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Making Home Affordable | February 2012
Short Sale WorkshopTampa, Florida – February 24, 2012
2Making Home Affordable | February 2012
Agenda
1 Opening Comments
3 J.P. Morgan Chase
4 GMAC
6 Bank of America
5 Wells Fargo
7 CitiMortgage
8 Discussion/Questions
2 U.S. Department of the Treasury
February 2012 | Making Home Affordable
Making Home AffordableWorking Together to Help Homeowners
4
MHA Offers Solutions
MHA and
related
programs work
together to
help
homeowners
avoid
foreclosure.
February 2012 | Making Home Affordable
5February 2012 | Making Home Affordable
UP Homeowners Get Relief for 12+ Months
Source: Making Home Affordable ProgramPerformance Report Through December 2011
Through MHA’s
UP, monthly
mortgage
payments are
temporarily
reduced or
suspended.
6February 2012 | Making Home Affordable
HAMP Provides Relief to Struggling Homeowners
More than
930,000
modified their
mortgages
under HAMP.
Source: Making Home Affordable ProgramPerformance Report Through December 2011
7February 2012 | Making Home Affordable
Homeowners
in HAMP
permanent
modifications
realize real
savings.
HAMP Boosts Affordability for Homeowners
Source: Making Home Affordable ProgramPerformance Report Through December 2011
8February 2012 | Making Home Affordable
HAMP Modifications Are Sustainable
HAMP
permanent
modifications
are
outperforming
the industry.
Source: OCC and OTS Mortgage Metrics ReportThird Quarter 2011
9
When the
weight of
homeownership
becomes too
great, there are
still options to
avoid
foreclosure.
HAFA Offers Transition from Homeownership
Home Affordable Foreclosure Alternatives
(HAFA) includes short sale and deed‐in‐lieu of
foreclosure (DIL) when other options exhausted.
Think HAFA when:• Homeowner doesn’t qualify for a modification.• Homeowner’s modification doesn’t work out.• Homeowner has moved and needs to sell.• The mortgage has become unaffordable, andhomeowner needs a way out.
February 2012 | Making Home Affordable
10
HAFA offers
advantages
over other
alternatives.
HAFA Advantages Ease the Transition
• Streamlined process no longer requires
verification of income.• Foreclosure cannot take place while
homeowner is being considered.• HAFA’s waiver of deficiency releases
homeowner from remaining mortgage debt.• Homeowner receives $3,000 in relocation
assistance.• Homeowner’s path back to homeownership
may be shorter than with foreclosure or short
sale with deficiency.
February 2012 | Making Home Affordable
11
HAFA has
grown in scope
and influence
since inception.
HAFA Is Gaining Momentum
February 2012 | Making Home Affordable
Source: Making Home Affordable ProgramPerformance Report Through December 2011
12
The Crisis Continues
Foreclosures
continue to
devastate
families and
communities
across the
country.
February 2012 | Making Home Affordable
Source: RealtyTrac
13February 2012 | Making Home Affordable
MHA’s HAMP to Help More Homeowners
HAMP
enhancements
become
available as
early as June
2012.
• Extending modification
opportunities ‐
HAMP,
PRA, and 2MP ‐
through Dec. 31, 2013.
• Expanding HAMP eligibility to benefit:Homeowners who seem to have an
affordable 1st
mortgage, but are struggling
under weight of other debt.Homeowners who previously fell out
HAMP.Homeowners who rent, or intend to rent,
to tenants.
Don’t let borrowers wait! Get help now.
14February 2012 | Making Home Affordable
MHA’s HAFA to Help More Homeowners
HAFA
enhancements
effective
immediately
upon
publication.
• Extending opportunities for short sales and DILs – HAFA – through Dec. 31, 2013.
• Expanding HAFA eligibility to benefit more
homeowners:Occupancy requirements are being
removed, but only owner‐occupants
eligible for relocation assistance.
Coming Soon!
