What Are the Federal restrictions and requirements on the short sale arms length affidavit?

Appreciate any information,

Have approval from Ocwen and BAC on a short sale but Ocwen's arms length affidavit states buyer cannot resell for more than 120% of short sale price until the 91st day after the sale. I explained that I already sent them a contractor bid for $65,000 Plus so the buyer would basically be purchasing and re-selling for 0 dollars!!!And we will lose our investor/buyer!

Ocwen stated it is boilerplate and cannot be changed as it is Federal law!!

I am certain he is not correct as have had other lenders with arms length agreements that do not include that restriction.

Does Anyone know what if any the specific Federal requirements are now?

Thank so much...

Pat

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Different investors have different guidelines. This is pretty standard for the HAFA program. Many times it's a 30 day deed restriction or can't resale for more than 120% within 90 days. Read the arms length, ss affidavit, lender addendum, and approval to see what potential restrictions pertain to that particular transaction,

I've never seen verbiage changed on a transaction for anyone from a big institution on a short sale; It is boilerplate per servicer/investor.

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Brett,

Thank you. I am used to the 30 days but don't usually see the 91 day restriction before can be more than 120% over short sale price. Since there is no HAFA anymore...this is not a HAFA short sale.

Again, thank you for taking the time...

Pat

My pleasure. Some files are still getting HAFA approved if offers were into the servicer in 2016. Other programs/investors may still have the 120% rule.

Again, thank you!

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