Wanted to share with you some valuable information that lenders must all abide by for Anti Flipping guides for purchase transactions:
FHA LOANS:
•· Foreclosures: if currently owned by a bank as a Foreclosure there is no Title seasoning required, buyer can purchase and close anytime.
•· Private Investor Purchases Bank Owned/Foreclosure/Auction: If a private investor purchases a property from a bank/foreclosure/auction, and flips property, that investor must be on Title 90 DAYS before new purchaser can close.
•· Private seller to another Private seller, (no foreclosure or short sale): Current owner must be on Title 90 days before new purchaser can close
•· Short Sale: Current owner must be on title 90 days before new purchaser can close (most likely current owners already on title for more than 90 days)
CONVENTIONAL: No one standard flipping rule currently. However, most lenders will have internal flipping rules, that override Fannie Mae/Freddie Mac guidelines. If there has been a significant increase of value within a very short period of time, bank may request an independent field review of appraisal. Additional documentation may be requested if investor flips property and value is significantly increased. There are other additional requirements and each bank may have their own rules, so be vigilant of flips!
Got a call today with a very good question:
Question: "Can a buyer purchase a home after relocating with a short sale on previous home?"
Answer: "No - they can't purchase until 2 years pass and no other delinquencies happen on credit HOWEVER they should have......." See below:
SOLUTION - FHA & VA will allow current homeowner's to utilize rental income to offset mortgage if they are relocating. FHA & VA also waive the requirement of having to demonstrate 75% equity in current home to offset current mortgage.
SUMMARY: If you are working with anyone relocating from another area (has to be a significant distance to qualify for relocation) and owns a home they can't sell, they can rent existing property and may qualify for a new FHA/VA loan. The rental vacancy for this area is 15% (85% of total rental income can be used to offset mortgage per FHA guides). Must have signed lease and we may have to verify that deposit check or 1st month's rent check has cleared.
Call me with any questions, or email any scenario you wish to discuss,
Thomas Merical
http://www.findahomesellahomenow.com/
Thomas Merical
http://www.findahomesellahomenow.com/
Investor Report: Bank of America Short Sales
by Kenneth R. Harney
Investors looking to acquire houses through short sales just might be in for some good news.
One of the largest holders of second liens in the U.S., the Bank of America, says it's relaxing its policy on payoffs connected with short sales.
That's important because large banks have been major impediments standing in the way of thousands of short sales, demanding money for home equity lines and second mortgages that would otherwise be worthless if the short sale property went to foreclosure.
Bank of America had been among the least cooperative of all banks in agreeing to short sale payoff terms, according to industry critics.
The company's policy was blunt: Pay us 10 percent of what the homeowners owed on the equity line balance or second mortgage, or we won't sign off on the short sale, which is necessary for the deal to go through.
Now the bank has adopted what spokesman Terry Francisco told Realty Times is "a less arbitrary, more rational" policy.
"What we're saying (to short sale proposals) is -- give us an opportunity to participate and gain at least some of the savings" that will go to the first lien holder -- the primary lender on the property -- by avoiding the high expenses and losses of a foreclosure, according to Francisco.
Bank of America is now asking for five percent of the sale proceeds on the short sale, net of realty commissions, closing and other costs.
The bank believes that should open the door to more successful transactions, as well as more fruitful negotiations with buyers and sellers to avoid foreclosures.
But not all short sale market experts are convinced that's the case. Raffi Tal, CEO of Los Angeles-based I-Short Sale, Inc., one of the largest players in the field, says Bank of America's new policy "will still jeopardize" many short sales that involve its second liens.
The bank's previous 10 percent policy meant they'd demand $20,000 on a $200, 000 equity line balance, or they wouldn't bless the deal. But their new policy still means "they want $15,000 if the net proceeds are $300,000" on a short sale, Tal told Realty Times -- even though the economic value of their holding may in fact be zero.
Bottom line for investors: If there's a Bank of America second mortgage or credit line on the house you're after in a short sale, work the new numbers. At least some of the time you might be surprised that the answer from the big bank is now 'yes.'
And watch for other major banks to follow suit.
Published: April 24, 2009
Thomas Merical
http://www.findahomesellahomenow.com/
Six Characteristics of Champion Teams
by Dirk Zeller
Through the years of research and working with teams and coaching them to the Champion Team level, there is a repeating pattern of what they possess, implement, and do. They are focused on results and actions unlike lower performing teams.
Standards
There is a set of standards of production, performance, and conduct for each position on the team. These are established by position first at the Champion Performer level, so the employee knows clearly what is expected. They have a target to shoot for since most will not be there yet.
A second set of standards for staff members needs to establish a pathway to the Champion Performer level. What do they need to do, learn, and improve on? What responsibilities must they take over in what time frame? For production assistants, what sales, prospecting, lead generation, lead conversion, and sales ratios must they attain over time to hit the Champion standard?
Accountability
This is an established system of accountability through written reports that must be handed in at regular intervals either daily for new or under-performing people or weekly for others who are on track or doing well.
Champion Team Rule – Performance improves faster when performance is measured and reported.
You must measure and report the performance of your team members. They need to know that you are watching and monitoring their activities. They must know that you are willing to hold them accountable to their commitments.
Cooperation
Everyone needs to be working toward a common set of goals. They all need to view the team win as the real win. They need to see that the individual win in their success or production, at the expense of everyone else, is a loss.
If there is an antagonist on the team, no matter how much they sell or produce in the administrative area, corrective action must be taken. If someone lowers the motivation of team members, a change is in order. If that person lowers your motivation, they need to be gone . . . now!
Caring
The best teams really care about each other and their clients. They cover, encourage, help, and support each other to achieve greater success. They care about the goals and objectives of the team and each other and work for a win for everyone on the team, the company, and the clients. They also band together during times of adversity to overcome all obstacles. You will never hear, “That’s not my job.”
Competitive
The purpose of a Champion Team is to win. The members of the team love to compete in the competitive game of real estate. All team members are competing to bring in more leads, provide greater levels of service to the clients, and position the team as the expert team and the only choice in the marketplace for real estate representation. Their philosophy is like Al Davis of the Raiders – Just win, baby!
Value is shared
Everyone aligns with the values of the team. They embrace the business vision, core values, and envisioned future of the team. They understand, agree, and desire to live the values of the organization, both in their personal lives and business lives. It’s as if the team is a tug-of-war team pulling in perfect harmony and unison to win the tug-of-war.
Published: April 24, 2009
Thomas Merical
http://www.findahomesellahomenow.com/
CEO Keller Williams Fairfax Gateway
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