Comment

Comment by Anna Parker 15 hours ago

Running in to significant issues on our FHA SS w/ Citi -- their affidavit indicates that there can be no un-disclosed agreements (add'l funds to a 2nd) - so we disclose terms of agreement & CITI negotiator gives OK for these funds to be paid, but can not show on the HUD.  Escrow & now the buyer aren't willing to move because affidavit says that these agreements have to be on HUD.  What do I do when CITI says it can NOT go on HUD, but everyone else seems to think they know better.  Any tips??

Comment by Tara Semtner on April 23, 2013 at 10:35pm

Sara, in an unexpected twist IndyMac went up to the max of $8500 to pay Citi.  I couldn't get Citi to budge.  I'm told the approval letter from Citi is coming in the next day or 2.   I don't thiink that the HAMP escalation helped any, even though they made contact.  This was a good lesson for me.  In the future I'm going to include language that the buyer will need to pay X amount of dollars toward satisfaction of junior lien release if terms can not be met or something along those lines...in this case buyer is already paying $5,000 more than appraised value, so it simply was not an option.   

Comment by Sara Mehrpouyan Los Angeles CDPE on April 23, 2013 at 2:19am

Tara, the HAMP escalation may or may not help, unfortunately. Some of the 1st loans are saying that they will pay up to $8500, but the amount does not have to be exactly $8500. 

Comment by Tara Semtner on April 14, 2013 at 10:02pm

In the morning I'm going to attempt to escalate through Citi to get the $5,500 payoff accepted on a $70,000 junior lien (non-GSE).  The Penncro associate who was speaking with Citi said Citi said it was their guidelines they couldn't accept less than $8,500.  I found Citi's HAFA matrix and it references their payoff to junior liens but not what their junior liens would accept.  Anyway, here is what it says about payoff of junior liens...the way I am reading this is a total of $8,500 but 6% each lien.  Am I reading this wrong? I filed a HAMP escalation Fri but will take 7 days for a response.  Thanks!

"

Subordinate Liens

It is the responsibility of the borrower to deliver clear marketable title to the purchaser or investor and to work with the listing broker, settlement agent and/lien holders to clear title impediments. CitiMortgage is permitted to negotiate with

subordinate lien holders on behalf of the borrower.

o

On behalf of the investor, CitiMortgage will authorize the settlement agent to allow

up to an aggregate of $8,500 of the gross sale proceeds as payment(s) to

subordinate mortgage/lien holder(s) secured by a mortgage on the subject

property in exchange for a lien release and full release of borrower liability. Each

lien holder, in order of priority, may be paid six percent (6%) of the unpaid principal

balance of their loan, until the $8,500 aggregate cap is reached. Payments will be

made at closing from the gross sale proceeds and must be reflected on the HUD-1

Settlement Statement.

 

Comment by Jan Sanderlin on April 11, 2013 at 1:43pm

What Thom said...you guys have no idea how convoluted the entire loan funding process is through the Federal Reserve; it is all smoke and mirrors.   The system works the way it works because it is designed this way...As Thom said, he who has the gold makes the rules. 

Comment by Tara Semtner on April 11, 2013 at 1:14pm

Pattilynn, I hear those sentiments.  When I do a traditional sale it is such a joy compared to mediating debt and worrying over the seller's finances and fear of foreclosure.

Comment by Thom Colby CA Broker on April 11, 2013 at 1:12pm

@Jan - "He who has the Gold, Makes the Rules"......

Comment by Tara Semtner on April 11, 2013 at 1:11pm

Jan, i agree. If they would tell us what we were dealing with in the beginning like FHA.  with everything...it is only a 10% loss...which floors me why they can not give $3000 more to the 2nd.  I had read on here OneWest got a sweet deal when they bought IndyMac and in some cases it made sense to foreclose...but with such a small loss on the original loan amount...I just don't get it.

Comment by Jan Sanderlin on April 11, 2013 at 1:06pm

IThe degree of loss depends on how the note is structured and the way the loss is factored.  The Lender will often times come out ahead if they foreclose or do a deed in lieu rather than a shortsale.  Whether or not there is MI or not.  It is simply a number's game and they know the numbers and how they line up and we don't.  We are sitting blind and they have the play book in front of them.  Knowledge is power and we are often working blind.

Comment by Pattilynn Guilford on April 11, 2013 at 12:56pm

Its a negative business by virtue of the process of loss mit anyway. Then factor in being confidant, counselor, agent, friend etc etc for 5 years and its wearing on the soul. Hopefully the market IS stabilizing and we can get back to selling homes .. not mediating debt.

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