Hey Experts Out There,
I have a VA Buyer that is purchasing a Wells Fargo Short Sale where the First Mortgage Security is held by Freddie Mac. The servicer has rejected the final HUD stating the Freddie Mac will not allow any portion of the Seller Credit (3%) to be used to pay for VA mandated home repairs. Has anyone dealt with this or closed a deal where Freddie Mac DID ALLOW the Seller Credit to be used for manitory repairs?
VA Buyer are not allowed to pay for these repairs per VA Guidelines. I have closed (As a listing agent) 2 Short Sales with Fannie as the investor that allowed VA Required Repairs and Home Warranty to be paid for with the Seller Credit and shown on the buyer side of the HUD.
Any thoughts and experiences would be appreciated! Thanks!
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your first mistake is allowing a VA buyer. There is no flexibility there, so issues like this will kill a deal. Freddie does allow seller credits, and what they use the credit for is unimportant. Go back to lender and get an exception.
Hey Joseph, thanks for your post. A VA Buyer is not the issue or a mistake. As I mentioned in the original post, I've done several of these with a VA buyer. I also know that FREDDIE MAC allows seller credits. My question is very specific. Have you had a FREDDIE MAC transaction in which required repairs for a VA or any loan type were allowed to be shown on the HUD as a buyer paid expense and covered with the seller credit? I appreciate your comment about going back to the lender. Fortunately, I have a little experience and have already taken that route. If it were my seller, I would have taken it straight to Freddie Mac for the exception. We thought the listing agent was better equiped than it turns out. Again, thank fo the post. I am looking for answers to a specific question though...
no, see it IS a problem with this file, because VA is requiring the repair cost to be on HUD correct? Freddie, is not allowing for it. It's not the credit, it's the expense. So, we have two options:
1-get VA to allow the repair items to be removed from HUD
2-Get a Freddie exception.
Option 2 is probably easiest, and that is like saying riding a Great White will be easier than petting a Scorpion with your tongue
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LoL! So if I am understanding you right, you have not had a successful transaction like the one I have mentioned. Thanks Joseph! Your post has been entertaining... :)