15February 2012 | Making Home Affordable
Find
information on
MHA programs
and
participating
mortgage
companies.
Understand MHA Options
16February 2012 | Making Home Affordable
Interactive Eligibility Tool
Updated
eligibility tool
offers needs‐
based options.
17November 2011 | Making Home Affordable
Instructional Videos Provide Guidance
Instructional
videos help
homeowners
navigate the
process.
18
MHAStorefront.com
Order free
brochures and
posters.
February 2012 | Making Home Affordable
19February 2012 | Making Home Affordable
HAFA Tools
Visit
HMPadmin.com
for HAFA
information and
tools.
20February 2012 | Making Home Affordable
Resources for Trusted Advisors
Visit
HMPadmin.com
for training,
information,
and other
resources.
Resources for Counselors,
Real Estate Pros,
Congressional Offices, and
other Trusted Advisors•Presentations•Escalation process details•Webinar schedule
21February 2012 | Making Home Affordable
Trusted Advisors Escalate Tough Cases
Escalate cases
to [email protected] up by
phone to866‐939‐4469.
22February 2012 | Making Home Affordable
Discussion/Questions
Carol Lambert
U.S. Department of the TreasuryHomeownership Preservation Office
MHAMHA--C HAFA ConventionC HAFA Convention--ChaseChase
February 2012 February 2012
23
Introduction
Pedro VillasmilAVP Chase Owned/Securitized Loss Mitigation , Chase
24
Chase Liquidations
HAFA Program
Short Sale Consideration
Short Sale Web Page
HAFA List Assist
HAFA Timeline
Benefits of a HAFA Short Sale
HAFA short sale buyer
How Can You Help Us
Chase Short Sale Resources
25
How does a customer qualify for a short
sale?
Provide hardship information and proof of
hardship.
Financial difficulties (loss of employment,
reduction in income, etc.)
The loan is delinquent or will be an
Imminent Default loan.
The borrower has been ordered by a
Bankruptcy Judge (through a court order) to
sell the property.
When is a short sale considered?
When the value of the property is less than the
outstanding balance of the loan.
When the customer is unable to make their
mortgage payments due to a hardship and all
other retention options have failed.
26
Chase Short Sale Consideration
27
Short Sale Webpage
The Short Sale website is easily accessed from the Chase Home page and provides the short sale
information packet and FAQ information about the Chase Short Sale process . The site can be
accessed through www.Chase.com/shortsale.
28
Short Sale Webpage
Chase List Assist program was designed to proactively reach out to customers who have properties
listed for sale to assist through the marketing process and collect all required documentation prior to
the offer in an effort to expedite approval.
Proactively reaching out to homeowners who have listed their property.
Working to gather the documents, provide guidance on property value and actively market the
home.
Establishing a dedicated team working closely with real estate agents on offers and valuations.
List Assist agents will also take incoming calls from agents and
Borrowers to provide
information and instant contact with a Liquidation agent.
The List Assist agents will explain to the borrower their options, review the short sale process
and request the needed documentation to move forward.
Through our List Assist team, we have enhanced our short sale efforts and streamlined the process by:
29
Chase List Assist Department
The Home Affordable Foreclosure Alternatives (HAFA) Program provides additional options to avoid
foreclosure and offers incentives to borrowers, servicers and investors who employ liquidation strategies
(short sale and deed‐in‐lieu) instead of pursuing foreclosure.
When an offer is received, the borrower will submit a Request for Approval of ShortSale (RASS), along with the required documentation to be approved within 3business days. The servicer will approve the sale, provided it will generate the
minimum required net proceeds and will comply with the terms given in the Short Sale Terms and Conditions Agreement.
If an offer to purchase a property is made before the servicer provides an SSA, theborrower will submit an Alternative RASS for the servicer’s consideration.
