Ocwen Loan and HAFA Rules When it Comes to 2nd Trusts

We got a property with Ocwen on the first trust and a small bank on the second trust approved by HAFA this week. The problem is, HAFA requires that all subordinate lien holders (2nd and 3rd trusts, etc.) waive all deficiency rights in full or HAFA won’t agree to the final HUD, or settlement statement at closing.
In this case, the seller is willing to pay a small promissory note back to the second lien holder but HAFA won’t approve the deal with these terms. We are trying to renegotiate terms with the second trust and if we cannot renegotiate, then we will have to kill the deal and restart the short sale under Ocwen’s traditional short sale program and not through HAFA.
Although, this adds another issue to deal with, it is worth at least trying because HAFA has many benefits which include the following:
1) waiver of deficiency judgement
2) paying up to 8% to the subordinate lien holder
3) paying relocaiton assistance to owner occupied properties
4) a lower credit impact once the short sale is complete but it also comes with a specific set of rules too.