I tell clients and agents that one of the keys to getting short sales approved, or at least understanding the process, is knowing who has to yes. The lender(s), obviously, has to, but there's often a second entity -- VA, HUD, an MI company, and I assume Fannie or Freddie. Could there be anyone else, and is there any way to know ahead of time whether it has to be approved by an MI company?
there can be several layers.
1-Servicer, who underwrites to investor guidelines as well as their own.
3-MI/PMI, who underwrites to their own guidelines.
These entities guidelines are frequently in contradiction to each other.
Good point about servicer. Sometimes they are given permission to approve under certain parameters. And I mentioned MI. What would be some other examples of "investor" -- that often mentioned but seldom identified and ever-so-important party -- besides the aforementioned VA, FHA, MI, Fannie, Freddie? By the way, I'm not talking about the occasional judgment holder or something like that. Just common players in the approval process.
an investor is an entity that holds the paper. It is commonly a GSE, like Fannie, but can be another bank such as Deutche Bank, or it can be a private entity such as CALPERS or Aeon.