Any Real Estate in which the borrower(s) have ownership interest can be entered on the REO Tab.
The Current/Subject drop-down list has four options; Subject, Current, Both or Blank.
Choosing Subject from the drop-down list indicates the REO is not the borrower’s primary residence and it is the subject property for the current loan (for example, Rental property, second home or vacant land that is the collateral for the current loan).
Choosing Current from the drop-down list indicates the REO is the borrower’s primary residence and is not the subject property of the current loan (for example, Primary residence already paid in full or mortgaged outside of the current loan).
Choosing Both from the drop-down list indicates the REO is the borrower’s primary residence and is the subject property of the current loan (for example,, Refinance of the borrower’s primary residence).
Leaving the drop-down list Blank indicates the REO is not the borrower’s primary residence and is not the subject property of the current loan (for example, Rental property, second home or vacant land that is not collateral for the current loan).
When the Property Disposition drop-down list displays Rental, the Net Rental Income will calculate based on a 75% occupancy rate and the values input in the Gross Rental Income, Mortgage Payments and Insurance, Maintenance, Taxes fields. The Net Rental Income field will populate back to the 1003 > Income/Housing Tab > Net Rental Income field.
Tip: Users can manually update the Net Rental Income field if needed. Note that when this field is updated manually, any time the Gross Rental Income, Mortgage Payments or Insurance, Maintenance, Taxes fields are clicked in, the Net Rental Income will revert back to the system calculated figure. If this happens, a user can select the Cancel button at the bottom of the REO Tab so that no changes are saved and the original values are restored.
The Amount of Mortgage Liens and Mortgage Payments fields will be manually entered on the REO Tab. To ensure accurate ratios, it is important that these fields also match the values from the 1003 > Liabilities > Balance and Monthly Payment fields.
On the bottom, left side of the REO Tab, there is an Add Properties button that will populate additional fields to add more REO properties.