One of the HAFA changes is that the junior lien holders will be able to get up to $8,500. I thought that this change, along with the others, went into effect on June 1, 2012 but a review of the Directive says that this change goes into effect immediately. (Page 18) Is this solely at the discretion of the negotiator? Has anyone had a junior lien holder to get $8,500? I have a short sale that may hinge on the $2,500 difference.
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Ok...I have a similar issue. B of A is the first with selective service portfolio as the 2nd. MI came in at zero hour and demands $3000 at closing (B of A had approved $2000) with the seller signing a promissary note for $7000. The balance on the second note is only $17000. I inform MI that it is a HAFA approved short sale and seller can't contribute nor can they sign a promissory note. They come back and tell me they are now "entitled" to $8500 as of June 1st. I go back to B of A who informs me that it is $8500 OR 8% of the principle balance...whichever is LESS. The MI company is not budging and is insisted that they are "due" the $8500 and not %8. Does anyone have any info that could help me with this? Thanks.
NEW HAFA DIRECTIVE EFFECTIVE 6-1-2012
Would you mind providing a link to this directive? I am having trouble loctaing it. Thanks.
Never mind...found it right on the site. I assume these dont apply to Fannie or Freddie?
I don't think that these changes apply to Fannie or Freddie. I just want to know if anyone has seen this increase go into effect with any other their short sales. I know that the banks may not want to implement this change until they have to.