Replies to This Discussion

Permalink Reply by Kevin - Greenville, SC on March 21, 2012 at 1:54pm

Can they take this relo money from the seller? - NO!!!

Permalink Reply by Noelia Bendigo on March 21, 2012 at 1:55pm

They said they are. Requested changes on the HUD.

Permalink Reply by Kevin - Greenville, SC on March 21, 2012 at 2:16pm

Is Ocwen the 1st or the 2nd?

Permalink Reply by Kevin - Greenville, SC on March 21, 2012 at 2:19pm

Is the a Fannie or Freddie Loan?

Permalink Reply by Pat Chadwell on March 21, 2012 at 2:21pm

That seems to go against what FannieMae says -

The borrower

is entitled to $3,000 to assist with relocation expenses following successful

completion of a HAFA short sale or a DIL. This amount may be deducted from the net sales

proceeds at closing of the sale. You may not require the borrower to apply this incentive to obtain

the release of junior liens or non-real estate title impediments.

The incentives are applicable only to HAFA short sales and DILs and are effective with cases

closed in HSSN after the effective date indicated in

Announcement SVC-2010-07. The incentives

are paid or reimbursed via Fannie Mae’s payment process, in its capacity as Program

Administrator for the Treasury Department, after you have reported the HAFA short sale or DIL

transaction using the HAMP Reporting Tool. You

must not include a request for the HAFA

incentives in a Cash Disbursement Request (Form 571).

 

here is the link - https://www.efanniemae.com/sf/servicing/hafa/ 

 

I would ask them why and point them to the FannieMae site.  Also some MLSes have a fast track to bring things to the attention of FannieMae.  This might be the time to do that. 

 

Good luck

Permalink Reply by Kevin - Greenville, SC on March 21, 2012 at 2:22pm

12.1 Borrower Relocation Assistance
Following the successful closing of a short sale or DIL, the borrower shall be entitled to an
incentive payment of $3,000 to assist with relocation expenses. In a short sale transaction, the
servicer must instruct the settlement agent to pay the borrower from sale proceeds at the same
time that all other payments, including the payoff to the servicer, are disbursed by the settlement
agent. In addition to paying for relocation expenses, the borrower may use the relocation
incentive payment to pay for transaction costs that the borrower has instructed the settlement
agent, in writing, to pay on its behalf, such as the cost of legal representation in connection with
representation of the borrower in the short sale or DIL, overdue utility bills on the property or
minor repairs made as a result of being identified during a property inspection. Borrowers,
however, may not use the relocation incentive payment for the release of subordinate mortgage
or non-mortgage liens recorded against the property and may not be required by the servicer, as
a condition of the sale, to utilize the relocation incentive to pay any transaction expenses. The
HUD-1 Settlement Statement must show the full $3,000 relocation incentive as a credit to the
borrower and show any authorized transaction costs paid out of the relocation incentive in
accordance with the foregoing guidance as charges to the borrower.

https://www.hmpadmin.com/portal/programs/docs/hamp_servicer/mhahand...

https://www.ocwencustomers.com/oc/documents/pdf/HAFAMatrix.pdf

Permalink Reply by Elise Fay on March 21, 2012 at 2:24pm

How close are the sellers to a foreclosure date?  I had an approval, buyer walked, new buyer, same net but we were about 45 days out from the foreclosure date.  When it was time to get the approval they said it was too close to the date and they switched it over to a traditional short sale.  Approval was received the next day and I had to resubmit a HUD with the additional $3K going to Ocwen.

With the 1st buyer, all was well and my seller was getting the $3K according to the program.  If you are in the HAFA program and all forms, ARASS was filled out and signed by the bank, then I don't see how they can take it away.  Something is missing here.

Permalink Reply by Noelia Bendigo on March 21, 2012 at 3:04pm

Thanks superstars for your answers
Not foreclosure docs served
Only one mortgage. lithon
HAFA approved the $3,000
OCWEN WANTS THE $3,000
they said seller will not get the 3,000 because he was 22 months delinquent.
Not sure if it's a Fannie or Freddie loan
OCWEN is servicing the loan.
Kevin thanks forth links I will share with the title company.

Permalink Reply by Kevin - Greenville, SC on March 28, 2012 at 2:20pm

Use the following contact information to escalate the issue:
Investor Contact Information
Fannie Mae Loans Phone: 1-800-7FANNIE
[email protected]
Freddie Mac Loans Phone: 1-800-FREDDIE
[email protected]
Non-GSE Loans HAMP Solution Center
Phone: 1-866-939-4469
Fax: 1-240-699-3883
[email protected]

http://www.realtor.org/wps/wcm/connect/04cbb28045cc9f638a5ecb342c47...