URGENT - HELP NEEDED - Relocation Assistance Question..........
Help - WF has approved shortsale with $3,000 relocation assistance to borrower. However, we were just notified yesterday by HOA that house needs to be painted. Borrower has said she can credit $1,500 of her relocation assistance to buyer, but this must be done on HUD1 as she doesn't have any CASH. Meanwhile, WF says we need to go back to negotiations as this is a problem. The investor on the file is FMAC. My question is, isn't seller allowed to use the money however she needs to as long as it doesn't cost WF anything and we disclose it??????????????? We are trying to close by 7/31. Thanks! CAT
Replies to This Discussion
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Permalink Reply by Holly B. Long on
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My experience has been...that unlike FHA which will allow a reduction in seller incentive to pay on the HUD disallowed settlement costs, Fannie/Freddie will not. The $3000K must go to the seller. Why in the world is the seller concerned that the house has to be painted....short sales in theory are "no repairs - sold "as is" from the beginning. The only time I have seen a lender "contribute" or reduce purchase price for a "repair" is if it is a structural or mechanical issue that keeps a buyers lender from loaning on the property. It should have been apparent to parties long before now that "house needed to be painted" and the HOA needing the house painted is not something that should prevent a sale of the property. If buyer wants the house knowing they are going to have to paint it - then go on and close.....if your seller feels they need to contribute to this (though I can't imagine why) then buyer will just have to come to a "gentlmans agreement" that seller will reimburse them up to $1500 AFTER she cashes her check....for once she has cashed the check, it can not be dictated how she spends the money.
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