Replies to This Discussion

Permalink Reply by Lydia Santa Cruz on October 7, 2010 at 8:54am

The most I've heard of if $3,000 but the guy at the Collection Agency said they pay more.Haven't seen it.

Permalink Reply by Mike Horton on October 7, 2010 at 10:30am

As always, it depends. Generally BOA will pay $3,000 or 10% of the 2nd lien value which ever is less. The depends part is what ever the guidelines are that have been set by the investor (HAFA programs can differ).

Permalink Reply by Kelly Timm on October 7, 2010 at 1:28pm

I got them to give 5K ONCE to a 300K 2nd but other than that, always 3 despite protest.

Permalink Reply by joe beauchamp on October 8, 2010 at 5:47am

Fannie Mae will pay 8%, depends upon the investor and their guidelines.

Permalink Reply by Ann Trieb on October 8, 2010 at 7:41am

Really depends on investor guidelines. When I am faced with a large 2nd, I evaluate the comparative ratios - how much is the 1st losing compared to the 2nd? I can sometimes convince the 1st to pay much more than standard if the 2nd is losing more than they are. But I have not seen $3000 as a max (when the 2nd is not serviced by BofA ) in a long time.
In every short sale, remember that every single property, borrower, portfolio, servicer, and investor may be different. Evaluate all details to present the strongest case for the fastest approval.
Good luck!

Permalink Reply by Julia Fishel on October 12, 2010 at 2:36am

I was told last week by someone up the food chain at BoA that Fannie Mae now will only allow 6% of the balance on the second but couldn't confirm it with anything other than to say it's "new policy".

Are there written Fannie Guidelines that say they'll pay 8% or am I dreaming?

Permalink Reply by Jon Zolsky on January 4, 2011 at 7:47am

Thanks, we were not able to get over $3,000. No matter how hard we tried

Lydia Santa Cruz said:

The most I've heard of if $3,000 but the guy at the Collection Agency said they pay more.Haven't seen it.

Permalink Reply by Jon Zolsky on January 4, 2011 at 7:49am

Mike Horton said:

As always, it depends. Generally BOA will pay $3,000 or 10% of the 2nd lien value which ever is less. The depends part is what ever the guidelines are that have been set by the investor (HAFA programs can differ).

thanks, I was hoping that because it is over $500K offer, we could do a bit better, but it did not work.

Permalink Reply by Peggy K Fowler on January 4, 2011 at 8:21am

Question ~ Attempted to qualify for HAFA.  Denied said our mailing address did not match the property address and it required by the Treasury to match. 

I know the guidelines were updated 12/28/10 changing Section 2 of Chapter IV to amend the "not vacant or condemed" section.  The update specifies "THE PROPERTY SECURING THE MORTGAGE LOAN IS NOT VACANT, EXCEPT THAT THE PROPERTY CAN BE VACANT UP TO 12 MONTHS PRIOR TO THE DATE OF THE SSA, ARASS OR DIL AGREEMENT IF THE BORROWER PROVIDES DOCUMENTATION THAT IT WAS THEIR PRINCIPAL RESIDENCE (we have) PRIOR TO RELOCATION AND THERE IS NO EVIDENCE INDICATING THAT BORROWER HAS PURCHASED (they have not)......."  BOA said this will be traditional ss ~ not good for my seller who will receive a 1099 for the shortfall over $140K.  Should I push the point with them regarding the update to HAFA?  The negotiator sent an e-mail stating that the maximum they would allow paid to the 2nd lien holder is 6% or $6000.   I thought those were the requirements for HAFA are the amounts the same for a Traditional SS?   Appreciate any help. 

 

Peggy

Permalink Reply by Wendy Haisley on January 4, 2011 at 6:35pm

 It depends entirely on who the investor is.  If it is HUD (FHA short sale), max allowed is $2500 regardless of UPB.

If it is FNMA, max allowed is 6% of UPB (was 8% until FNMA guidelines changed last fall)

If it is Freddie Mac, max is 10% of UPB or $3,000, whichever is lower

With HAFA, max is 6% or $6,000, whichever is lower.

That leaves about 20% of the others with private investors, then it is a crap shoot.  If Wells Fgo is investor, max is $3,000.  If US Bank is investor, max is $1,000!  Some investors work on minimum net required.  If their net is met, any extra can go to junior liens.

 

We work with 300+ short sales at a time.  We investigate first if investor is FNMA, Freddie Mac, or HUD and then put correct numbers on prelim HUD to junior lien.  If we don't know who investor is, we put 6% of UPB to junior lien and pray.

Permalink Reply by Cheryl Miller on February 22, 2011 at 6:49am

Any idea what FNMA will allow for a 3rd lien?