HAFA approved short sale (1st loan is with Pennymac) - they do not want to give full $8500 to 2nd loan. The first may pay UP TO $8500. Has anyone had a 2nd accept less than $8500 recently with HAFA? 2nd is Citi. Thanks.
$8500 is the cap for Mortgage Liens. Not the total amount to be allowed towards a subordinate Lien Holder.
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
Thanks Kevin & Chuck-- Chuck who was your 2nd?
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.
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. :)
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
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.
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.
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.