Replies to This Discussion

Permalink Reply by Bryant Tutas on April 25, 2012 at 12:19pm

They can certainly counter but chances are they are gong to have to contribute something. Surely they can come up with some money.

Permalink Reply by Satar Naghshineh on April 25, 2012 at 7:15pm

Wellsfargo is very good about financials. They see 3k or more somewhere in what you submitted to them. Try to see if you can get rid of it without killing the deal. If not, have the buyer contribute the 3k

Permalink Reply by Kelly W. Maynard on April 28, 2012 at 2:35am

Hi Keji,

I have not had Wells counter back with a client asking for a contribution, yet.  My first thought is WHY are they asking for $3000 or a $6000 promissory note?  Does the Seller have assets?  If not, then you need to prove to Wells that your client is insolvent and cannot make that type of contribution. 

Permalink Reply by Sam on April 28, 2012 at 3:05am

Wells is the toughest servicer on cash contributions that I have seen.  I have seen them waive the request but not waive deficiency (the seller quickly found the $ when this happened and they amended the letter back), I have seen them accept half of their initial request (they almost always do), I have seen them allow the buyer/agent or a combination to make the entire contribution (in a recent case, they allowed the buyer to make 49% of the contribution, but they required the seller to make at least 50% of it and required the settlement agent to document the sellers funds).  On a non HAFA short sale, I have only seen them approve, waiving deficiency and not requesting contribution, one time.

Permalink Reply by joe beauchamp on April 28, 2012 at 11:15am

Freddie seems to have recently started asking for contribution always.  At BOA it is absurd in that they ask for BOTH cash and a note.  They have started ALWAYS asking regardless of the seller's situation.

When I get this, I go back to the seller and go over the finances - what they owe elsewhere, how wrong is their monthly budget, what would their credit report show, etc. At BOA, their negotiators never even looked at the financials and I usually blow them away pointing out how the seller has obligations, not even making it now, etc. and they just drop it - usually mumbling that they are told to ask.

Hope that helps.