Blog of the Mortgage

August 17th, 2008 7:54 PM
My son is 20.75 months old.. yes..almost Drinking age. I know.
He's been using Dad-da to identify basically all adults in a room for at least a year now. You probably remember this time, it was really cute at first when your little one did it but then when they start arbitrarily pointing at bigger people and saying the same thing you have to step in and make sure your child correctly identifies only you (in this case me) as the dad-da.
Well, much to his mother's chagrin Felix has completely neglected the Mom-ma term this entire time.
Even though we were right there: he points at me = dad-da. WE point at my wife and say: Mom-ma it's been going on like this forever(at least it felt like that). Well:
He dropped the mom-ma and pointed(correctly) at his mother. Let me tell you what a relief that was :)

This story sort of ties in with the Amendatory clause. Us Lenders have been telling our Realtors FOR-EVER: we need to get this Amendatory Clause (download here) signed WITH the final contract acceptance.
And yet, much to all of our Chagrin they continue to ignore this form, we've been having it signed at funding for quite some time.
Well, now it seems some of the Realtors are getting the hang of it. They are finally recognizing the value of this form for their customers and in case you didn't know why You will too.
From the actual disclosure:
It is expressly agreed that notwithstanding any other provisions of this contract dated ________________, the
purchaser shall not be obligated to complete the purchase of the property described herein or to incur any penalty by forfeiture of earnest money deposits or otherwise unless the purchaser has been given in accordance with HUD/FHA or VA requirements a written statement by the Federal Housing Commissioner, Department of Veterans Affairs, or a Direct Endorsement lender setting forth the appraised value of the property of not less than
$__________________. Thepurchaser shall have the privilege and option of proceeding with consummation of the contract without regard to the amount of the appraised valuation. The appraised valuation is arrived at to determine the maximum mortgage the Department of Housing and Urban Development will insure. HUD does not warrant the value nor the condition of the property. The purchaser should satisfy himself/herself that the price and condition of the property are acceptable.
- - - - - -

This is a great tool for you and your customer in your contract negotiations.
If the appraisal doesn't come in at contract price (lower) then your client has the right to re-negotiate the terms or walk away without penalty.
Why Selling Agents aren't takin a hardline and having this signed with the intitial contract is well beyond me.

So, if you're looking to gain some new Real Estate agents in your area I would print out 100+ of the form above and take your business cards and go to every office you know. There isn't a selling agent in the world that wouldn't appreciate another strong negotiation form in their arsenal and with so much purchase business moving to FHA, well, now you've positioned yourself twice over!

From a disclosure perspective, IF the Realtor hasn't had this form signed AND you're in with your client I would place this little insurance form right on top and spend a little extra time in advising the client about their rights under FHA. What a great way to position yourself and gain additional trust.

I look forward to your continued business and support.
Posted by Raoul Badde on August 17th, 2008 7:54 PMPost a Comment (0)
Recent Posts:
Archive:
My Favorite Blogs:
Sites That Link to This Blog:

         


Your-AE Bay Area Northern, California 9xxxx
Phone:

My Team | Contact Us - Scenario | Education Station | Home | Submission Requirements | Blog of the Mortgage

Copyright © 2012 Your-AE
Portions Copyright © 2012 a la mode, inc.
Another XSite by a la mode, inc. | Admin Login| Terms of Use| Site Map