Well, Here we go. My good friend Matt sent me these bullets of the program's key guidelines:
- Lenders must respond to Short Sale requests within 10 business days of receipt of the offer package. Is this for approval to participate in a short sale, approval of the actual short sale acceptance, ordering the BPO or just contact saying we have your package?
- The seller will be released from all liability for repayment of the mortgage debt. Is this on both the first and any and all subsequent liens?
- Subsequently, the seller is entitled to a relocation incentive of $1,500, which will be deducted from the gross sale proceeds at closing. From the gross at closing? So the lenders net will remain the same?
- The lender will be paid $1,000 to cover administrative and processing costs for a Short Sale or a deed-in-lieu. Pretty clear cut, don't you think?
- The property must be listed with a licensed real estate professional who does regular business in the community where the property is located. This changes some things for investors that never use Realtors!
- The lender is prohibited from requiring, as a condition of approving the Short Sale, a reduction in the agreed-upon real estate commission. YEA!!! But what is the actual "agreed- upon" commission?
- The investor will be paid a maximum of $1,000 for allowing a total of up to $3,000 in Short Sale proceeds to be distributed to subordinate lien holders, or for allowing payment of up to $3,000 to subordinate lien holders. Wait! We have to divide $3000 between all the subordinate lien holders. What if there is a first and a second along with judgments against the seller that attached to the property. How are we going to do that?
I think this quick bullet breakdown caused me more questions than anything. Well here I go I am diving in and will read each of the sections and blog my findings. Hopefully I have a clearer understanding in a few hours. Join me on my journey into.................
"SUPPLEMENTAL DIRECTIVE 09-09"