The first loan was approved by the lender, and in this approval the seller is receiving $3000 towards relocation costs when the sale is finalized; in California we say when it closes escrow. So, I then proceed to get approval of this sale from both 2nd and third lien holders.

Unfortunately both 1st  land 2nd liens or lenders have to approve and agree on the terms and the dollar amounts. In this case, the credit union is not allowing the seller to receive any funds at all. If they do not agree, this property will go to foreclosure, and the second loan will receive NO MONEY at all. Neither will the HOA.

I take my work very seriously and I am very honest with all involved – my seller, the buyer, other agents, all lenders. We need to prevent another property from becoming distressed, run down condition, vandalized.  By offering the sellers financial aid in selling, they are maintaining the homes until the buyer takes possession. This particular home is being very well maintained by the seller and due to the regulations or rules of this credit union, it will go to foreclosure.

I think that is a pity.

Again, that is just MY opinion! What do you think?

 SHORT SALE: A homeowner can enter into a short sale when they owe more on their mortgage than the home is currently worth.

In a short sale, the servicer allows the homeowner to list and sell the mortgaged property with the understanding that the net proceeds from the sale may be less than the total amount due on the first mortgage.

DEED-IN-LIEU OF FORECLOSURE: With a deed-in-lieu, the borrower voluntarily transfers ownership of the property to the servicer.

SERVICER: A mortgage servicer is responsible for collecting monthly loan payments as well as escrow accounts.

DELINQUENT: A homeowner is delinquent on their loan when they fail to make payments.

DEFAULT: A homeowner can default when they are unable to pay their debt.

FORECLOSURE: A foreclosure occurs when the homeowner’s right to the property is terminated. A home can be foreclosed upon when the homeowner defaults on their mortgage payments.

My view as a Real Estate Broker is to advise and educate when I can. Please post your questions here. You may also send me an email if you wish at Debbie@DebbieFranklyn.com. It would be my privilege to help you.

For faster mortgage help Freddie Mac has produced a video that shows late-paying

borrowers how gathering a few financial

documents before calling a mortgage servicer can cut the time needed

 to determine their eligibility and process their

application for a loan modification under the Making Home

Affordable program or Freddie Mac's other workout initiatives.

Available in English and Spanish versions, the new Freddie Mac video,

“Stop Foreclosure: Documents Your Lender Needs to Help

You” can be seen at Freddie Mac’s channel on YouTube at

 http://takeaction.realtoractioncenter.com/ct/Pp_DIU11V4DH/.

The two-minute video shows step-by-step which documents

borrowers should have on hand when

they call their servicer to discuss loan modifications.

These documents can cut the time a servicer will need to understand

the borrower's situation,

determine his or her eligibility for a workout,

and process the application.

More info:  http://takeaction.realtoractioncenter.com/ct/P1_DIU11V4DR/