Provident Funding - FreddieMac - no waiver of deficiency

this is my first short with Provident Funding - all was great until the counter offer. 

the counter included $7k cash contribution from seller BUT it does not buy/include a waiver of deficiency. 


when I asked what will it take to get the waiver, negotiator says Provident doesn't do waivers.

really?  cash contribution, no waiver?  Negotiator goes on to say that FreddieMac doesn't do full waivers either (ok, that's not true)


I guess I need to call FreddieMac direct or maybe escalate? 

Anybody have any contact info? 


FWIW, we couldn't go HAFA because borrowers are current but negotiator says the lack of default is irrelevant.


help please.


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talk to Freddie directly , but realize that they are on a big kick to not do short sales at all, so they are making them difficult.

yes thanks, I emailed the borrower outreach and just received the reply which pretty much said they defer to the servicer. 

from the reply:

"However, we look to the Servicer of the Mortgage to implement any work-out option, including a Short Sale.  

This would include the Servicer determining the eligibility for the Short Sale, the deficiency of the Short Sale, the Borrower Contribution, and if a Promissory Note would be necessary.

If the homeowner does not agree with the Borrower Contribution that is being requested, the homeowner would need to provide any updated financial documents and justification to the Servicer on how they do not have the capacity to pay the borrower contribution that is being requested. "


Hmmm, it looks like this young couple would have been better off to stop making payments.... then they would have been eligible for HAFA. 


I'll try calling FreddieMac. 

Unfortunately it works this way. The homeowner must be delinquent with the mortgage  to be heard. There are too many cases that are in the final stage of being repossessed and therefore they are more important.
Is Provident the first?  I had a second and the asked for $7000.  I was able to negotiate that down to $3000

yes, Provident is the first and only.   I guess I am more concerned about not receiving a waiver - no matter what. 

It seems backwards to me that FreddieMac is a GSE and Obama is supposed to be all about helping the distressed homeowners and relieving the pressures of foreclosure but yet a GSE that received our tax dollars (over 153 billion to Freddie & Fannie), serves to punish homeowners....

I don't even agree that borrowers should have to be in default to be eligible for HAFA (per GSE HAFA guidelines)!


Oh this riles me up. I better get back to work...

Freddie presented at the AREAA conference last week, and they addressed this question specifically. They will not under any condition waive deficiency. They also said they will not pursue unless there's fraud involved. Their position is that they don't want to risk losing out in case they find out there's fraud later. I don't agree with their position, and it will lead to more foreclosures, but hey, it's ok as long as the taxpayers are willing to pay, right?



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