May Newsletter

	Broker Newsletter
May 15, 2009
In This Issue · Short Sale Agreement Notice · Appraisal Changes · AAR Forms Updated · SureClose Reminder · Broker Blog Revelation Links Training Calendar Current RE Issues IRS Tax Credit Information Information on the in’s and out’s of the tax credit for first-time homebuyers. HUD Homes A list of HUD homes available for purchase by city. Updated ARMLS Rules A table of Old vs. New ARMLS Rules Broker Blog Read Our Online Broker Blog Contact Us 480.722.9800 Office 480.802.1599 Broker Hotline http://www.mywestusa.com brokerreview@westusa.com	Short Sale Agreement Notification Process Working effectively in today’s market requires the know-how to deal with both sides of a short sale transaction. The most common recent issues include “How do I communicate the bank’s approval to the buyer?” and “How do I make sure that the buyer in first position is going to move forward and perform before I decide to move on to the back-up offer?” The Short Sale Addendum to the Purchase Contract defines that when the seller’s lender approves the short sale, the seller will deliver to the buyer an “Agreement Notice”. The notice should define the terms of the bank’s approval. Your Listings: When you receive notice that your seller’s lender has approved the short sale of the subject property, you need to provide the agreement notice immediately. One very effective way to provide that notice and ensure a clear response and direction from your buyer in first position is to use an addendum with the following verbiage: “This shall serve as Agreement Notice of the Short Sale approval by the Seller’s Lender. This contract is approved with the following terms (include the required close date, sales price, and any other terms required by the seller’s lender). Buyer agrees to these terms and will proceed with the contract by signing and delivering this addendum back to seller within 24 (or 48) hours OR this contract will be deemed cancelled due to the unfulfilled short sale contingency.” This finite verbiage requires action and commitment by the buyer. If the buyer does not commit to move forward, you effectively terminate the contract to allow your seller to move on to a back-up offer. Appraisal Changes On May 1st, the Home Valuation Code of Conduct went into effect. This new code was adopted to improve the accuracy of appraisals. All Freddie Mac and Fannie Mae loans and loan servicing companies must follow the code which is intended to limit the amount of influence a lender can have on the appraised value of a property. At this time, the change does not affect FHA, VA, USDA loans. Before: Lenders ordered appraisals for your buyers directly from local appraisers. Now: Lenders order appraisals from Appraisal Management Company (AMC). Impact on You: Agents, buyers, and sellers need to be prepared for some additional delays in getting appraisals ordered, returned, and modified. In many, even most appraisals, there are minor errors or typos in addresses, amounts, etc. Currently, an underwriter can place a call and get those errors corrected directly by the appraiser. Now, requests must be made through the AMC which may cause delays in the final stages of approval. The best way to handle the change is to communicate the change to your clients ahead of time and prepare them for the possibility of delays. Additionally, it is important to make sure appraisals are ordered early in the process to ensure timely delivery. AAR Forms Updated Hopefully you’ve noticed the new look and feel of most of the AAR contract forms. For the most part, the changes are only in the formatting, but please be aware of the actual verbiage changes in the following forms: · Real Estate Agency Disclosure and Election (READE) · Loan Status Update (LSU) · Lead Base Paint Disclosure (for both Sales and Rentals) · Cure Notice Please make sure that you are using the most current forms. SureClose Reminder File Completion: As the closing date of your transactions approach, please proactively login to SureClose again and check the status of your transactions to ensure that your file requirements are met so that you will be paid in a timely manner. As each requirement is reviewed and met, it is marked “complete”. You can see which items have been marked complete and which are remaining under the “Documents” tab. Once all requirements are met, the top line will be marked “Your File is Complete”. If your file is marked “Incomplete”, take a look at the remaining requirements and upload, email, or scan the remaining requirements. You can also get a quick snapshot of the status of your transaction by taking a look at the “Status” tab. Requirements that have been fulfilled will be in green in the top section under “Completed Items” while the remaining requirements will be listed at the bottom in blue under “Scheduled Items”. Submitting Files: Remember to submit your paperwork one of the following ways: 1) For a new file, include an A100 or Listing Coversheet and… · Email to azjacquet@mysureclose.com · Scan into the black and white copier/scanner in the office. 2) For additions to an existing file, include the “Add to File” coversheet and… · Email to azjacquet@mysureclose.com · Scan into the copier/scanner · Add to file paperwork directly into your electronic files if you have ProView and even in some instances with the basic view. Archive Approaching: The SureClose system has an automatic archival process in which it archives files that have not been touched in 85 days. The system will send you an email warning you that your 85 days is approaching. All an agent needs to do is work in the file to restart the clock. This could mean sending an update message, completing a task, uploading a document, recording a status item or some other change. The 85 days is a system setting that we cannot change, but it would be unlikely that you really not perform any work on a file in 85 days anyway. Visit Our Broker Blog for Answers Don’t forget our online Broker Bulletin for West USA Revelation agents. We will post information on specific real estate and contract topics to assist you with your transactions. Coming soon will be a list of helpful contract clauses for various situations. If you look today, you will find information on topics ranging from Using Lease Option Contracts to Mortgage Fraud as well as Short Sales. Additionally, I post the monthly Broker Newsletters there for you to refer back to.