Buyer Willing to Offer the Second Cash

I'm struggling a little and feel like I'm going to be on the verge of fraud if I'm not careful. I have a first and second on a short sale. The first is a Fannie Mae loan and we've gotten approval.

The second lienholder is a private individual with some personal ties to my seller. After all is said and done I have got the second to agree to a $30,000 payoff to release the lien and remove the deficiency on my seller. I've done everything I can to get this lower and believe this is as low as I can get.

To get this cash my hope is the following: 1) $3000 from the first lienholder, 2) Seller "promissory note" contribution of $7000, 3) The buyer may be willing to offer $20,000 to the second lien.

My problem is how to report that $20,000 as it isn't allowed to show up on the HUD. Also, I feel like I'm on the verge of fraud which I always steer very clear from. Is this still a possibility and if so how would you suggest working out the way to get the $20,000 to my second lienholder without being fraudulent since I can't report it on the HUD.

Thanks!

Views: 1462

▶ Reply to This

Replies to This Discussion

Permalink Reply by Anna Chroscicki on June 1, 2012 at 7:26am

Hi Samuel

I know it was long time ago, but how did you work out this "pickle" ? I have Fannie Mae as first and Chase as second and Chase wants more than what Fannie is willing to give. Buyer has no problem with bringing some money to closing. And it is cash deal. Not HAFA on seller's side ?
Just on the side.....I agree with you as to some comments you received on this post. I mean- you write this post to ask for help, and instead ( from some) you get "kicked while you are down". I guess some of us just like to "listen to ourselves" even if we don't have anything constructive to offer. 

Permalink Reply by Samuel Hilbert on June 1, 2012 at 7:33am

This one is actually a little interesting. I couldn't get it worked out so was going to give up but then the market started to pick up so offered it back on the market at a higher price that wouldn't make my first lien short...and magically we got an offer that made it work! My second was still short but then I was able to get them money anyway that they wanted since the first didn't care as long as they were getting paid in full.

I know that doesn't help your situation though. I'll tell you the only time I've been able to get my second money on short sales has either been by contributions in the 400 section of the HUD (which only certain investors seem to allow) or through curtailment payments. Some people will argue that curtailment payments can push the line of fraud though.

I do think it can be much more complicated if the buyer is the one making the contributions. The seller and/or agent commissions seem to be a little more accepted amongst the first lienholders.

Good luck, sorry that my story probably won't end up being much help here for you!

RSS

Members

© 2024   Created by Short Sale Superstars LLC.   Powered by

Badges  |  Report an Issue  |  Terms of Service

********************************** like buttons ************************