Replies to This Discussion

Permalink Reply by Tara Polley on July 29, 2011 at 9:22am

Ummmm, I'm confused. How is the investor Wells if it's an FHA loan? The investor would be HUD. Partial Claims do NOT need to be paid prior to approval, but they do have to be calculated into the net proceeds....  You may want to call the FHA Service Center and speak to a supervisor.

Permalink Reply by Thom Colby CA Brkr 888-391-5245 on July 29, 2011 at 9:25am

Paying anything prior to an approval is simply making a payment against an existing account.  For example, many seconds are asking for the payment to be made before they will approve the short sale.  Funny thing is that once they get the money, they still have to make the decision which could be yes, or could be no.  But the money is applied to the existing account as appropriate.

I've not seen your situation as yet, but, I think i can figure out a couple of things;

1) seller did a loan mod and reaffirmed the debt with a balloon at the end.

2) That Mod didn't work out and now they are doing a Short Sale - BUT - they reaffirmed the debt and made another promise to pay $6,000 so the bank wants it - and - it's likely showing on title as an additional lien. - Have you looked at the title report?

3) I hope someone else has a better answer, because to me, it sounds like this one may be dead unless someone is willing to risk $6,000 in the hope of an approval.

 

Best of luck,

 

Thom Colby

Broker

Newport Beach CA

Permalink Reply by Brenda Houghton on July 29, 2011 at 9:27am

Somehow there is a miscommunication.  Any partial claim I've ever dealt with has been paid at closing.  However, the required net listed on the ATP has to be met along with the partial claim being paid from the proceeds.  For example, if the ATP requires a $100,000 net, the sales price must accomodate $100,000 net + $6000 partial claim + commission + closing costs. This is difficult to do and still be at a market price.  You can request a variance, however, and ask that HUD accept a smaller net so there are enough proceeds to pay off the partical claim as well. 

Call again and talk to someone who knows what they are talking about. 

Permalink Reply by Kimberly S. Ruley on July 29, 2011 at 9:56am

Tara, it seems odd to me as well. Both I and the borrower, on separate accounts, have been told that Wells is the investor. Looking at the payoff again, it is for HUD.

 

The funny thing is when I spoke to someone at the servicing co for HUD and she told me this, I asked her if she knew how ridiculous that was since the reason we are doing a short sale is because the borrower can't pay their mortgage. She agreed.

 

I just spoke with the BOA negotiator and she said what I was told was not true and it can be paid at closing. And since it's going to go below the net, she'll submit it to HUD and see what they say. It's about $5000 of so I'm hoping that won't stop the show.

 

Thanks all for your feedback!

 

Kimberly

Permalink Reply by Kevin - Greenville, SC on January 19, 2012 at 9:54pm

HUD does not 'invest' in Mortgages, they insure them.