30
HAFA Program
Borrower must
contact Servicer &
accept HAFA
After Borrower responds
to the HAFA solicitation,
Servicer must complete
and send SSA to
borrower
SSA Marketing Period**
Borrower submits
offer to Servicer
along with the
completed RASS Servicer must
approve/deny
offer
Trigger –
Solicitation
14 days 45days 120 days 3 days 10 days
** Chase will not permit an extension after the 120 day SSA marketing period expires **
31
HAFA Short Sale Timing
HAFA uses borrower financial and hardship information previously
collected for consideration
of a HAMP loan modification.
Allows borrowers to receive pre‐approved short sales terms before listing the property.
Requires borrowers to be fully released from future liability for all mortgage debt (no cash
contribution, promissory note, or deficiency judgment is allowed).
Provides $3,000 for borrower relocation assistance and $1,500 for servicer to cover
administrative and processing fees.
Provides a $6,000 aggregate cap for subordinate mortgage lien holders.
Uses standard processes, documents and timelines.
32
Benefits of a HAFA Short Sale
Sales contract must be executed with all appropriate addenda.
Buyer(s) must provide pre‐approval or commitment letter on letterhead from a lender.
Short Sale must be an “Arm’s Length”
transaction.*
No agreements permitted between the Seller and the Buyer that the Seller will
remain in the property as a tenant or later obtain title or ownership of the property.
Purchaser may not sell the property within 90 days of closing.
** Servicers have the discretion to approve sales to non‐profit organizations with the stated purpose
that the property will be rented or resold to the borrower, so long as all other HAFA program
requirements are met.
33
HAFA Short Sale Buyer
Submit all required documentation as soon as possible:
If an offer is not received on the property, provide an executed
listing agreement and MLS listing history.
If offer has been received, provide all information discussed previously
Help the homeowners in negotiations with junior lien holders
Make sure all required signatures are on the relevant documents.
Set reasonable expectations on timelines and valuations (normally within 10 days of the
request.)
Ensure that the proposed transaction is at “Arm’s Length.”
Make every effort to ensure title and escrow are scheduled to close within the approved
timeframe.
34
How Can You Help Us?
Chase Borrowers can be referred to the following:
Toll‐free number: 1‐866‐233‐5320
Access the Chase Short Sale website On‐line at
https://www.chase.com/shortsale
Locate more information on the Chase HAFA program
https://www.chase.com/HAFA
Locate a Chase Homeownership Center On‐line at
https://www.chase.com/HomeownershipCenter
35
Short Sale Fax Line: 1-866-220-4130
Short Sale Resources
36Making Home Affordable | February 2012
Questions
Partnering To Increase Response Time:
• Single Local Point of Contact
• Equator
• Pre-Determined List Price on non-GSE loans
• Confirmation of Complete Short Sale Packet
• Direct Liaison to Short Sale Negotiator
South Florida GMAC Contact Information
• Local Representative Contact Information
• Maria Sampedro
Email: [email protected]
(C) 305-389-1137
(F) 866-639-0832
• Equator:
equator.com or [email protected]
North Florida GMAC Contact Information
• Local Representative Contact Information:
• Tracey Erickson
Email: [email protected]
(C) 813-394-4876
(F) 866-502-9347
• Equator:
equator.com or [email protected]
•Q & A
WFHM Short Sale OverviewHugh Rowden Regional Servicing Director, SVP
February 2012
Short Sale / Deed in Lieu Overview
43
Wells Fargo’s primary concern and obligation is to our customers and investors. Our goal is to exhaust all efforts tohelp customers remain in their homes through various workout options.
Once home retention efforts are no longer an option, Wells Fargo continues to work diligently to provide alternatives to foreclosure through short sales or deeds-in-lieu of foreclosure. Our last resort is to foreclose.
A Short Sale is a solution that allows the customer to sell the home for less than the total amount owed. When all home retention solutions have been reviewed and exhausted, we immediately begin working with the borrower to determine if a short sale or deed-in-lieu can be accomplished.
