation assistance from a source other than Fannie Mae / Freddie Mac or the Servicer and the amount is equal to or greater than $3,000, no relocation incentive will be provided.
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None of this is new news. I'm really surprised BOA had a BIG announcement or Freddie or Fannie for that fact. They've been putting these restrictions on deeds from what I've seen for the last two years at least...I think since 2010. Most of the addendums/affidavits had the 30 days right in there. I think GMAC even had 90 days. The only news here to me is about the $3000 incentive. They didn't clarify it really. So for HAFA the homeowner has to be LIVING in the house I tihnk now to get it, where when HAFA was first rolled out, that wasn't really the case. So now the $3000 incentive they get...my question would be does the homeowner have to be living in the house?
I don't know..no real news here.
my question would be does the homeowner have to be living in the house? -
If the borrower seeks relocation assistance for themselves, a tenant or other non-borrower
occupant in accordance with this Section, the borrower must provide the servicer with evidence
satisfactory to the servicer that the borrower, tenant or other non-borrower occupant was residing
in the property as a principal residence as of the date the borrower executed the SSA or
Alternative RASS. Such evidence may include but is not limited to, property inspections
conducted by or on behalf of the servicer, lease agreements, utility bills, etc. Additionally, the
borrower must ensure that a Dodd-Frank Certification (described in Section 1.7 of Chapter I) and,
if applicable, “Non-Owner Occupant Certification,” in each case executed respectively by the
borrower and, if applicable, each occupant that will receive relocation assistance, is delivered to
the servicer in advance of the transaction settlement date. A servicer may not authorize a closing
that includes HAFA relocation assistance unless and until the servicer has received satisfactory
evidence of occupancy and executed Dodd-Frank Certification(s) and the assistance payment is
accurately reflected on the HUD-1.
https://www.hmpadmin.com/portal/programs/docs/hamp_servicer/mhahand...
The way I understand it: In order for the homeowner to get the $3000 relocation assistance they need to be living in the home, however, if they have moved out but are allowing a tenant to live in the home, if that tenant is a dependent of theirs, the homeowner can still receive the $3000. If the tenant is not a dependent of the homeowner, then the tenant can receive the $3000 relocation assistance.
Smitty - Have you seen this " After a 30 day period, and until 90 days from the date of the deed the buyer is further prohibited from selling the property for a sales price greater than 120% of the short sale price."
Absolutely. I have seen than in LOTS of addendums and then even if there wasn't a deed restriction from the selling lender typically the buying lender Freddie/Fannie/HUD had this the same.
Keep in mind that both Freddie and Fannie state they will consider exceptions to this.
And, as this gets fully understood by the BofA people, there will be new changes just around the corner. Every few months they make useless changes to the short-sale process and clog up the system with more red tape and paperwork.
They are trying to get more buyers who are going to live there in. The one thing that they don't understand is most investors go in and fix up the property and by doing so increases the value of that home and the surrounding homes. Do they make a profit, yes, but they are also doing the neighborhood a favor.
Ann - I completely agree. Investors fixing up then selling a remodeled home help the neighborhood. Part of this new reg probably stems from the FHFA Audit from October 2012 that showed Fannie Mae and Freddie Mac losses could be lessened with more oversight and different procedures.
The government always knows whats best.
My guess is that this is an attempt to lessen fraud.
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