21 st Mortgage CASH Program Procedure (Rev. 12/14/17)

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1 INSTRUCTIONAL AID 21 st Mortgage CASH Program Procedure (Rev. 12/14/17) The 21st Mortgage CASH Program is an arrangement RHP has with 21st Mortgage to acquire new homes for resale to consumers in a select number of Communities. This program offers affordable payments to residents should they choose to finance through 21st Mortgage. Provide Buyer Lender List If a buyer is interested in the home, ask how he or she plans to finance the purchase. Provide buyers with the List of Manufactured Home lenders. However, do not discuss 21st Mortgage's CASH program. Instead, you may give the buyer the following marketing collateral material: A brochure created and provided by 21st Mortgage these are available on the MOS A flyer on each CP home 20 are originally sent to the Community; additional flyers are ordered by sending an to bfm@rhp-properties.com If the home buyer chooses to submit an application to another lender, refer to the Homes Sales Financing Procedures Instructional Aid. 21st Mortgage Application and RHP Move There are multiple steps for this type of transaction. All activities are documented and completed using RHP Move. IMPORTANT Throughout this process, it is critical to check comments frequently in RHP Move, as this is the method that Bayshore will communicate the status of the applicant s loan; communication could occur hourly 1. To begin, access RHP Move via RHP Connect. 21 st Mortgage CASH Program Procedure Chapter 5: Bayshore Home Sales 5.b IA 1

2 2. Click New Lead on the menu bar below the calendar. 3. Complete the information fields. 4. Enter the Purchaser s information, then click Add Lead. Only homes marked with (CP) in the BSDB are available for the 21 st Mortgage CASH Program. 5. Click the Select Site button. 6. Select the site number from the drop-down menu and click Save. 21 st Mortgage CASH Program Procedure Chapter 5: Bayshore Home Sales 5.b IA 2

3 7. Use the New Transaction Type drop-down menu to select 21 st CASH Program. 8. Click Save. 9. Have the applicant complete the Residency Application and return it to you. 10. Enter the Residency App information in Quickscreen in ManageAmerica. In RHP Move, click Mark Complete when this activity is finished. 11. Complete and submit Residency Application Packet to Operations using the Upload Documents button in RHP Move. 12. Have the applicant complete the 21 st Mortgage Application. (It is best practice to have the applicant complete this at the same time as the Residency Application.) In RHP Move, click Mark Complete when this activity is finished. Because the buyer has chosen to apply to 21st Mortgage, provide him or her with all six pages of the Credit Application and ask them to complete it. The Credit Application is located in the Operations Manual. The sections of the application include: 21st Mortgage Credit Application for the CASH Program Cover Page Uniform Credit Application Addendum to the 21st Mortgage Credit Application (also referred to as the Communication Disclosure Form) CM indicates to buyer that 21st Mortgage will be in contact with him or her within 24 hours to obtain any additional information 21st Mortgage may need. The CM should review the application for completeness. 13. Upload an with the completed application to Bayshore at CM recommends to applicant that they locate and have available the following documents that the lender will likely request: USA or State Issued ID Social Security Card or Tax ID 21 st Mortgage CASH Program Procedure Chapter 5: Bayshore Home Sales 5.b IA 3

