I could sure use some advise.  I have a VA compromise w/ GMAC (worked with both previously but this is so odd - it makes NO sense).   a cash offer was submitted to GMAC via email Feb 10th and got reassigned to new negotiator in Equator 30 days later.   I was told now all VA's are done in EQ....  ok so upload everything again.  I submit offer for $119k. seller relo assistance of $1500 and 6% commissions.  ALL along negotiator "wording" was specific in that VA has final approval...etc.  Understood that.

Neg states pkg is sent out for VA approval/review of VA appraisal.  Received a "counter" for $1000 more - so now $120k and they accepted all other terms!  One of buyers requests were that we close ASAP.  I made that extremely clear to neg. and he wrote "no need to worry about closing date" you can close any time after receive approval...  but again puts in wording "VA has final approval... 

Finally on March 26 - I get an approval letter from GMAC.  However NOW it says, VA took out $1500 relo to seller and must close on or BEFORE May 15th.  Facts important for this reason.  AFTER we receive the official approval letter - everyone scurry's around to close ASAP.  Buyers funds are already in escrow in hours.  Not to mention this buyer is literally driving here from out of state - to move into his new home.  Happy seller and everything is a go.

Here's the strange part - about 6-7 hrs. later, I get a nonchalant "note" in EQ from neg. and all it says is "by the way INVESTOR says you cannot close until May 15th and MUST close by May 18th - no exceptions".  WHAT??  Sorry to carry on but I feel the facts are important to understand this because not only was neg. adamant that we can close - WHY would you send out an official approval letter and then just leave some little note in EQ on such an important fact since this was a make it or break it deal with closing date.

I immediately called VA to inquire why would they put this requirement NOT to close until May 15th - that is 48 days away!!!!  VA says that is preposterous and they never did such a thing.  Doesn't make sense.  Ya think?  VA calls GMAC to find out what deal is and of course now neg. calls me back p.o'ed that I phoned VA and YELLS at me that this is not VA's requirement it is the investors and proceeds to tell me HE has the final say and will not approve our final HUD and it will not close until May 15th.  I asked for supervisor.

I've done all my searching, google, MERS, etc. and shows Ginnie Mae as investor but that's cuz backed by VA.  Am I confused on something here?  I thought/was told VA was the final say.  Where did this "investor come from all the sudden".  I did try to speak with a super at GMAC but got nowhere....yet. Apparently she just sent an email to investor.

I emailed couple other supervisors and one emailed me this:  "neg. is working with his supervisor to determine why this requirement was set by the investor. Together they will escalate this to the appropriate party at Green Planet". ??

So after my rant (sorry) can anyone elaborate on why someone would make this requirement to not close a cash deal for another 48 days?  We WILL lose buyer if that's the case... and lastly shed light on the VA/Investor matter?  This just makes NO sense to me at all.  I certainly would appreciate it.  Thanks

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http://shortsalesuperstars.com/group/ginniemae



Does Ginnie Mae have to approve my loan modification?
No. Unfortunately, some Servicers are incorrectly advising borrowers that Ginnie Mae must approve all loss mitigation and loan modification activities. All loan modifications must comply with the program requirements of the agency that insures or guarantees the loan and must be executed by the loan servicer. The agencies operate through loan insurance or guaranty programs that back up the borrower’s obligation to pay the mortgage loan at the loan level. Those agencies are listed in the table below.

Insuring/Guaranteeing Agency

Phone number
Federal Housing Administration 888-297-8685
Veteran Affairs 877-827-3702
Rural Development 800-670-6553
Public and Indian Housing 800-561-5913
Does Ginnie Mae have a loss mitigation loan program?
No. The collateral for Ginnie Mae-guaranteed securities consists of loans insured or guaranteed by the Federal Housing Administration (FHA), Veterans Affairs (VA), Rural Development (RD), or Public and Indian Housing (PIH). It is the agency that insures or guarantees the loan that will provide loss mitigation option

http://www.ginniemae.gov/issuers/FAQ's_loan_modifications.pdf


---------- Forwarded message ----------
From: Jerome Nagy a href="mailto:[email protected]" target="_blank">[email protected]>
Date: Mon, Nov 21, 2011 at 12:46 PM
To: "Kevin M. Lancaster - Willson" 

Kevin:

I’m pasting the response from VA below. Basically, the relocation reimbursement policy is not required by VA. So, it’s really up to the lender if/when they care to implement.

