Replies to This Discussion

Permalink Reply by Terry L. Osburn on January 25, 2010 at 7:01pm

The seller bring in the difference.

Permalink Reply by Mori Langshaw Sr on January 26, 2010 at 2:35am

At this stage of negotiation there is no "work around". When you are talking about $2k-3k-4k, those are numbers that have to be negotiated to get the deal closed. You cant lose a deal over $4k...

This is why I "pad" the HUD-1 to begin the process, so the bank can feel good about cutting what they need to cut.

Ironically, Im glad Chase is not giving DBofA anything...They suck...haha...Just kidding (about not giving anything, not about that they suck)

Permalink Reply by Kent Dills on January 26, 2010 at 5:01am

Scott, what are the total #'s on the deal? Sales price, payoff to 1st, payoff to 2nd?

Permalink Reply by Anna Mackey SDHS on January 26, 2010 at 5:24am

Scott,

Buyer needs to accept the credit and then pay BofA from their side of the HUD at closing.

AKA: Line 513 says: Seller credit to buyer's closing costs - $5,000 and Line 213 says Funds Due BofA - $2,000. The rest of the credit is itemized with their other non-recurring closing costs.

Permalink Reply by Scott Short on January 26, 2010 at 5:38pm

thanks for your response.. i am just the Loan Officer on the transaction trying to help.. the Sales price is $220k, the property is in Sacramento, Ca. . the listing agent did tell me that the payoff and what is owed is nominal less than $40k . unlike most of the properties here in Cali..

Kent Dills said:

Scott, what are the total #'s on the deal? Sales price, payoff to 1st, payoff to 2nd?

Permalink Reply by Scott Short on January 26, 2010 at 5:41pm

thanks Mori for the response.. BofA/Countrywide deserve each other.. but we the public do not deserve their version on the truth. (i like what John Travolta said in the Movie "Swordfish" the art of Misdirection..(these companies are the definition of the word)

Mori Langshaw Sr said:

At this stage of negotiation there is no "work around". When you are talking about $2k-3k-4k, those are numbers that have to be negotiated to get the deal closed. You cant lose a deal over $4k...

This is why I "pad" the HUD-1 to begin the process, so the bank can feel good about cutting what they need to cut.

Ironically, Im glad Chase is not giving DBofA anything...They suck...haha...Just kidding (about not giving anything, not about that they suck)

Permalink Reply by Scott Short on January 26, 2010 at 5:43pm

thank you for your response.. Chase already squawshed this great idea.. and said BofA only gets $3000. eventhough their net is the same..(illogical)

Anna Mackey SDHS said:

Scott,

Buyer needs to accept the credit and then pay BofA from their side of the HUD at closing.

AKA: Line 513 says: Seller credit to buyer's closing costs - $5,000 and Line 213 says Funds Due BofA - $2,000. The rest of the credit is itemized with their other non-recurring closing costs.

Permalink Reply by David Dee on February 11, 2010 at 6:43pm

Sock it to BofA! ooops sorry ...didn't mean it to come out that blunt. :-) Banks=Common Sense ... is illogical.

Permalink Reply by Laura Marshall on February 16, 2010 at 4:38pm

I have done this successfully. In this case, I would write a counter offer, or amendment to escrow instructions. Buyer to pay $2000 to 2nd lienholder - Bank of America. Chase should be fine with that. They don't care who pays what, but they will not pay more to the 2nd lienholder from their side.

Anna Mackey SDHS said:

Scott,

Buyer needs to accept the credit and then pay BofA from their side of the HUD at closing.

AKA: Line 513 says: Seller credit to buyer's closing costs - $5,000 and Line 213 says Funds Due BofA - $2,000. The rest of the credit is itemized with their other non-recurring closing costs.

Permalink Reply by Tim Schmitz on February 16, 2010 at 4:55pm

If Chase was being shorted in the deal, why would they be "fine with that"? they are in first position and BofA is in second. The first will want this money and trying to hide it on the buyers side of the HUD-1 is pretty much fraud without the first mortgage holder okaying it.

However, your skills at negotiating this will come into play. I would say that you need to play hardball with BofA, not Chase. Get your hands dirty and get it done!

Permalink Reply by Amy Cole on March 10, 2010 at 5:37am

Hi Laura, I was reading through this blog for info on a Short Sale similar to what you are discussing, but we are running into problems because buyers have FHA loan and FHA doesn't allow ANY contribution to the 2nd on the HUD1.... have you heard anything about this sort of issue. Have you done any buyer contributions when using FHA loan?? Any input is greatly appreciated !!!

Laura Marshall said:

I have done this successfully. In this case, I would write a counter offer, or amendment to escrow instructions. Buyer to pay $2000 to 2nd lienholder - Bank of America. Chase should be fine with that. They don't care who pays what, but they will not pay more to the 2nd lienholder from their side.

Anna Mackey SDHS said:

Scott,

Buyer needs to accept the credit and then pay BofA from their side of the HUD at closing.

AKA: Line 513 says: Seller credit to buyer's closing costs - $5,000 and Line 213 says Funds Due BofA - $2,000. The rest of the credit is itemized with their other non-recurring closing costs.

Permalink Reply by Amy Cole on March 10, 2010 at 5:41am

Hi Anna ! Have you seen this happening successfully when the buyer has an FHA loan?? We are running into issue with this exact type of case as you are discussing and buyer has 5K to bring in and get closing cost credits, but against FHA guidelines to let buyer contribute to 2nd...? Any input from your experiences is greatly appreciated !

Anna Mackey SDHS said:

Scott,

Buyer needs to accept the credit and then pay BofA from their side of the HUD at closing.

AKA: Line 513 says: Seller credit to buyer's closing costs - $5,000 and Line 213 says Funds Due BofA - $2,000. The rest of the credit is itemized with their other non-recurring closing costs.

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