Can anyone give me some insight as to what Green Tree,Fannie Mae might offer Ocwen,GMAC for a junior lien? The approved price of the short sale is about $60,000 Ocwen wats $6000. I believe that is 10% of the balance. My realtor tells me this way too high and has stated that I may need to look at other property as this is headed to foreclosure. Mainly due to the junior lean wanting way too much. This really is upsetting as we are very deep into this whole process.

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Hi Mike, They will offer 6% per Fannie Mae.  It's not uncommon for the 2nds to want more and often to fail if terms can not be reached. Sometimes buyer contributions can be made to make up the difference.

If it forecloses and you still want it- you could just buy it then.  It may not go at an auction as note is likely more than it is worth, so you could just contact Green Tree after the auction date that you want to buy it or wait for it to be remarketed.

I think you replied on the other thread you are already paying more than appraised it just comes down to how badly you want it.   I warned early on this not to get too attached...look at what else is out there and see if you really really still want it.  Btw you got GT approval in about 30 days I believe which is very good.

Thanks for the quick response. When you say buyer contributions. Could ask for sellers help like say offer $64000 and ask that the surplus go to Ocwen? I dont really want to use anymore of my cash reserves Im already having to set aside $20k for down payment closing and intimidate repairs to the home.

The sellers aren't allowed to contribute- so if you contributed they could mark it as such on the HUD and funds could be used to settle it.

Sorry to bug you with so many questions. But I could summit a offer of $64000 to Green Tree with $4000 going to Ocwen?

You can not finance the amount going to the 2nd so you should keep your contract as-is and offer to pay cash at closing for the difference b/t what the 1st will give and the 2nd will accept.  So if GT and Ocwen both gave approvals for the $60,000 price then that is GT giving 6% of the unpaid balance of the Ocwen loan (what is that amount?) and Ocwen wants 10% of the sale price, correct or 10%of of their unpaid balance?  Does the letter state they are giving a deficiency waiver?  There may be some wiggle room if the seller accepts no deficiency waiver for 6% of unpaid balance. 


Did Greentree accept your offer price right away or did they counter?  If they accepted it right away (and your agent pulls recent comps and you see you are at or above an appraised price) you could counter back with a lower price as you have to pay in cash for the shortage in the 1st/2nd agreement and agent will have a new HUD sent offer to show this (it will come down to their min net which they often will not share).  Any change to their approval letter means it needs to go back to the investor so you could have to wait a few weeks to find out.

I was told to offer $47000 but I knew that was too low so I offered $49000 with $2000 going to me for closing. They came back with a fannie mae BPO of $59900. But no sellers help. So I then countered at 63000 with 2000 going to me.  We had it all ready to go then the realotor informed me that Ocwen was playing hard ball and wanted $6000. I think they want 10% of the total price.

How much does the GT letter say they will give to Ocwen?  It should be 6% of Ocwen unpaid balance...trying to get an idea of what balance is.  Did Ocwen change their letter and go up to 6000?  I thought you had this letter first?

Yeah they offered Ocwen $49000 dollars at first lol He was working them at first thinking that was the only lean..  So yeah they accepted that.

ok so the agent mistakenly thought the 2nd was the 1st it seems... On the GT approval letter how much does it say it will give Owcen?

I believe 6% of the unpaid balance and He wont tell me that. Again this is the sellers agent too. Ive tried and tried to be informed of what the balance is. I believe just form that fact that Im pretty sure that the loan is a fixer upper loan and was used to put a roof on the house and build a garage out back that the loan is 14 years. I believe the balance to be around $60000 dollars.

Mike, I'm finally back on email.  Can you upload the approval letters and just white-out or cross out the seller's info (loan number, name and address) so I can see them?  I'll be online until late tonight. 

Sorry for the delay but we dont have a approval. We dont even have a short sale yet. Now I find out that Green Tree kicked it back to Fannie Mae because he is not behind on his payments. Why is Green Tree serving it then? Also if he is not behind on his payments that means Im wasting my time like Ive thought all along?



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