Green Tree Asset Recovery Dept. sticking it to me!
I am in the process of a BofA first and Green Tree second short sale. Seller owes 1.3 million on the first mortgage and 270k on the second. when they took out the second they received cash back. Green Tree is requiring 50% of that cash back to close the deal with no deficiency and or 15% and they reserve the right to come after them. At the 15% we are still short $6500 BofA will not let any other funds show on the HUD to get the money to Green Tree, they are not even letting us do a commission credit to GreenTree ( if we are willing to give in commissions BofA wants it)
Green Tree is suggesting we do a buyer paid pre escrow payment to them to cover the difference. They said they will pay it back to the buyer if for some reason the deal does not close.
Have any of you participated in this... has it worked
Does anyone have a managers number that I can escalate to from Green Tree?
Replies to This Discussion
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Permalink Reply by Short Sale Superstars LLC on
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Kathy,
What state are you located in? It sounds like the investor with BoFA is either Fannie Mae or Freddie Mac. Green Tree is suggesting you step into the grey-zone which is touchy subject. In regards to them stating they would pay back the buyer if the deal did not close, I would be very wary of that as nothing in short sales is guaranteed. If you have any questions please feel free to reach out to me as my door is always open.310-564-6389
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Permalink Reply by Kathy Clark on
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Ron, I will copy what I said earlier to Bret, I understand the concern with the pre payment to the second lien holder. I have checked with 3 of the attorneys in my state and they all say that anyone can make a payment on behalf of the seller to close the gap of what is needed and what they are getting for the second. If the payment happens at escrow or post escrow is were the problem lies, and no promissory notes from the buyer for additional funds post escrow as that is lender fraud.
It does sound like people are either not doing it, not being asked to do it, or not willing to share that they are doing it.
Kathy
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Brett, I understand the concern with the pre payment to the second lien holder. I have checked with 3 of the attorneys in my state and they all say that anyone can make a payment on behalf of the seller to close the gap of what is needed and what they are getting for the second. If the payment happens at escrow or post escrow is were the problem lies, and no promissory notes from the buyer for additional funds post escrow as that is lender fraud.
It does sound like people are either not doing it, not being asked to do it, or not willing to share that they are doing it.
I have had several in my area that are doing it, as I did call around to some local experts to see if they had ever heard of such a thing.
The loan with green tree has been charged off that is why we are having such a struggle..
Home owners keep current on your HOA and your seconds they can discharge and then you are dead in the water as far as I am concerned.
thanks
Kathy
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