Replies to This Discussion

Permalink Reply by joe beauchamp on September 17, 2010 at 12:13pm

I cannot say about WF - I would not be surprised if the managers for negotiators all went to the same seminar wih BofA people to hear how to extort money from SS deals. BofA has agressively started doing this lately and, of course, claims it is the big bad MI doing it. I have one at the moment where I know they are just plain flat out lying and they won't admit it. They have NO MI on it but say the MI for the 2nd wants $5K. Well, someone in the office is related to a large bank exec, we called - there is no such thing as an MI for a 2nd (think about it, who is crazy enough to insure a 2nd and at what premium??). All lies. In my case, I had an approval less than 2 months old, same BPO, new buyer and the Team Lead said that they wanted $148K instead of $144K PLUS $5K cash from the seller. I asked how he can do that with the same BPO and an approval by the investor for less. "Just the way it is" was his answer. Absurd - theivery. I have a call in to fannie mae to discuss this SS. I have been unable to get ANYONE from BofA in authority to call us back about this for 2 weeks now. So, you do have some pinhead people not knowing how much they are flirting with real trouble...

For me, I make sure of the financials for the seller - mine are usually broke. And the hardship. If it is a real MI, they relent usually or make it much smaller. If it is a jerk who lusts after $$ because of a seminar, well, my guy won't give up, but most fold.

Also, try to get the MI, let Chase see that you seriously are going to get to the bottom of this. If the MI is bogus, they may back down to avoid you taking it to some banking authority for illegal practices. If you get to the MI, see what they say. You probably will find an error or get a decent response. At least that is what I see in BofA land...

Permalink Reply by Mandy Berreth on September 21, 2010 at 6:55am

For me, MI companies can and do ask for cash contributions at closing or sign notes. They can and will kill deals. The only thing that I am able to do is negotiate the amount down but not off. Negotiate by taking the amount of time the home owners have lived in the property and how much was going to MI. And subtract that from what they are asking. See if that works for you, it always does for me. Good luck!

Permalink Reply by Robin M. Willis on October 1, 2010 at 8:20am

Paula,

It depends on the MI company. If you are dealing with Radian, they are going to stand firm. You can get them down to 50% but they won't go any further than that. That 50% was as low as I could get with the help of an attorney. But I haven't seen Radian ask for the full shortage either. This is weird.

If your client agrees to this, then the bank should agree NOT to report it as a short sale since they are basically paying the loan in full when they complete the promissory note. I see it has been a couple of weeks since you posted this. Where are you with the negotiations right now?

Permalink Reply by Paula Henry on October 1, 2010 at 9:37am

Thanks for the help everyone. Yes, it is Radian and they will not budge. They said they believe the buyer has excess funds and with attorney fees, they are still short about $5000. The MI Company will not speak with me, but my client called them and sent additional documentation to me to submit to the negotiator, who in turn sent to Radian. It has been a few days now since I heard form anyone.