Short sale with 3 mtgs. 1st: Fannie Mae; 2nd: GMAC; 3rd: GreenTree. Have all approvals. 1st and 2nd waive deficiency. 3rd states that the Seller is to continue payments after closing. We WERE to close today at 3pmEST. The 1st wants an updated approval letter from the 3rd with waiver of deficiency. The negotiator at GreenTree has been great, but their guidelines for releases makes it very difficult, if not, impossible. They want nearly $10K to release. Fannie Mae has allowed $3K to each of the 2 subordinate liens. GMAC accepted the $3K and released the deficiency. Seller doesn't have money. Buyer is VA. Cut to costs would have to be added to the 1st's net. Any ideas/suggestions?
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Green Tree came through with a workable solution and we did close, yesterday, 1/31/13. Even made it with the end-of-the-month wannabe's. The closer and I were completely drained after the marathon day of phone calls, etc., but another Foreclosure has been avoided. Thank you for the advice, Justin. I did make several phone calls within GreenTree and spoke with the negotiator's manager and the two of them really stayed engaged in this file with all of the last minute requirements from the 1st. I just wish that the first had noticed these "requirements" before we were trying to get our clearance to close. On to the next ones.
Great job! Always love to hear a the follow-up and a positive outcome!
Wow that is outrageous! I'm not an attorney but those seem like the same thing to me. I would start escalating to the 1st to have someone with a brain waive you through!
Don't give up!
Still have yet to close because the 1st now states that the subordinate lien short sale approval letters have to include specific verbiage "waive rights to the deficiency." The 3rd's letter states "settlement in full on the account" and "the Note will be settled in full." This is not acceptable to the 1st. The 1st further states that this is a Fannie Mae requirement. Have you been experiencing this?
Start escalating and calling every supervisor in GreenTree you can find. Jigsaw.com might be able to help. I might try to move the closing by a few days if you can. Good luck!
I am in the process of speaking with management at GreenTree. They came down to a lower amount for a full release of deficiency but not yet down to $3K in order to appease Fannie Mae. We are in Florida which is NOT a non-deficiency state. The Corporate Compliance department number, above, is for the collections department. I do have to comment that although this is difficult, GreenTree has remained polite. We are an hour and a hafl away from closing. Bring on the chocolate!