No Negotiation of Preforeclosure Sales Commission

Servicing Guide, Part VII, Section 504.02: Contacting Selected Borrowers

Effective March 1, 2009, closing of preforeclosure sales may not be conditioned upon a reduction of the total commission to be paid to real estate agents to a level below what was negotiated by the listing agent with the borrower, unless the fee exceeds 6 percent of the sales price of the property in the aggregate. Servicers are reminded that they must continue to obtain any approvals that may be required by interested third parties in connection with preforeclosure sales.

Program Highlights:

Can be used by investors
Conventional financing (less strict than government loans)
Can combine the purchase and renovation or current liability and renovation into one loan.
Required investment based off total cost (acquisition/balance + rehab)
20% down for 1 unit
25% down for 2-4 units
Can be used on high-rise condos (203k’s can’t)
Loan sizes up to the conforming limits for your area
Can be used to close on homes deemed “non-financeable”
Cash-out Investor Rehab loans allowed (with appropriate seasoning*)
Rates 1-1.5% above current market as opposed to hard money lending
Only six months PITI reserves required on subject property
Can fund in all fifty states

A few examples of projects that would be ok:
1) $50,000 cash purchase and a rehab for $150,000 immediately after on a four unit. We would use the equity from the cash as the required investment and the rest would be financed.
2) $10,000 purchase with $140,000 in rehab on a condo (30k down required @ 20%)
3) Free and clear property where renovations already began but funds were running low. Cash-out can recoup initial costs and still take funds out to renovate.

Information provided by:

Rob Weber
Home Mortgage Consultant
Renovation Specialist
Wells Fargo Home Mortgage
511 W North Avenue
Chicago, IL 60610
312.274.4136 Office
847.404.7006 Cell
866.512.0551 Fax
Rob.Weber@wellsfargo.com
www.robweber.com

First-time home buyers who purchase a home before December 1, 2009 may be eligible to take advantage of an $8,000 tax credit as part of the American Recovery and Reinvestment Act of 2009. Qualifying first-time home buyers may claim a tax credit of ten percent of the purchase price, up to $8,000, or $4,000 for married individuals filing separately. The tax credit begins to phase out for those whose adjusted gross income exceeds $75,000, or $150,000 for joint filers.

Buyers must purchase a home before Dec. 1, 2009 to be eligible and the credit may be claimed on a home buyer’s 2008 or 2009 tax return. Filing an amended 2008 return after purchasing a home provides an option to buyers who wish to receive the credit sooner.

Unlike the previous $7,500 credit available to first-time buyers, the credit outlined in the American Recovery and Reinvestment Act of 2009 does not have to be paid back as long as the home remains the buyer’s primary residence for at least 36 months after the date of purchase. First-time buyers, for the purpose of this credit, are those who have not owned a home in three years.

If you or anyone you know would like to take advantage of this program by purchasing a home, please do not hesitate to let me know.

Government Affairs Tax Credit Chart

First Time Homebuyers Tax Form

Guest Blogger

Countrywide Home Loans
David Kasprisin
AVP, Home Loan Manager
(773) 883-8023 Office
(312) 208-4648 Cell
(773) 404-8410 Fax

Countrywide Bank, FSB
2073 North Lincoln Ave
Chicago, Il 60614

“Success depends upon previous preparation, and without such preparation there is sure to be failure.”
- Confucius

2008 “Who’s Who in Chicago Real Estate” Recipient