Replies to This Discussion

Permalink Reply by Susan Motta Knight, LLC on June 7, 2011 at 6:34am

Just wanted to let you all know that we have an APPROVAL!!

As of this morning, so that means it took 15 days from being declined to getting the approval. The buyer is happy and so is the seller. We have full release of liability for the seller, they gave up their right for any further deficiency and or collections. The seller did have to sign a $10,000 note for the MI company but it is not too bad to settle a deficiency of about $170,000 for $10,000. The best advice I got was from Brenda Houghton about sending a Tweet to the BOA help group. Do use it if it is necessary. :-)  Thank you Brenda and thank you for all of you.

Permalink Reply by Bill Garrett on June 7, 2011 at 9:50am

I have an approval letter good until June 17th already in my fat hands but just received a "decline letter" from BAC via Equator.  No heads up from BAC that this was coming nor any changes from our side of the transaction to have triggered this decline letter.

 

After an hour on the phone I finally learned that the investor on the BAC first lien (FNMA) no longers allows ANYcontribution from ANY source to the second lien (also BAC) beyond the 6% that FNMA will allow the 1st to pay to the 2nd.  Our approval included a $5,000 cash contribution from the borrower to the 2nd lien.  Now that the $5,000 contribution is no longer allowed, the Mi Company on the 2nd lien will not accept the reduced payment and has essentially withdrawn its approval.

 

I think legally we could likely proceed in reliance on the approval letter but the practical reality is this deal is back in the swamp. The cooperative BAC closer is taking another stab at getting the Mi Company to accept the payment to the 2nd lien (without the cash contribution) but my hopes for this file are on hold, at best.  Regardless of that decision, it does sound like there is going to be no alternative but to restart the file in Equator. 

 

Has anyone else bumped up against this new FNMA policy?  This is not a HAFA file.

 

Thanks.

Permalink Reply by Thom Colby CA Brkr 888-391-5245 on June 7, 2011 at 10:53am

you said....

 

"I think legally we could likely proceed in reliance on the approval letter....." 

 

I don't think so - the wire of the funds will be rejected unless you get a new approval.  Any contribution to the 2nd or the MI company has to be approved by the 1st and their investor.

 

Thom Colby

Broker / Negotiator

Newport Beach CA

Permalink Reply by Public Relations on June 8, 2011 at 5:09am

Congratulations Susan! 

 

We recently posted some information our our Active Rain blog that you might find useful - activerain.com/blogs/equator. You can also follow us on Twitter at EquatorLLC for coupon codes and other announcements.  

 

Sincerely,

 

The Equator Team

Permalink Reply by Sandra Lee Carson on June 12, 2011 at 4:30am

That also happened to me - the negotiator told me to resubmit everything all over again - I guess file goes into orbit- and was told I was going to be on "fast track" and its been a week and last Friday I received a message that it is in final stages of being approved.  It is frustrating that since the bank messed up that we are being punished for their mistake.

Since Obama slammed the banks last week on Short Sales and REO's, maybe that put a little fire under them.

Sandi Carson,

Brentwood, CA

Thom Colby Newport Beach CA said:

Re-Initiate the short sale in Equator - upload everything you have, into the Library, as soon as you can.  Let the negotiator know you are doing it, they can get a supervisor to find the new short sale request and re-assign it to the original negotiator - AS LONG AS that negotiator didn't have it for longer than 3 months.....

 

Best of luck,

Thom Colby

Broker / Negotiator

Newport Beach CA

Permalink Reply by DoesntMatter on June 23, 2011 at 3:43pm

If you can, always get the actual phone number to the specialist, as the managers and team leads do have the power to assign and re-assign specialists, however once the file closes, it is against policy to refer you back to a specialist no longer on file.

 

These people are human, and most will WANT to step in to help you, especially when the error on the file was on their side. 

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