Just curious if anyone's had a NationStar short sale and how the deficiency was handled in the approval letter. Your comments appreciated!
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Just curious if anyone's had a NationStar short sale and how the deficiency was handled in the approval letter. Your comments appreciated!
You need to be a member of Short Sale Superstars to add comments!
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I am working on a file now that we have the net met, all is agreed, but Negotiator wants the "Contribution at closing" to show on line 403, 404 or line 603. The issue is that the seller is not bring the funds, the buyer is. We raised the sales price to meet the contribution amount, but Title sales we can't put it on the line(s) requested by NationStar to make this balance correctly and without this, we get no deficiency!! Anyone have this come up and an inventive way around putting the Contribution at closing on line 403,404 or 603 when the buyer is actually paying it and not the seller????? Should we reduce the sales price and have the buyer bring cash at closing? But don't see how that makes it work out the problem on the HUD? HELP! thanks! Chrissi Jasso
A little late but here are my thoughts:
The lender/serviocer is NOT the closing agent. The closing agent MUST follow Federal and State law.
The terms of the sale have been negotiated by the buyer and seller. The sale is though real estate agency I presume. The lender/servicer does not own property, only a note/mortgage (paper asset that is a negotiatble instrument). The ONLY right the lender/servicer/holder has is to negotiate the CASH terms of settlement of the note/mortgage as a negotiable instrument. In essence the Buyer of the house or seller of the house (depending upon how one wants to see this) is negotiating the payment value of the negotiable instruent.
Keep it simple. Make sure that you send proper emails, and that the lender/servicer acknowledge the DISTRIBUTION amount to them at the close of the sale. You of coarse must have the terms of settlment such as non-recourse" agreed to as well. Once you get them to agree to an exact amount delivered to them...the distribution amount to them that is..then you have a BINDING agreement, regardless of who pays what in the closing ( a stranger donating money even!).
As to placng stuff on lines illegaly, make sure you keep those demands in yoru file for at least 7 to 10 years!!! make sure the seller and the buyer have copies.
Also (after verifyin gthe distribution amount to the lender) tell the lender/servicer that if they want things changed to specific lines in violation of federal laws then they must be the closing agent and take the risks themselves. sk them if they are licensed to close in your state.
I would think that will slow them down..but dont do any of that until you get the distribution amount agreed to ..that and the other terms crete enforceable contract conditions.
Yes it can be done. The major problem with them is that their HAFA guidelines are way too strict. I too had a seller that did not qualify for HAFA with them. And I went to the help center and they could not over ride Nationstars decision.
Usually, as with my past with this bank, they always give the standard approval letter. It's up to you to get it changed and have them add the full waiver. Just tell them there is NO WAY this will close with out the full wavier. It will get changed. Good luck.
PS, just don't let your sellers close unless they have that full waiver.
Liane,
Yes, we are closing one this month with NationStar as the Servicer where they did not waive the deficiency at first but after we presented the Seller's expressed desire and need to achieve total satisfaction, it was revised.
I've only had one and they did release the deficiency, but the sellers had multiple hardships
I had a NationStar short sale that I listed in Feb 2011. I had two offers both at full price ($290,000) backup was cash.
I use a law firm to handle them after acceptance of the purchase agreement.
We did not get an answer from NationStar MI company for 5-6 months. This was follwed up weekly. Finally the MI company said they was $20,000 cash from the seller. Seller didn't have that amount of cash and said he would sign note and bring some cash at closing. NationStar closed the short sale file.
I went back to the back up cash offer and asked if they would pay the $20,000 they said yes. I then got the same agreement from the primary offer and the short sale was resubmitted. The sale price was at the BPO price $290,000.
NationStar said that the investor had the file (Fannie Mae) they countered that the investor now (4 months later) wanted $30,000 more. By that time the primary had cancelled. I talked to the buyers agent and explained it. They wanted to have the buyer call me. He did and he wanted to counter $5,000 less. I informed him that the last time it was rejected and cancelled. He wanted to proceed with it he was a recently divorced Dad that had custody of the kids and his Dad lived close (bulit in battersitters) to this home.
The home had already been through the Sherriff's sale (In MN we have a 6 month right of redemption) he agreed.
Everything we did from the beginning was there will be a release of any and all deviciencies.
We closed it with the buyer paying $30,000 more for the home and paying $20,000 cash at closing for the MI company. It wass closed one day to becoming REO.
P.S. My guy doesn't qualify for HAFA so I guess I'm wondering if anyone's had a non-HAFA short sale approved by NationStar and what the outcome in the letter was.