Hi everyone-Sellers had a BofA 1st and 2nd. They sold the 2nd to Greentree about 4 months ago. I just had my BofA coop approved at $415k. They are willing to give greentree $8500 to satisfy the 2nd. Ourstanding debt is around $150k Greentree said they want $45k to release the lien. As I explained to Greentree, if my sellers had $45k they wouldn't be doing a short sale to begin with. She basically said too bad...they want $45k.
Any ideas whatsoever????
Looking forward to your help.
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Is that to release the lien with NO deficiency or really lien only? If for a deficiency release- it may just not be possible. They usually will take 6% to release lien only.
Hi Julie,
If I were in your shoes and received a request like that my first question would be "Do the sellers have money somewhere that they did not declare in their short sale package?" The $8500 to junior liens in a HAFA thing. Did your sellers not qualify for HAFA?
As far as what to do next, my only suggestion is to find out how much if any your sellers are willing to contribute and offer that up. Good luck and keep us posted!
BofA cooperative short sale.They have NOTHING. Unemployed off and on. This is their family home of over a decade and are heartbroken to be losing it. If they had that kind of cash the first, BofA would want it
Ok well so much for my thought. The files we work on where there are high borrower cash contributions/promissory notes requested are usually asked of clients where we think they seem to have money. In your case it does appear to be a totally unreasonable request. If this were my file Julie I would get GreenTree on the phone and flat out ask them if they have evidence that the sellers have money. I would be very polite and act a little bewildered by the request. Funny thing is I'm working on a short sale with GreenTree as the second and they are so easy to work with. Like many have said don't use investor and logic in the same sentence!
I would reach out to the negotiator for the cooperative short sale and let them know what is happening and see if they can give any advise or assistance...after all it is a cooperative short sale. I had to go back to BofA on a cooperative short sale for a septic field that was bad. The problem was discovered when the buyer completed their home inspection. BofA allowed the repair to be deducted from their proceeds, another $22K loss!
I think Greentree can be a nightmare to deal with. If your clients have absolutely no funds to offer, kill the deal and advise the seller to talk to a bk attorney. Because is was bought in collections, they will have to pay something. If they do have funds to offer, realize you are in for a fight and start out offering peanuts. In the end they can and will hold up the entire deal. You might want to attempt to negotiate a prom note...it is up to the sellers if they choose to pay it. At least they would be out of the larger debt of the first.
So true. I just escalated it up the chain at BofA as it was originally their 2nd. I am hoping that it is the same investor or at the very least my contact has some pull. Are you working with the short sale dept at Green Tree or their "recovery" division? My escrow said it is the difference between easy and difficult.
Sounds like the loan was charged off since it's in the recovery department. When this occurs short sales often get much more complicated. Check out my post on charge offs and how they can affect a short sale.
Have a blessed day =)
We are supposed to close at the end of November