We have the first approved by Bank Of America (HAVA). The second is withState Farm with a balance of $146,204.00. State Farm states they must have 25% of balance. The seller state they would come up with the that minus the $8500.00 Bank Of America is going to pay towards the second. Can the Seller come up with the monies without a problem? Please advise!
Thanks so much!
Mary Catherine (California)
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Subordinate lien holders will continue to be paid in order of priority. There is no longer a 6% cap with respect of payments to each subordinate lien holder. However the aggregate cap has been raised to $8,500. This cap does not include payment for non-mortgage liens such as mechanics’ liens or HOA assessment liens. Subordinate lien holder(s) may not require contributions from either the real estate agent or borrower as a condition for releasing its lien and releasing the borrower from personal liability. Any payments to subordinate lien holders must be included on the HUD-1 Settlement Statement.
Thanks!
With HAFA No. No party can contribute and state farm has to give full release for the $8,500. If they wont budge it may have to be pulled out of HAFA. Call BofA and see of they can help. They may have a liason that can help get state farm on board.
Thanks so much!