SS APPROVED!!! WILL MI COMPANY WAIVED DEFICIENCY???
Hello, Has anyone closed a short sale were the loan is insured by MI Company. Approval lettert is staing that the "mortgage insurance company may resrve the right to pursue the seller for the deficiency based on the terms of the mortgage insurance policy". Is this true? Negotiator required a $1,500 cash contribution from seller. Which the seller agreed to. Seller purchase the property as her primary residence and she has lived at the property for 4 years now. We are in california. Can anyone help??? Thank you
Replies to This Discussion
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Permalink Reply by Michael Schneider on
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Many subprime portfolios have insurance. You do not always know whether there is/was insurance, when you negotiate with the Servicer. I think the Insurer inherits the Investor's right to pursue. Hence, if the Investor can pursue and there was Insurance coverage, then the Insurer can pursue. So, yes, the Insurer can often pursue, unless the Investor waives (and the Insurer has the right to approved this, or not).
Basically, unless explicitly waived, then probably assume they can pursue, unless state law prohibits.
But, CA has the new law on deficiencies...
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Permalink Reply by Lupe Rodriguez on
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Thank you Michael.
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