Comments & Advise Please...

Got a short here in Los Angeles, California.  Basically a teardown sfr.  Seller owes $900k and is his primary residence.  Got an all cash as is offer for $487k and Nationstar 1st came back with a modest counter of $490k.  Buyer is good with it.  Question is this... Along with the $490k counter, Nationstar says Seller does not qualify for hafa relo as it is a sfr and UPB is under $729k single family.  Now because this is now Non Hafa, commission to be 5% and the Seller must sign a Promissory Note of 10% of deficiency amount.  Does this sound right... Seller cannot and will not sign any note or contribute in any way.  Thoughts please?

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Replies to This Discussion

Permalink Reply by Kevin - Greenville, SC on April 27, 2012 at 2:13pm
Permalink Reply by James Wehner on April 27, 2012 at 5:39pm

Hi Richard,

You can ask NationStar if they will accept a 'Cash Contribution' in lieu of the promissory note. Then, ask if the buyer is willing to pay that 'Cash' amount on top of the agreed upon purchase price. If so, it's a slam dunk. If not, put the home back on the market for the total amount including the 'Cash Contribution'.

I'm currently working on a short sale with similar situation. NationStar was agreeable to the buyer paying the 'Cash Contribution' amount because the seller didn't have the means. This was also negotiated for the seller to receive a full waiver of deficiency.

Talk with your negotiator/ closer as well as the buyer/ buyer's agent and see what happens.

Permalink Reply by Dominique Van Ryckeghem on November 30, 2012 at 5:29am

Nationstar demanding a seller contribution is illegal in CA since Jan 1 2011 for 1st lien holders and July 15 2011 for any other lien holders

Permalink Reply by Thom Colby CA Brkr 888-391-5245 on December 13, 2012 at 9:30am

No lender can "ask for" a Cash Contribution or Promissory Note in CA as Dominique said below  (Google: SB458 and SB931 for the particulars) - HOWEVER, if anyone (borrower or you) made the mistake to OFFER a Promissory Note then all rules are off.....  If Nationstar actually requested either a Note or Cash - get it on tape and then call the CA Attorney General, Kamala Harris, and report them - she would LOVE to get her teeth into them for this.

 

Also, in CA, if a lender approves a Short Sale, there can be NO Deficiency - again get it on tape....

 

Good luck

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