Replies to This Discussion

Permalink Reply by Joy Baker on June 2, 2011 at 6:55pm

Julie~

I have not heard anything about Fannie or Freddie adopting the Treasury Guidelines.  Where did you hear that?  Also, if you want to private message me, I'll give you the contact info for the person at BAC that oversees AMS for HAFA.

Joy

Permalink Reply by Julie Tinkey on June 2, 2011 at 7:05pm

I went to www.efanniemae.com/sf/hafa. There is lots of information on that site.

Permalink Reply by Sara Mehrpouyan Los Angeles CDPE on June 2, 2011 at 8:52pm

Fannie Mae is difficult to deal with, unfortunately. I had a short sale with the first owned by Fannie (not B of A though) and they would not allow the buyer to bring in additional money towards the 2nd loan. They said if there is any additional money it should be given to us.

Permalink Reply by Aileen Potter on October 27, 2011 at 10:33pm

Have the 2nd issue a promissory note to the seller

Permalink Reply by Joe Beauchamp on June 2, 2011 at 9:16pm

I knew of treasury changes (banks like WF, BofNY, etc.) but didn't think anything changed for freddie or fannie.  Hunted around with the pointer you gave, and of course, on the last page of the last doc in the last section is costs - exactly as before - $6K max, 6% of principal owed.  So, from what I see, it is still the same..

 

Don't overbet on the value of the office of the prez - they are useful for some things and they just scratch their heads on other things.  They really let me down on my last call - actually about their HAFA.  What I have experienced is that if that office is going to be helpful, it will be within hours.  Anything beyond and you can just spit in the wind and hope.  So, if it has been a couple of days, you need to look at your plan B.  (And, what is it that you expect BOA to do? Bypass FNMA rule of 6% max?  Ignore HAFA rule of no contrib from seller?  Not likely to happen.)

 

It seems that the only thing you can do is work on that 2nd lien - tell them that FNMA is the investor for the first - unless they are complete neophyte idiots, they know FNMA pays 6% max.  Explain that in HAFA, the seller cannot contrib and this is a FNMA HAFA short sale.  And are they really going to force this person into foreclosure and ruin what's left of his financial future for $1150?  That is lunch for 3 UG exec's...

 

But, I'd say you have a bigger problem.  If UG is being a pinhead for $1K, have you told them that they are not allowed to go after the seller for a deficiency?  Yeah, I'd say your deal is pretty well cooked.  My first SS into HAFA, after getting no info from HAMP, HUD, LRC or BOA, I went through the docs myself and got the negotiator to confirm my understanding so pulled the deal from HAFA.  No way was the 2nd going to go for 6% payoff AND drop the deficiency.

 

Anyway, I'd say you can make quick work out of any decision by getting UG's response to the mandated 6% and no deficiency.  After all, these people are already raking you across the coals for a puny $1K - so anything like a threat has to be more than "oh yeah? then the seller will do a BK and you won't get your $1850" Really, people at UG are paid to argue all day over $1850?  The cost of 3 of their exec's dinner out?

 

You might have some luck by escalating to UG management - someone who knows you've already chewed up $1K of their time in your first couple of calls - and it isn't nice to force people into foreclosure/BK for $1K.  But, it will take delicate handling - geez, for $1850, he shouldn't waste his time and just hang up on you and save the company money, you know?  So, you'll have to pal up with the guy and get him to feel charitable.

Permalink Reply by Cherlyn Jones on October 14, 2011 at 10:49am

Julie,

 

I'd love to have that email for BofA contact...I'm at my wits end with BofA/ams/hafa SS we have gone nowhere with.

 

Thanks!

Permalink Reply by Joe Beauchamp on October 14, 2011 at 1:07pm

FNMA & Freddie didn't go with the new guidelines.  FNMA is 6%, $6K max, as always.

If you read the HAFA directives carefully, you will see it say that the restriction to the second is from the proceeds of the sale.  This phrase was unnecessary unless it is there to imply any POC is just fine (or other money from elsewhere to pay the 2nd).

You can put the $1150 diff on the buyer's side, however, your buyer's bank is likely to object, so make sure that is covered with them if you want to go that way (BOA and others don't care what is on the buyers side).

If you go POC, get from your closing officer at BOA PRECISELY how they want it entered on the HUD-1.  Start early - they don't write things down and can literally take months to answer such a simple question (ask me how I know).

Basics of a POC, put the money in escrow with the agreement with the 2nd that they get it if the close succeeds.  The title co will want the approval of the 2nd to do the closing, of course.

Since the sum is so small, you are unlikely to get the pinheads involved who think something must be wrong because they don't see the POC that often.  Also, because this is HAFA, you must have a release of debt from that 2nd.

I think my last one bounced around and ended up on line 409: "Cash contribution to Wells Fargo $3,000 (POC)"

Permalink Reply by Aileen Potter on October 27, 2011 at 10:32pm

The cap payment to the 2nd lien holder is 6% or $6,000 Which ever is less