GMAC (2nd) wants more than first (Litton) will pay them. What next?
Hello everyone,
I represent the buyers on a short sale. Litton holds the first mortgage, and has approved our offer of $310,000. Litton is willing to give the 2nd (GMAC) 10% of the $56,432 owed. The investor for the second, E*Trade Financial, is insisting on a minimum net of $11,743. Seller has no more funds, and listing agent is asking my buyers to come up with the extra $6100, leaving sales price the same.
My question is why would the first (Litton) agree to the 2nd getting this extra $6,100, when Litton isn't even getting the full amount owed.
This would have to be on the HUD or it will be illegal. Any advice on how to proceed?
Replies to This Discussion
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Permalink Reply by Bryant Tutas on
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If your buyer is willing to pay then it could be placed on the buyer side of the HUD as a POC item. Then they just bring a separate check to closing to cover this amount. It shouldn't be an issue though as the payment is fully disclosed on the HUD it's just not part of the purchase. It's 100% RESPA compliant.
Of course, be sure to check with your Broker and the closing agent.
From RESPA:
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