I have a VA short sale, Wells Fargo first lien holder and CitiFinancial holding second. Wells Fargo already appraised the property, so I know the minimum net amount Wells wants to receive at closing.
In order for Citi to release the second, Citi wants the seller to pay $1,000 "good faith deposit" at closing, and the Citi investor wants to see this $1,000 on line 505 of the HUD.
That sounds fine however, has anyone closed a similar short sale where the junior lien holder demands the seller was to "bring cash to closing" -- in a VA short sale?
I've closed a lot of VA short sales over the years, especially with Wells Fargo, but this is the first time a junior lien holder has asked for cash at closing when it was a VA Compromise Sale.
Would perhaps the sellers pay this $1,000 outside closing (POC), but still show the $1,000 on the HUD?
As always, your input and thoughts will be greatly appreciated!