Replies to This Discussion

Permalink Reply by AMY GERRISH on April 12, 2011 at 10:03am

:( I don't know. There are so many red flags with these guys! Is this an owner occupied property?

 

Permalink Reply by Paul Kuriatnyk on April 12, 2011 at 12:15pm

Yes. Owner Occ.

Just spoke with MI direct.  They told me that the reason for the demand is that they "can demand if they want".  Also said that the payout is about the same if the investor forecloses and files a claim vs. Negotiates a SS and files a claim. 

Seems MI uses the FC to their advantage... by requesting cash/prom note before FC sale, they stand to recover something vs. nothing.  The FC sale is used as leverage to recover/reduce their exposure. 

This MI agent also said this: "If we lose, everybody loses."  

Sounds like their motto to me.

I don't really know what the solution is, but LBPS is showing up on many of my new clients statements... Gotta find a workable solution.

AMY GERRISH said:

:( I don't know. There are so many red flags with these guys! Is this an owner occupied property?

 

Permalink Reply by Laura Marshall on April 12, 2011 at 12:31pm

I've had this issue with other companies as well. I don't think it is specific to LBPS. I had a file with MI (Genworth) and they were terrific! I negotiated with them directly. I had 2 with MI (Radian) and they wanted the seller to sign a $70,000 note on each. The Genworth MI was with Suntrust and the others were with Wells Fargo & Chase. One of the sellers who was asked to sign the $70,000 note was on permanent disability with a total household income of less than $1100 per month. That does not go far in Southern California. In the area where the property was located, it would be difficult to find a 1 bedroom apartment for $1100 per month.

Permalink Reply by Gwen Mark on May 24, 2011 at 4:01am

Write a letter to your congressman in clients name (have them sign it). Also send a specific authorization. If these loans are FHA, Fannie or Freddie, the government has an interest. When you send the letter, cc the servicer. I had one with Suntrust where they were requiring a huge cash contribution and would not advance the short sale. Fannie Mae said they could do what they wanted as the servicer. I wrote Senator John McCain (Arizona) and within 5 days, I had an approval letter with no issues, and no further adieu. The servicer does NOT want to be examined by the Bank Comptroller, which is what happens when the big guns get involved. Just explain the short sale hardship and the timeline and what has happened with the servicer. Let them know you have a buyer and this would be in the tax payer's interest if the short sale is processed to close. I haven't had this where the MI company was interfering, but I would think it would work the same. Be specific as to who is holding up the show.