HAFA buyer contributions

Hi, all.  This sounds elementary, but GMAC is telling me that buyers, sellers nor agents can contribute to the subordinate liens.  The MHA guidelines do not address the buyers making contributions, unless I am missing something.  The buyer is willing to pay toward the 2nd (Specialized Loan Servicing) and the deliquent utilities.  GMAC had originally given me a HAFA short sale approval with these items on Est. HUD-1 under the buyer's debit.  Is this specifically addressed in MHA HAFA guidelines?  I have offered to take it off the HUD and adjust for it in reduced seller proceeds. 

Thank you for any imput!  Suck in Sac.

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  • 6.2.4.2 Subordinate Liens
    It is the responsibility of the borrower to deliver clear marketable title to the purchaser or investor
    and to work with the listing broker, settlement agent and/or lien holders to clear title impediments.
    The servicer may, but is not required to, negotiate with subordinate lien holders on behalf of the
    borrower. The servicer, on behalf of the investor, will authorize the settlement agent to allow a
    portion of the gross sale proceeds to be used as payment(s) to subordinate mortgage/lien
    holder(s) in exchange for a lien release and full release of borrower liability. All subordinate lien
    holders will be paid in order of priority. Subordinate mortgage lien holders with subordinate liens
    secured by a mortgage on the subject property may be paid no more than an aggregate cap of
    $6,000. Such cap does not apply to non-mortgage subordinate lien holders with subordinate
    liens not secured by a mortgage on the subject property, such as mechanics’ liens or liens
    associated with assessments owing to homeowner’s associations. Payments will be made at
    closing from the gross sale proceeds and must be reflected on the HUD-1 Settlement Statement.


    6.2.4.2.2 Prohibition on Contributions
    Subordinate mortgage/lien holder(s) may not require contributions from either the real estate
    agent or borrower as a condition for releasing its lien and releasing the borrower from personal
    liability. In addition, any payments to subordinate mortgage/lien holder(s) related to the short sale
    or DIL must be reflected on the HUD-1 Settlement Statement.....

    https://www.hmpadmin.com/portal/programs/docs/hamp_servicer/mhahand...

    http://www.scribd.com/doc/72126645/GMAC-Mortgage-HAFA-Eligibility-M...

    • If it's a non-gse loan then the second lien holder can get $8,500
      https://www.hmpadmin.com/portal/programs/docs/hamp_servicer/sd1202.pdf

      (p. 18)

      They just increased second lienholder payouts in March.

      • As long as the RASS was submitted after 06/01/2012, otherwise second lien holders still get the old 6,000.

        I was supposed to have a closing yesterday in which second (Chase) wanted to change their payoff to 8,500 at the last minute. I had to dig this detail up and am still fighting it.

         

        Has anyone has a similar experience?

         

    • • HAMP Solution Center: 1-866-939-4469,
      support@HMPadmin.com


      • Escalate cases to escalations@HMPadmin.com.

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