HAFA settlement charges

I can't recall this coming up in other short sales I've done, but I have one going with Specialized Loan Servicing. They rejected buyers offer, asked for higher offer, and said the settlement charges are too high, at 13% of the offer price. I am SURE the BPO value came in fine. Is it normal that HAFA doesn't accept any more than 10% of purchase price in settlement charges? Bank is making it appear that we have to increase sale price AND lower the settlement charges. To do that, it pushes sale price up 12K, just to equal out the settlement charges of 18K. This is after removing the 3K HAFA moving credit from HUD, to free up 3K and bring it down to 18K. Suggestions? Not sure if buyers bank will allow buyer to come up to 180K, just to make these settlement charges come in at 10% of purchase price. I'm stumped. The house isn't worth 180K in my opinion.

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Permalink Reply by Jill D. on November 7, 2014 at 9:43am
As is, the offer is 168K. Closing settlement charges due to bank are 21K+. Seller says they'll waive 3K Relo credit, bringing settlement down 3K. Attorney says they'll bring down his charge, freeing up 1K (his charge was very high). This frees up 4K. I'm surprised that we have to make numbers work and figure out ways to bring down settlement, losing the 3K relo for the sellers, just to make it work. It pushes sale price too high over market value.
Permalink Reply by Short Sale Superstars LLC on November 7, 2014 at 12:04pm

Have you spoken to any managers about this or escalated this issue to see what can be done? This isn't extremely out of the norm, for example; Ocwen,many times requires the settlement charges to be less than 10% of the offer amount.

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Permalink Reply by Jill D. on November 7, 2014 at 5:27pm
I have not. I was told by negotiator that price is too low and settlement fees are too high. He then said Hafa only allows 10% settlement fees. I've never heard of this. Do you think this is an escalation issue? Thanks a million.
Permalink Reply by Wayne Brooks on November 7, 2014 at 4:40pm
Have $1000-$2000 in closing fees shifted to buyer side as opposes to "raising the price by 10 times the overrun closing costs". Perhaps even lower the price, and shift some closing costs to the buyer side, if it's just a percentage issue.
Permalink Reply by Jill D. on November 7, 2014 at 5:24pm
How would one go about shifting fees to the buyer's side? Do you mean in terms of adding them to buyer's closing costs?

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