Freddie HAFA on non-primary residence

My question is this, is anyone aware of the GSE's, specifically Freddie, approving a short sale on secondary or investment properties?  Had a short sale through Wells with Freddie as the investor, and declined the short sale with the following explanation;

"I am the negotiator assigned to this file and I have reviewed the documents you submitted. Unfortunately we are unable to proceed with this review as the investor has denied the short sale on the basis that the seller does not have a financial hardship. The seller has a high credit score, is current on the loan, and the property is an investment property. Additionally the most recent bank statements submitted show $43,414.37 in liquid assets indicating that the seller has sufficient financial means to continue making her monthly mortgage payment and should continue to do so. Since the investor has denied this short sale we are unable to proceed and I will be closing this file today. Should you have any questions please contact us at 866-903-1053."


Has anyone had a sale go through wherein the seller is still current?  The above noted property was rented, is now vacant.  Rents today would still have a shortfall between rents, expenses and the PITI.


Thoughts?

Views: 34

Replies to This Discussion

Permalink Reply by joe beauchamp on August 23, 2012 at 6:48pm

It looks like your negotiator was thorough and hit all the hot buttons that a bank/investor look at to see if they feel like taking a loss for the seller. What you have not run into is that if you get them to go along with a short sale, the investor will want a ton of cash or note from your seller because he has money and credit. I've had sellers walk because they didn't like the amount the investor wanted. I have no idea what they did instead - they seemed far from BK or foreclosure being where they wanted to end up and the property was dumping money. My point is that even if you get Freddie to take this, they are very likely to want so much cash from the seller that it would kill the deal anyway.

RSS

Members

© 2024   Created by Short Sale Superstars LLC.   Powered by

Badges  |  Report an Issue  |  Terms of Service

********************************** like buttons ************************