TFC Shortsale Relocation Costs for Seller

6 Replies

Hi, 

I placed a bid on a shortsale. The mortgage is by TFC. My agent told me this bank does not give a dime for relocation. I feel bad for the seller for she was expecting $10,000 to move out.

Well, I also feel bad for the Bank because if they accept my offer, they will lose $171,000 on the mortgage.

Have you had any experience with TFC ?

Thanks, 

Some loan investors do pay relocation, some do not. She was likely mislead by her agent....some do this to entice listings....not your problem and don't be giving the seller any money under the table.

I had no discussions about extra money and will not do this. 

However,  the Seller would like to stay, is a three flat. Are there laws against this?  I know this can create a LOT of drama, but she chose me vs. higher bids ( $20K higher).

Generally sellers are not allowed to do lease backs legally if a short sale is complete. There are some exceptions if a non profit is purchasing the property. Feel free to ask the bank as TFC sounds like a smaller servicer and may have different guidelines. This is likely one potentially why they did not participate in the HAFA program too which grants relocation to eligible sellers.

Interesting point, I really want to help the seller, but I may not be able to do so legally.   I will give the heads up to my attorney.

Assuming you are not a qualified Non Profit that might be eligible for an exception, TCF will apply a condition in the closing that you do not rent back to them. You will attest under penalty of perjury that you will not rent back to them. If you violate that, you just committed an egregious infraction that could subject you to a knock on the door from Federal authorities.

TCF is not a small servicer/bank. They have well over $20 billion in assets with almost 400 branches. Maybe they aren't BofA sized but they aren't small by anyone's standards.

Originally posted by @Ron S. :

Assuming you are not a qualified Non Profit that might be eligible for an exception, TCF will apply a condition in the closing that you do not rent back to them. You will attest under penalty of perjury that you will not rent back to them. If you violate that, you just committed an egregious infraction that could subject you to a knock on the door from Federal authorities.

TCF is not a small servicer/bank. They have well over $20 billion in assets with almost 400 branches. Maybe they aren't BofA sized but they aren't small by anyone's standards.

 Well, I can't fight that. Thanks for the information.  I will see if TCF is willing to waive this, otherwise, it's beyond my reach.  My agent was not aware of the above-referenced information. 

BiggerPockets is outstanding!

Thanks!