I have a short sale going with Chase as the 1st lien holder, SLS as the 2nd lien holder and an attorney who is representing Discover card as the 3rd lien holder. I am working on this as a HAFA short sale and am wondering what the total is that I can get to pay both the 2nd and 3rd lien holders. I was under the impression that I would be splitting a total of $6000 between the 2nd & 3rd lien holder. SLS is telling me that the total is $8500. I was under the impression that the amount had changed in standard HAFA short sales but not with Fannie Mae. Their total is still $6000. Am I right or wrong? Any info will be helpful
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As others have said, $6,000 is the max; however, I have had Fannie Mae pay more than by obtaining an exception.
Can you please let me know asap how you were able to obtain an exception? Fannie Mae is only offering $6,000 but the 2nd lien is DEMANDING $10,000. Please help!!!!
The seller or agents are willing to pay the $4,000 difference. How can I get Fannie to allow???
Not according to Fannie. I was just on the CAR webinar today. They made it very clear it's $6000 total from them and no other party can add to that even though their Guidelines would seem to allow the Buyer to bring funds if Fannie doesn't offer any funds.
http://www.car.org/media/pdf/Fannie_Mae_Short_Sale_Presentation_Jun...
Thanks for your help!! Per Fannie Mae's escalation guidelines, I have escalated to Fannie Mae. Hopefully they can help me get this approved with the second lien.
Escalating an issue
You can also escalate an issue to Fannie Mae if:
Received approval from the servicer for your transaction, but the second lien holder has imposed closing conditions that are impossible to meet.
I think they said or implied on the webinar that you can escalate to Fannie and they will assist in negotiations with subordinate(s). I may have heard that wrong though. I'm looking to get it clarified.
May not be as easy as it would appear. Please see the Q&A below form the Fannie Mae Homepath/Short Sale website.
Q. Can the buyer contribute additional funds to pay off a subordinate lien holder, if the lien holder requires more than $6000 in order to approve the short sale?
A. If the subordinate lien holder is accepting any portion of the $6000 in exchange for a release of its lien, it must not require or accept additional funds from the seller, real estate agent(s0, buyer, or other party to the short sale transaction. When funds are offered from the short sale proceeds to satisfy a subordinate lien, the intent is to obtain a complete settlement of the lien using those funds alone.
Kacey,
Typically, no contributions can show on the HUD with FNMA. I'd escalate with SLS and provide them proof of FNMA as the investor and that per guidelines they will only be allowed $6,000. I'd also check to see if FNMA will even contribute money to a credit card lien, I am inclined to think they won't. Sounds like people may need to step into the grey area to potentially get this transaction done.
Brett@ishortsalenow.com
www.ishortsalenow.com
310-564-6389
How recently have you obtained an exception?
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