Need All Knowledgeable Short Sale Experts
Any Help Suggestions would be MORE than appreciated!!! I am at the point of not knowing where to go on this file with Bank of America
The Basics are we rec’d approval on our offer of 185K, but the MI company wants 17,500.00 in Cash Contribution.
Due to the obvious Financial situation of our Seller and lack of employment in the past he has had he doesn't have 17,500.00 in cash. We got the Buyer to agree to purchase the property for 199K (14K of the cash request) and the rest will be paid by the seller. OR we asked to raise the price to 195K and the Seller sign a prommissory note. We submitted both for approval they got rejected, the MI wouldn't respond on the prommissory note and when I called the Negotiator for raising the price and bringing in cash she said the Equator System if we put the purchase price as 199K then bofa looked at they were getting that money and the 17,500.00 would have to be to the MI. We would have to accept it as the 185K and 17,500.00 seperate. I explained if we did that the FINAL Huds would look different due to the purchase price being 199K. She said they didn’t care HOW they got the money they just wanted those amounts and it was the system. I even talked to a closer from BofA to verify, said the same thing he would approve the different huds with the different purchase price. Sounds great then right? We got approval back and then the problem hit (again) UNFORTUANETLY the approval letter stated “approval of 185K purchase price” so the Buyers Lender cannot underwrite it with the difference of the addendum and approval.
ANY HELP?
These are the suggestions I've recieved from the lender of the Buyer
- approve the final Huds (I've attached how the Sellers Side would Look)
Or- removal of the verbiage from the Form Approval letter (also attached)
Any contact managers over there or other ideas??
FYI- The Buyer doesn't have the 14K in cash nor does the Seller.
**As a side note this property is further frustrating because end of December we rec'd word that we would have approval of 185K and 500.00 being brought into closing. Then our buyers walk and all of a sudden it is 17,500.00**
Replies to This Discussion
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Permalink Reply by Wendy Smith on
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so I take it that the buyer has to finance the $14k? he doesn't have cash?
if buyer has cash then it's easy, $185 offer with a buyer contribution to seller's closing costs/lien release of $14k
which MI company?
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Permalink Reply by Heather Robins on
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Buyer is doing an FHA Loan program with no down payment. So not a lot of cash and if they did it would have to go for 3.5% down instead. They are also willing to sign a prommissory note to cover the difference if they wont let them put it on the first, not sure why they would prefer that. They wont tell me the MI company, the negotiator just told me it was one of the hardest ones and they didn't negotiate. We did try and negotiate the contribution down for less than half they came back and just said no.
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Permalink Reply by Bryant Tutas on
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Heather, Leave the purchase price at $185,000. Just place the buyer's contribution on the buyer side of the HUD as a $14,000 expense. Of course this would have to be cash from the buyer and cannot go in the mortgage. The seller can pay $3,000 as an expense on their side of the HUD.
Oops!! I just read your comment. This won't work if the buyer doesn't have cash.
The only way I can see this working then is the way you suggested. You just have to keep pushing the issue. Or yoo may have to find another buyer now that you know what's needed.
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Permalink Reply by Jim Schneider on
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I'd just start faxing my LOA to each of the MI companies, then call, there's not that many major MI companies out there.
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Permalink Reply by Ben Racela on
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This works for me. Call the customer service number at 800-669-6607 and ask them if there is MI on the loan. They will check and verify once they confirm that there is MI ask them who it is and they should tell you. If you ask the negotiator or any person in the short sale department they typically will respond with no. I hope this helps.
Good Luck...
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Permalink Reply by Richard Zaretsky on
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Heather - you have another problem that actually is pretty easy to fix. Just be sure you have the statement from the PMI that they want different HUDS. It is a federal crime to ask for such or to produce separate HUDS. Once they ask for it then you tell them they are asking you and the closing agent and seller to commit a federal offense, and since the PMI company asked for it, they are part of the conspiracy as well and equally guilty if it happens - in fact they are guilty already of the crime of soliciting to commit a federal offense. It happened to us more than once and each time the PMI company miraculously figured out a way to get it done on one HUD. Completely different tune. But yes - they don't care HOW they get their money - as long as they get it.
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