Replies to This Discussion

Permalink Reply by Jeff Payne on January 18, 2011 at 7:48am

Have a very similar situation with USAA on a second right now.  USAA wants seller to give them 15% of the balance before the sale and sign a prom note for the remainder.  They will release the lien if the seller gives them $3000 now and they get $2500 from the first.

Can your sellers work this out before closing?

Permalink Reply by Susan Milner, SFR, CDPE, GRI on January 18, 2011 at 7:51am

Thanks Jeff. I don't think that is legal. I'm going to see if maybe they'll agree to a promissory note. That *might* solve the problem. Just can't believe this nonsense. I mean everyone gets the money they want and we close, why not? LOL

Jeff Payne said:

Have a very similar situation with USAA on a second right now.  USAA wants seller to give them 15% of the balance before the sale and sign a prom note for the remainder.  They will release the lien if the seller gives them $3000 now and they get $2500 from the first.

Can your sellers work this out before closing?

Permalink Reply by Sandy Skover on January 18, 2011 at 8:13am

I have had similar situations with GMAC being the 2nd.  Since the money is coming from the seller can't she make a "payment" on COE to SLS and then have the 6% on the HUD go to them at closing.  This is what GMAC negotiators have had us do for them?  You would need to get 2 approval letters from SLS. One for the 6% from GMAC as payoff and then a 2nd that stipulates the homeowner will bring in a payment of $5,400 for the full release from SLS.

Permalink Reply by Jeff Payne on January 18, 2011 at 8:18am

I think if it happens at COE, then it needs to be on the HUD as POC.  My thought is that if it is paid before COE then it is not much different than a seller paying off a mechanics lien or tax lien to be able to get clear title to property....

Sandy Skover.redwood city.ca said:

I have had similar situations with GMAC being the 2nd.  Since the money is coming from the seller can't she make a "payment" on COE to SLS and then have the 6% on the HUD go to them at closing.  This is what GMAC negotiators have had us do for them?  You would need to get 2 approval letters from SLS. One for the 6% from GMAC as payoff and then a 2nd that stipulates the homeowner will bring in a payment of $5,400 for the full release from SLS.

Permalink Reply by JulieAnn DeCeunynck on February 15, 2011 at 12:50pm

I had a simular file...2nd was SLS and 1st wasnt allowing seller contribution. The seller and SLS worked this out on the side and gave me my approval letter showing just the 3000.00 with the release. it might be best to have the seller and SLS work this out, SLS will do whatever to get their money and will issue two approvals

Permalink Reply by JulieAnn DeCeunynck on February 15, 2011 at 12:51pm

I'm with Jeff on this one =)

Permalink Reply by Kenneth Skidmore on February 17, 2011 at 3:49am

I have a deal I just started that is a GMAC first with a SLS second.  I came here looking for answers as well, but I dont know if any exist.  I just spoke with rep at SLS and they are pretty content with foreclosing just to punish my client.  I actually going to try Jeff's idea.

 

Permalink Reply by Susan Milner, SFR, CDPE, GRI on February 17, 2011 at 4:09am

Yeah good luck. Ours finally closed and SLS will take their money any way they can ~ I'd speak frankly with them for options. Is your GMAC one through Kazork? I found my rep there to be 'clueless' but alas it did get done :)

Permalink Reply by Greg Johnson on April 14, 2011 at 10:58am

Trust me SLS are some very nasty creatures. They saw my client getting HAFA money so they wanted that. There should be a law against it.