Replies to This Discussion

Permalink Reply by James W. McCormack on August 26, 2011 at 12:05pm

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

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Permalink Reply by Marjie Orton on August 26, 2011 at 12:11pm

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.

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Permalink Reply by James W. McCormack on August 26, 2011 at 12:13pm

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.

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Permalink Reply by Jeff Grenz on August 26, 2011 at 12:24pm

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. 

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Permalink Reply by Heidy Gisler on August 26, 2011 at 12:25pm

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.

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Permalink Reply by Jim West on August 26, 2011 at 12:59pm

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.

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Permalink Reply by Kathy Bond on August 26, 2011 at 2:55pm

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.

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Permalink Reply by Melissa Sorensen on August 26, 2011 at 3:39pm

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!

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Permalink Reply by Julie Tinkey on August 26, 2011 at 4:01pm

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.

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Permalink Reply by Jeff Grenz on August 26, 2011 at 4:27pm

THAT is really interesting.

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