Seller never had PMI but Fannie Mae added it to loan after the fact for insurance.
MY question is it legal that the borrowers never had PMI, they had a piggy back loan through countrywide and then the loan was sold to Fannie. Fannie had MGIC insure the loan and now MGIC makes final decision on short sale and they dont want to take any loss, they told me they have to pay Fannie in full, so why should they have to take a loss. Just make the sellers pay them back in payments over time. I guess I confused because the sellers never had the PMI to begin with, why should they have to pay MGIC for something they never agreed to.
Replies to This Discussion
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Permalink Reply by Elizabeth on
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<>I thought the same thing, but some people have better luck than others I guess in dealing with BAC
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The problem is investment property. They told me why dont they just rent it. I explained to them that renter quit paying for six months and California law protects renters. Seller got behind in payments during this time and now just completely underwater in back payments. BAC will not modify because of rental property and no equity and lack of income requirements. He said that sounds like their problem. Also seller is underwater in primary by 350,000 with a 900,000 mortgage. Seller is keeping primary and making payments on time, but BAC will not modify that because of lack of equity. So somthing had to give and it was the rental property or lose both.
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Permalink Reply by Kylee Roe on
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I have a new BAC short sale listing also w/MI. Do not know who MI company is yet. Does it make sense when submitting the HUD to BAC, to show payoffs to 1st, 2nd and MI? Instead of just showing payoff to 1st and 2nd?
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I do not really think that BoFa would not modify a loan because ther is no equity also inv. properties can be modified but not going through Hamp program.
Elizabeth said:The problem is investment property. They told me why dont they just rent it. I explained to them that renter quit paying for six months and California law protects renters. Seller got behind in payments during this time and now just completely underwater in back payments. BAC will not modify because of rental property and no equity and lack of income requirements. He said that sounds like their problem. Also seller is underwater in primary by 350,000 with a 900,000 mortgage. Seller is keeping primary and making payments on time, but BAC will not modify that because of lack of equity. So somthing had to give and it was the rental property or lose both. -
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On my HUD they should 1st and 2nd payoff. The payoff to MI is equal to the net proceeds from Sale. Remember MI pays whoever is the investor in full and they want the most they can get. They are private companies and they dont think they should take much loss, so they simply go after homeowner for balance on close, or they stop the deal in the tracks. I learned this the hard way.
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no, I never do it at the begining. Just place 1st and 2nd net amount pay off. Leter if you receive a counte offer you would know how much they want or nOt for a MI co.They might not ask for a dime.
Kylee Roe said:I have a new BAC short sale listing also w/MI. Do not know who MI company is yet. Does it make sense when submitting the HUD to BAC, to show payoffs to 1st, 2nd and MI? Instead of just showing payoff to 1st and 2nd? -
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The payoff to MI is net proceeds from the sale? So if BAC is getting 159K, then MI also needs to get that? Maybe I am misunderstanding what you are writing. And you're saying you only provided payoff to 1st and 2nd in your HUD? I am asking if it would make sense to show all 3 payoffs on the HUD--1st, 2nd, and MI?
Elizabeth said:On my HUD they should 1st and 2nd payoff. The payoff to MI is equal to the net proceeds from Sale. Remember MI pays whoever is the investor in full and they want the most they can get. They are private companies and they dont think they should take much loss, so they simply go after homeowner for balance on close, or they stop the deal in the tracks. I learned this the hard way. -
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What program would it be, I guess I will investigate. Borrower says they were turned away because of investment property and income to debt ratio, and equity. However that was back in December of 2009.. You would think BAC would have brought this up already.
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BAC is just the servicer for the loan they arent the investor that money going to BAC is actually going to PMI.
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Kylee no. You only show 1st and 2nd!
Kylee Roe said:The payoff to MI is net proceeds from the sale? So if BAC is getting 159K, then MI also needs to get that? Maybe I am misunderstanding what you are writing. And you're saying you only provided payoff to 1st and 2nd in your HUD? I am asking if it would make sense to show all 3 payoffs on the HUD--1st, 2nd, and MI?
Elizabeth said:On my HUD they should 1st and 2nd payoff. The payoff to MI is equal to the net proceeds from Sale. Remember MI pays whoever is the investor in full and they want the most they can get. They are private companies and they dont think they should take much loss, so they simply go after homeowner for balance on close, or they stop the deal in the tracks. I learned this the hard way. -
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Every serivcer has their own loan mod programs. Teh loan mod programs where way before this stupid HAMP. I would try and ask by insisting.
Elizabeth said:What program would it be, I guess I will investigate. Borrower says they were turned away because of investment property and income to debt ratio, and equity. However that was back in December of 2009.. You would think BAC would have brought this up already. -
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>Greg, thanks for your replies, it is sincerely appreciated. I have three ways to attack this. 1. Try to get higher price for property by relisting again to avoid MGIC demands. 2. Deed in lieu, 3. Have them try to refinance/ modify.
I just dont think they should give into MGIC, because MGIC is so shrewd about it , I would rather it go to foreclosure so they get nothing and lose more. SOunds horrible, but it is not fair to penalize people trying to do the right thing and people who just walk away get a free ride with no note attached. HOwever, I still feel I can somehow negotiate this short sale, I dont even care about the money,I am giving back to the seller for whatever the closing fees may be. It is pure principle at this point and I will figure out a way. BAC has just assigned my file to a senior negotiator today, I wonder what ride I am in for now...... -
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