Samantha Fenn

BAC CONTRIBUTION ISSUES with THE BAC CLOSING DEPARTMENT

So you have effectively worked maybe 3 to 9 months on a short sale; and you have a 2^nd lien holder that has been complicated and stubborn to say the least. The 2^nd lien holder requires a large sum to release the deficiency; you’re able to work this out. A payment to the 2^nd from the buyer (who agrees willingly, they want the home) and the homeowner also wants to contribute to the 2^nd as they are getting a written full release.

Typically in this scenario, it’s the first lien holder who has an issue with the cash contribution from the homeowner towards the 2^nd; not always but mostly… Not in this case the BAC closing department arbitrarily is deciding who is paying what and to whom, even though it’s been negotiated. So we are ready to close have all funds ready to go and our closer won’t allow the contribution from the 2^nd from the buyer, because the buyer is getting a closing costs credit and that would mean that BAC would effectively be giving more to the 2^nd ; understood and agreed but what is the difference if the net is the net and the investor has agreed to the net.

However, they simply don’t have an issue with the commission that they (the investors) are paying the agents, to go towards the 2^nd. I ask, isn’t that the same thing? BAC ( the investors) are paying the credit and paying the agents; They won’t allow the buyer to credit to the 2^nd because they state that the credit is/are their funds, well aren’t the commissions their funds too?

If this sounds strange to you believe me it’s also strange to us, as we have completed a myriad of transactions where the buyer has been able to contribute if they have a credit or not. BAC does not have a written policy on this but we thought you all might want to know what we wrote to Brian about today, if we get an answer we'll let you all know:)

RE: Buyer Contribution to the 2nd after receiving an investor closing costs credit for an FHA loan.

We agree with your statement below however we have this comment:

BAC did not in writing, stipulate where these funds (closing costs credit) are to be used; as a closing costs are determined as NRCC or RCC .

The 2^nd lien holder is insisting on the payment and the buyer wanted to see if the contribution would work on their end, we assumed it would. Being that BAC has until this point, agreed to a buyer contribution to a second lien holder (unless this was an investor issue), it never occurred to us that this was a new policy as you state.

Our broker is asking for the written policy? If BAC does not have this, please let us know so that we can create our own policy for our RESPA BAC guidelines. We must ensure that this does not happen again, we want to abide by all of BAC policies and procedures to keep to timely close dates and prevent foreclosure with our homeowners. We need to know what the policy and protocol is re: buyer contribution towards the 2^nd lien holder; and how to have a written approval with proceeds from a 3^rd party going to a 2^nd lien holder, prior to reaching the closing office. We need to know what written approval is needed from the negotiator to give to the closing department. If the negotiator, management and investor agree to contribution during negotiation, why can the closing department arbitrarily decline the HUD and cause the cancellation of the file?. We have only received approved HUDs an email message with approval to close; prior to this file, allowing the contribution even when the investor approves the credit for closing costs.

We hope you can provide us with your policy and procedure so that we don't ever have this issue again.

	1823 Shadetree Drive San Marcos, CA 92078 Beautiful 4 bedroom 2.5 bath near Carlsbad
Home Photo Gallery Virtual Tour Property Map Payment Info Request Showing Contact Me Samantha Fenn 01397669 Office: 7604841884 Mobile: 760-484-1884 Website: Visit Website	Price : $500,000 Bedrooms : 4 Bathrooms : 2.5 Square Foot : 2,373 Lot Size : 13,000 County : San Marcos Property Type : Detached Year Built : 2005 MLS Number : 100068715 click for more information and pictures Property Description VERY CLOSE TO APPROVED SHORT SALE WITH CHASE!! San Elijo Hills school district, San Elijo Elementary and Middle School, very close to beach, freeways and shopping, numerous upgrades include granite counters throughout. Open floor plan downstairs, largest master bedroom of all plans, upgrades throughout, plantation shutters upstairs, travertine floors and hardwood floors downstairs. Home is prewired for Bose, flat screen and entertainment system inside and outside. Office niche and separate laundry facility downstairs. Fully landscaped yard in front and back with irrigation system, stainless steel appliances and full splash granite kitchen counters. beautiful outdoor BBQ area with built in gas firepit.. Features List Not Far From Beaches Built In B-B-Que Close to Major Shops Large Yard FoothillsofSanElijo Newer Home Close to La Costa Close to Carlsbad 2 miles to Carlsbad 4 bedrooms 2.5 Bathrooms Stainless Kitchen San Diego 30 minutes Hardwood Floors Entertainers Kitchen Short Sale Great Value Pet Friendly Discounted Appraisal Completed Move in Ready
Equal Housing Opportunity.	Real Estate Mitigation Specialsts : 283 S Escondido Ave - Escondido CA 92025 : 7604841884

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