2nd Green Tree Won't Take The $6,000 First Will Not Allow Agent Contribution...Non HAFA Short Sale
Working a short sale where the first is a Bofa/Freddie Mac loan and the 2nd is Green Tree. The loans are purchase money and California is a non recourse state. First is offering $6,000 to 2nd. Second wants $9,500. Agents were going to make up the difference but negotiator says this is not allowable. The loan has been charged off and is in Recovery. What are my options? Negotiator dialogue follows:
We cannot do anything This will be a declined file. The second is limited by our first lien investor guidelines. The way the investor looks at is if you can give money to the second you can give money to us and they take the monies from that second and will only show an approval with the allotted amount they agree to pay. You need to go back to the 2nd lien negotiator and tell them if they do not accept the deal is dead and they get nothing, what would they rather have? I expect to hear from you no later than Monday. Please call me and remember I am 3 hours ahead of you. I will also be out of the office from Wednesday until the following Monday so we need to have this addressed before I leave...
Thanks Patrick...
Replies to This Discussion
-
Permalink Reply by Barbara J. Rice on
-
Patrick: While I have been fortunate enough not to be in this position so far, I know other agents who have and the way they have resolved it is that the seller negotiates a "payment" directly to the 2nd lien. The hitch, of course, is that the seller is taking a leap of faith that the 2nd will then hold up to their verbal agreement and play ball with the short sale as negotiated ... for the $6K payoff. So far this process has worked for every occurence I've heard about. It feels devious and underhanded but to my knowledge it's legal and it gets the job done (here's where I state that I am not a lawyer and legal counsel should always be sought in a short sale situation).
Good luck!
Barbara Rice, Las Vegas, NV
702-523-7907
-
-
Permalink Reply by Tara Samney on
-
I've been there....the 1st can take it back for investor approval for a higher amount if you push them to do so and choose to. They get a release signed so they can negotiate directly with the 2nd BUT am told no response for at least 30 days and not sure you'd get anywhere closer. GT doesn't budge. If that isn't just to release lien (includes waiving deficiency)- perhaps get them to reissue for 6% of unpaid balance just to release so short sale can take place- but deficiency not waived. Don't know if that is a better option in your case or not.
-
-
Permalink Reply by Stephanie Hart CA 310-930-2342 on
-
That's a pretty typical 1st response. BOFA has to approve all Huds prior to close and they are pretty thorough about it. I've had Huds approved and then bounced back after close with more documentation required where they threatened to reject the wire too. I know many other agents suggest putting the contributions on another line on the HUD (403?) I have never had success with that, nor will my escrow do it. Let us know if you get a solution. GT will not take prom notes because they are not banks just servicers. Otherwise that many have been a viable option. A prom due and payable within 4 days or so. But not with GT as second.
-
-
Permalink Reply by Laura Rivera on
-
Patrick,
I had the same short sale scenario like what you have from last year. Both purchase money loans, 1st loan w/ B of A $440,740, 2nd w/ GT $82,639, property sold for $320,000 w/ GT only getting $6000, both no seller deficiencies. Non-HAFA short sale, listed and closed in 3 months (including the buyer's time frame for loan approval and inspections) and never had a problem w/ Green Tree. I am in CA as well. Who is your negotiator?
-
-
Permalink Reply by Patrick Finn on
-
Thanks Laura...the negotiator's name is Lucinda Warmington. And you are right our scenarios are very similar. I am going to back into Equator and accept the terms that Bank of America has stated and then continue to work on Green Tree. If the terms are not accepted the BofA negotiator is going to decline the file. If GT has approved it before...you would think they would approve again.
-
-
-
Patrick... Be aware that I've had some 1sts want to see pproval from the 2nd td before they will give actual approval. So although you have a counter in equator it doesn't mean they will be willing to actually give you more time without approval from 2nd td. A lot of time it really just depends on who you are randomly assigned to though. Hope it works for you. I closed a 150k 2nd with gt for 6k Hafa. It can be done.
-
-
-
My Next Steps....
Bank of America will approve 6k to go to the 2nd. Negotiator says $9,500 is the minimum they will accept (loan is in collections)...both agents were going to make up the difference but the 1st will not allow it. Buyer can not contribute because he is FHA...options?
1. Contact negotiator supervisor...get them to accept 6k
2. Go back to BofA allow agents to contribute...what would be acceptable on HUD to investor
3. Contact the investor directly...The Bank of New York Mellon (this was formerly a Countrywide loan)
4. Find a new conventional buyer that can pay the $3,000 so GT nets $9,500...
What is the best course of action? Thanks!
-
© 2024 Created by Short Sale Superstars LLC.
Powered by
**********************************
like buttons