 |
|
Short Sale Seller Advisory
Approved for release is the Association’s new Short Sale Seller Advisory. This reference guide assists sellers in navigating a short sale by providing dynamic links to various web resources. Click here to download a copy for your clients.
Guidance Regarding NFIP & Florida REALTORS® FAR/BAR amd FAR-9
Below please find a communication from the Florida Realtors Law and Policy Department regarding how the non-renewal of the NFIP effects the Florida REALTORS® Purchase Contracts. Additional Questions should be directed to the Florida REALTORS® Legal Hotline:
What effect does the lapse of authority for the NFIP have on the buyer’s and seller’s obligations under the FAR/BAR-8?
1) None if the contract is not contingent on financing and not contingent on the buyer’s ability to obtain flood insurance
2) None if the contract is not contingent on financing but is contingent on buyer’s obtaining flood insurance, if the seller can assign seller’s flood insurance to buyer.
3) Direct impact as the contract will not close if contract is contingent on buyer obtaining financing and the buyer’s loan commitment is conditioned upon obtaining flood insurance if the seller has no flood insurance policy to assign. In all likelihood, contract will terminate at Closing Date and deposit returned to buyer because in Florida impossibility of performance and frustration of purpose are well –recognized defenses to nonperformance of a contract. Alternatively, the parties can extend contract for an additional time frame to give Congress an opportunity to reinstate NFIP.
What effect does the lapse of authority for the National Flood Insurance Program (NFIP) have on the buyer and seller’s obligations under the FAR 9 Contract?
1) None if the contract is not contingent upon financing and not contingent upon the buyer’s ability to obtain flood insurance. On cash transactions where there is no contingency for buyer to obtain flood insurance, flood insurance will not be required but would be recommended.
2) If the contract is contingent upon financing and the buyer’s loan commitment is conditioned upon buyer obtaining flood insurance and the seller has no flood insurance to assign, then there is a direct impact. In paragraph 11 (c) of the Contract, buyer and seller are relieved of their performance obligations if the performance is delayed, caused or prevented by force majeure. Force majeure includes any cause not reasonably within the control of the buyer or seller. The time periods in the Contract are extended (not to exceed 30 days) for the period that the force majeure event is in place. If the force majeure event continues beyond 30 days, either party can cancel the Contract without liability to the other. Congress failure to authorize the NFIP may be interpreted under the FAR 9 Contract as a cause not reasonably within the control of the buyer or seller. Therefore, the buyer and seller may be relieved of their performance obligations during the period when Congress fails to authorize.
Fannie Mae Resources & REALTOR® HomePath
The following are website resources provided by Fannie Mae for your use. They include
information on loan modification, second lien program and foreclosure alternatives for short
sales along with Loan Lookup for borrowers to determine whether Fannie Mae is an investor in
their mortgage.
Additionally, Fannie Mae provided training on June 4 at our Education Center concerning their HomePath™ program, which provides up to 97% financing for select properties owned by Fannie Mae.
Links are below for your reference in accessing this information:
Making Home Affordable
The Making Home Affordable Program announced on March 4, 2009 includes Fannie Mae
Affordable Refinance options and the Home Affordable Modification Program. The information
can be obtained at https://www.efanniemae.com/sf/mha/index.jsp or www.MakingHomeAffordable.gov
Fannie Mae Homes for Sale
Fannie Mae-owned properties offer great affordable housing opportunities, with up to 97% financing for select properties through HomePath® financing options.
Visit www.HomePath.com or Learn about HomePath Financing.
Fannie Mae Loan Lookup
The Fannie Mae Loan Lookup helps borrowers determine whether Fannie Mae is the investor on their mortgage.
Visit Fannie Mae Loan Lookup and Borrower FAQs
Financial Stability Plan
This website provides an overview of the U.S. Treasury Department's Financial Stability Plan, including press announcements on the second lien program and foreclosure alternatives for short sales.
Visit www.financialstability.gov
Second Lien Program:
On April 28, 2009, Treasury announced a Second Lien Program so that when a Home Affordable Modification is initiated on a first lien, servicers participating in the Second Lien Program will automatically reduce payments on the associated second lien according to a pre-set protocol.
Visit http://www.financialstability.gov/latest/pr04_28.html
Foreclosure Alternatives and Home Price Decline Payments:
On May 14, 2009, Treasury announced new details on Foreclosure Alternatives and Home Price Decline Payments. The Foreclosure Alternatives are meant to prevent costly foreclosures by providing incentives for servicers and borrowers to pursue short sales and deeds-in-lieu of foreclosure in cases where a borrower is eligible for a MHA modification, but unable to complete
the modification process.
Visit http://www.financialstability.gov/latest/tg_05142009
HomePath™ PowerPoint Presentation On June 4, 2009, Fannie Mae presented the HomePath™ training to our members to enable them to learn about the Open House to be held on July 19th in Cape Coral. To see the full presentation, visit the right side of the web page and click on the PDF.
Navigating the Gulf
A REALTORS® Guide to the Changing Tides of SW Flordia
The characteristics of real estate professionals that will succeed in the next 12-18 months will be all about getting back to superior relationship building, having keen intuition about the viability of the prospective client, and decisive closing skills. With consumers becoming more diverse in terms of
age, experience and culture, they want personalized, local information and they want it fast.
The successful real estate professional will provide high service levels that are tailored to individual
needs. Read More.....
Take a look at this remarkable site: http://www.realestatewiki.com/
|
|
|
|
