Replies to This Discussion

Permalink Reply by DanaVoelzke on February 10, 2010 at 2:49pm

yes.
try to negotiate it.

Permalink Reply by Patty Da Silva on February 10, 2010 at 2:54pm

I just got an even better one today.. Lender is Chase (nightmare), file has been there since July/09. Loss Mit calls today and says the MI company wants 6k seller cash contribution at closing AND seller needs to sign a 20k promissory note!

It is not easy to negotiate with the MI companies, they are going to pay their policy claim regardless, so they will force the property into foreclosure if they don't get what they want..

Some MI companies are better than others, like in all business, so for sure, try to negotiate.

Patty Da Silva, CDPE©, RESS®, AHWD®, e-PRO®, GREEN, CFS
Member of The Institute for Luxury Home Marketing
BROKER - Owner REALTOR® - Green Realty Properties

Permalink Reply by Roxanne Foley, PA on February 10, 2010 at 2:58pm

I suggested that to the assigned negotiator. His reply was the MI company won't negotiate. I reminded him that AHMSI stands to lose an additional $30,000 + if this account goes into foreclosure but it fell on deaf ears. I'm considering asking the selling agent if the buyer would up the ante any.

Permalink Reply by Bryant Tutas on February 11, 2010 at 1:57am

Roxanne, A 10k note at 0% interest over 10 years is $83 a month. Far better than being foreclosed on. They could also offer to bring a couple of thousand to closing and sign a 5k note.

If they plan on filing BK anyway then it really doesn't make much difference. Maybe they can just hold off on the BK until they are able to include the note in the filing?

Permalink Reply by Cheri Smith on May 3, 2010 at 9:41am

I heard from an AHMSI Team Leader that the MI company prefers a one time payment over a promissory note because 9 times out of 10, even if the seller agrees to sign the promissory note, down the road they don't have the money to pay it. At least with an upfront payment, the MI company gets something immediately. I don't know if that's more palatable to your sellers, but you could try to get them to agree to a one time contribution.