Chase asking seller for $5000 cash contribution( per MI company)

Hello, I need help -

 

As per the negotiator at Chase they want a cash contribution of $5000 that my seller does not have to send for approval with the MI company.

I need to find out what to do so that the negotiator can send the offer/hud to the MI company for approval without my client signing a cash contribution letter for money he does not have.

Thanks for your help.

 

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Replies to This Discussion

Have you had the Homeowner send in a Hardship Letter stating they cannot contribute?

Hey Kevin - I am having him write one now to explaint that.  Thanks for your qucik response. 

I would write your negotiator and make a counter offer. Seller does not have the cash to perform on this offer (per enclosed bank statements) and offers as a counter offer a note payable in the amount of $10,000, payable monthly at $55.56 with zero interest for 180 months. Expect the final agreement to be more like $15,000 (if the original $5,000 request is reasonable relative to Seller's income, resources and the amount of the PMI co's loss). These PMI company settlements usually are offered as Either pay us cash at closing (smaller figure), OR pay us a note payable for 10-15 years (larger figure). 

Assist your Seller in writing an Appeal Letter with language like this-
(Tighten up your client’s hardship letter emphasizing specific hardship in an updated appeal letter).

With extreme difficulty, I will agree to contribute $100 (US One Hundred Dollars) at the closing on the specifically implied condition that I will not be executing any deficiency judgment agreement at the closing and that Chase or the investor will not attempt to collect any deficiency balances on this mortgage after final settlement.

Alternatively, if your client has a sense of humor they could write something like this-

I am unable to contribute any money at this closing. Or if Chase prefers I could detach the fixtures, the ceramic sinks and toilets, the kitchen sink all of the copper plumbing and many other items and sell those for about $1,000; however, I do not think the buyer would appreciate that. Please advise if you want me to start a demolition project on the interior of my home to make the PMI Company happy.

I've had clients use both versions with equal amount of HIGH success.

Hi Claudia, couple of things you can do:

1. can the buyer pay it on behalf of the seller?  Sometimes they will if they think they're getting a really good deal on the house and they have the cash.

2. send a letter from the seller explaining why they can't pay it

3. negotiate a 5 yr promissory note, no interest, spread over 10 years

Good luck, Sandy

I had a similar situation. We solved it by reducing the purchase price by $5k and asking the buyer

for cash contribution instead of the seller. You have to resubmit the short sale package again. 

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