Short Sale / Deed in Lieu Overview
44
A Short Sale Benefits Everyone… Customer Benefits
Alternative to foreclosure with planned & graceful exit, Wells Fargo or Investor pays closing costs and incentives in certain cases, credit report reflects “Settled for Less than Owed.”
Buyer BenefitsUsually home is in better condition than buying a foreclosed property. Wells Fargo or Investor pays some closing costs.
Investor Benefits Savings over REO, reduced losses and corporate advances, eliminates non-performing asset.
Junior Lien Holder Benefits Higher debt payment resulting from short sale versus foreclosure transaction.
Community BenefitsOccupied and maintained properties, stabilizing neighborhoods, preventing vandalism and other crime.
Short Sale / Deed in Lieu Overview
45
Portfolio DescriptionWells Fargo Owned (WO and Wachovia Mortgage)
Assets owned by WFHM, WF Bank, WF Corporate Trust Services, Wachovia Equity, WF Home Equity HAMP 1st liens, Wachovia PaP
Private Serviced for Others
Loans serviced for all private investors such as Citigroup, Bank of America, JP Morgan Chase, Goldman Sachs, Bear Stearns, etc.
America’s Servicing Company (ASC) Serviced for Others
Mortgage loans originated by other Lenders were packaged into securities and sold into the secondary market. Wells Fargo had no involvement in the origination or underwriting of the loans serviced by America's Servicing Company. America's Servicing Company is the generic label used to service these securities as another business venture.
Home Credit Solutions (HCS)Serviced for Others
Directors Acceptance Credit Corporation (DACC & DACC-2) Part of Norwest Mortgage's acquisition of Directors Mortgage Loan Corp in 1995
GSE – Freddie Mac and Fannie Mae Serviced for Others
WFHM originated mortgage loans were packaged into securities and sold to FHLMC or FNMA. WFHM retained the servicing. This portfolio also contains loans originated by other Lenders, and service acquired by WFHM.
VA Insured Loans insured by the Veteran’s Administration against balance sheet loss for the investor in the event of loan default. Serviced separately to ensure compliance to detailed federal requirements necessary for reimbursement of loss.
FHA Insured Loans insured by the Federal Housing Administration against balance sheet loss for the investor in the event of loan default. Serviced separately to ensure compliance to detailed federal requirements necessary for reimbursement of loss.
Short Sale / Deed in Lieu Overview
46
Process all Short Sales and Deed-in- Lieu of Foreclosure Requests
Communicate with the customer’s authorized agents
Partner with investors, Mortage Insurance Companies, and subordinate lien holders
Decision the offer by investor guidelines and credit policy
Facilitate receipt of sale proceeds compliant to demand statement; process receipt of proceeds
Mitigate Losses for Investors and Wells Fargo Home Mortgage
Focus on market value offers
Consider market conditions and foreclosure timelines to establish decisions
Generate savings over REO in terms of money and time
Settlement
Short Sale / Deed in Lieu Home Affordable Foreclosure Alternatives (HAFA)
47
HAFAInventory
Proprietary Short Sale
Inventory
Filter incoming workload using consistent metrics to control and direct the inventory
Consider HAFA first; proprietary Short Sales / Deed in Lieu second
Short Sale / Deed in Lieu Home Affordable Foreclosure Alternatives (HAFA)
All homeowners who attempt the short sale process begin with the HAFA program.
Incentives for files that qualify for the HAFA program include $3,000 at the closing table for the seller and $1500 for the servicer.
The HAFA process involves five phases: Filter, Processing, Negotiations, Closing and Settlement. The Filter Team evaluates each new file for automatic exclusions; the Processing Team collects documents required to determine whether or not the file qualifies for HAFA; the Negotiations Team determines HAFA eligibility and negotiates the offer; the Closing Team receives the Final HUD; and the Settlement Team closes and funds the file.
If the file does not qualify for HAFA, or if the seller requests to be removed from HAFA, then the next option is proprietary short sale.
