Chase has the first, and has approved the Short Sale through HAFA, allowing only 6% of the unpaid Principal Balance to Green Tree, or $2,890.56.  

Green Tree is owed $48,180 at last count, with fees.  Negotiator says they cannot accept less than $7,250.

Chase says Green Tree cannot get addtional $$ from Seller or Buyer at the table, nor can the Seller give them his $3k incentive.  Green Tree must also release the lien for the offered $2,890.56.

Green Tree refuses and is closing the file.  I also called and spoke with "Derek", the Operations Manager for the State of Georgia (where the property is located).  He also states there is nothing that can be done.

Any suggestions?

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Replies to This Discussion

Eileen I have the same issue with Green Tree and I'm assuming the issue has to do with the 2nd being charged off. The 1st is with Indy Mac and Green Tree tells me they will not participate with this file due to the Investor Guide Lines.  When I asked who the investor was I about fell out of my chair when I was told Indy Mac.  I have escalated mine with HAFA.  escalations @hmpadmin.com  They will get in touch with Green Tree and then they have 30 days to respond.  I just did mine last week so it's too soon to tell.  It's worth a try.

Hi Eileen:

 

We just had the same situation with AHMSI first and Chase second. AHMSI is allowing 6% to the second ($2,500) and the second is demanding $5,250. The first will not allow anyone to contribute anything to the second - they must take the $2,500 and not a penny more. This deal fell apart over $2,750.

Here is the problem:

I am betting that that the investor for the first is Freddie Mac. Freddie's policy is that they will contribute up to 10% of the outstanding balance owed on a second lien. The policy further states that NOBODY can contribute to the second other than themselves. The second has to accept their offer to release the lien and no other funds can go to the second regardless of source.

If Green Tree fully understands that the property will go to foreclosure unless they accept the $2,890.56 and they won't budge, I don't know how to fix the problem. They might make more money than the $7,250 somehow by letting it foreclose, otherwise it would seem to me that it would be in their best interest to take the offer. They can still pursue for the balance owed.

We attempted to solve our problem by asking the second lien if they would accept a payment of $2,750 outside of closing. They indicated they would not and that all funds to release the lien had to be on the HUD (which is actually the correct thing to do). We knew that if it went on the HUD, the HUD would be rejected by the first lien holder. We can't see a way out of this. Both investors dug their heels in and the house is going to foreclosure.We just notified the buyers yesterday and they are heartbroken.

 


Patsy - I will try that.  Thanks!

Patsy Clevenger said:
Eileen I have the same issue with Green Tree and I'm assuming the issue has to do with the 2nd being charged off. The 1st is with Indy Mac and Green Tree tells me they will not participate with this file due to the Investor Guide Lines.  When I asked who the investor was I about fell out of my chair when I was told Indy Mac.  I have escalated mine with HAFA.  escalations @hmpadmin.com  They will get in touch with Green Tree and then they have 30 days to respond.  I just did mine last week so it's too soon to tell.  It's worth a try.
Steve - Two people at Green Tree told me they would close the file and allow the property to go to foreclosure unless they got their way.

Steve Early said:

Hi Eileen:

 

We just had the same situation with AHMSI first and Chase second. AHMSI is allowing 6% to the second ($2,500) and the second is demanding $5,250. The first will not allow anyone to contribute anything to the second - they must take the $2,500 and not a penny more. This deal fell apart over $2,750.

Here is the problem:

I am betting that that the investor for the first is Freddie Mac. Freddie's policy is that they will contribute up to 10% of the outstanding balance owed on a second lien. The policy further states that NOBODY can contribute to the second other than themselves. The second has to accept their offer to release the lien and no other funds can go to the second regardless of source.

If Green Tree fully understands that the property will go to foreclosure unless they accept the $2,890.56 and they won't budge, I don't know how to fix the problem. They might make more money than the $7,250 somehow by letting it foreclose, otherwise it would seem to me that it would be in their best interest to take the offer. They can still pursue for the balance owed.

We attempted to solve our problem by asking the second lien if they would accept a payment of $2,750 outside of closing. They indicated they would not and that all funds to release the lien had to be on the HUD (which is actually the correct thing to do). We knew that if it went on the HUD, the HUD would be rejected by the first lien holder. We can't see a way out of this. Both investors dug their heels in and the house is going to foreclosure.We just notified the buyers yesterday and they are heartbroken.

