<h1>Procedure For Entering Wraps
as of April 28, 2004</h1>
<dl>
Definition:
<li>A wrap is the process of adding a second unit/week to an existing
contract.
<li>Prior Contract: The original contract written, prior to adding a second
unit/week.</li>
<li>Wrap: A contract after the addition of a second unit/week</li>.
</dl>
Background:
Prior to a contract being wrapped, the contract must be in good standing,
i.e.; it must befull down, have a status of "N" or "F" and no additional down
payment monies can be due.
All Owner information in the Prior Contract should be verified as accurate.
Asignificant portion of the Owner information will be transferred from the
Prior Contract to theWrap.
Special attention must be paid to the phone number on the original contract
and the phonenumber on the new survey. If an Owner's phone number has changed
between when the originalcontract was written and when the tour associated with
Wrap occurs, the phone number on theoriginal contract should be changed, and an
entry made in notes, to reflect the newestinformation.
No determination as to mortgage or Owner Association delinquencies will be
rendered inperforming the Wrap. It is the responsibility of the Contracts
office to notify the appropriateentities.
The following environmental variables must be set prior to executing the
wrap program: ADD=YES
WRAP_ADD=YES
A Wrap requires that a new, second survey (Wrap Survey) be entered or
exists. The useof the survey associated with the Prior Contract is NOT
recommended as it will distorthistorical sales statistics. Performing a Wrap
will require that the Wrap Survey have a manifestdate. With the exception of
Market Source, Solicitor(s), and Sales People, all information foundin the Wrap
Survey MUST correspond to the Prior Contract.
NOTE: Upon completion of the Wrap, the Owner will have Two (2) contracts
in goodstanding. The wrap executable will NOT automatically change the status
of the Prior Contractto A "U". The status change on the Prior Contract should
not occur until the Wrap is out ofrescission. Procedure
Execute the Wrap executable from your menu:
The screen will prompt for a contract number. Enter the contract
number of the Prior Contract. The screen will prompt you to load the
information from the Prior Contract. Move the cursor to the "Yes" box
and hit "Enter".
The screen in divided into five (5) sections and must be
processed in the order in which it appears on the screen:
1. Contract Information
No additional information is entered in this section and is
provided purely for information purposes only. The data reflects
the values from the Prior Contract. Note that the Prior Contract
number shows as a negative, with a "-" in front of the number to
indicate that this is a new sale.
2. Marketing
Enter the new survey here. The Office and Market Source
will automatically populate from the survey. If the phone number
on the survey does not match the phone number showing on the Prior
Contract, an error message will display.
3. Inventory
This section is divided into two (2) areas, the Wrap
Inventory (second unit/week) displays on the first line, while the
Prior Contract unit/week displays on the second line. Enter the
Wrap unit and the Wrap week in the appropriate spaces. The Phase,
Project, and Price fields will automatically populate from the
inventory information. Note that the Price showing is the List Price associated
with the Wrap unit/week. The information is provided as a
guideline to establish a minimum value.
4. Finance & Dates
Money
Sales Price: Default to the sum of the price on the Prior
Contract plus the List Price of the Second unit/week. This amount
may be over-ridden to reflect the pricing of the Wrap.
Term: Enter the term, in months, of the length of financing
provided by the developer.
APR: Enter the Annual Percentage Rate (APR) of the interest
rate being charged the borrower by the Developer. Example, 16.9.
Upgrade Volume: This is a calculated value, and is the
difference between the Price of the Wrap and the Price of the
Prior Contract. It is NOT a user editable field. Procedure
(Continued)
Equity: Enter the amount of equity, if any, being
transferred from the Prior Contract. This field is used to
determine the mortgage amount of the Wrap.
Amt Received: Enter the amount received at the point of
sale, exclusive of any additional down payments which may or may
not be due. After this field is entered, the Financed amount
field will calculate automatically.
Method: Enter the method, VS, MC, AX, CA, CQ, which is
being used to receive the down payment at the point of sale.
Add'l Payments: Enter the amount, if any, of the additional
down payment due. Entering a number in this field will cause the
Financed field to automatically recalculate.
On: If additional down payment monies are due, enter the
date they are to be processed.
Ccost: Enter the amount of closing costs, regardless of
whether paid by Seller or Buyer.
Paid by: Enter a "B" for Buyer or and "S" for Seller to
reflect which party is paying the closing costs.
Exch Co: Enter the amount of Exchange Company Membership
ONLY if not part of the Closing Costs (above) and ONLY if not paid
for by Seller.
Dates
1st Payment: Enter, if the Financed field is not 0.00, the
date that the 1st mortgage payment will be due, usually 30-45 days
in the future.
Written: Date the Wrap was written. Self-explanatory. Not
editable
**FullDown: Date the Wrap became Full Down.
Self-explanatory. Not editable.
Est: Established Date. Date the last status change
occurred. Self- explanatory. Not editable.
Occupancy: Date when the Wrap Owner may occupy or use the
unit/week. This must be a date in the future. Procedure
(Continued)
5. Sales People & Deeder Information
SP: Enter Salesperson's number.
TO: Enter TO's number.
SP3: If necessary, enter SP3 type, "F" or "B", followed by their
number. SP4: If necessary, enter SP4 type, "F" or "B", followed
by their number.
F2 to save.
All of the information entered may be edited from the Contract edit screen.