48
Short Sale / Deed in Lieu Home Affordable Foreclosure Alternatives (HAFA)
49
HAFA Eligibility
Originated before January 1, 2009
Unpaid principal balance (UPB) < $729,750 (1), $934,200 (2), $1,129,250 (3), $1,403,400 (4)
Primary residence within the last 12 months
Foreclosure sale date is greater than 10 days
Investor and / or Mortgage Insurance Company must agree to participate in the HAFA program
If in imminent default, borrower must meet imminent default guidelines (see slide 8)
Second Liens must agree to 10% pay off up to $6,000
* If eligible for HAFA, the borrower may receive a $3,000 seller incentive
Short Sale / Deed in Lieu Imminent Default
50
To be eligibility for Imminent Default, the customer must have a housing-to-income ratio greater than 31% and meet all five of the following Imminent Default criteria:
1. Long Term Hardship: Customer must be facing a long term hardship, which is defined as a situation where it is determined they are having difficulty making their payments and that the duration of the hardship will be greater than twelve months.
2. Financial Hardship: Customer must have a verified financial hardship wherein the combination of the reduction in income and increase in housing expense (principal and interest only) must exceed 10% of current income.
3. Cash reserves less than the greater of $25,000 or six times PITIA.
4. Occupancy Status: Subject property must be the primary residence.
5. Maximum Loan to Value Ratio: The LTV ratio must exceed 80%.
Note: Imminent Default criteria differ for Fannie Mae and Freddie Mac accounts.
Short Sale / Deed in Lieu Common Obstacles
51
Buyer’s real estate agent is working a short sale without engaging the homeowner
“Low ball” offers due to the current market conditions
Valuation delays (i.e.; rural homes and interior access)
Junior liens and judgments that need to be settled
Minimum Net Sales Proceeds does not meet the investor guidelines
Excessive seller concessions and costs that reduce Minimum Net Sales Proceeds
Required documents are missing or not signed and dated properly
Mortgage Insurance company has required a promissory note
Unrealistic timeline expectations
Short Sale / Deed in Lieu Additional Information
52
A short sale approval is good for 30 – 60 days depending on the investor and the junior lien holder(s) who may require reduced commissions to offset their loss.
If the short sale closing does not occur by the date on the approval letter, the entire short sale package may need to be resubmitted with updated information or the approval process may need to start over.
Real estate agents are generally allowed up to 6% commission based on investor rules (Note: The percentage may vary by investor).
A short sale must be an “arms-length” transaction. The property may not be sold to anyone the seller has a close personal or business relationship with including family, friends, co-workers or neighbors.
Questions?
53
Information to Help You and Your Clients in the Short Sale Process
Understanding Short Sales
Not intended nor authorized for consumer distribution. Bank of America: Proprietary. © 2011 Bank of America Corporation
Short Sale Overview
How the Process Works• Bank of America is the negotiator between the seller and the investor.• Many loans have multiple investors who must be satisfied.• We have 500+ investors, and each can set different policies.
55
Communication
Communication
Investors (Own the Loans)
1st lien investors
Mortgage insurer
2nd lien investors
Home equity loans
Real Estate Agent(Selling the Property)
Represents the distressed homeowner
Identifies and obtains the releases of all non-Bank of America liens
(Mortgage Servicer)
Services the distressed homeowner
Has an obligation to uphold investor requirements
Not intended nor authorized for consumer distribution. Bank of America: Proprietary. © 2011 Bank of America Corporation
Short Sale Overview
Two PathsHomeowners have two paths to successfully complete a short sale.
56
I do not have an offer to
purchase my homePath No. 1Path No. 1
I have an offer to
purchase my home
Path No. 2Path No. 2
Not intended nor authorized for consumer distribution. Bank of America: Proprietary. © 2011 Bank of America Corporation
Short Sale Overview
Initiating a Short Sale Before There’s an Offer Provides numerous benefits if the homeowner is eligible and qualifies for a pre-offer program.
