Appreciate your help or advice on this: Below is basic scenario involving PHH as the 1st (the 2nd is the problem).

I have a call in to Fannie Mae to get clarification on this "guideline" in order to gain some ground with the 2nd.

 

 

First mortgage PHH today stated that Fannie Mae recently changed their guidelines and now will not allow the secondlien holder to require a promissory note or agreement to pay back the moneyoutstanding, the second lien holder must release the difference. 

 

Second lien holder (Citifinancial Equity Services)   will not release the lien unless the Seller agrees to pay the entire amount back. 

 

 

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  • Hi Ellen & Kristy,

     

    I just ran into the same problem with Cartus last week. The funny thing is the Cartus negotiator sent me this link to prove this is the guideline. CRAZY!

    Have either of you got resolution or clarification on this? Did you get your deals approved?

  • Thanks Kristy, I will forward on to the listing agent.  I have called Fannie mae twice past 2 days asking for clarification on guidelines. Left 2 messages to their escalation II team as they put it with no reply yet. If for no other reason than to get my hands on some actual guidelines for further reference.

  • I was just told, today, that same thing.  The 2nd is OneMain Financial (f/k/a CitiFinancial) that will not take less than $3K and a promissory note for the difference.  The 1st (Cartus for PHH) stated that there is a new Fannie Mae guideline that they cannot have a promissory note.  This may wind up in foreclosure over this.  I have already gone to the CitiFinancial (OneMain) corporate headquarters trying to have them change THEIR guidelines for the $3K - they said no.  We have already had to release Buyers due to their loan type because they were not allowed to contribute to the difference to the 2nd.  This is a step backwards as far as I am concerned when it comes to avoiding foreclosures.  I need to clarify Fannie Mae's guideline as some 2nd short sale approval letters don't include a note, but include verbiage to the effect that the homeowner will not be released from the deficiency.  OneMain would not re-word their approval letter. : (

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