I have found that many times the PMI companies have gotten in the way of the lenders making an agreement to complete the short sale. I have 4 right now with PNC where PNC was willing to complete but the PMI company insisted that the property was worth a $100,000 more than actual value.
Any one know who regulates these companies or how to put pressure on them? Also, since these are a type of insurance for covering the default, are there any attorney's that would know how to approach the idea that these companies are working in "BAD FAITH" and perhaps there is ultimately a legal way to approach them?
David, I have escalated to the MI companies and it worked everytime. Getting to the right person can be tough but once you get that person it works wonders. Jigsaw.com is a good resource for finding executive contacts.
As far as MI companies getting in the way, I have a bit of a different view on it. The lender is who is requiring the MI company to pay the claim so really the lender is just as much at fault for the short sale not getting approved. Maybe the lenders need to release the MI company from the claim and let the short sale happen. Otherwise the MI company does not care if they pay the claim as a foreclosure or short sale because the number is most likely the same.
In your PNC short sales, ask PNC to release the MI company from the claim and see how quick the don't cooperate :(
As good as it sounds, an attorney is not going to be able to do much because the MI company is most likely just doing what they designed to do, insure the mortgage and pay the claim should one arise.