Homeowner Benefits Process Benefits
• $ - Relocation assistance.• Deficiency may be waived.
– The mortgage debt may be settled through the program.
• Cash contributions or promissory notes may not be required.
• Foreclosure hold, if applicable (subject to specific conditions).
• Faster decisions – within 10 business days once an offer is submitted.
Agent Benefits
• Suggested list price is provided prior to marketing the home.
• Most elements of the short sale process are addressed upfront (including commission) rather than at the end.
Note: When the homeowner initiates a short sale before there’s an offer, all program options are explored.
57
I do not have an offer to
purchase my homePath No. 1Path No. 1
Not intended nor authorized for consumer distribution. Bank of America: Proprietary. © 2011 Bank of America Corporation
The Short Sale Process – a Detailed Look
58
Path No. 1: Initiating Without an OfferThe steps involved when you initiate a short sale before you have an offer.
Initiation 1. Initiate short sale and begin negotiating any 2nd liens not serviced by Bank of America.
Borrower Outreach 2. Upload the 3rd Party Authorization. Complete the Borrower Contact Information task.
Not intended nor authorized for consumer distribution. Bank of America: Proprietary. © 2011 Bank of America Corporation
The Short Sale Process – a Detailed Look
59
Path No. 1: Initiating Without an OfferThe steps involved when you initiate a short sale before you have an offer.
Initiation 1. Initiate short sale and begin negotiating any 2nd liens not serviced by Bank of America.
Borrower Outreach 2. Upload the 3rd Party Authorization. Complete the Borrower Contact Information task.
• Homeowner and agent will be notified.• Equator record will be closed. • Agent and homeowner should market the property. • Agent should initiate a new short sale in Equator
once there is an offer on the property.
What if the homeowner does not qualify?
Not intended nor authorized for consumer distribution. Bank of America: Proprietary. © 2011 Bank of America Corporation
Short Sale Overview
The Process Steps Are the Same in Both PathsBut you get a huge timeline benefit by completing steps in advance of your offer.
60
Path No. 1: Initiating before offer…
Path No. 2: Initiating after offer…
InitiationInitiation Borrower Outreach Borrower Outreach
Document Collection Document Collection ValuationValuation MarketingMarketing Offer
Analysis Offer
Analysis ClosingClosing
Decision in 10
Days!*
Program EligibilityReview
Collect Homeowner Documents
Determine Home Value
& Sign Program
Agreement
List Home For Sale
Submit Offer
InitiationInitiation Borrower Outreach Borrower Outreach
Document Collection Document Collection ValuationValuation Offer
Analysis Offer
Analysis ClosingClosing
Negotiate Offer,
Submit to Investor,
Renegotiate
Determine Home Value
HAFA Interest?
Collect Documents
* HAFA only. For other pre-offer programs, the time may vary.
Not intended nor authorized for consumer distribution. Bank of America: Proprietary. © 2011 Bank of America Corporation
Short Sale Overview
61
Path 1: Before There’s an Offer Path 2: After There’s an Offer
General Qualifications Each customers situation is considered separately by investors.
For HAFA program features including qualifications please refer to HAFA Education Guide.
Each customers situation is considered separately by investors.
Timeline for Decisions After Offer Is Received
HAFA - within 10 business days. For other pre-offer programs, the time may vary. 50 days on average.
Cash/Promissory Note HAFA – none. For other pre-offer programs, the investor/insurer may require. The investor/insurer may require.
Deficiency Pursued HAFA – none. For other pre-offer programs, the investor/insurer may require. The investor may retain the right .
Foreclosure Holds Auto hold once Short Sale Agreement is executed (subject to specific conditions) Vary by investor; require investor approval.
Suggested List Price Provided. Not provided.
Approval/ Closure Rates High after qualification. Low-medium.
Relocation Assistance HAFA – $3,000. For other pre-offer programs, the amount will vary. None.
Unrealized Short Sale Optional deed in lieu of foreclosure. Optional deed in lieu of foreclosure.
