Hafa short sale, can a seller contribute to the secon lien

I know as a FHA borrower we cannot contribute to the second but can the buyer contribute to the second? Thank you

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Permalink Reply by Jenn on October 12, 2011 at 12:05pm
Sorry for my typo, can the SELLER contribute to the second?
Permalink Reply by Jeff Payne on October 15, 2011 at 4:32am

Yes the seller can contribute

Permalink Reply by Jenn on October 15, 2011 at 4:51am
Thank you so much for your reply Jeff. It looks like we should be good then. I have been stressed to the max so I really appreciate your expertise. You have no idea what a relief this is to me. Does the first (b of a) ever object to the seller contributing to the second? Or should it be pretty smooth sailing since the sellers have agreed to the seconds terms? Thank you again :)
Permalink Reply by Scott Gregory on October 16, 2011 at 2:32am
Just be sure to disclose it on the final preliminary hud. Yes the first could object, but I haven't seen it happen often.
Permalink Reply by Jenn on October 16, 2011 at 3:28am
Thank you Scott! This has been a lengthy process and as we are getting closer to the end, I keep waiting for the other ball to drop. I really appreciate your response! I think I have to frequent here just for the support and to see that some of these deals really do close :)
Thank you again!
Permalink Reply by Jana Reyes on October 16, 2011 at 3:52am
Depends on the laws in your state. I practice short sales in Califoria. Our laws here now prohibit banks from asking sellers for cash contribution and/promissory notes. Buyers and agents, however, still can contribute to the second, but only via the HUD, and only if the 1st allows it. I suggest calling your states Realtor Association's legal department to see what's allowed in your state.
Permalink Reply by Jenn on October 16, 2011 at 4:08am
Thank you Jana! This was my concern because it is hafa. I read what you are stating as well. We are FHA so we cannot contribute either. We are in Nevada but my agent seems to think that the sellers can contribute. It's confusing as a buyer because there are so many stipulations. I appreciate your insight. I am not sure how all this works!

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