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 no business of the BoA negotiator. This would be handled direct with the MI company. $5000 should be real close but again, absolutely NOT thru BoA negotiator but.....you will have to know which MI company - sometimes servicers don't want to disclose the name of the MI but since a prom note is part of the short sale approval, there's no reason for BoA to keep it a secret. Try to get the certificate number too.

carol diaz said:
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
When there is MI on the mortgage there will most likely be cash contribution required to approved the short sale and allow it to be closed. Just as Wendy has stated you can ask if they will take a lump payment at closing for a full release. They may accept the buyer's $5,000 but I have seen where they have asked for 55% of the promissory note requested and ask BofA for the representative and their contact info at the MI company and they should provide that to you. After all it is the MI company that will determine what they will accept and not BofA.

Good luck.
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.
Has this happen to me . There was MI on my listing too. BOA approved the price but required PN. Seller was not able to do the promissory note with a 13 % interest rate and BOA said that they were going to close the file and hand it to the foreclosure department. 2 months later my seller called me to tell me that BOA asked him to relist the condo. I went already through 2 buyers and spent 3/4 year on it and BOA was not going to guarantee they would the previously accepted price or not ask for a PN, so I declined to get further involved . Too much work wor a 59K deal. Wasn't MI just meant for these situations.
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.
I've closed several for a very modest cash offer ($2-3k) when the note request was $15k or so. In each case, I've had to negotiate it through the 1st lender's negotiator; I've never had direct contact with the PMI co.



carol diaz said:
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.
Kate,

Get a hold of the foreclosure summons and it will have the actual investor then go from there.
I meant to say I talked with the 1st lender's servicer.

Kate Edwards said:
a bit off topic but how did you get in touch with the investor? they will not give me that information.
In the last sentence, I meant to say "seller will not accept a note".

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 seller will not accept a note under any circumstance.

I'm interested in hearing how others would handle this.
Carol, this is not a HAFA, is it?

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