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Permalink Reply by Kristen Hanson on October 16, 2011 at 5:34am

Is the investor Fannie? I had the same thing happen with Fannie. The buyer was going to pay the difference to the second and the negotiator said ok but when it went to closing the closer said they don't allow it. I then went to Fannie and they said the buyer could not pay it but the seller could so I got the seller to agree to pay the difference. When I took it back to the closer she said I needed to get it in writing from Fannie because they are told no parties could pay it- it was a take it or leave it. When I went back to Fannie the same person I spoke with 5 days prior she said "sorry, we just had a meeting yesterday and can no longer make any exceptions". I had to go back to the second and speak to the manager and got them to release for the 6% to avoid foreclosure and/or BK but seller was still responsible for the deficiency they were going to waive before. I gave the sellers the managers information for the collections department and they contacted them the day after closing prior to their receipt of the file and offered the remaining money as payment in full to avoid bankruptcy and they agreed. There is a reason that a lot of the foreclosed homes are owned by Fannie Mae.

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Permalink Reply by Bryant Tutas on October 16, 2011 at 5:58am

Simply place the difference on the buyer side of the HUD as either an expense or a POC item. Depending on the state you are in it may be legal to give the buyer a commission rebate or credit. If so them just reduce your commission by the amount and increase the Buyers commission. The buyers agent can then reimburse the buyer. Or of course the buyer can just pay the difference.

 

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Permalink Reply by Linda Susan Fox on October 16, 2011 at 6:21pm

Is the buyer or seller willing to pay the difference, if so list it on the HUD as a cash contribution for the junior lien holder.  This way the 6% works and the second gets the addtional monies from the buyer or seller.  If the buyers lender has a problem with this then the buyers agent may be able to contribute the monies from the commission and work something out with their buyers.  On HAFA the senior lien holder is only allowed to give the junior lien holder a set amount.  If the buyer or seller agree to give the amount needed submit a new HUD1 with the line item of the cash contribution and see if the lenders will approve.

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Permalink Reply by Kathleen Couch on October 17, 2011 at 3:52am

When I have had situations like that, the difference and payment is listed at the bottom of the second sheet of the HUD, with the amount and who it is to, and listed as POC. (To the side in explanation section) It has always been accepted.  You cannot list it in the seller section of the HUD.  Also with HAFA, you cannot show anything coming from the homeowner.

Make sure the closing attorney or paralegal has had updated training in closing HAFA, and short sales.

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Permalink Reply by Jenn on October 17, 2011 at 4:52am

Kathleen,
I'm curious with hafa can you show the fuffrence coming from the real estate agent? We are attempting to get approval on our seoncd lien on a hafa short sale. If it can't come from the homeowner and it can't come from the buyer because we are FHA then that would only leave the agent. Is there another way around this?

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