My short sale situation is this:  CITI Mortgage is the 1st and GMAC is the 2nd.  CITI has agreed to the short sale but has stated that the MI Company will only allow $1K paid to GMAC.  GMAC on the other hand will not accept anything less than $5K and is not budging.   I can’t even have the seller bring funds to closing or sign a promissory note to make up the $5K…………they simply can only have $1K TOTAL.   I have been told by CITI that if GMAC does not agree to this then the short sale will be declined and the house will go into foreclosure.   I would love some help or insight into how to make this deal go through.  Thanks!


Sheila Vardakis

RE/MAX State Line

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GMAC Bluffs until the last half hour.

If your seller has a lawyer have them file a motion for mediation with GMAC. This will force GMAC to come to the table and mediate. This will also slow down or stop the foreclosure for the time being. If mediation is granted and GMAC does not show up the lawyer can than file  a motion for sanctions against GMAC. This may work well on your sellers behalf as GMAC would be in default. I am currently going through the same process with one of my short sales. Hope this helps.

Can't say it will work here but I have had the buyer pay to a 2nd when they were unreasonable. Can you escalate within GMAC?

Manuel has a better answer though. B

Call the MI company asap. They usually bend.

You didn't state how much GMAC is losing on this deal, but honestly - $1K is unheard of especially in light of the Treasury Dept giving 2nd lien holders $6K or 6% of UPB, whichever is less, in a HAFA ss.

what is GMAC balance? Most investors and MI will go up to 10% of balance or 6K to 2nd.  Go and re counter to MI.  At same time, offer 2K to GMAC.  Get the difference from the buyer. Frankly, on all HELOC's you should anticipate that you will need extra to buy out second and have buyer agree in beginning.

Definitely go back to MI and push them.

contact MI and see what teh "coverage ratio" is, this will tell you what they will pay out if the home forecloses and you can guage things from there.


I also agree with contacting teh MI company directly, they are normally very flexible becuase THEY are the ones writing the checks on teh losses.


Manuel - can you contact me directly at to give me some mroe details about what you describe below.

Thanks, and, all my best to everyone

why would the first then say that it is the MI company that is demanding that no more than $1K be paid to the 2nd?

The 2nd loan balance is $50K.  buyer is not willing to give anymore money either. 

Why? Because your point of contact person is either ignorant of the rules and/or guidelines or is stalling. 

Don't make the mistake of believing what you are told. Follow through with contacting the MI and focus on the close.

Whatever Ben says - Believe! and follow through.



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