HAFA and 3rd party contributions

I have a short sale with a Chase first and an SLS second. Chase has approved a HAFA short sale with $6K going to the second lienholder. (That's 10 percent of the loan balance.) SLS refuses to submit the file to the investor unless they get $9K. But Chase said that nobody can contribute additional funds to SLS under a HAFA short sale. True? I'm in a Catch 22 because if we don't do a HAFA short sale, Chase will only allow $3K to go to SLS. Suggestions? Please?

Views: 190

Replies to This Discussion

Permalink Reply by Wendy Smith on April 15, 2011 at 2:29am

that is not true - or maybe I should say that I have closed a Chase HAFA wherein the buyer contributed $X to the sellers closing costs/lien releases.  It was written into the purchase agreement and Chase did not object at all.  Usually we have a seller contribute to the buyer's closings costs - it's the same clause except the other way around - just be sure to include "...and/or lien releases" in the purchase agreement special clause

Permalink Reply by Suzanne White on April 18, 2011 at 12:06am

You are correct concerning contribution from seller on HAFA.  It can be allowed on traditional short sales but violates the terms of a HAFA short sale.  There is a max that can be paid to jr. lien holder and be in compliance with HAFA.

Permalink Reply by Matt Newman on April 20, 2011 at 2:40am
Just had my HAFA with Wells approved and Wells.  RBC in second wants $9,400 with HAFA only giving the 6k.  Wells closed out the file and are sending us to regular short sale department.  The would not allow the money to come from seller, buyer or agents saying it violated HAFA.

RSS

Members

© 2024   Created by Short Sale Superstars LLC.   Powered by

Badges  |  Report an Issue  |  Terms of Service

********************************** like buttons ************************