I am working on a Hafa short sale. I have approval from the 1st (chase) allwoing 6% to the 2nd lien holder. The 2nd (citi) is telling since October the 5 major banks have agreed to give $8,500 to the 2nd lien holder. I've called Chase requesting this, but haven't heard back.
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It's up to $8500. And it's at discretion of the Servicer how much of that they want to allocate. It's usually a percentage of the UPB.
Thank you. This is what I thought.
Section 6.2.4.2, Chapter IV of the Handbook is amended to increase from $6,000 to
$8,500 the amount a servicer may authorize the settlement agent to pay from gross
proceeds to subordinate mortgage holder(s) in exchange for a lien release and full release
of borrower liability. Investors will continue to be reimbursed one dollar for every three
dollars of short sale proceeds paid to a subordinate mortgage holder up to $2,000.
thank you for your response. I see the update to the $8500, but it says "may" allow up to $8500. Have you heard about an agreement between the 5 major banks to pay $8500 for the release of the lien?