We have an approved Bayview short sale in CA.  Bayview would not approve the Hud-1 since the buyer is paying the deficiency on the 2nd.  They rejected the Hud-1 and said they need to send the file back for investor approval (BofA is the investor).

I have processed at least 100 short sales in the 4 years licensed.  I have never seen this before.  The 2nd lien Real Time Resolutions does not issue approval prior to 1st lien approval.

Would anyone out there in this community have any insight into whether 1st is allowed to dictate what the 2nd lien receives from buyer?

Thanks for your help!


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The investor and mortgage servicers guidelines on the 1st lien do determine whether contributions can show on the Est. HUD to subordinate lien holders. RTR always likes to ask for more money than a 1st lien holder typically allows and this is why issues occur a lot when the investor is FNMA and FHLMC and contributions are not allowed to show on the Est. HUD. Typically BOA should allow contributions, but it does make sense that they want them to OK it as when contributions come into play, many other things need to be looked at.

Let me know if you have any questions and best regards,

[email protected]



Thank you for your input... and sorry for the delayed response.  BLS approved the buyer paying additional funds it just took them 10 days to re-review so we were all in fear and limbo mode.  Lesson learned! 



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