1st (Cartus/Fannie Mae loan) won't allow 2nd (OneMain Financial) to have a promissory note.

We have an approval letter from the 2nd.  The 2nd would not accept anything less than $3K and the first is only allowing 6% (Fannie Mae 1st).  Now that we have a new Buyer that can pay the difference and get the file moving, the 1st is saying that Fannie Mae will not allow the Seller to sign a promissory note to the 2nd (for the deficiency).  I have even asked if the wording could be more like Seller agrees to pay the deficiency, which I see often.  I think this may be the final nail in this file's coffin if this issue cannot be resolved.

It may be possible that Cartus is misinformed on Fannie Mae's guidelines, but I would need to know for sure.  I am investigating this, too, as I definitely need to know this.

Please help with any ideas.

Thank you!

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Replies to This Discussion

Permalink Reply by Keri Sweetland on April 26, 2012 at 4:35am

Will the 2nd take a cash contribution instead of the prom note?  Usually I have found that in most cases they will take 1/2 at closing...so if the prom note is $10K, they will usually take $5K cash at closing...then you can counter the buyer and/or see if the seller can come in with the cash instead?  I haven't had this problem in quite a while but I used this technique in the past.  Let us know how it turns out! :)

Permalink Reply by Kristy Hamilton on April 26, 2012 at 10:47am

Fannie Mae won't allow the Seller to contribute, either.  Thank you for your thoughts, though.

Permalink Reply by Kristy Hamilton on April 26, 2012 at 2:16pm

We have that part worked out.  Now, the problem lies in that the 2nd wants a promissory note for the remaining balance and has made it a part of the short sale approval letter.  They really aren't going to budge and we know that Fannie Mae won't budge on their guidelines.  I had not heard of this new guideline of Fannie Mae's, though.

Permalink Reply by Jon Wyatt on April 27, 2012 at 2:11am

This is Jon Wyatt with the Cartus Office of the President.  We'd like to work with you to make sure we clarify the guidelines/issues.  Give me a call or email me so we can discuss.  888-767-9357 or [email protected].

Permalink Reply by Keri Sweetland on April 27, 2012 at 3:15am

Way to step up Jon & Cartus! :)

Permalink Reply by Bryant Tutas on April 27, 2012 at 5:49am

Thanks Jon. I'll make sure Kristy sees this response.

Permalink Reply by Keri Sweetland on April 27, 2012 at 3:17am

Hey Kristy, did you happen to ask the 2nd lien if they will take a cash contribution in Luie of a promissory note agreement?  If so, how much will they accept?  IF the 2nd will do this, you can then counter the buyer with that amount and get as much from them and then talk to the seller about getting the rest?    You can call me if you need more clarification on this technique...561-578-8577.

Permalink Reply by Kristy Hamilton on April 27, 2012 at 5:48pm

Hopefully Jon with Cartus can offer a workable solution.  Will definitely let you know.  I somewhat understand where the 2nd is coming from, but my own home lies in the area of most of the short sales that I work with.  This directly affects my personal home/property.  We all know that a short sale is less damaging to our market and the lender's pocketbook than a foreclosure.

 

Permalink Reply by Kristy Hamilton on May 7, 2012 at 4:12pm

So far, no movement with THE file.  Today, Mr. Wyatt told me that I can expect a telephone call, tomorrow, from a Cartus employee to further discuss the issue/options.  Fingers crossed.  Will post how transpires.

Permalink Reply by Kristy Hamilton on May 14, 2012 at 5:03am

Spoke with the individual at Cartus that Mr. Wyatt told me would contact me.  She was able to allow a higher contribution amount.  This was submitted to the 2nd's negotiator.  The 2nd's negotiator in turn has submitted it to two of the three departments that need to agree with offer.  These two departments have allowed the offer to pass onto the third department which will be the last word for a final decision.  I have been informed that Fannie Mae will not allow a Seller to sign a promissory note or pay a deficiency towards the 2nd.  Has to be a full release of deficiency.  This Buyer is helping toward the 2nd as far as a contribution, too.  Feeling positive, again.  Jon:  THANK YOU!

 

Permalink Reply by Kristy Hamilton on May 22, 2012 at 8:57am

Update:  received approval letter from the 2nd.  Now, having a some difficulty getting Cartus negotiator to respond.  But, at least, I have that special approval letter from the 2nd due to Cartus helping with that issue!!  :  ) 

Permalink Reply by Kristy Hamilton on October 13, 2012 at 7:11am

This file did eventually close.  The negotiator at Cartus was out of the office for a bit of time, it appears.  (??)  It was great of Cartus to reach out to me through this site to share information as to the recent changes with Fanni Mae short sale guidelines which inevitably got us through the brick wall on this file.  Cartus approved more money to the 2nd and the 2nd agreed to the increase in contribution vs. deficiency note.  YEAH!

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