I was surprised when I got an email saying that " This Shortsale has been approved with no mortgage insurance payment." Our team of Shortsale Specialistswas working a shortsale transaction with a bank called IBM. We had gotten an offer on one of our listings that had a $400,000.00 mortgage. The offer came in at $275,000.00 which we figured would not get accepted by the bank. The bank (IBM) said their BPO came back at about $300,000.00. So the bank countered the buyer with that price. Finally we settled on a purchase price of $290,000.00. The bank said the mortgage insurance company would more than likely approve the shortsale.
The mortgage insurance company told the negotiator that they wanted the seller to do a $60,000.0 promissory note. (ouch!) That is not what we wanted to hear. The seller is already in a hardship and she said she would rather file bankruptcy than to do the promissory note. This was becoming pretty stressful to the seller and the buyer. The buyer thought that we were close to getting an approval and this was a huge setback.
So with the seller unable to do the promissory note and the buyer ready to walk away we decided to give it one more try with the bank. We talked to the bank negotiator and they said they would proceed with the foreclosure since there was no promissory note agreement from the seller. One week went by and the negotiator called and said that the mortgage insurance company agreed to forgive the balance, which actually was about $80,000.00.Wow! Now we are scheduled to close in about 2 weeks. Thanks to our team of Shortsale Specialistswe were able to help another homeowner with their shortsale in Charlotte.
Never give up on a shortsale. If it does not go to the foreclosure sale, it can be saved!
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