Comment

Comment by Lori Howard on March 15, 2012 at 6:44am

I have faxed in the "authorization for release of information" multiple times to 3 different WF fax numbers and continue to be told by the POC that it's not on file. Is this a delay tactic? What else can I do to get them to talk to me about my client's loan?

Comment by Michael Schneider on March 6, 2012 at 12:26pm

So, under CA laws, if the MI approves the short sale, they get nothing and pay immediately.  Whereas, if they deny the short sale, they get nothing and don't pay until after the foreclosure.  Is that right?

If so, then under CA laws, the MI would seem to have an incentive to deny the short sale and wait for someone to "voluntarily" make a payment.

Comment by Thom Colby CA Brkr 888-391-5245 on March 6, 2012 at 7:09am

Catherine - I think this whle issue of lender purchased MI is the next big thing to be combatted - The lender took out the MI, not the Borrower.  The lender needs to deal with their loss......  Best of luck !

Comment by Catherine Myers on March 6, 2012 at 7:01am

Thom, I understand that, my client is not going to make a contribution or sign a note. She's broke and eligible under the laws to be free of recourse after a foreclosure or a short sale. This is lender placed MI, I do not believe she'd have any liability to MI. 

Comment by Thom Colby CA Brkr 888-391-5245 on March 6, 2012 at 5:32am

@Kevin - correct, it cannot be "required" as a condition of approval BUT why offer - I've stated the law and had them back off and approve.....

Comment by Michael Hayley on March 6, 2012 at 5:02am

Hmmm, Thom, them's are good laws! Lucky CA. 

Comment by Kevin - Greenville, SC on March 6, 2012 at 5:01am

Thom, Not in CA, but I thought there could be a Seller Contribution, it just can't be required as a condition.

Comment by Thom Colby CA Brkr 888-391-5245 on March 6, 2012 at 4:59am

@ Catherine - Looks like you may be in CA. 

As you know, in California there can be no Seller Contribution or Promissory Note under SB458 and SB931.  There also can be NO Deficiency.  I suggest you send a copy of both laws to the negotiator and "remind them".  In CA, they can only approve the short sale with no deficiency, contribution or note - or - deny the short sale.

 

Best of luck,

Comment by Michael Schneider on March 6, 2012 at 4:57am

In some case, the MI is better off with the foreclosure, as the payment may be the same, but delayed with the foreclosure.  The investor may need to accept a reduced claim amount from the MI to make the deal work.

Negotiate, offer to make a payment, in return for full sat.  The alternative is for the MI to chase your client around, at substantial cost.

Comment by Michael Hayley on March 6, 2012 at 4:52am

Try a counter offer with a note payable at 0% interest, 10 years, level payments, for a principal amount that is fair relative to the loan amount, ...$10k, $15k or $20k. Even at $20k, that is $111 a month and they'll typically accept cents on the dollar post closing. The MIs are near insolvent and are under insurance regulator pressure, this might enable them to declare victory and go home.

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