Hey Superstars,

I have a question, just like the title states does a discharged bankruptcy affect a seller in receiving a incentive from the lender?  I currently have a short sale in with Nationstar and I was told by the negotiator that they do not qualify for an incentive because they had a bankruptcy.  It is not a HAFA short sale either not sure why though.

Can someone shine some light on this issue..

Thanks in advance!

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Replies

  • Incentives are typically reserved for the occupant of the property.  Bankruptcy or not, in a HAFA short sale for example, the occupant of the property, whether the borrower or a tennant, would be afforded the relocation incentive.  If the property were vacant - no incentive.

  • Hi Freddie, I have just done 3 different, discharged BK SS's, 1st was with Bayview Fin (Miami), they did HAFA but would not give the 3k. The 2nd deal was with GMAC, it went HAFA, she is getting the 3k and it was SUPER EASY AND FAST! The 3rd deal is with Indymac, it is HAFA and the 3k is going to the tenant. So there you go, everyone plays by different rules, the key is always getting your deal in front of a decision maker, rather than a paper pusher!

    • Yeah thats exactly what I need to do.  Everytime I call them they send me to one department and then to another and by the end of the day Ive spoken to so many people that i get nowhere.  Frustrating!

  • Same sellers got the that incentive and they were also excited. But with Nationstar they don't qualify from what the negotiator told me.
  • Just sold one in December.  The sellers really didn't care one way or the other since the mortgage was included in their BK.  However, when they found out that they were getting a $20K incentive, they were gung ho!  They realize that they may be taxed on that amount, but it was quick cold cash and now they love me!!

  • Who is the investor? If it's a loan that was originated by Aurora and aquired by NationStar, all bets are off.
    • Hi Scott, not sure if it was an Aurora loan, it might have been I will look at it tomorrow and see who the original owner was. Thanks for the headsup.
  • The negotiator at Nationstar could be wrong, could be right.

    Was the loan sold?

    Did just the servicer change?

    Just because Chase offered it (probably a portfolio loan), doesn't mean Nationstar has to.  Each servicer, and investor , has their own matrix and guidelines.

    • Hi Wayne, I did mention to the seller that since it was a portfolio loan they were offered that nice little incentive :) I do need to find out who the actual investor is for this particular loan.
  • I am working on an FHA short sale right now where the seller filed bankruptcy last year and did not reaffirm the mortgage.  We got the ATP just this past Wednesday and it clearly states that the seller is eligible for the $1000 seller incentive.

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