When I first met with these new clients, they had had enough and just wanted out of their condo. Finding themselves severely upside down and unhappy with their homeowners association, they called me.

We listed the property in the slow season ( November ) but were able to locate a solid buyer within 4 months. Once we has all documents submitted in to Bank of America, the PMI company declined the client out of HAFA. This is a VERY common occurence. Many of my clients are lured into HAFA by the " promise " of a $3,000 relocation incentive, but the problem is, many are declined out of the program because A) The mortgage insurance company will almost require some kind of contribution, and B) Their particular investor may not be willing to waive the deficiency. In order to qualify for HAFA, all parties must agree to settlement and deficiency waiver on all acccounts. This RARELY happens when a PMI company is involved, as the PMI company almost always requires a contribution to the homeowner in order to offset some of the losses it will incur from the short sale mortgage insurance claim.

In this instance, the PMI company demanded either a $6,000 cash contribution, or a $12,000 promissory note from the seller. Luckily, the seller was able to borrow the money to make the cash contribution, and put this chapter in their lives to rest with a full deficiency waiver from the investor on the loan, which was Wells Fargo .

 

Here are the numbers:

Sale price- $102,000

Allowed closing costs - $8,000

Amount owed 1st mortgage with Bank of America: - $190,000

Cash contribution from homeowner - $6,000

Net to 1st mortgage serviced by Bank of America with Wells Fargo as investor- $100,000

 

Total deficiency waived and debt FORGIVEN - $84,000

 

The $6,000 cash contribution was well worth the deficiency release from the remaining $84,000 shortfall.

 

Patrick

Why settle for less than 5 stars?

Featured in Connecticut Magazine's March 2011 and March 2012 issues as a top real estate agent in overall satisfaction. Contact me for more information about attempting a short sale in Connecticut.

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Who To Call For Your Real Estate Needs In Connecticut:

Patrick James is a REALTOR that can assist you with all your real estate needs in Connecticut. Patrick resides in Middlesex County but also offers Real Estate Services in New London and Hartford counties, as well as portions of Windham, Tolland, Litchfield and New Haven Counties. Patrick  can be contacted via phone or text message at (860)550-5267 or pwjrealtor@gmail.com

 

IMPORTANT NOTICE:

Patrick W. James and CG Real Estate are not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage, you could lose your home and damage your credit.

 
This post has been included in Connecticut Real Estate News Fairfield County, CT Real Estate News Danbury, CT Real Estate News
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2 Comments on Bank of America Short sale success in Danbury, CT with PMI.

MAY
26
586,846 Points

Hi Patrick,  congratulations on yhour recent  closing....It pays to be persistant and creative.
11:47am • #1
1,361,456 Points 244 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Patrick glad that it all came together for you and you client.  Your expertise in Short Sales really comes through in these blogs.
3:06pm • #2


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Patrick James

Middletown, CT

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CG Real Estate

Address: 1224 Mill St., Bldg B, East Berlin, CT, 06023

Office Phone: (860) 316-2569

Cell Phone: (860) 550-5267

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