Cash Contribution To MI Company For HAFA Approval?

Good morning!


We received an offer from the lender today that approves my seller for HAFA provided that she pay $2,200 outside of closing to the mortgage insurance company.  The catch is that the $2,200 would have to be paid BEFORE the lender can issue the HAFA approval.  Paying it at closing is not an option for IndyMac.


The seller is hesitant to pay the contribution prior to closing because of the risk that the deal could fall apart and I'm concerned that the lender might not issue a HAFA approval after the contribution is made, regardless of the correspondence we've received from them.

Has anyone else come across this?  Ideas?

 

Alex Krumm

Re/Max Alliance Group

Broker Associate

GRI, Certified Distressed Property Expert

Winner, Five Star® Best In Customer Satisfaction: 2010, 2011, 2012

 

941-234-3597 Direct

941-954-5454 Office

941-444-2552 Fax

 

[email protected]

www.sarasotapropertygroup.com

Views: 439

▶ Reply to This

Replies to This Discussion

Permalink Reply by Kevin - Greenville, SC on November 8, 2012 at 7:55pm

Cash Contributions are not allowed with a HAFA SS.

https://www.indymacmortgageservices.com/uploadedFiles/IndyMac/Manag...

Permalink Reply by Alex Krumm on November 9, 2012 at 2:17am

Understood - the argument from the MI company is that the seller needs to contribute $2,200 outside of closing and BEFORE the lender issues the HAFA approval.  If the seller refuses, the MI company won't approve and the file will have to go through the regular short sale process (at which time, presumably, the MI company would ask for the contribution again - thereby risking the HAFA benefits and putting a 2012 closing at risk).

Permalink Reply by Kevin - Greenville, SC on November 9, 2012 at 7:20am
Permalink Reply by Alex Krumm on November 9, 2012 at 7:36am
The lender just rescinded their offer and rejected us for HAFA (presumably someone up the ladder looked at it and realized the contribution was a little shady) ... they tell us we're in good shape for a traditional sale. $5 says they'll ask for a contribution there.
Permalink Reply by Mike Rizzo on November 11, 2012 at 4:31am

This is a bewildering situation.  All I know is, I wouldn't do anything without having your client consult an attorney and getting their proposal in writing.  Its crazy that they want this outside of closing which means to me that they aren't allowed to do this so they are keeping out of sight.  I had one where the mortgage insurance company made the seller contribute a portion of their HAFA incentive but it was all on the HUD.  It was hard to swallow, but the short sale got done and was all on the HUD.  Also, on the approval letter.

RSS

Members

© 2024   Created by Short Sale Superstars LLC.   Powered by

Badges  |  Report an Issue  |  Terms of Service

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