Not intended nor authorized for consumer distribution. Bank of America: Proprietary. © 2011 Bank of America Corporation
Short Sale Tips
Three Key Steps for Real Estate Agents
62
11Engage Homeowners Early• Find out if the homeowner owes more than the home’s fair market value.• Discuss short sale opportunities during initial conversations with the homeowner.
– If the homeowner would like to better understand their options or initiate the short sale themselves, encourage them to call Customer Care at 1.866.880.1232.
• Explain the short sale process and how it can help avoid foreclosure.
22Contact Bank of America Before the Home Is Listed• Initiate the short sale in Equator – even if you don’t yet have an offer.
– The homeowner may be required to contact Customer Care to discuss participation in one of our pre-offer programs, such as HAFA. If the homeowner isn’t eligible for a pre-offer program, then next action is to market the home, obtain an offer and initiate new short sale in Equator.
33Complete Required Tasks on Time• Make sure all tasks are completed as soon as possible in Equator. • Provide necessary documents as soon as possible to keep the process moving
forward.• Communicate with your short sale specialist via Equator to reduce delays.
Not intended nor authorized for consumer distribution. Bank of America: Proprietary. © 2011 Bank of America Corporation
Short Sale Tips
Getting Answers to Short Sale Questions
63
11Your short sale specialist• Send a message via Equator by selecting the negotiator (or closing officer)
in the "To" field and providing details of your issue. • You should receive a response within two business days.
If there's been no answer after that time, you can contact...
22The short sale team lead• Send a message via Equator to explain your issue. You can select the team lead
from the drop-down menu in the "To" field when composing an Equator message. • Allow two business days for a response.
If you still do not have an answer, you can call...
33Short Sale Customer Care• Call 1.866.880.1232 to explain your issue.
• Short Sale Customer Care is available Monday – Friday 8 a.m. to 10 p.m., and Saturday 9 a.m. - 5:30 p.m. Eastern.
If you have an urgent request, such as a foreclosure sale date within 48 hours, please call Customer Care at any point in the process.
Not intended nor authorized for consumer distribution. Bank of America: Proprietary. © 2011 Bank of America Corporation
bankofamerica.com/realestateagent
64
Bank of America’s Agent Resource Center• Important news and updates about the short sale process and
enhancements • Online subscriptions
to keep you informed via email updates
• Free webinar replays• Education library of
important documents, including tips to a successful short sale
• Events • Important links • Contact information
Not intended nor authorized for consumer distribution. Bank of America: Proprietary. © 2011 Bank of America Corporation
Questions?
65
CONFIDENTIAL
Short Sales in a Nutshell with CitiMortgage!
February 2012
CONFIDENTIAL67
Overview
• CitiMortgage is committed to providing our listing agents and our customers with a superior level of customer service and satisfaction.
CONFIDENTIAL68
Short Sales in a Nutshell with CitiMortgage!
There are several benefits in choosing a short sale in lieu of foreclosure.
– Relocation incentive.1
– Forgiveness of the deficiency.– Promissory notes or cash contributions may not be required.1
– Foreclosure hold or foreclosure sale postponement, if applicable.2
– Fast decisions – Within 5-10 business days once an offer is submitted.3
– Suggested list price is determined prior to listing the home.
1 Subject to approval2 Subject to specific conditions3 This timeline might increase if investor approval is required.
CONFIDENTIAL69
Short Sales in a Nutshell with CitiMortgage!
Eligibility & Initiation
Qualify the Borrower
Valuation of the Property Review & Execute
Short Sale Agreement
Market the Property
Submit Offer & Req’d Docs
Investor Decisioning
Closing
Getting Started
Preparing to Sell
Marketing & Selling
Closing the Deal
CONFIDENTIAL70
Short Sales in a Nutshell with CitiMortgage!
