HELP!  Franklin Credit Management Corp just sent denial letter to the short sale -

 

they are in 2nd position..

reason for denial are:

 

$6000 pay off too low (they are only getting $6k because this is HAFA)

limits commission (2 brokers) to 4%

says no seller concenssions

 

my thought is to formally request to know the note holder as Franklin appears to be a servicer & try contacting note holder direct?

 

anybody have any ideas? 

 

 

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update - just talked to Jim Volinski, a manager who oversees delinquent accounts, who says that even thouth

Franklin agreed to a $3655 pay out to release their lien in July 2009,
poliocy has changed
and now will not release the lien for $6000, wants the commission cut to 4%, no seller concession

He *said* he understood that the commission & seller concession will NOT increase the net
he *said* he understood we are not requesting a satisfaction, just a release ...

I tried logic (silly me) - I asked: so Franklin would rather have zero dollars and attempt to collect the debt rather than receive $6000 and attempt to collect the debt?

He said that was their policy.
Tell the sellers to file for BK and get a case#, then call Franklin and give them the choice: Either accept the 6K,or get nothing and have no collection rights under BK rules.

BTW, HAFA only allows 3K to Jr. liens.
YOU WON'T BELIEVE THIS!! After kicking, screaming and psycho dialing, I finally got thru to a decision maker at Franklin -- want to know WHY they rejected the short sale? It is because of HAFA!

Yep, the language on the HAFA short sale approval letter reads "...will authorize the settlement agent to allow an aggregate of $6,000...to subordinate lienholders...in exchange for a lien release and the full release of Borrower liability."

Franklin wants the right to pursue the deficiency and will not approve the short sale if it means waiving that right.

Sooo - how do I UN-HAFA this deal, still get the borrower/seller his relocation monies? anyone?
You simply have the seller waive out of the HAFA by signing a waiver. They will lose the seller relo money though. This is the perfect example of why HAFA is useless. Did you threaten Franklin with BK?
Resubmit the loan, keep the relo $ in there, alot of non-hafa players are allowing relo $. Its cash for keys.

Take out the HAFA language, then escalate the file to a supervisor!!

It appears that they would rather pursue the deficiency judgment than take a 10% loss? What is the the $6000 representing? 10% 5%?
I submit files asking the first lender to allow 20%....it all comes down to Net Proceeds vs Current Value...thats it.
i believe that HAFA is a very bad program, and it will only bring you more problems when you are
trying to negotiate short sales

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