Replies to This Discussion

Permalink Reply by JILL BERNI on October 31, 2012 at 1:43pm

I am closing one tomorrow where the initial incentive was $5000 but decreased

to $2500 to increase the net. This is a BofA FreddieMac loan

Permalink Reply by Elizabeth Kayser on October 31, 2012 at 1:53pm

Can you call me?  636 220 2218.  Elizabeth Kayser, Esq.

Permalink Reply by Jason M Halliday on October 31, 2012 at 1:58pm

Hey Elizabeth,

Indirectly, Yes.  they can do this.  They generally can NOT contribute it towards list price or net, but can contribute it towards front page line items on the hud...ie taxes, junior lien etc (except for net to senior)

 

warm regards,

 

jason

Permalink Reply by Elizabeth Kayser on October 31, 2012 at 2:13pm

we don't need it for front pg items, only to increase offer price.  and we have 8k.  MI is radian and is demanding this net, but BofA says HIN cannot be used to increase the offer price?

Permalink Reply by Jason M Halliday on October 31, 2012 at 2:16pm

the hin incentive can be used to pay off front page items which would increase the net to the first.  The verbiage would say "hin incentive from seller to taxes $xxx".  this would then increase the net to the first.  It just cant say HIN incentive to be contributed to first lien holder net.  make sense?

Permalink Reply by Elizabeth Kayser on October 31, 2012 at 2:46pm

YES IT DOES.   thank you!

Permalink Reply by James W. McCormack on October 31, 2012 at 2:17pm

Is this a cash sale, or financed?

Permalink Reply by Elizabeth Kayser on October 31, 2012 at 2:34pm

financed

Permalink Reply by James W. McCormack on October 31, 2012 at 2:48pm

First try what Jason said - use the HIN to pay for existing seller side expenses such as taxes, etc.  If that does not work, contact the MI company rep and explain the situation that you are dealing with and see if you can work out a post closing cash contribution from the seller since they will have the $8K HIN to work with.

Permalink Reply by Celeste ODea on December 3, 2012 at 12:18pm

If the seller was given the HIN incentive on one transaction and it fell thru, is he still entitled to it on another transaction?  I was told it was a one-shot deal.  Any truth to that?  

Also, in our previous transaction, the HIN incentive was used to pay off the HOA lien which was acceptable to BOA.