MI company wants seller to sign promissory note - can this be negotiated?
I am representing a buyer on a Bank of America short sale. We have been in escrow for almost 4 months and a couple of weeks ago I was told by the listing agent's tc the short sale was approved. We were even told by the negotiator that we had to close by a particular day. We started moving forward with the transaction and went as far as ordering an appraisal. Just as my buyer was ready to sign loan docs the transaction coordinator emailed me and said the seller is going to let the property go into foreclosure because the MI company would only give final approval if the seller signed a $80k promissiory note. Listing agent will not return my calls or respond to my emails. Same for transaction coordinator. I think there is a possiblity this short sale can still be saved. Shouldn't the listing agent continue to negotiate to see if the promissory note can go away or be reduced? I also think listing agent should suggest to seller that she should meet with an attorney about all available options (bk to discharge promissory note, consequences of foreclosure, HOA pursuing seller for $5k lien in unpaid dues,...). Should I just close my file and start showing propety to my buyer again? Has anyone encountered this type of situation and sucessful in closing?
Replies to This Discussion
-
Permalink Reply by Stephanie Lim on
-
Not the exact same circumstances but we have negotiated all of of the MI promissory notes down (or away) on our files. Yes, these are negotiable but the negotiator usually (always???) indicates that it's not negotiable. We've negotiated these both through the servicer and through the MI company directly. Do you know who the MI company is?
-
-
Permalink Reply by Susan Pierce on
-
Don't know the MI company. I may have my buyer contact the seller to get more information since the listing agent and his tc won't respond to me.
-
-
Permalink Reply by Cami Pinsak on
-
Because Short Sales are so precarious, we always continue to show property to our buyers. It is completely ethical.
-
-
Permalink Reply by Deidre St. Romain on
-
Stephanie: I have the exact same situation right now w/BOA and the negotiator has said that it is NOT negotiable. How do we find out who the MI is? That to me is the 60K (or whatever) question. If I knew how to find that out (negotiator won't reveal) I would definitely call them direct. If you have a way to find out who the MI is on a loan please do tell! Also - if it is a servicer or investor paid MI why would they do this anyway if they will get paid in full by foreclosing? Help me out on this one - this is my biggest problem right now and I feel so inept not being able to help my client because as of now he will go to foreclosure if I cannot get around this.
Thanks to all for your guidance!! -
-
-
Deidre--unfortunately I have to "muddle" through it as well. Some things that have worked for me in the past...asking for documentation from the MI company that they would be satisfied with "that amount". Asking to see the promissory note that they will require be signed. Bluffing to customer service by acting like you already know but can't find your notes... This is a very sore topic with me. It seems unconscionable to me that they can sell off the borrowers notes and place a MI policy without their knowledge yet have no obligation to tell them the companies that are involved.
-
-
Permalink Reply by Cheri Smith on
-
Deidre,
I have heard that the homeowner can call and ask who the mortgage insurance company is. I haven't tried it myself but it might be worth a shot.
Deidre St. Romain said:Stephanie: I have the exact same situation right now w/BOA and the negotiator has said that it is NOT negotiable. How do we find out who the MI is? That to me is the 60K (or whatever) question. If I knew how to find that out (negotiator won't reveal) I would definitely call them direct. If you have a way to find out who the MI is on a loan please do tell! Also - if it is a servicer or investor paid MI why would they do this anyway if they will get paid in full by foreclosing? Help me out on this one - this is my biggest problem right now and I feel so inept not being able to help my client because as of now he will go to foreclosure if I cannot get around this.
Thanks to all for your guidance!! -
-
Permalink Reply by Carolyn Vatuone on
-
Same situation here. MI company demanding a $35k promissory note or no deal. I know they mean business because they already closed the file when we said no way - no money. Started again with the buyers, even upped their offer to hopefully make this go away, but no go. We have until Monday to respond back. Still don't know who the MI company is. Any suggestions are very much appreciated!
-
-
-
Third Party Bad Faith...big fat term for basically a litigous event - if your client wants to go to court and spend lots of money, his own time....get the picture? The agreement that the homeowner has with the servicer and the servicer w/the lien holder is "interrupted" - for lack of better words by MI that gets in between the contract and affects the contract. I've recently taken a class that recommends you have your Seller call like Cherie says. The Realtor has no power at this point and the homeowner must take up the fight and demand to know who it is, speak with them, get the terms in writing before agreeing and/or not agreeing to sign. Your Seller has to be aggressive. Has anyone had their seller call and be successful in getting them to either go away or settle for substantially less?
-
© 2024 Created by Short Sale Superstars LLC.
Powered by
**********************************
like buttons