Ive been negotiating short sales for about 4 years now with great success. It seems FHA has changed their guidelines as of 12/1 and now have reduced the maximum closing fee to $750 TOTAL to cover all closing expenses. We usually charge closer to $2000 and have in the past not had trouble getting lenders and investors, including FHA to agree to this.
Ive tried a variance request, but it got denied. That may have only been the one file, but i fear that FHA is getting tough now and wont allow any additional closing fees. Unfortunately, it costs money and time to negotiate these short sales and someones going to have to pay for it. Have any of you run into these problems? Anyone have any ideas? I would appreciate anything you have to offer.
If there had been a change it would be in a Mortgagee Letter. As long as the fee is an allowable fee and you're meeting the min net tiered proceeds it should not be an issue. Actually my experiences have been different on the variance requests as of late.
Well i think what youre referring to is using the sellers $1000 incentive to offset the loss in fees. Yes, they will allow that as long as its an allowable cost... however we shouldnt have to use the sellers incentive to cover a settlement fee. They used to approve anywhere from $1250-1500 in settlement fees PLUS up to $450 in abstract/title search fees. Now theyre saying all of that has to total no more than $750.
So youre having good success with your variance requests lately? In what way, was it for closing fees or seller paid closing costs or what exactly?
No, that's not what I was referring too. I was just pointing out the program guidelines. I do believe the fees you are seeking to charge are allowable and don't need to be taken out of the SI according to my understanding of the guidelines. Ask them to support their decision with a Mortgagee Letter.
Who is the Servicer (BOA or Wells Fargo)?
The 'Settlement/Attorney Fee' is $750 for loans under $150k and $1500 for all other loans. Short Sale Negotiation is never an allowable fee that I am aware of. They expect the Agent (commission) or the Attorney ($750/$1500 settlement fee) to be doing the Short Sale.