Comment by Jeff Payne on July 6, 2010 at 1:20pm Just closed an EMC short sale....  Amount owed: $260,000  Contract amount $115,000  $1000 toward buyers closing costs  $1100 for past HOA dues  6% commission  days under contract $85,000  Seller was an investor, had to sign prom note for $14,500, $100 per month as per MGIC  First offer was $123,000, appraised for $115,000, renegotiated with EMC to $115,000 At 10:18am on August 28, 2011, Mike Sher said…

Jeff, in regards to your EMC Short sale with MGIC as the MI company.  You reported that the seller had to sign prom note for $14,500, $100 per month as per MGIC.  My file is a 5/3 with freddie as the investor and MGIC for the PMI company.  Got an offer of $102,000.  Current balance of loan is $140,000 5/3 BPO came back at $86,000 which I knew was low.  5/3 said we need an offer of $86,000 to make this work because the negotiator thought we would not be able to get the home appraised. Also since the homeowner was making payments she would be required to make some sort of contribution.  To minimize the deficiency we got the buyer to get their appraisal done now and it came back at $104,000 :).  I told 5/3 to send the file in the $102,000 and that we would be able to close.  I also asked her to put ion a good word for us since we were able to get them $16,000 more then their BPO allowed.  Well they came back after 30 days with MGIC asking for $5000 cash from the seller and a $25000 prom note for 180 months.   Question?  Did you counter MGIC and what did they counter back at?  Sorry about the long post.  BTW my clients hardship is that her home in Michigan and she move to Caroline with her soon to be husband.  5/3 called that a elective move, Guess Love is not what is used to be!!  Thanks  Mike