Liens?

I know I have seen this question before, my FHA short sale property has two liens.  My seller has talked to the attorney's office who is collecting and made a settlement offer.  Can I negoiate to reduce sales price to include payoff on liens?  I know FHA will pay $1500 towards liens but I am just concern about balance.

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  • Typically second lien holders will take 5 -10% of the loan balance. They may jump at $1500.  I would send in the offer to them at $1500 with a copy of the HUD guideline and see how they respond.

  • Hi Darlene. Your question is a tad confusing. Why would you reduce the sales price to payoff liens?

    Anyway FHA will only allow $1,500 towards junior lines. TOTAL. If there are more than one junior line them these finds need to be divided amongst them. You can also use the seller's incentive money ($750-$1,000)

    The NET to the 1st must be at least the amount as stated on the HUD90045.

    I hope this helps.

    • Sorry for the confusion the liens are totaling $ 9,500 so, I know the $ 1,500 won't be enough.  So, I need to know if the bank will allow the buyer to increase or decrease from sales price.  Still giving the bank their net.

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