 

I had the same situation until I reminded the negotiator that Green Tree signed an agreement to participate in HAFA and emphasized that the deal is a Fannie Mae HAFA Short Sale.  That changed their attitude and the negotiator agreed to take 6% of the remaining principal balance (not to exceed $6,000).  He requested a copy of the HAFA approval letter from the first which is IBM LBPS.  I'm still waiting for that letter.  We'll see what happens once Green Tree gets the letter.  Good luck and Have Fun!

 

Glenn - Did Green Tree sign something for your specific deal, or have they signed up to participate in HAFA in general?  Where can I get a copy?

I haven't gotten that far yet, but expect the same problem.  I have a HAFA sale approved by the 1st (Wells Fargo) where they are taking a $100K bath, on their loan.  The 2nd is with Greentree for $100K, but it was discharged in bankruptcy.  The seller no longer owes the money, but the lien remains on the property, so it can't sell without Greentree's cooperation. 

The total loans were $580K + $100K, and the approved sale price is $505K.  I can't understand why Greentree insists they need to do a BPO on this.  WF already did, and if there was any chance there was any more value, they would never have approved.

Short sales are extremely frustrating!

Eileen:


There isn't a special list, just the list of servicers participating in HAFA.  Google HAFA and several sites with a list of HAFA participants should come up.  I had worked everything out with a negotiator at Green Tree and then got a new negotiator.  Sure enough they don't write anything down.  However, I had sent a memo to the original negotiator outlining our agreement.  The new negotiator started out telling me my clients are not eligible for HAFA because the Green Tree loan had already been charged off. When questioned he said that is in the HAFA guidelines.  Everything was very friendly and I asked for a copy of his guidelines because I can't find anything about "charge off" in my guidelines.  He asked to put me on hold and was gone for about five minutes.  He came back on the line and said he had consulted someone and Green Tree would proceed as previously agreed.  I faxed the IBM LBPS (first mortgage) HAFA approval letter to him as confirmation that it is truly a HAFA.  Hopefully we can maintain this friendly spirit until closing on May 27!

 

Good Luck!

 

Glenn

 

Eileen W. Smith said:

Glenn - Did Green Tree sign something for your specific deal, or have they signed up to participate in HAFA in general?  Where can I get a copy?

Glenn - The plot thickens.  After I told my Negotiator that not only does the MHA Web Site say they participate in HAFA, so does the Green Tree Web site, his response was "the Investor doesn't participate".  Investor is PHH.  He's right, they don't.  Looking for a hook into them now.

Glenn Batten said:

Eileen:


There isn't a special list, just the list of servicers participating in HAFA.  Google HAFA and several sites with a list of HAFA participants should come up.  I had worked everything out with a negotiator at Green Tree and then got a new negotiator.  Sure enough they don't write anything down.  However, I had sent a memo to the original negotiator outlining our agreement.  The new negotiator started out telling me my clients are not eligible for HAFA because the Green Tree loan had already been charged off. When questioned he said that is in the HAFA guidelines.  Everything was very friendly and I asked for a copy of his guidelines because I can't find anything about "charge off" in my guidelines.  He asked to put me on hold and was gone for about five minutes.  He came back on the line and said he had consulted someone and Green Tree would proceed as previously agreed.  I faxed the IBM LBPS (first mortgage) HAFA approval letter to him as confirmation that it is truly a HAFA.  Hopefully we can maintain this friendly spirit until closing on May 27!

 

Good Luck!

 

Glenn

 

Eileen W. Smith said:

Glenn - Did Green Tree sign something for your specific deal, or have they signed up to participate in HAFA in general?  Where can I get a copy?

Hello Eileen & Glen - any updates on your Greentree 2nd? I am going through the same situation - Greentree is telling me they do not participate in HAFA because the 2nd is Charged-off. They told me they would not take anything less than 20% of the unpaid principal which is $17,467.00 (Unpaid Principal is $87,334.09).

 

I should be getting my HAFA approval on my BofA 1st this week and I am afraid Greentree will not take the $6,000 that BofA HAFA is offering them and deny my file. Can anyone else share the same experience or success stories please. Thank you.

Greentree dug their heels in and Chase foreclosed. 

I haven't had to deal with them since.

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