Has anyone been able to get more than $2500 for junior liens on an FHA short sale?   Our 2nd will not settle for less than $30,000 & HUD is only allowing $2,250 from proceeds even though they are well above the required net.  Has anyone been able to obtain a variance to get more money for the junior lien?  Appreciate any tips!

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Probably not going to happen. But I guess it doesn't hurt to ask. You can also use the seller incentive towards junior liens. And I think you can pay the 2nd additional funds form the buyer or seller.

Thanks for the reply Bryant.  I am getting the same story all around.  The 2nd is asking for over $30,000 on this deal and everyone is contributing as much as they can but reaching that number is proving difficult.  Appreciate your time!

Is your short sale a HAFA short sale? If so there are HAFA guidelines that dictate how much the max to a Jr. lien payout can be. I believe it is no more than either 6% of the balance of the loan or $8500 which ever is lower.

FHA does not participate in HAFA, however, with the new HUD guidelines - max payout to a junior lien is now $4500 if they take away the incentive to the seller. Not sure if this would apply to this scenario seeing as your short sale review likely started prior to the changes with the HUD guidelines. Contacting HUD to try to get them to give more money is not going to happen - they will tell you to go back to the 2nd mortgage holder and tell them that they need to take what is on the table. 

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