illional Infrp,

FH,A lncentive

HUD-{ Prrepara'tions

Sornetimes preparing ttre HUD-

incentive (Seller' s Compensati

for goverrmerfit short sal ) cern be conFuping Thisr

900'45. icipate (HUD fornr 900'45 icipate

inrtluding thie FHA

dlesigned to help;you

unrilerstand this procedure. As stated on the ApProval to sale ofyour home undqr this P closing. Your comPensation wi by" ($1,000 for the first 90 daYs compensation is paid tal the sel Company or attorneY.
This amount has been included in cost. This amount must aPPear on
debit. Once the revised LIJD is dor;uments for the seller to sign at

'you

succ'ess"fully clctse a

edure, you wiNl be paid co

inc:rease to $11,0'0A

if

hhet

from ATP date andl $7:t{i) fi 'at closing, ilu;t of 1.he ne,t I

ation oJ'-$7'50 at ylur przperty closes ythLing past 90 days) This r; by th,e Title

total ciosing gost and is no m

ur:

i1.ion to the total cl,osing

troth as a creriit then as a HUD 1 Se:ttlement [itilte ter w iring insl,ruc;tions and ive,J I will fax eur demanrjl

Line 400's: HUD incentive fee $1, Line 500's: HUD incentive fee 51, ThLis should be a "wash" Line 504: $ Lirne 603: $

3fl$.
'r"t

git't'rr $e+:'

udgmentr;, Flome expenses (Il]elease Jr. Li In the event there are non-allo e,nts or allor;vances. doc reimbu Warranty, Survey, Pest InsPecti ns, Utilities, rppair s Title Insurzurlce fee, s,tartet en ,demand,, recording,, reprep charges, notary fees, Lend conveyance, or late charge fees.. ;tc) the incentive can be us dt help cover these costs.
Tfre most allowed for courier/wire The max HUD will allow for HtJD has to review the l-'lUD-1 in get turned down due to excessive Bank of America prepa d overrriS;ht is $30 fees is $1,000, $1,1i00 if ance if there are attorneY
're iding title insurance, but make sure the claim won't

and recrords fheir owrt

?

E),ependintg $!t wEeetEaer ox" xe*$ ke,r"e aE* Eltl$t aEBq)'ffi'e* frx r$.$s; every,"s: illecclfive in *r: * ofltBtc 2 fl*f,$

we

arl{rrs$ rgEatlw **se

No Non-Allowed ExPenses pensation to the sr:ller as This is the simple one. All that eds to be done is to puLt tkie ere in the :J00s section qf e FIUD-1 (or $750 i:f the "I]HA Incentive" for 5[l,000 an to artir;ipate fonm has elaps;ed). T is amount is deducted date listed on the Approval from Bank of Ameriaa's net roceeds and iip to be palid fo t e: seller art closing. Cash to seller on line 603 is to remai at $0.

expe In rrnany cases, there are non-all is unable to pay. In this event, w funLds to help cover these expe (or $750) in BOTH the 400's a and will NOT affect the payoff for HUD to show that we are co the non-allowed expenses from Cash to seller. This amount will paid to the seller at closing. For wafer bill for $75, that 'would be fro,m $1.000 for a difference of: closing. The FHA incentive w line 603 would be $625.00.

If there are Non-Allowed

wo<l expenses [h;at per :FtlJ

gr4iclelines Eiank of Arureric can apply part of or all of te se,ller's GCrlxpensation as s. The first stpp is addling lf{A.. l.ncentive" lbr $1,000

d 500's of tlne IItUD-f , ortnt or other figu.res, and sidering; the lFHlt incentiv $il,000 (or $71i0.) and li tItL out 'of Bantr< of Arrreri xarmple, irlthere is a Hom l.otal of 5375 olfnon-zrlll

; is hoth a credit
s

& debit

Qasir;ally only a. formiality Tlie 2"d step is tfo subtract hd r,ernainde'r on line 603 a r'{ nLetl pfoce,edr; and is to br Wpn:'anfy for $3i00 and a :d costs. We subtract $.175 2:5. Thris; is tlhe amount, tlie seller would receive at d be $1,000 in the 400s an 500r'r, and ca.sh to seller on

OTHER HUD FACTS:

u to 182,500 to lbo used forr tfie liens/juclgments i closiing occurs within 90 da mortgagon's FH.A ince $1,000 r'epresents represents F'HA's r;ideration lbr a total of $ after 90 days, the irst $75t) represents the nn additional $1.500 1.s FHIVs consicl
2.

t.

harge

ofjunior

ithin 90 dalrs, the first d the additional 51.500 . If settl:mr:nt occurs orr'rs consideration and the br a total of l$2,250;

tstarnding partial claim

ar

nt.

Tlhiis entir,e amount must

be paid 'when cal

larting the net $olres proceed

tlhe al lorvable, threshold,;

interested party amount llalls belo

l]he seller, buyer, or olher contri bute the rlifferenr;e :thp rret sales proceeds'

3.U
pay buyers closi

ta

lYo

ofthe truyer's

firs;tt

costs if the sale includesr F

$ager

amount san be used to

r\ (FIUD) financing,

Michell

anEvery@lbrankofamer

.cPnn