Replies to This Discussion

Permalink Reply by Eric Mieles on January 9, 2012 at 4:35pm

Herb, every short sale is it's own unique special case and each one you do you will start to be able to attack them with more and more confidence. Some short sales have one lender, no HOA, no other liens and takes 45 days to approve. Others have 2 loans and an equity line, hoa delinquency at $15k, a tax lien, county code enforcement and takes 7 months.

My point is there's agents on here that have encountered it all and have ultimately gotten the job done.

You will have to negotiate the credit card judgement just like you would negotiate an HOA lien or other liens. Find out who the attorney is that has the file and contact them directly. When you work up a HUD make sure you show the judgement and while negotiating with the lender try to get a reduced payoff with the judgement.

I would also prepare the seller and let them know about the judegement and ask them if they would be willing to pay a portion of it if becomes an issue. Same goes for the buyer once you get down to negotiations and you see the lender won't contribute any money toward the lien. Be proactive, have a plan in place and utilize sound negotiation tactics rather than simply processing documents!

Good luck!!

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Permalink Reply by Linda Susan Fox on January 9, 2012 at 4:50pm

Include the credit card judements in the HUD1 with the actual lien from title.  I just closed one where the seller had two tax liens and the lender allowed them to be paid out of the proceeds.  I sure it will depend on the amount of money owed and the net to the bank.

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Permalink Reply by Kevin - Greenville, SC on January 9, 2012 at 5:38pm

FHA has specific rules on how much is allowed toward subordinate lien holders up to $2500 MAX, but sometimes more is allowed with a variance request from HUD just as long as you are still meeting the minimum net proceeds required.  Other parties (buyer, seller, etc.) can contribute to settle subordinate liens as well with the FHA PFS Program.

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Permalink Reply by Herb on January 10, 2012 at 3:05pm

Thanks for the reponses everyone, the customer service rep. made mention that they would automatically deny the short sale as a consequence of having these creditr card judgements on file. Is this true? Or did I just run into someone with incorrect information??

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Permalink Reply by Kevin - Greenville, SC on January 10, 2012 at 9:00pm

Speak with somebody else until you get the answer you need.

Just received an Approval on a FHA PFS where the Purchaser is paying $6500 towards subordinate lien holders and Wells Fargo kicking in another $5500.

http://www.scribd.com/doc/77862705

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Permalink Reply by Kevin - Greenville, SC on January 10, 2012 at 9:41pm

http://www.hud.gov/offices/hsg/sfh/nsc/pfsfees.pdf

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Permalink Reply by Kevin - Greenville, SC on January 11, 2012 at 3:46pm

This was not done without Wells Fargo kicking a screaming for a couple of months as I have to overcome a high appraisal too.

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