Per Countrywide, New HUD Guidelines requiring SS properties to be listed

I just spoke with Countrywide regarding a SS that I’m working on & they told me new HUD guidelines (came out around October 2006 or so) require a listing agreement for SS prior to closing. Anyone know about this?

I told Countrywide that I’m buying the house & I don’t want someone else to buy it if it’s listed. Countrywide told me that doesn’t necessarily mean that they will entertain all offers.

ALl the listing agreement tells them is that the HO attempted to list. You can put the listing at a high price figuring in what they refinnanced for, the repairs, the realtors fees. This is the second ss I am working on. THe first is with ASC, last I heard 2 weeks ago from the loss mit that the investor has the package now.

I’m in the same situation as you are. Countrywide is the first, Suntrust is the second. Bet you havent gotten around to the HO counseling as well. My HO are going thru that next week. Well see how that turns out. MY mentor basically told me to tell Countrywide that the same size house, new construction is selling for $180, which makes it a moot point. Who would want to buy a 10 year old house for that amount,when you can get a new one for the same amount!!!. I also understand from R.L. audios that he doesnt even list them and tells the bank that in his offer letters. BTW for my first I informed ASC that the HO doesnt have pay checks, nor Federal taxes since he is a war vet on limited income. Of course I provided proof of his limited income coming from the government. THey never asked for more info after that.!


kikaider69: Thanks for the response. I think the listing requirement is for FHA loans in pre-foreclosure. Countrywide is requiring language in the listing agreement that says that the seller may cancel it if the property is conveyed to the mortgagor and not pay any consideration.

I’m also concerned that if I put a high listing price, CW will wonder why my offer is so low. I’m basically offering in the high 60’s for a house that is worth the low 120’s fixed up. Of course, I submitted back up info to CW with my offer.

I did some more digging & here’s what I found out so far. HUD policy says that a “mortgagor accepted into the pre-foreclosure program is responsible for selling the property either through his/her own efforts or through a real estate agent.” No where - as far as where I looked, did it specifically say that the property must be listed. So the listing “requirement” so far sounds like a CW policy.

Anyone doing SS right now with another lender that does not require a listing agreement?

More info: I read a 2005 audit report by a HUD Contractor. The bottom line of the report is that investors “abused” the system by purchasing pre-foreclosures below FMV & flipping them. They said the net result is HUD paying too much in insurance claims. Among the things they recommend is for properties to be actively marketed. They acknowledged that HUD does not require this. Unless HUD implemented this recommendation, which as of yet I can’t find, it looks like CW is implementing it.

I worked with US Bank and Wells Fargo bank – They both needed Listing Agreement with SS package.

Currently working with OCWAN and they need it as well…

I think it is widley used process to comply with HUD so HUD don’t complain paying too much on insurance to banks.

My thoughts…

DFW_REI: you submit the purchase contract with you as the buyer with the listing agreement? If so, are you able to get the price listed low enough for you to make a profit?

Hi all, I am putting together a SS package now and have been told that the owner needs to have the house listed. I talked to a realtor that I have as a team member so to speak. She told me she would list the house but would also put a sale pending on it because I have a signed contract with the owner. Dose this sound legal and or ok? As I said I am new so was assuming she new what she was talking about.

My realtor was going to sign a listing agreement with the sellers, but not list it on the MLS - at my reqest, b/c I already have a contract on the property. There’s some type of a term they use for this. My realtor works for a nationwide firm so they didn’t pull this out of thin air.

I figure if the realtor pulled distressed comps, and the list price is based on these comps & subject property repair costs, then the price could probably be low enough for my profit margin. Then my offer would be no higher than 90% of the list price.