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I have receive an approval letter from CitiMortgage that states the purchase price ($45K)and buyer as well as a substantial smaller pay off amount that they will take to settle the debt ($6K). Similarly to what a second mortgage letter would say... but the catch is that this property only has one lien.

What do I do?

Any advice will help at this point LOL

Hi Everyone.  I am negotiating a short sale where the first is a Freddie Mac serviced by Nationstar and the second lien holder is Cenlar.  Cenlar wanted a $43K payoff and I negotiated down to a bottom line of $12K.  The Freddie Mac guideline is to pay no more than $6,000 to the second lien holder.  The buyer had agreed to reduce the closing cost credit by $3,000 and both agents will be pitching in $1500.00 to come up with the other $6,000.  I had a new HUD done and sent it to Nationstar.  They are refusing to allow this to take place.  Nationstar said that these are Freddie Mac's guidelines and that we will not be allowed to pay Cenlar any more than $6000 --period.  No contributions will be allowed.

Has anyone been able to get around this situation?  If so, how did you do it?  Anyone have any creative ideas?

I have escalated this with Freddie Mac and should be talking with a case manager within the next few days, but the supervisor I talked with today for over an hour said that Freddie Mac will not bend these rules.

Thank you for any ideas!

Suzanne Martin

I have searched through this site and cannot find the answer I am looking for, so perhaps collectively we can use what we have learned  and post the data here..

I am looking for a list that shows what % on average each 1st lender will pay out to 2nds, and what each 2nd on average will accept to release their lien.

If noone has this info compiled, then perhaps each of you can weigh in on this with your recent experiences and let's get some data going that we can all use..

Thanks guys..

My seller has a first and second mortgage on their primary residence. We are in short sale negotiations and have an approved offer from BofA. My sellers are nervous about signing the def judgment waiver to allow BofA to pursue in the fuure. This only pertains to the second, since it was not purchase money. The amount of $44,000 is low, so I have been told that if the seller just waits 3-4 months they can contact the second lien holder and negotiate a lower settlement, say up to 10%, they would then receive a settlement letter and would be clean of any possible DJ in the future.

Does this sound valid?