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Permalink Reply by Jeff Payne on August 18, 2011 at 7:17am

MI could be a policy that the lender placed on the lot to "hedge their bet". Happens alot, probably a high risk loan that they should not have made to begin with so they place their own policy on it to cover their loan.  You would think that it would be something illegal and probably should be. Oh, and don't forget that BofA gave up their right to negotiate a short sale to that MI company, the MI company calls the shots now.

We need legislation to be put into place that stops this type of activity.  The way it is now, the MI company has to pay a claim to BofA when BofA made the risky loan to begin with.  Now the MI company wants the seller to help them with the loss when the seller had nothing to do with this policy.

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Permalink Reply by Melanie Carney on August 18, 2011 at 10:00am

thanks for the post. they actually did accept the sales price which was very exciting to us :) but we were surprised to hear about the MI. in one case they  are asking for $500 and the other $5,000. As an 8 year mortgage and short sale veteran I wasn't aware that a lender could impose mortgage insurance on a loan and then require the homeowner to cover that loss when it wasn't required by the original loan.

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Permalink Reply by Jim McCormack on August 21, 2011 at 2:27pm

MI is not always disclosed to the borrower so there is a good chance that the loan had MI anyway.  The negotiator could also be lying.  You should ask the negotiator what the MI company is and if they have the certificate number.  If they just tell you the MI company you should be able to have them look up the borrower by their SS# and then get the certificate number.  Then you will know if MI really exists on the loan.

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