Replies to This Discussion

Permalink Reply by Kevin - Greenville, SC on November 9, 2012 at 4:28pm

$8500 is the cap for Mortgage Liens.  Not the total amount to be allowed towards a subordinate Lien Holder.

Permalink Reply by Chuck Wartman on November 9, 2012 at 4:31pm

That should be ok. It is going to be up to usually because it is the less of 8500 or 6 to 8% of the principal balance of the second. I have approval from the first giving up to 8500 but the percentage to the second is only around 2900. So that is what the approval from the second says.

I have also gone back to the second and told them the first is only paying the 8% (or 6% I cant remember the guideline) and they said ok and gave a new approval

Good luck

Permalink Reply by Sara Mehrpouyan Los Angeles CDPE on November 9, 2012 at 4:32pm

Thanks Kevin & Chuck-- Chuck who was your 2nd? 

Permalink Reply by Chuck Wartman on November 9, 2012 at 4:41pm

I have had this happen twice in the past 45 days or so. One was Greentree and the other is BofA as seconds. If it is going HAFA and the seconds are participating in HAFA, then they will know what the deal is and hopefully not be silly about it.

Permalink Reply by Steven Pawera on November 9, 2012 at 5:41pm

Since it went from $6k to $8500, and I started putting $8500 on the HUD, I'm surprised at how many 2nds are ok with the $6k.  Ok, so it's often the same servicer for both the 1st and 2nd where this happens.  Maybe that's not the best example.  :)

Permalink Reply by Janet Fuller CDPE, HRC, ABR on March 23, 2013 at 8:41am

Homeward/AHMSI is the 1st and Chase is the 2nd - Homeward is offering 10% or 4064 to the 2nd lien, the 2nd states since it is not a fannie or freddie back mortgage HAFA gives them $8500 automatically - I have googled and can't find any information to prove either correct - can you help?

 

HAFA guidelines eliminated the % cap from What the HAFA hotline # rep told me

 

Permalink Reply by Kevin - Greenville, SC on March 23, 2013 at 1:41pm

Janet,

The subordinate lien holder (s) gets up to $8500 with a HAFA SS.  Chase when they hold the 1st Mortgage does not give the 2nd the full $8500 either.

Permalink Reply by Kevin - Greenville, SC on March 23, 2013 at 1:46pm

Subordinate mortgage lien holders with subordinate liens
secured by a mortgage on the subject property may be paid no more than an aggregate cap of
$8,500. Such cap does not apply to non-mortgage subordinate lien holders with subordinate
liens not secured by a mortgage on the subject property, such as mechanics’ liens or liens
associated with assessments owing to homeowner’s associations. Payments will be made at
closing from the gross sale proceeds and must be reflected on the HUD-1 Settlement Statement.

https://www.hmpadmin.com/portal/programs/docs/hamp_servicer/mhahand...

Permalink Reply by Kevin - Greenville, SC on March 23, 2013 at 1:47pm

http://www.realtor.org/topics/home-affordable-foreclosure-alternati...

Permalink Reply by Kevin - Greenville, SC on March 23, 2013 at 3:22pm

It's up the the 1st Mortgage Holder to decide what % of the UPB is going to be allotted to the subordinate Lien Holder(s).  The % is not dictated per HAFA Guidelines, only that it's capped at $8500.