URGENT - NEED HELP with Relocation Question

Help - WF has approved shortsale with $3,000 relocation assistance to borrower. However, we were just notified yesterday by HOA that house needs to be painted. Borrower has said she can credit $1,500 of her relocation assistance to buyer, but this must be done on HUD1 as she doesn't have any CASH. Meanwhile, WF says we need to go back to negotiations as this is a problem. The investor on the file is FMAC. My question is, isn't seller allowed to use the money however she needs to as long as it doesn't cost WF anything and we disclose it??????????????? We are trying to close by 7/31. Thanks! CAT

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Replies to This Discussion

Permalink Reply by Donny Piwowarski on July 26, 2013 at 5:14am

Hi CAT from my experience is that no one can net any money from the sale so by giving the buyer $1500.00 from the relocation money, this provides a net to the buyer. The best way to find out if the relocation money can be used to pay off other liens,etc is to read the details of the approval letter. If it does not state that the seller can use the money to pay off other liens, then you can assume that the relocation money can only go directly to the seller.

Permalink Reply by cat on July 26, 2013 at 5:15am

ok, thanks for quick response.

Permalink Reply by Donna Clayton, Broker, MBA on July 27, 2013 at 9:37am

Wells Fargo has been very strict with the representation "Relocation Assistance" is to be specifically used for direct relocation expenses. You will probably need an approved exception. This is likely why you are being advised to go back to Negotiations.

Permalink Reply by cat on August 6, 2013 at 1:15pm

Hi All - Thanks for responses. Wells Fargo was very strict about the $3,000 relocation and we could not do anything with it. However, I had done a BPO dispute and was successful, so buyer decided to process with property AS-IS and take on the HOA requirement for painting the house. We closed on 7/31. Thanks Again!!!

Permalink Reply by Donna Clayton, Broker, MBA on August 6, 2013 at 4:21pm

CONGRATS!!!!

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