Replies to This Discussion

Permalink Reply by Kassie Killion on October 22, 2010 at 5:32am

Oh and this is Arizona, so the house is only selling for $80 thousand. Prices continue to go down in Arizona so if BofA denies it the next offer will be even lower, and Sellers have never missed or been late on a payment.

Permalink Reply by William Chea on October 22, 2010 at 5:33am

We do this all the time. HOWEVER you have to make sure that the 1st KNOWS tht this is happening and they need to ACKNOWLEDGE this as well.

Did you get that from the 1st? You need to send them the revised HUD-1 showing where the money is coming from and they have to approved before you send them the funds.

Permalink Reply by Gunnar Jonsson on October 22, 2010 at 5:33am

Yes, you always need the permission from the 1st TD IN WRITING !!!! for any extra cash going to a 2nd TD. Email the senior VP through equator and they more then likaly help you out.

Gunnar

Permalink Reply by Jennie Blackburn on October 22, 2010 at 5:43am

If Fannie Mae is the investor, you can escalate to them. They run into this all the time - a catch 22 created by a Fannie Mae guidelines to the servicer (BoA) that make no sense and can be easily overcome via escalation within Fannie Mae.

Good luck!
Jennie

Permalink Reply by Lori Young on October 22, 2010 at 6:37am

Kassie: Email me and I will give you a senior BOA reps email address. Lori Young, Realtor [email protected]

Permalink Reply by Esther M. Camarotte on October 22, 2010 at 6:38am

The reason is the first lienholder MUST APPROVE what the second lienholder gets, no if/ands/or buts. That is always the procedure. Even though its BOA on both. The first always gets any extra money and the guidelines that are in place for paying off the 2nd cannot be changed. So if this was not approved the HUD then reflected extra money which means it changed and you did not have approval for the changed final HUD. This is the way it is regardless what the second wants. In these situations the 2nd can make arrangements after closing for more money but can never change the Final HUD after approval. I would call them and find out how to resolve this.

Permalink Reply by Kassie Killion on October 22, 2010 at 8:18am

The investor is Freddie Mac, do they have the same guidelines as Fannie Mae to excalate it to them??



Jennie Blackburn said:

If Fannie Mae is the investor, you can escalate to them. They run into this all the time - a catch 22 created by a Fannie Mae guidelines to the servicer (BoA) that make no sense and can be easily overcome via escalation within Fannie Mae.

Good luck!
Jennie

Permalink Reply by Jennie Blackburn on October 22, 2010 at 9:13am

I am not as familiar with Freddie Mac, but it is definitely worth a try. Here are some of the #s I have for Freddie Mac:

800-336-3672
800-972-7555
877-518-8429
703-909-3200
703-918-8581
[email protected]

Hope this helps!

Jennie

Permalink Reply by Esther M. Camarotte on October 22, 2010 at 10:57am

This doesn't matter where it is or who the investor is these are basic guidelines that the final HUD with no corrections or changes and be made without the first approving them. They are in first lienholder position and dictate all terms. The attorney/title/settlement company or whoever closed it should have known this before sending money. They are going to need to get involved especially if they sent money to a second and money came out of the pocket of the seller.

Permalink Reply by Kassie Killion on October 22, 2010 at 11:13am

There were no changes to the original HUD, it was stated there.

Permalink Reply by Kelly Timm on October 22, 2010 at 3:45pm

I had this issue and it was because Freddie Mac was the investor. They will not budge at all. They allow X to the 2nd and they dont care if you give the $$ in the end, they will only allow that amount. The only way you may be able to negotiate is to offer the 1st what you are giving the 2nd. Example: you need an additional 2k to go to the 2nd, you may be able yo offer an additional 2 K to the 1st to allow it. It really sucks and Ive lost deals over this. If you are continuing on, maybe try to settle the 2nd... Freddie IS THE WORST TO DEAL WITH!!!!