Determine Short Sale Eligibility & Initiate
If liquidation is the homeowner’s best option, initiate by contacting the Homeowners Assistance Team (HAT) at (866)-272-4749. Please have the following information available:
• Account number and property address.• Borrower Social Security Number (SSN).• Borrower(s) first and last name.• Letter of Authorization (LOA).*• Have the borrower’s financial information available.
A Short Sale Agreement (SSA) and RASS or ARASS will be required on all HAFA approved Short Sales.* LOA must be signed by all borrowers on the account and in the name of the person that the authorization is granted to.
CONFIDENTIAL71
Short Sales in a Nutshell with CitiMortgage!
Qualify the Borrower
• The borrower will be run through the Mortgage Assistance Tool (MAT) to determine eligibility for HAFA or a Traditional Short Sale. Please submit all documents* to:
Fixed 1st & 2nd Lien Fax: 866-940-8125Email: [email protected]
Home Equity Line of Credit Fax: 866-989-1356Email: [email protected]
OneMainFinancial or CitiFinancial** Fax: 800-925-6751Email: [email protected]
* Include the customers account number on every page that you fax to ensure accurate placement with the correct account.** Accounts beginning with 09-0155, 03-0141 or 20-0051
CONFIDENTIAL72
Short Sales in a Nutshell with CitiMortgage!
The documents required may include:
– Two most recent months bank statement.*– Two most recent pay stubs (or income/expense reports, if self-
employed).– IRS Form 4506-T.– Signed and dated Hardship letter.– Dodd-Frank Certification.
NOTE: Bank statements must include all pages even if they are blank so we can insure there isn’t missing data. Form 4506-T is required every borrower. Hardship letter must be signed by all borrowers. Dodd-Frank Certification should be signed by all borrowers.
CONFIDENTIAL73
Short Sales in a Nutshell with CitiMortgage!
Preparing to Sell:
• Once the customer has been run through the MAT, the account will be assigned to a Single Point of contact (SPOC).
– Follow up with the SPOC assigned to the loan within 72-hours to ensure all documents have been received by calling the Homeowners Support Specialist Hotline (HOSS) at (855)-843-2549.
– Work with the homeowner to identify all liens, mortgage and non-mortgage if applicable, and begin to obtain their approval to release their lien.
– Once all required documents have been received, the account will be assigned to a negotiator. Work with the assigned negotiator to determine a list price.
CONFIDENTIAL74
Short Sales in a Nutshell with CitiMortgage!
Marketing:– Work with the assigned short sale negotiator to determine the
home’s value. If there is a discrepancy, the negotiator will assist in reconciling the value dispute. You may be asked to provide comparables in the area.
– List and Market the Property for up to 120 days.– Contact the assigned negotiator via phone or email every two weeks
to give marketing feedback. Contact the negotiator via phone or email every 30 days to discuss the list price.
CONFIDENTIAL75
Short Sales in a Nutshell with CitiMortgage!
Closing:– Once approved, you will receive the Short Sale approval letter via secure email. You
will need to follow the instructions to create your own password. Keep that password in case a change in the approval letter needs to be made at a later date.
– Notify CitiMortgage via phone or email of any post-approval deal changes or closing delays. If there are any changes to the offer and/or the HUD-1 after the approval letter is issued, submit updated documents to the assigned negotiator as soon as possible.
– Provide weekly updates to the assigned negotiator via phone or email.– Provide the negotiator with the buyers underwriting approval once it has been
obtained via fax or email.– Give CitiMortgage 48-hours notice prior to closing by providing the assigned
negotiator the HUD-1 for approval via fax or email.– If the borrower qualifies for relocation incentive, this will need to be placed on the
HUD-1 as a credit to the borrower.
If there is not an offer received within the 120 day marketing period, the homeowner may be eligible for a Deed in Lieu of foreclosure per the Treasury guidelines.When communicating with Citi, please guard against the sending of critical customer information via email. There are methods of receiving secured emails that can be communicated when appropriate.
76Making Home Affordable | February 2012
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