After 4 months of negotiating we got a clear to close with BOA. Today I got this message thru EQUATOR: "MI has sent over a response which states the following:I am requiring borrower
to executean interest-free $14,500 promissory note over 120 months with
payments of $120.83 per month"
Am I going to be able to negotiate this new or surprising request? A colleague said there is not wait to fight this back. If we do NOT accept they will close the deal! We already went thru the negotiator, the Investor, now this. So, any advise??? Is this final when MI requesta promissory note?
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you can call the MI company direct. it's a little tricky if you don't have the certificate number but it can be done. does your seller have cash? many times, the prom note can be paid off after closing with a lump sum payment - kind of like discounting a note. it serves as a good means to get a full release. besides, wgile we all prickle at the veru thought of promissory notes, remember - they are unsecured notes.
BTW, 120 months is a little short, depending on your seller, go for 180 months @ 0%
but....you will risk your approval from BoA
Thanks! He has abot $5,000 in a CD. Should I offer that amount now thru BOA negotiator? Or should we wait until we close. Thanks again
Wendy Smith said:you can call the MI company direct. it's a little tricky if you don't have the certificate number but it can be done. does your seller have cash? many times, the prom note can be paid off after closing with a lump sum payment - kind of like discounting a note. it serves as a good means to get a full release. besides, wgile we all prickle at the veru thought of promissory notes, remember - they are unsecured notes.
BTW, 120 months is a little short, depending on your seller, go for 180 months @ 0%
but....you will risk your approval from BoA
This is a normal request when there is PMI.
I always ask in the beginning if there is PMI and who the MI company is. You have to plan for the PMI settlement, which can be cash at closing or the note.
Is there room in your buyer's offer to have the buyer contribute additional cash to pay off the PMI? I'd ask buyer if they will contribute, say $5k towards PMI to make this close. Then offer $1k cash to the PMI co (through your BOA negotiator) to settle the claim. Negotiate from there up to the agreed to sum, say $5k. Say buyer will not accept a note under any circumstance.
I'm interested in hearing how others would handle this.
I just got this message from the BOA negotiator: "Message Inserted (08/25/2010 08:59 AM) On: REGENT PARK DRIVE, ORLANDO FL .
Unfortunately we do not dislose MI information."
I guess I wont be able to negotiatle directly with the MI and my borrower does not find it either! :(
Michael Hayley said:This is a normal request when there is PMI.
I always ask in the beginning if there is PMI and who the MI company is. You have to plan for the PMI settlement, which can be cash at closing or the note.
Is there room in your buyer's offer to have the buyer contribute additional cash to pay off the PMI? I'd ask buyer if they will contribute, say $5k towards PMI to make this close. Then offer $1k cash to the PMI co (through your BOA negotiator) to settle the claim. Negotiate from there up to the agreed to sum, say $5k. Say buyer will not accept a note under any circumstance.
I'm interested in hearing how others would handle this.
a bit off topic but how did you get in touch with the investor? they will not give me that information.
This is a normal request when there is PMI.
I always ask in the beginning if there is PMI and who the MI company is. You have to plan for the PMI settlement, which can be cash at closing or the note.
Is there room in your buyer's offer to have the buyer contribute additional cash to pay off the PMI? I'd ask buyer if they will contribute, say $5k towards PMI to make this close. Then offer $1k cash to the PMI co (through your BOA negotiator) to settle the claim. Negotiate from there up to the agreed to sum, say $5k. Say seller will not accept a note under any circumstance.
I'm interested in hearing how others would handle this.
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