Replies to This Discussion

Permalink Reply by Matt Stewart on December 14, 2010 at 5:13pm

Barbara,

 

How far into the process are you? If you haven't done so already ask your GT negotiator who the investor is and how much they will allow because it varies case by case.

 

Most commonly it is based on the 2nd lien balance.

 

I have a lot of experience with GT so let me know if you have any other questions.

Permalink Reply by Barbara Pedersen on December 14, 2010 at 5:54pm

Matt,
thank you.
The balance is about 20K. It is a Fannie Mae loan and I was told that 6% of the unpaid principal balance is allowed. I know that to be true in the HAFA program but we are not in HAFA.  What do you think?

Permalink Reply by Matt Stewart on December 15, 2010 at 7:35am

Barbara,

 

if what you say is true that is the correct amount regardless if it is HAFA or not.

Barbara Pedersen said:

Matt,
thank you.
The balance is about 20K. It is a Fannie Mae loan and I was told that 6% of the unpaid principal balance is allowed. I know that to be true in the HAFA program but we are not in HAFA.  What do you think?

Permalink Reply by Barbara Pedersen on December 17, 2010 at 7:35am

Thank you Matt.

Fannie Mae non-HAFA short sale does not specify the amount going to the 2nd lien so I just wonder....
Look at Fannie Mae Loan Workout Hierarchy Fact Sheet.

Fannie Mae Workout Rules

Permalink Reply by Matt Stewart on December 17, 2010 at 8:16am

Barbara,

yes they do leave it open for debate by not specifying. I am more than familiar with their protocols and they change quite often. The reality is each servicer has different FNMA guidelines they operate under so if you haven't done one with GT for a while there's no way you would know unless you ask "what are your guidelines today?"

 

Let me know if you have any other questions.

Barbara Pedersen said:

Thank you Matt.

Fannie Mae non-HAFA short sale does not specify the amount going to the 2nd lien so I just wonder....
Look at Fannie Mae Loan Workout Hierarchy Fact Sheet.

Fannie Mae Workout Rules

Permalink Reply by Barbara Pedersen on December 17, 2010 at 8:40am

Thank you!

Do you have an idea  how much they would pay to the 2nd then?

Permalink Reply by Matt Stewart on December 17, 2010 at 5:21pm

Barbara,

 

That would be 6% of $20,000 (2nd lien UPB) is $1,200 total they would pay to the junior lien. Do you know who your negotiator is?

Barbara Pedersen said:

Thank you!

Do you have an idea  how much they would pay to the 2nd then?

Permalink Reply by Barbara Pedersen on December 21, 2010 at 1:45pm

Matt, thank you.

I know that 6% of 20K is $1200. That's not the point.
The point is why do they say they allow 6% only while it is a non-HAFA Fannie Mae short sale. As per Fannie Mae guidelines there are no limits to how much is to be paid to the 2nd on a non-HAFA short sale.
Do you mean that GT arbitrarily established that they would pay 6% to the 2nd, no matter what they deal with, HAFA or traditional?
Or 6% is just a coincidence and they decided for some reasons that they will only pay this amount on this particular traditional short sale? But then again what are "some reasons"?
Just trying to understand...

Permalink Reply by Matt Stewart on December 22, 2010 at 6:05am

Barbara,

 

Before HAFA FNMA had many specific rules with each of its servicers on how much would be allowed to pay a jr lien and they changed often. Most recently GT's FNMA guidelines allowed for up to 8% or $8k total. Now that HAFA is around that has been reduced to 6% or $6k max for both HAFA and non-HAFA short sales.

 

It isn't up to GT, it is up to their investors as GT is only the servicer. I wouldn't waste any time trying to figure out why they do the things they do. Once you know the current rules to play by you will be a step ahead of those who don't.

 

Let me know if you have any other questions.

Barbara Pedersen said:

Matt, thank you.

I know that 6% of 20K is $1200. That's not the point.
The point is why do they say they allow 6% only while it is a non-HAFA Fannie Mae short sale. As per Fannie Mae guidelines there are no limits to how much is to be paid to the 2nd on a non-HAFA short sale.
Do you mean that GT arbitrarily established that they would pay 6% to the 2nd, no matter what they deal with, HAFA or traditional?
Or 6% is just a coincidence and they decided for some reasons that they will only pay this amount on this particular traditional short sale? But then again what are "some reasons"?
Just trying to understand...

Permalink Reply by Barbara Pedersen on January 4, 2011 at 5:55am

Matt, thank you for the clarification!