Replies to This Discussion

Permalink Reply by Jack Barry on December 11, 2013 at 8:27am

Al

Permalink Reply by Sam Hague on February 3, 2014 at 7:46am

There seems to be a couple of issues, one is price (that will generate minimum required net proceeds) and the other is the note request.  Depending on the Investor (GSE?)  they may have triggered the note in a Debt to Income test. Or it could  have been a MI requirement, you do not say. We have successfully had (GSE - Stanrd Short Sale) note (and cash contributions for triggering Cash Reserve Tests) removed, but  the Servicer has to first note in the file the request for the note (or Cash) has been made, and only then are Servicers permitted to 'negotiate' a lower amount.  So addressing the Price is appears to be a value issue and the note, we try to provide compelling evidence for the servicer to use in reconsidering ther request (ie.  Borrower will retire next year and income will be lower) and if a Seller appears to be a candidate for a note or cash, we try to have them address that in the Hardship LEtter at the beginning so that they can refer back to their original Hardship when they request reconsiderationof the note, but each file is differnet as far as reasons go.  Hope that helps.