Replies to This Discussion

Permalink Reply by Bryant Tutas on September 30, 2010 at 12:40am

Ryan. Happens all the time. Just place the $13,000 on the buyer side of the HUD as an additional closing cost. Or you can place it on the buyer side as a POC item. The short sale lender has zero authority over approving the buyer side of the HUD. Don't ask for approval. Just do it. Send the final HUD over for approval and watch what happens.

Permalink Reply by Kathy Morris on September 30, 2010 at 1:24am

I agree, i had to do this on my personal residence in Florida. I paid Quicken $7000 additional funds and all was well, the 1st didnt even know about it.

Permalink Reply by Forth Hoyt on November 18, 2010 at 6:49pm

Bryant,
Will your reply below work with the title company? We have somewhat of the same issue. However, the 1st, BOA says it does not care that the agents/buyer contribute to the 2nd, but they will not acknowledge it on their approval letter. The title company is saying they can not and will not close this transaction if BOA does not acknowledge the extra contribution to the 2nd. BOA refuses to do so.
The title company's reason is on previous transactions, the Investor has come back to the title company and said they did not approve the contribution to the 2nd (in the approval letter) and they have forced the title company to give them the extra funds that went to the 2nd. Our deal is suppose to close tomorrow and we are at a dead end. I will bring your suggestion up to the title company and see if that will satisfy them..... but if not, Any other suggestions ?
Thanks
Forth




Bryant Tutas said:

Ryan. Happens all the time. Just place the $13,000 on the buyer side of the HUD as an additional closing cost. Or you can place it on the buyer side as a POC item. The short sale lender has zero authority over approving the buyer side of the HUD. Don't ask for approval. Just do it. Send the final HUD over for approval and watch what happens.

Permalink Reply by Ryan Boggs on November 18, 2010 at 7:04pm

Hi Forth,
Yes, we did get it closed. Basically, we did put it on the buyers side and noted it in detail that the buyer was paying a cash contribution and as long as the 1st approved the hud that had the cash contribution, escrow was just fine with it. The 1st would not note anything on their approval letter, but said they would approve it through the hud. So at this point all looks good. I guess they could come back later, but we have them approving the hud and having it well documented that the buyer was paying the $13,000. If you need more specifics just let me know. I can tell you what lines we put it on the hud.
Thank you,
Ryan

Permalink Reply by Forth Hoyt on November 18, 2010 at 7:11pm

Ryan,
Our issue is with the title company. BOA said they don't care who gives or how much we give to the 2nd. Title is the problem. They have been fined and have had the investors come back at them and made them pay, so they are refusing to close without the acknowledgement from the 1st.

If you could tell me what line you put it on and any more details, I will pass them on to the title company and see if they will allow it.

Thanks
Forth


giv
Ryan Boggs said:

Hi Forth,
Yes, we did get it closed. Basically, we did put it on the buyers side and noted it in detail that the buyer was paying a cash contribution and as long as the 1st approved the hud that had the cash contribution, escrow was just fine with it. The 1st would not note anything on their approval letter, but said they would approve it through the hud. So at this point all looks good. I guess they could come back later, but we have them approving the hud and having it well documented that the buyer was paying the $13,000. If you need more specifics just let me know. I can tell you what lines we put it on the hud.
Thank you,
Ryan

Permalink Reply by Ryan Boggs on November 18, 2010 at 7:24pm

Gotcha ya. We put it on line 103 "Settlement charges to borrower (line 1400), line 1310 "2nd Short Sale Payoff paid by buyer to Wells Fargo", line 1400 "Total Settlement Charges", and on page 3 of the closing statement in a Charges that can change section, which is basically the summary of items in the hud but restates the line 1310 with the $13k again. The escrow is with Fidelity in Carmichael. Escrow preferred that they have it on the lender letter, but were ok given the 1st closer approved the hud that had the $13k on it. Not sure if you can change escrows at this point in the ball game, but may want to check into it as an option. Hope this helps.

Permalink Reply by Jennifer Horton on April 20, 2011 at 10:44am

I'm in CA, and we were notified about a year ago that payments to 2nd liens must be disclosed to 1st lien holders otherwise legal trouble could follow. I'm more than happy to post CAR's article about this. What we do w/ our title company is put it on the HUD on the buyer's side and if the bank approves the HUD then it was "disclosed" and all parties should be happy.

Jennifer Horton

Realtor/Short Sale Specialist

Trin Hong Real Estate

[email protected]