Has anyone had this happen?
The seller is being asked to pay them over $2,000 per month while we try to short sale the home and if we are not successful they will agree to a deed in lieu.
Below is part of the phone conversation between the seller and the BOA bank rep.
If you read their guidelines is specifically states they can. I've only had it on one file. My clients didnt pay it, WF threatened to foreclose it, but thanks to a good relationship with the negotiator we got it closed.
If you have questions contact the HAMP Admin directly. My guess is somewhere in your clients financials it looks like they can afford a partial payment. Maybe they arent disclosing everything to you?
As I have said before, Freddie has an internal directive NOT to approve short sales any longer. They will not say this overtly, so they are simply making it difficult at every step of the process.
Joseph, Have you closed any recently?
a few but it's been difficult. We are no longer even accepting Freddie files, too much work.
I closed on 2 Freddie deals in the last couple of weeks and there was no issue at all getting them approved and closed.
I had not heard that. Please enlighten me. Do you know what their rationale is?
Mt theory is that Freddie is in much worse shape than Fannie. Both GSE's are desperately looking for private buyers. Also, with past and present Freddie Sr. Management under federal indictment for mortgage fraud, plus the new revelations that Freddie bought default swaps on their own product, lead me to believe that Freddie is trying some accounting trickery. See, if they foreclose, the don't have to show an immediate loss like in a short sale. The REO is shown on their books as an asset. We know that once they dispose of the asset their losses will be much greater, but for the time being it looks like their balance sheet is stronger than it is.
Frightening but plausible theory, Joseph. Thanks for responding!
How do you know this?
I had a WF Freddie Mac HAFA. The HAFA contract required my seller to pay $574.00 per month until we closed escrow. I contacted my Negotiator and was told: The calculation is based on the 31% rule of loan modifications, they feel the seller owes them that amount anyway, but, the seller will not be kicked out of the program if he DOESN'T make the monthly payment. WF could not take the monthly payment language out of the contract.. Seller did not make the payments and we remained in the HAFA program. What killed this short sale was the required sales price by WF/Freddie was too high for the product and I was forbid to reduce my list price or they would close the file and kick us out of the HAFA program. The contract also required that my seller vacate the property prior to close of escrow (this was due to seller's lifestyle & behaviors - I did not blame the lender for this ruling). Seller refused to comply so we canceled the listing.
I don't think I will take a Freddie Mac again either...I have successfuly closed a BofA HAFA with no problems whatsoever but it was not a Freddie.
Good luck Kathy.