Replies to This Discussion

Permalink Reply by Ellen Kirwan on August 1, 2012 at 10:57am

The 1st does not need to approve the extra "contribution" from the buyer to the 2nd TD. You might want to ask them if it's okay.  Usually I have the buyer contribution put in the 400 numbers as contribution from buyer to 2nd TD and then the total amount to the TD on 505.

Permalink Reply by Sharona Byrnes on August 1, 2012 at 11:08am

I am being told by the attorneys for our brokerage that we have to get written approval for the extra contribution from the 1st. Apparently there have been some problems with the 1st lienholder disapproving the sale AFTER close because they claim they didn't "approve" the extra contribution.

Permalink Reply by Jan Sanderlin on August 1, 2012 at 11:13am

The WF 1st Lien will only allow the amount approved to WFHE to be paid to them and is requiring any and all extra funds to be contributed back to the WF 1st Lien...I would be on Twitter and calling the Executive Offices faster than you can say spit! This is a classic Catch 22...Someone higher up with a college degree needs to break the grid lock...Good Luck...

Permalink Reply by Ellen Kirwan on August 1, 2012 at 11:19am

the only time I've had that happen was on a FHA loan but then the 2nd capitulated and accepted what the 1st offered.  This could be a good thing.   Normally the approval letter states that if any additional funds are required to close they need to come from the buyer, seller or agents.  What does your approval letter specify?

Permalink Reply by Sharona Byrnes on August 1, 2012 at 11:43am

These funds ARE coming from the buyer. But our attorneys are requiring written approval from the 1st to give the additional money from the buyer to the 2nd.

Permalink Reply by joe beauchamp on August 1, 2012 at 12:03pm

Between the nimrod pinheads at the bank and the uptight atty's, they can sure make a mess out of nothing. I'd say the best way to fix this is put the HUD-1 together the way you want it and have the 1st approve it. If the HUD-1 is approved by the 1st, the atty's should be smart enough to accept that as approval. I don't think you got to someone with a brain at WF - more like someone with his little 8-ball of quotes to throw at agents. Once you send them the HUD-1 for approval, then someone will complain about where you put the item and make you put it somewhere else, etc. until finally, they approve the HUD-1, you take it to the attorneys and you should be done with it. Geez, you'd think this is the first short sale that WF had ever done - maybe it is for your atty's...

Permalink Reply by Stephanie Hart CA 310-930-2342 on August 1, 2012 at 11:35am

Oh my...I agree with the other ladies thoughts. Always good to have it in writing.

Permalink Reply by justin.hanke on August 1, 2012 at 11:59am

My take on this is that they are saying any extra payment required by the second must be done outside of closing - as in a promissory note. Most of the time when a lienholder approves a short sale closing but requires an extra amount, that is taken care of outside of closing.

Permalink Reply by Thom Colby CA Brkr 888-391-5245 on August 2, 2012 at 3:01am

Sharona,

Put the amount coming from the Buyer on line 104 (Buyer's Side) of the HUD noted as "Cr to Slr from Byr to 2nd Payoff".  Then out the same thing and amount on Line 404 (Sellers side) to offset it.  Once you have that done, send it to the 1st for final approval to close. Depending upon how much $ the Buyer is giving that may determine how the 1st reacts.  Obviously if teh Buyer is willing to pay thousands more to close the deal, then the property must be worth thousands more and teh 1st may decide to counter the sale price.  As for your commission being reduced, I would simply say NO.

 

DO NOT do anything "Outside of Escrow" unless you and your broker want to lose a license. 

 

Try this person at Wells Fargo to assist you; Tamara Swain Sr VP Loss Mit 866-878-5865

 

Good luck !