Journey into SUPPLEMENTAL DIRECTIVE 09-09

By
Services for Real Estate Pros with A New Dawn Real Estate Services, LLC

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?

   Guy Pulling Hair Out                                                                        

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"

Comments (3)

Brian Brumpton
Keller Williams Boise - Boise, ID
Boise Idaho Real Estate

Dawn,

Do you have link to the new guidelines where I might be able to have a look for myself?  Also aren't the guidlines only applicable to lenders participating in the MHA program?

Dec 02, 2009 01:35 PM
Dawn Uselding
A New Dawn Real Estate Services, LLC - Manitowoc, WI
Short Sale Assistant

Brian - you are absolutely correct.  The guidelines only apply to the lenders participating in HAMP.  If they want to be eligable for the incentives offered in the HAFA Program they need to enter into a servicer participation agreement with Fannie Mae by 12/31/09.  The link to the guidelines is https://www.hmpadmin.com/portal/docs/hamp_servicer/sd0909.pdf

Dec 02, 2009 01:48 PM
Dawn Uselding
A New Dawn Real Estate Services, LLC - Manitowoc, WI
Short Sale Assistant

The Blog for the first section of new guidelines is posted.  It covers the background of the Supplemental Directive.

Dec 02, 2009 01:50 PM