Liens?

I know I have seen this question before, my FHA short sale property has two liens.  My seller has talked to the attorney's office who is collecting and made a settlement offer.  Can I negoiate to reduce sales price to include payoff on liens?  I know FHA will pay $1500 towards liens but I am just concern about balance.

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Permalink Reply by Bryant Tutas on August 8, 2012 at 12:29am

Hi Darlene. Your question is a tad confusing. Why would you reduce the sales price to payoff liens?

Anyway FHA will only allow $1,500 towards junior lines. TOTAL. If there are more than one junior line them these finds need to be divided amongst them. You can also use the seller's incentive money ($750-$1,000)

The NET to the 1st must be at least the amount as stated on the HUD90045.

I hope this helps.

Permalink Reply by Darlene Dunn on August 8, 2012 at 5:09am

Sorry for the confusion the liens are totaling $ 9,500 so, I know the $ 1,500 won't be enough.  So, I need to know if the bank will allow the buyer to increase or decrease from sales price.  Still giving the bank their net.

Permalink Reply by Darlene Dunn on August 8, 2012 at 8:25am

Thanks, I was afraid of that.  I guest this is a dead deal.  Thanks for your help.

Permalink Reply by Smitty on August 8, 2012 at 10:20am

Typically second lien holders will take 5 -10% of the loan balance. They may jump at $1500.  I would send in the offer to them at $1500 with a copy of the HUD guideline and see how they respond.

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