This is a first for me. We are working with a short sale and there are two loans on the property. The first is a fannie mae loan being serviced by Seterus and their is a second which is with Greentree.
Greentree is needing to release the lien $26000, but as you know fannie mae will only allow $6000. I spoke to the manager for greentree and he told me that in order to save the deal I need to come up with someone besides the seller (i.e buyer contribution) to make a payment for $xx.xx and that it needs to be on the prelimary hud showing that approved dollar amount so that they can issue a approval letter for the amount that the first approved.
After speaking to my escrow officer she said that she cant do that because once it goes on a HUD she cant remove it because its defrauding the first.
Has anyone had any experiences with any of this and has it worked for you?
The first will not allow it. Its a Fannie Mae loan so for the buyer to contribute is out of the question. Greentree mentioned to me for the buyer to make a principal curtailment payment, but that they need it to be on the est hud but once we were ready to close to send in the final hud for approval without the money that was used in the curtailment payment. I dont know seems like to much work and im not risking my license for anything.
Thanks Brian! I spoke to the supervisor at Green Tree and he told me that as long as the payment comes from anyone beside the seller and if the short sale does not close then he will refund right away. But if the monies comes from the seller then they would keep the money since it is his debt and its been discharged for no payment. That sounds like a good idea I will just have to see if the buyer is willing to come up with that amount.
I will keep you posted as to what happens tomorrow...
"I spoke to the supervisor at Green Tree and he told me that as long as the payment comes from anyone beside the seller and if the short sale does not close then he will refund right away"
I wouldn't touch this for many reasons, but what if they don't? Do you want to be on the hook?
Glad you got the same info that I got. But I still dont think im having the buyer send money over to the second.
I believe Kevin was merely quoting what YOU said in your earlier statement! And, I agree, NO ONE should be sending money to GT - this is just another tactic for lenders to recover money and they do not care if it closes or not.
EEk..this is my worry!
Freddie, FNMA Guidelines state that when they are offering the subordinates $$$ no other party(s) can offer them any additional $$$.
Im going to talk to the buyer and see if hes willing to come up with a few more thousand so that we can have Fannie Mae contribute $0. Hopefully this will work...
Have you gotten any pushback from the Servicer(s) and/or the GSE's on this? I understand the concept.
It is and I feel like I have been getting knocked down each time on my last 4 or 5 short sales. I will talk to the listing agent and see what he wants to do with this one. We might go the route where we put it back on the market and have the buyer contribute to the second instead of having the first do it.
Im sorry Kevin, what do you mean by pushback?