Even though it may look like it, this is NOT a picture of a dog that just finished Negotiating a SHORT SALE on a property with 2 mortgages and Mortgage Insurance. This is a picture of a dog that tried to eat a Porcupine. Ever feel like this dog?
So currently, I am working a Short Sale where there are 2 purchase money mortgages. The property once worth $360,000 is not worth a whopping $165,000. The investor on both is Fannie Mae. They have approved the transaction to move forward. HOWEVER, the Lender Paid Mortgage Insurance Company is seeking $13,000 for the second which is 20% of the note. Fannie approves a max of 6% per guidelines which is closer to $3800. Bank of America closes the file within 24 hours of receiving that request from the MI company. ... ... ... ... Sound Familiar to anyone??
Even though it may look like it, this is NOT a picture of a dog that just finished Negotiating a SHORT SALE on a property with 2 mortgages and Mortgage Insurance. This is a picture of a dog that is STILL trying to Negotiate a SHORT SALE on a property with 2 mortgages and Mortgage Insurance . Ever feel like this dog?!!!...
What I don't understand is where do MI Companies (Especially Lender Paid) get the power to hold up a short sale. They do not have a lien on the property shown on title. They do not have an Executed Assignment of Mortgage. Fannie Mae has said verbally multiple that the MI company cannot prevent this approval. Yet, Bank of America seems to think that they do have this Authority. If it forecloses, there will be no recourse in the state of CA for the 2nd or the LPMI as both notes were purchase money. I just don't get it some days. And so... We are back to the dog pictures.
Is NAR working on this for us? Congress is not because they are too busy with Debt Ceilings and what not... Anybody??? I'll let you know how the story ends!!
7/25/2011 - UPDATE
Still battling. Servicer (Bank of America) will not provide borrower or me with contact information regarding the MI Company. Have taken the file to the office of the VP fro the Short Sale Division. Still no progress. Interesting that from a business perspective for the MI Company it make no sense to refuse any amount that would help to mitigate their payout loss.
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