PMI mysteriously appears day before closing!

By
Real Estate Agent with Keller Williams Realty 6502364184

We received an approval of short sale on Sept 3, 2009. No mention of PMI. Now we are closing tomorrow and upon review by negotiator, suddenly PMI is noticed and sent the information. They come back requesting $25,000 promissary note payable at 0% int for 7 years at about 296 per month.

We were to close tomorrow!! Buyer has movers planned, Seller has taken day off work, and Wham! We are hit with this killer info that totally blows us out of the water! Unbelievable!

Did the Negotiator miss it? Whoever is responsible, does not matter. Probably will not close and Seller will not pay a dime to PMI. CMG is PMI company. I realize we can surely negotiate down, but Seller will not pay a dime at this point. She says "let if forelose"!!! I am done!

Buyer has given notice to Landlord, and have movers coming in two days!

I have emailed all my "resources" for training and loss mitigation contacts for help. Hoping for a miracle by tomorrow morning.

Any suggestions???

Lender is CitiMortgage
PMI Compnay: CMG

Update: PMI resolved, settled for less than amount owed. Deal closed without foreclosure appearing on homeowners credit report.

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Rainer
117,258
Monika Depalo
GAFF'S REFERRAL'S INC. - Port Orange, FL
REAL ESTATE Agent/Stager

What? What? and What again?  Talk about a time to hit the ceiling!  That should be illegal call the legal hotline and quick!

Oct 14, 2009 02:51 PM #1
Rainer
37,745
Bob Davis
Brush Real Estate - Escondido, CA

Unbelievable...how can an insurance company demand a note from the seller...please let me know what happens here....very interesting!

Oct 14, 2009 02:51 PM #2
Rainmaker
287,572
Barb Van Stensel
Chicago, IL

I would have seller rethink because they are changing the rules and let it go into foreclosure ... she will have a deficiency judgment that may not be resolved through bankruptcy. 

Check the validity of PMI.  Then see if PMI will tag the seller for it and garnish seller.  Lay it hard on the seller. 

Oct 14, 2009 02:53 PM #3
Rainmaker
463,727
Dan Tabit
Northstone Real Estate Inc. - Sammamish, WA

Make this the negotiators problem, and their boss and their bosses boss.  It sounds like you hired a "professional" service to handle this and they apparently dropped the ball.   If you negotiated it, did the seller notify you about the PMI?  I don't envy you, but this too shall pass.

Oct 14, 2009 03:06 PM #4
Rainer
14,174
Ray Spitler
Keller Williams Realty - Plymouth, MI

Thank you for your quick responses...

Monica, not sure if there is anything we can do legally?

Bob, I have had a PMI company want to carry a note before, but we knew a month in advance and settled for half the amount and lower payment.

Barb, I am calling the Seller again this morning.. hope she got to sleep! It has been suggested that she should accept a lower negotiated note and close on the sale, then after the closing try to negotiate a settlement or never make a payment. It is believed they will not try to collect. Any thoughts on that?

Dan, I do believe it is a Negotiator problem. Will be calling or attempt to contact supervisors this morning. I did not hire a service, have been in contact by email only with Negotiator.She never gave me a direct line. I wonder why?? PMI was never mentioned before yesterday.

Wish me luck today!!

Oct 15, 2009 01:05 AM #5
Rainmaker
287,572
Barb Van Stensel
Chicago, IL

Ray, the banks are starting to collect.  They are not too happy with the "I just am tired of making my mortgage payment because I can't pay the man the mows my lawn, or get my nails done or better yet, go out to dinner once or twice a week with a small $60 tab.  They are now, and I believe it is time that it has happened, pulling their credit, doing credit card data mining to see where they are spending their money and if they have made ways to change and cut back.  So, I would try to get her to close but it is PMI and do they have recourse?

The negotiator is one that hinges on if they ate their Wheaties or not for the day.  They can kill a deal fast. 

Good luck today!

 

Oct 15, 2009 05:02 AM #6
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Rainer
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Ray Spitler

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