4 W2 forms for the previous two years Most recent paystub after submittal of loan application 14. If the purchaser asks about the down payment amount, indicate that most buyers financing a home put down a minimum of 5% of the sales price. The down payment is typically collected at closing via money order or cashier s check; personal checks are not accepted It is recommended that a small deposit of $100 is collected at time of application to obtain a commitment from the buyer and to hold the home The down payment is made payable to Bayshore Home Sales, Inc. and a Receipt of Purchase Deposit should be completed and uploaded to RHP Move Forward the check to Bayshore and complete the activity in RHP Move 15. Bayshore will forward the application to 21st Mortgage for processing. CM reminds the applicant to immediately contact us when they have received a credit decision from 21st Mortgage 21st Mortgage will make contact with applicant to obtain additional information Provided 21st Mortgage has all the information needed to process the application the applicant can expect a response within 24 to 48 hours 21st Mortgage will notify the buyer if they have been approved or not The CM must continually follow up with the applicant to learn if/when the applicant is approved st Mortgage will also notify Bayshore if the resident has been approved or not. RHP staff cannot notify buyer of 21st Mortgage s credit decision; only 21st Mortgage can do this RHP staff cannot discuss the terms of the loan; if the applicant has any questions, refer the applicant to 21st Mortgage 17. If the applicant has been approved for residency and received credit approval from 21st Mortgage, submit a closing date request to Bayshore via RHP Move The date requested should be 14 days from the day approval was received Communicate to the approved applicant that 21 st Mortgage will be contacting him or her to discuss options for Homeowner Insurance 18. Buyer signs Purchase Agreement between RHP and Buyer(s): Once Bayshore approves the closing date in RHP Move, Bayshore will the Community a Purchase Agreement to be signed by Buyer(s) and the CM; this agreement outlines the Purchase Price, Sales Tax (if applicable), and Down Payment only 21 st Mortgage CASH Program Procedure Chapter 5: Bayshore Home Sales 5.b IA 4

5 No funds or keys to the home will be exchanged at the time the Purchase Agreement is signed CM will the signed Purchase Agreement to Bayshore; once it is received, Bayshore will order closing documents from 21st Bayshore cannot order closing docs from 21st without this signed Purchase Agreement The Closing The closing for buyers who ve chosen 21st Mortgage financing is slightly different from a traditional closing. (If the buyer chooses another lender, refer to the Home Sales Financing Procedures Instructional Aid.) The resident cannot take occupancy (do not give keys) until closing documents have been received by Bayshore (usually sent overnight) and approved and funded by 21st Mortgage. This can take up to three days from signing the documents Bayshore will communicate via RHP Move when the Final Closing can occur and the keys can be given to the buyer and they may occupy the home Secure a Notary to be present as some documents will need to be notarized. o This is an activity in RHP Move that you will need to Mark Complete It is imperative that the CM informs the buyer of this process when scheduling a closing date The closing is a two-step process. Step 2 is normally scheduled a few days after Step 1. Step 1. The Initial Closing Document signing Step 2. Final Closing Resident takes possession (receives keys) Step 1 Initial Closing 1. The CM forwards the Pre-Closing Statement(PCS) to the buyer. Review the PCS with the buyer to clarify what funds need to be brought to the Initial Closing and to whom the checks should be made payable. 2. Bayshore will upload to RHP Move the Finance Package from 21 st Mortgage and the Bayshore Sales documents to be printed for the closing. 3. The resident signs: a. The Finance Package documents from 21 st Mortgage. The Same Name Affidavit and the Power of Attorney must be notarized, so plan accordingly. (Only 21 st Mortgage documents require notarization.) 21 st Mortgage CASH Program Procedure Chapter 5: Bayshore Home Sales 5.b IA 5

6 b. The Bayshore Sales documents This includes the Purchase Agreement c. The Community Lease The home site lease 4. The CM immediately sends the closing documents and copy of site lease to Bayshore (FedEx Priority Overnight), who forwards the documents to 21st Mortgage. Mark this activity complete in RHP Move. 5. Enter the FedEx Tracking Number, then click Notify Bayshore. 6. Bayshore will forward the documents to 21st Mortgage for review and approval. This typically takes three business days. 21 st Mortgage CASH Program Procedure Chapter 5: Bayshore Home Sales 5.b IA 6

7 Step 2 Final Closing The buyer cannot receive keys or take possession of the home until Bayshore advises the Community that documents have been received and the deal is approved and funded by 21 st Mortgage. This is communicated through an activity in RHP Move. 1. Contact the buyer to schedule a time to give keys to the resident. This activity must be pre-approved and acknowledged by Bayshore. 2. Once approved by Bayshore, CM conducts the Final Closing and give keys to the buyer. 3. The CM completes the move-in in ManageAmerica. Follow the Move-In procedure, then mark the activity complete in RHP Move. 21 st Mortgage CASH Program Procedure Chapter 5: Bayshore Home Sales 5.b IA 7