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As a short sale listing agent when you have HAFA approval for 6k to the 2nd lien but they will only settle for 8.5k? Tell them 6k or take a hike?

Asked by , Wed Nov 2, 2011

HAFA will only allow the 6,ooo toward 2nd lien release, and cannot be combined with outside funds. Meaning the seller can't contribute anything. And there's no way the commissions are getting cut. Tell the 2nd take 6k or screw off? Prom note a consideration but not in this case.

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Yep, tell them 6k or they are welcome to get wiped out during foreclosure. Sounds like it is owner-occuppied so the 2nd is going to be under the new AB273 statutes which will make it more difficult for them to collect any deficienciencies unless they are unusually swift. Mention AB273 to the 2nd (the'll have no idea what that means but will make them more pliable to negotiate).


[I'm not a lawyer. All persons in similar circumstances should consult an attorney]
Web Reference: http://www.HouseOfVegas.com
1 vote Thank Flag Link Wed Nov 2, 2011
Anson,
Check out ShortsaleSuperstars.com and look up the lenders involved. There are discussion boards on lots of lenders and scenarios that might be helpful.
If you don't find anything better, I would just put it to the second lender. Here is what is available, what the first lender allows and my client has no other resources as the financial forms indicate. Take it or foreclose and get nothing. The second lender is negotiating and looking for any weakness they can find. If you offer commission, they will take it. I didn't on my last one and got it settled.
1 vote Thank Flag Link Wed Nov 2, 2011
That or a note for the difference or go back and renegotiate with the first to allow a buyer additional contribution if they are willing to help the sellers and the first will allow it to go to the second on the HUD
1 vote Thank Flag Link Wed Nov 2, 2011
Send them the hafa agreement and approval from the first. If they are not willing to accept the 6k, they might not be familiar with or might not participate in the hafa program. Then you have to back to the first and process as a conventional short sale.
0 votes Thank Flag Link Tue Nov 15, 2011
HAFA does not allow secondary contributions like HHF for the 2nd. I think it's a take it (the 6k) or leave it scenario.
0 votes Thank Flag Link Thu Nov 3, 2011
Do your clients qualify for Nevada's Hardest Hit Funds? They'll give up to $16,500 towards the second but only on the condition of a full release of liability.
Web Reference: http://nahac.org/
0 votes Thank Flag Link Wed Nov 2, 2011
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