Replies to This Discussion

Permalink Reply by Brenda Houghton on October 1, 2012 at 10:57am

You will need to request a deal change.   It will take 2 - 5 business days, I believe.  If you have the task opened:   'Is closing on schedule", answer 'no' and upload the correct HUD along with the current tax certification.   Or, you can use the upload preliminary HUD task, or whatever task is opened.  The point is to get their attention.  I would also email the HUD and tax cert to the negotiator with the subject - request deal change.

 

It usually isn't a big deal to get this accomplished. 

Permalink Reply by LeeAnn Renfrow on October 1, 2012 at 12:02pm

Thanks for responding Brenda. I just found out that part of the problem was the payoff amount..the amount the title co put on the prelem HUD was $600 less than the amount listed on the approval letter. I guess I didn't catch that mistake...I'm not sure where they thought the extra $600 was going to come from. The other $250 was the difference in taxes. Do you think they will do a deal change for this?"

 

Close

 

Permalink Reply by Brenda Houghton on October 1, 2012 at 12:21pm

Why is the payoff amount $600 less?  Is the title company able to resolve the issue?   If not, you will need to very carefully compare the HUD you submitted for approval against this preliminary closing HUD.  That $600 is going somewhere and you need to find it.  If it is due to any type of proration, or perhaps HOA fees, you can submit these differences in your change request as well, as long as you have a supporting bill. 

Is your seller getting a relocation incentive?  Sometimes, if you are up against a wall regarding your closing date, it makes more sense to apply some of the incentive money to an overage rather than wait to see if you can get a change request approved.  The line on the HUD for the item being paid by incentive money has to be labeled as such. 

Good luck!

Permalink Reply by LeeAnn Renfrow on October 1, 2012 at 1:04pm

The only differences between the 2 were that BOA had the payoff at $600 more and the other $200 was tax prorations since we were closing in Oct instead of Sept...do you think I have a shot at getting BOA to do a deal change? I'm not going to be happy if some of this comes out of my commission! 

Permalink Reply by Kathleen Lordbock on October 1, 2012 at 2:39pm

Do you not submit the figures to the title company and then work with them on the prorations from the start? You may need to add in more for prorations on your initial HUD as you have no way to know when it will actually close. The final HUD is the final and accurate figures and on most of ours is giving the lender the same amount as approved or a bit more as those prorations get detailed out to the day.

You learn as you go.

Permalink Reply by Brenda Houghton on October 1, 2012 at 5:25pm

If there are identifiable additional costs - like the tax prorations - and you can supply a bill or certificate, you have a good shot at getting a deal change.  Why is the payoff $600 more?  Typically the final approval amount is based on the preliminary HUD submitted for approval.  Where is that $600 difference going?  It has to be somewhere on the HUD.

Is your seller getting an incentive for the coop short sale?  If so, have the difference come out of his incentive.  No need to have it come from your commission.  If not, you might have to make a concession to get this to close. 

Permalink Reply by LeeAnn Renfrow on October 1, 2012 at 5:36pm

I guess title company was using a payoff from a month or two before is my guess. They did not order a new payoff when sending the last HUD. The seller incentative is going to Ocwen who is the second.

Permalink Reply by Brenda Houghton on October 1, 2012 at 6:18pm

In a short sale, the payoff doesn't matter!  It is the calculated net that is approved by the seller's lender.  The net is what is left after all identified closing costs are deducted from the sales price, and the listing/negotiating agent should have control of that figure.  The $600 is somewhere in the HUD, but if you aren't able to identify it, and your seller isn't able to bring $$ to the table, there is a good chance it will have to come out of your commission if you want to close.  You should be able to get the $200/250 tax amount approved in a deal change request. 

Permalink Reply by Jeff Payne on October 2, 2012 at 4:10am

Is the first mortgage not short?  Sounds like the first is whole and the second is short if you needed a payoff for the first.  Otherwise the payoff is on the approval letter.  Is there a fee that someone forgot?  Is the title company charging a higher than normal fee?

As far as the seller not having $850.00, don't always assume that they don't have it, especially if they have not been making a mortgage payment.

Permalink Reply by Thomas Zdanowicz on October 2, 2012 at 3:59am

LeeAnn, not sure if anyone mentioned but since the seller is doing a CO-OP short sale you should be able to get your clients $2,500 as an incentive.  Since the old approval is now expired and you will have to get a new approval I would submit a new HUD with the incentive to the seller and money coming out of that.  The seller will be ecstatic they are now getting $1,650 from the sale and the other $850 will go towards the tax adjustment if need be.  I would actually submit the new HUD with the incentive of $2,500 and the $850 and see if they approve it.  They are usually fast in Equator with that stuff.  Then fall back on knowing that the money could come out of the incentive.

Permalink Reply by LeeAnn Renfrow on October 2, 2012 at 6:38am

I figured out what happened! I wasn't able to review all the paperwork until late last night so after comparing the approval against the HUD, I found it was all tax prorations. What they allowed a couple of months ago on the approval letter and what the taxes are now is the difference. For some reason the title company kept telling me it was the payoff which was confusing to me. Sent a message to the closing officer so hope we can get a deal change to get this taken care of. BTW, the seller incentive is going to the second lien, they would not agree to the short sale otherwise and seller was OK with that. I'm guessing that is pretty standard that if there is a second, they want the money. Thanks for all your helpful comments everyone!

Note to self..next time just review the paperwork and don't listen to title comany's explanation.

Permalink Reply by LeeAnn Renfrow on October 2, 2012 at 6:42am

By the way, I found out that the title company uses the word "payoff" to mean the same thing as "sellers net" @Brenda, I kept thinking the same thing you said...why does the payoff matter? She explained this morning that she was talking about the sellers net which is what I think confused me!

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