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. 

Views: 291

Replies to This Discussion

Not illegal. Many banks have backend insurance on their mortgages.
Thank you I appreciate your response. I just cant believe that MGIC the pmi company has the final say and they are nonnegotiable. So, I guess the money the government gives to Fannie and Freddie doesnt really help short sales, looks like propaganda, as Fannie is going to get paid in full no matter what happens because MGIC insured it. Unbelieveable.
I had short sale with PMI and they wanted seller to either come up with $10k or increase price by $10k - which was not going to happen as it wouldn't appraise. We lost that buyer, got another one and just said seller has no $. Someone
BAC sweetened the pot to get PMI to accept the terms. Caveat? It's still in Equator with approval 2 weeks ago and still no letter................

I say all agents should ban together and not take one more BAC short sale listing. They are the absolute worst. Wells Fargo is improving, Chase is improving and BAC is actually getting worse - even though they will give lip service that they are improving.

Have to get off my soap box. BAC is only one that makes me feel like getting on a soap box!!
BoFa is one of the best. The worst is CHASE!!!!!!!!
MI co. dose not have a final say.!! It is all up to them. If they want you to sign a note , you better sign that note and then just not pay it or file for Ch 7/.
Do you know if they do deed in lieu of foreclosure will they have do sign note?. This sounds simpler, because seller has no cash and dosent want a note to sign. I have been on this case since January and then end result is this 15,000 cash upfront with payments. My goodness you would think the MI company would be flexible, because if I tell Seller to let it go to foreclosure. MI company gets zero dollars. Sometimes I wonder why things are so backwards.
Doing DELF , seller should not be required to pay a dime but MI might ask for anything and there is nothing you can do.

Elizabeth said:
Do you know if they do deed in lieu of foreclosure will they have do sign note?. This sounds simpler, because seller has no cash and dosent want a note to sign. I have been on this case since January and then end result is this 15,000 cash upfront with payments. My goodness you would think the MI company would be flexible, because if I tell Seller to let it go to foreclosure. MI company gets zero dollars. Sometimes I wonder why things are so backwards.
So now I know why so many people just let the property go to foreclosure. MGIC is tough to deal with. I guess it comes down to how much the people value their credit. You would think BAC would have some negoitation with MGIC, if I was CEO of BAC I would never send any business to them. MGIC is ruining BAC reputation as a servicer because they stop the deal in the tracks. Most people dont know this side of it.
Greg,
Have you partaken of the magic fairy dust? BAC is the best? Do you work for them?

I have been working short sales for 2 years. My face fell off the chair when I saw your comment.
MGIC is not that bad when you compare them to RADIAN!!! Every MI co has a tresholds, guidelines which have to be met in order to receive an approval. If their loss is much more than the "rules" say , then they start to create a problems.;)

Elizabeth said:
So now I know why so many people just let the property go to foreclosure. MGIC is tough to deal with. I guess it comes down to how much the people value their credit. You would think BAC would have some negoitation with MGIC, if I was CEO of BAC I would never send any business to them. MGIC is ruining BAC reputation as a servicer because they stop the deal in the tracks. Most people dont know this side of it.
Oh, common I don not work for BoFa but the SS process is much better and faster ( nowadays) than othe BIG banks such as Chase. Of course the best one are small local or regional banks. US Bank is very smooth :)

Anna Boyd said:
Greg,
Have you partaken of the magic fairy dust? BAC is the best? Do you work for them?

I have been working short sales for 2 years. My face fell off the chair when I saw your comment.
MGIC quick guide short guide: The new MGIC guidelines give an automatic go-ahead if the loan meets certain criteria.The borrower must be at least 60 days delinquent on the owner-occupied property. The loss on the sale must be less than $75,000, based on a broker price opinion (BPO) or appraisal performed within 90 days of the sale.The property must not only be sold in “as-is” condition, but the sales price must be within 90% of the home’s value after repairs. Net proceeds at closing must be at least 82% of the “as-is” value.The borrower cannot receive any of the funds for the short sale and must prove hardship before the MGIC prior approval. Acceptable hardships include job loss, involuntary relocation, divorce, reduction in income used to sustain mortgage debt, serious illness or a call to military duty.After determining credible hardship, servicers must look into the borrower’s financial situation. The short sale goes through if the borrower’s monthly cash flow is less than or equal to $200, short-term savings are less than the total of three full mortgage payments and long-term savings are less than or equal to $50,000.If these guidelines aren’t meant, the servicer must submit the short sale request to MGIC for approval

Greg Zajdel said:
MGIC is not that bad when you compare them to RADIAN!!! Every MI co has a tresholds, guidelines which have to be met in order to receive an approval. If their loss is much more than the "rules" say , then they start to create a problems.;)

Elizabeth said:
So now I know why so many people just let the property go to foreclosure. MGIC is tough to deal with. I guess it comes down to how much the people value their credit. You would think BAC would have some negoitation with MGIC, if I was CEO of BAC I would never send any business to them. MGIC is ruining BAC reputation as a servicer because they stop the deal in the tracks. Most people dont know this side of it.

RSS

Members

© 2019   Created by Brett Goldsmith.   Powered by

Badges  |  Report an Issue  |  Terms of Service

********************************** like buttons ************************