Can they take this relo money from the seller? - NO!!!
Is Ocwen the 1st or the 2nd?
Is the a Fannie or Freddie Loan?
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
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
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.
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...
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