Jerry

 

*******************************************

"The Circular in question (Relocation Assistance for VA Borrowers, 26-11-1) authorized servicers to advance funds to assist veteran borrowers completing a short sale or deed in lieu on their VA-guaranteed loans.  If did not mandate such an advance, as VA only mandates advances to protect vacant properties from vandalism and the elements. 

 

While VA believes that provision of relocation assistance may encourage some borrowers to decide to complete a deed or short sale, and we would expect that in many cases servicers would be inclined to make an advance for suchassistance in order to reduce foreclosure expenses, we recognize that it is not always a "cut and dried" decision, due to the limited VA guaranty on a loan.  Therefore, we would expect each servicer to develop policies and procedures to protect its interests.  We are not in a position to comment on the time taken by a particular organization to develop and implement such rules, although we can certainly raise this issue during a conference we expect to have with this company in a few weeks.

*******************************************

Thanks.  Yes, Understood.  I do realize they just insure the loan, etc.  I'm just stating what GMAC has replied.  I have just been talking to VA loan tech to see if they can assist.  When GMAC told me va had to approve etc.. that's why I called VA to verify this was nonsense.  VA called negotiator directly and called him out on this.  SO - that is when the negotiator added "it is not a VA requirement, it is an investor requirement". 

Call the VA and find out who the VA Loan Tech is - 877-827-3702.

Hi Kevin

Thank you.  I did (VA loan Tech and supervisor) they're as stumped as I am.. trying to be brief but without all facts, it doesn't make lot of sense.

Bottom line - is after receiving written approval/instructions to close - GMAC sent unofficial note saying we could not close until May 15th.  Said "an investor requirement".  I thought they were referring to VA and called loan tech but they say they made no such requirement.  Even VA says - that makes no sense.  I researched again to figure out who this investor was.  We're trying to figure out is if VA did not make this requirement then who (investor?) made this requirement NOT to close until May 15th and why?

Its a cash sale and no one (VA-GMAC) can explain why we can't close for another 40ish days... At this point, no one cares the terms were changed - they just want to close. A supervisor at GMAC said they sent a message to "Green Planet" to inquire why.  I thought green planet was a servicer - it's now appearing they are an investor - according to GMAC.  I'm trying to locate info on investor/green planet...but everything I research just says "Ginnie Mae".  

Are you saying to keep calling back VA?  when I do - I get transferred to the same lady (loan tech) and she has no idea what to do...  It's just when both entities you've been working with are just as confused - not sure what to do?

Does Ginnie Mae have to approve my loan modification?

No. Unfortunately, some Servicers are incorrectly advising borrowers that Ginnie Mae must approve all loss mitigation and loan modification activities. All loan modifications must comply with the program requirements of the agency that insures or guarantees the loan and must be executed by the loan servicer. The agencies operate through loan insurance or guaranty programs that back up the borrower’s obligation to pay the mortgage loan at the loan level. Those agencies are listed in the table below.

Insuring/Guaranteeing Agency

Phone number
Federal Housing Administration 888-297-8685
Veteran Affairs 877-827-3702
Rural Development 800-670-6553
Public and Indian Housing 800-561-5913
Does Ginnie Mae have a loss mitigation loan program?
No. The collateral for Ginnie Mae-guaranteed securities consists of loans insured or guaranteed by the Federal Housing Administration (FHA), Veterans Affairs (VA), Rural Development (RD), or Public and Indian Housing (PIH). It is the agency that insures or guarantees the loan that will provide loss mitigation option

http://www.ginniemae.gov/issuers/FAQ's_loan_modifications.pdf

Hi Kevin,

I got that VA deal closed couple days after my post - still never got an answer as to why they imposed that closing rule or who it actually came from...but I ended up getting it released.   Anyway, I appreciated all your responses.  Thank you!

Congrats!! There is no such rule that the VA has in their loss mitigation guidelines.

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