Received written approval from Bank of America, then was denied...
Good evening,
I received an approval letter from BOA on a short sale, and today, right as we're ready to close it was denied!
There were $75,000 worth of judgment liens on the property that were negotiated down to $25,000. An addendum was prepared that specifically stated the buyer's were assuming the judgment liens and the proceeds would be paid out of closing, which was reflected on the HUD.
Bank of America contacted me today to advise me that I had to remove the judgment liens from the HUD per the investor even though it was the buyer's expense, which means it can't be paid out of closing.
I have been working on this deal since May, and was wondering if anyone on the forum could make any suggestions as to how to get this closed?
Replies to This Discussion
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Permalink Reply by Kevin - Greenville, SC on
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What type of Loan?
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Permalink Reply by Candice Eberhardt on
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Freddie Mac is the investor backing loan being short saled, VA is being used to purchase it.
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Permalink Reply by Short Sale Superstars LLC on
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Candice,
It's important to always ask when judgments are involved in a short sale transaction if the investor allows contributions to show on the HUD to outside lien holders. Some investors such as Freddie Mac will never allow this to take place. I'm not advising you that you should, but some people step into gray areas to seek resolution in such scenarios.
Brett@ishortsalenow.com
310-564-6389
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