Anyone have any clue as to how to get around the issue where it's a Freddie 1st and the 2nd wants $12K? My understanding can be no contribution from either the buyer or the seller. The $12K is 10% of the balance owed. Greenpoint is the servicer for the 2nd. Any ideas?

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You can probably do a promissory note instead of a cash contribution.

I had one like that and we got the money from outside sources and it was written on the HUD as outside sources contribution.  If the buyers want to chip in some too, then less has to come from outside sources.  The seller has to find out who will be generous enough to help them with the outside source money.  Any other agreements are between the seller and outside source and not a party to the contract. That is the only way.

Good luck!  I did get mine closed.

With Freddie Mac and Fannie Mae, they will not allow any additional cash to be paid to junior lien holders on the HUD1 regardless of the source.  They will allow a promissory note, though, since it would not be on the HUD1.

Its possible to pay the 2nd the additional 6K prior to closing w a written agreement.  All closing funds have to be accounted for on the HUD.  Yes, that surprised me also.  Does the seller have the $$?  

 

If not, their choice is $6K or foreclose for $0. 

Is this a HAFA?  I just got an approval with 20 % going to the 2nd (Chase).  With HAFA they would have accepted $6,000 but there was a third lien and we had to do a non-HAFA. Now I got 20 % approved toward 2nd and 20 % toward a credit card judment.
Greenpoint always want at least 5% of the sales price. That is always their original position. You have to just keep beating them down. Sometimes showing them the approval letter from the 1st will get them to move. Is it HAFA approved? There is a new HAFA Supplemental that went into effect that allows the $3,000 that the seller gets, to go to other sources to get it closed.
I had a buyer that wanted to house enough that they were willing to pay a little more there and It was ok with suntrust and boa.
Try sending the 2nd a copy of SB458 (California).  Just yesterday I had a 2nd agree to take 6,000 instead of 8,500 because pg 3 (b) states "A holder of a note shall not require a trustor, mortgagor, or maker of the note to pay any additional compensation, aside from the proceeds of the sale, in exchange for the written consent to the sale".  It worked for me and a number of other agents in my area.  This bill just became law on July 15 so it isn't common knowledge yet.  I can't guarantee it will work since, if the 2nd really thinks it out, it doesn't say that they can't require the funds from the buyer or from agent commissions but of course we won't point that out to them!  I don't think that you can do the promissory note now that this bill is in effect since I think that would be considered additional compensation aside from the proceeds of the sale.  I'm not positive on that though.  It might be worth your time to place a call to the CAR legal dpt to find out.  I wish you the best of luck and hope you get your approval.  We work way too hard on these short sales to see them fall apart so close to approval!

Hi Melissa, this is really weird because I did not start this discussion. I posted a similar question months ago but I have never dealt with Greenpoint on a transaction. Hum....

Anyway, good point about SB458, if you could actually get a negotiator to make sense of it. While it is great that sellers no longer have a potential deficiency to worry about, I wonder what stance some of these junior lienholders may take in accepting any payments in a short sale situation. They just may be ignorant enough to think they should roll the dice and not approve a short sale, in the belief they could gain more suing the sellers after a foreclosure takes place. (If they can potentially do that) Doesn't seem practical to me.

THAT is really interesting.

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