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Permalink Reply by Gary Dunham on November 15, 2012 at 5:13am

I just received a denial for 5/3 on a second. B of A approved, giving them the HAFA amount, but it was not good enough for them. They wanted a defiiciency balance to continue, which is no longer allowed by HAFA II rules. Lienholder must release and not collect. It is now going to foreclosure, and the client has to deal with a bankruptcy to discharge the second. When 5/3 was told about the bankruptcy, they didn't seem to care and I received no response to the discussion that they would be wiped out. Their response was sort of "we'll take our chances". B of A was losing approx $78,000 and 5/3 was losing $27,000. Now we have a home going into foreclosure, and because of the 2nd we typically won't have a deed in lieu accepted by B of A. So much for the spirit of the law. FHFA should have thought this through when the instituted the new rules as of November 1, 2012. Additional lienholders are not allowed, even if the seller agrees, to sign a deficiency note, even at 0% interest. 

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Permalink Reply by Robin Lemmons on November 15, 2012 at 3:12pm

I was unable to find any help at 5/3. They forced 4 short sales of mine into foreclosure. All had contracts on them long befroe the sheriff sale date. Upper management and vice president would not do a thing. I even filed a complaint with the Ohio Attorney General and the Ohio Mortgage Brokers Association. The responses I received were from administrative people saying that 5/3 did not do anything illegal. They missed the whole point.

 

If you find someone, please let me know. Hopefully, I will not need to deal with 5/3 in the future. By the way, These were the only short sales I have done that went to sheriff sale. All others have had successful outcomes. I've done about 30 transactions so far this year.

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