Replies to This Discussion

Permalink Reply by Jimena Paridee on July 17, 2012 at 9:26am

Hi Pamela,

The seller should be able to use his incentive towards the 2nd just make sure your negotiator is aware, sometimes they have a problem with more money going to the 2nd regardless of where is coming from.  A VA buyer would not be able to contribute towards the 2nd payoff, we just had a deal where we tried that and it was not allowed.

Permalink Reply by Uilani De Motta on July 17, 2012 at 9:35am

I have had this situation and it depends on the investor and negotiator of the 1st. Most short sales seller is not allowed to contribute anything to the entire short sale. Some times they will not allow the buyer to contribute either. Just consult with your closing officer though. If the 2nd does need a payment you may be able to do an outside payment that is not apart of the escrow. I have never done it but I know it's an option.

Permalink Reply by Elise Fay on July 17, 2012 at 9:41am

From the classes with BofA that I took, I understood that you can use that money towards 2nd liens etc but not HAFA money.

Permalink Reply by Sheila Vardakis on July 17, 2012 at 3:09pm

Pam, I have a deal right now where BOA is the 1st and the 2nd is with a law firm.  The law firm wants a larger payout than BOA if offering and this is also a Coop sale.  My negotiator today told me that the seller could give up his Coop incentive and HIN relocation incentive to help pay towards the 2nd liens demands.   

Permalink Reply by Dean E Eshelman, CPA, CDPE, IRES on July 17, 2012 at 6:23pm

@Pam, Ditto @Jimena. VA will not allow Buyer to contribute.

Permalink Reply by Pattilynn Guilford on July 18, 2012 at 4:08am

Yes they can. It goes in the 500 block

Permalink Reply by Pamela Walsh on July 18, 2012 at 5:37am

This is a Cooperative; so currently there is the Paid to Seller for incentive  $2,500.  Can they use those funds to pay the 2nd?  We have done alot with BOA; this is the first Co-Op.