Is there a limit to pay to the 2nd lienholder in a non-HAFA, Fannie Mae investor short sale?

I went through the Fannie Mae loan workout facts sheet from 11.16.2011

https://www.efanniemae.com/sf/servicing/pdf/loanworkoutfactsheet.pdf

Page - 20 HAFA Short Sale, under Costs: 6% or $6000 total to the 2nd.
Pages 21-22 NON-HAFA, under Eligibility: "property must be free of other liens... other than liens that Fannie Mae will allow to be settled from the sales proceeds".

There is no limit to the 2nd mentioned under NON-HAFA guidelines.

I have Wells Fargo, Fannie Mae investor 1st, Harris 2nd. Fannie Mae allows 6% (but it is less than $6000).Harris wants 10%, to release the lien.

Has anyone had a traditional, NON-HAFA short sale where Fannie Mae paid more than 6% to the 2nd?
Is there even a cap in NON-HAFA short sales?
Any help would be greatly appreciated.

Thank you very much

Barbara

 

 

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Permalink Reply by Beverly Cibulsky on November 23, 2011 at 8:34am

nope! Fannie mae (Hafa )6% of balance due! That's it! Second needs to realize that!

Permalink Reply by Barbara Pedersen on November 23, 2011 at 8:38am

Yes Beverly, I know but the point is that this is non-HAFA!

Do the rules of HAFA aply to non-HAFA?

Permalink Reply by Beverly Cibulsky on November 23, 2011 at 8:57am

Hmm! HAFA (non-gse) can be up to 6% of $6,000.

non HAFA good luck, its negotiable. (I will usually use 6% of unpaid balance) then go from there! Plain Fannie ... 6% of unpaid balance, You need to let the second know First is Fannie, they will realize no negotiation, however, they may not agree to waive defficiency, or may want something else.
Permalink Reply by Kevin - Greenville, SC on November 23, 2011 at 5:00pm

It 'can' be done, but even though there are no public written rules for Fannie Mae non-hafa it will be an uphill battle for you. Tip - Get authorization for the first to speak with the 2nd.

 

http://www.scribd.com/doc/73631325/Short-Sale-Approval-and-Demand-L...

Permalink Reply by Barbara Pedersen on November 25, 2011 at 4:40am

Beverly and Kevin,

thank you.
Now the 1st WF, Fannie Mae investor in a NON-HAFA short sale says that the investor (Fannie Mae) will NOT allow anyone to contribute funds to the 2nd lien.
Is there a way out?
This is crazy. The 2nd will not take 6% of the balance, the 1st does not allow anyone to make up for the difference.
The house goes to foreclosure and the homeowner is possibly forced to file for bankruptcy over around $800 difference.
God save the country.

Permalink Reply by Kevin - Greenville, SC on November 25, 2011 at 7:06am

Barbara,  

 

Fannie Mae 'will' allow to a certain extent other(s) to contribute to the 2nd per my previous approval letter post, but it's a fight to get done.  Make ALOT of noise.

Permalink Reply by Barbara Pedersen on November 25, 2011 at 7:23am

Kevin,

Thank you. I am making a lot of noise. Right now the 2nd talks to the 1st through me.  By the way does anybody have an email/phone contact to WF and Fannie higher level - president/CEO office?

Permalink Reply by Beverly Cibulsky on November 25, 2011 at 10:27am

I have found Fannie is real strict to the 6% (not up to $6000 max, thats reg HAFA,) of outstanding balance. I let the second know they are dealing wit Fannie rules, The Fannie escalaction is on the site, dont have it handy. WF knows better! I have escalate to Fannie, and with very good results! However, right now I dont have the access to Fannie Mae Assistance desk, which I am glad, they try and direct you to that! Worst case tell them your MLS does not participate yet! They have no clue!

However, Kevin, are you saying, that you have gotten Fannie to go over there 6% of outstanding balance?  Please share that! I had a PHH that had to take 6% of 24K! Just reminded them first was Fannie! (If I had to, I would went to Fannie and complained about PHH!)

Permalink Reply by Linda Susan Fox on November 27, 2011 at 10:26am

HAFA Guideline is only 6% or $6000 whichever is less.  See if buyer can contribute to the release of the second if allowed by all parties.

Permalink Reply by Barbara Pedersen on November 28, 2011 at 4:23am

This is a NON-HAFA deal and the buyer cannot contribute.

Permalink Reply by Katherine Muhs on January 23, 2012 at 11:57am

>6% can happen on non-HAFA. I have a non-HAFA, 1st  w/MetLife/FNMA that is allowing $5000 to go to 2d (Wells Heloc w/Chap 7 BK); that's just over 7.5%.of the balance on 2d. Also, $2000 buyer contribution to 2d is being allowed. [My problem is 2d wants to see $6600 min. from MetLife + buyer $2K contribution, before submitting to the investor for approval. Also problematic: 1st is asking for $1000 contribution from Seller (in Cal -- can't do it per SB458).  By the way, MetLife told me FNMA is requiring the seller contribution and wouldn't ask for the $1K if it were against the law. Yeah Right.]

Permalink Reply by Jill Ford on November 30, 2012 at 8:10am

Katherine, 

do you have any valid contact info for metlife short sale department?  I am a johnny come lately (have a client interested in the property, but there is an offer on the table supposedly in front of metlife. Both the listing broker and the very competent local real estate attorney are completely frustrated by the months and month of zero communication from metlife.  Would love to provide them with a conduit to find out what is actually going on, and to see if there is any wisdom to providing a back-up offer.

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