Replies to This Discussion

Permalink Reply by Tara Samney on February 21, 2012 at 10:02am

Try getting them to release deed only to close for 6%. Could not get deficiency waived for that

Permalink Reply by Samuel Hilbert on February 21, 2012 at 10:04am

Great minds think alike...I actually tried that today and they told me that because it was part of a bankruptcy they have to have a deficiency waived...that's a frustrating policy if it is true...

Permalink Reply by Patrick Finn on February 28, 2012 at 12:12pm

Sam anything new on your deal...I have a similar situation BofA will allow 6k to go to GT and GT wants 9.5k. Negotiator said she was going to "cancel" the file 6k will be declined. BofA will not allow a higher payoff and will not allow agent contribution. FHA buyer can not contribute...Good Luck on your deal...

Permalink Reply by Samuel Hilbert on February 28, 2012 at 12:20pm

I'm still stuck but had some movement. As part of the bankruptcy I've been able to get GT to verbally agree to a 10% (rather than the 15%) but I'm still too far apart to put it together. I had a really good talk with BOA though and she claims that if I keep pushing GT will eventually give in completely. I'm hoping she is right. I'm so close I feel like there is a chance I'll get it put together.

To get the 10% though I did have to go above my negotiator's head though and talk to her supervisor. He was actually quite friendly compared to Ruth and worked through issues with me. It took him two days to call back though. He said each negotiator has over 1000 files...yikes!

Permalink Reply by Ken Patterson on February 29, 2012 at 9:33am

I'm working on a fun GT file as well.  It would be great if you were willing ot pass along the contact info for your helpful supervisor.  LOL!  I have not gotten a helpful one yet.  Thanks a ton!

 

Permalink Reply by Samuel Hilbert on April 4, 2012 at 7:33am

I found out from my supervisor that he is only able to help with files under his employees. He would remember me even if I hadn't called in for a week or more. His name was Travis and he was great at explaining things. GT stayed very firm on their 10% and wouldn't release the deficiency which was OK with my seller due to the BK that she is in. However, at the end of the day GT (including my negotiator) became very responsive and the file flowed smoothly after our initial tension.

As Becky mentioned below...my seller paid the 4% that I couldn't get BOA to pay before closing and then GT reissued an approval letter for the amount that BOA had agreed to. I could get things done within a couple hours of each phone call.

I wouldn't go into a negotiation with GT promising a seller no deficiency and no cash contribution though...but they're responsive and if you stay calm they will work with you...and if you don't stay calm hopefully you'll get a supervisor that will calm you down like I did!

Permalink Reply by Tara Samney on April 4, 2012 at 8:51am

Samuel,  I take it the seller did not disclose to BOA he was paying GT outside of the HUD (since a second approval letter was issued).  It sounds like a RESPA violation. Of course GT will work with you if RESPA is being violated and they get their money. The investor on the 1st may not be so thrilled about it.

Permalink Reply by Samuel Hilbert on April 4, 2012 at 9:09am

It is funny because I see this pop up quite often on short sale superstars and people are very passionate one side or the other on this issue. I typically in debates have erred on the "over conservative" side when it comes to RESPA.

First off I should state that this is a cash sale so is not covered under RESPA.

Also, the argument that I have seen many times in forums here (though sometimes controversial) is that a seller can always choose to start making payments again at any time. The seller is required to make the homeowners dues current (even though our first lien agreed to pay part of the dues...just not all) so this also is cash before closing. Frankly, the seller could have started paying her second mortgage again if she wanted to and this wouldn't have affected BOA...

Personally, I think a much larger issue arises when a buyer or another third party begins making payments for the seller off of the HUD...as long as my seller is simply choosing to make payments on a mortgage...or paying her homeowner's dues...I feel like that is her right. I know there are many sides to this debate and probably holes in each side's viewpoints.

Permalink Reply by Tara Samney on April 4, 2012 at 9:18am

Actually it is defrauding the 1st if their approval letter specifically states junior loan is not the be paid more than 6% ($ amount).  it has to be disclosed on the HUD- which means it has to be disclosed on HUD that seller is making that contribution to the second.  Everything is supposed to be disclosed on the HUD. I wouldn't advocate for any seller to enter into an arrangement to pay GT a set amount to get another approval letter issued.  That's not making a payment to the 2nd- that's paying the deficiency the 1st didn't pay for approval- and then getting to letter adjusted without the 1st knowing.  BIG difference.

  Now if it's on the HUD and both 1st and 2nd agree to it- no worries.  This is exactly why GT asks for more- b/c people pay off the HUD and the problem continues....

Permalink Reply by Becky Martin on March 15, 2012 at 1:38pm

They play hardball, had one that the homeowner paid them the additional $$$ and then they reissued the approval letter for the amt.  allowed.  Homeowner had to borrow from family but it was his decision to do it.