Help Needed with MI

Have a short sale that was to go to foreclosure on 4/7.  Escalated the situation with Freddie and B of A as we had a cash offer. B of A was awesome and rushed through the process but the day before the sale B of A came back and said the MI company wanted 25K at closing or a 50K promissory note signed at closing...to make matters worse we were told that the investor would not postpone the sale.  So to foreclosure we go so we thought.  The sale was postponed to 4/15 then to 4/19 and now 5/18 giving us plenty of time to close to close now.  Problem is the MI.  I've not had to deal with MI before.  We are in California.  Only 1 loan and this is purchase money.  Has anyone had any luck in dealing with MI company doing away with a cash contribution or promissory note?  How enforceable is a promissory note in Calif? If this home forecloses can the MI go after the seller?  Any help would be much appreciated.

Views: 209

▶ Reply to This

Replies to This Discussion

Permalink Reply by Bryant Tutas on April 19, 2011 at 11:42pm

Patsy. You can certainly negotiate these figures down. Usually they ask because the seller has the means to pay. Make then an offer. I've had 100k note request negotiated down to zero before. The sellers may very well have to contribute something.

 

They should seek legal advice about what happens with a prom note if they default.

Permalink Reply by Jason Yacoub on April 20, 2011 at 1:01am

Yes its enforeable and no way out of it if seller signs promissory note, they will take seller to court and get judgement and garnish

1. you can negotiate 1-5 cent on the dollar

2. advise seller that it is collectable and have him sign an advisory to that affect or other option is to walk away and go to foreclosure but that will affect seller credit for a min of 7 yrs and that could cost more that PN

3. make sure they get legal adive

 

Be a Pro and do the right thing for your seller its your duty

Permalink Reply by Christopher Pendleton on April 20, 2011 at 4:58am

Radian is the worst. 

 

The MI company is in no rush to approve a short sale - the longer they hold out - the longer it will be before they pay out the claim.  So the servicer will tell you that they are waiting on the MI company - the MI company will stretch it as long as they can.

 

Find out who the MI company is and if possible the 'certificate number'....then start calling and escalate, escalate.  Try to focus on the hardship and unability to pay...not the numbers.

 

At the end of the day - the MI company may not produce a deal that is acceptable and the best thing is for it to foreclose and make em pay.  I am not sure if CA is anti-defiecency of not - so at a certain point there is not enough motifivation for a client to take back a note or come in with cash if they are protected from future deficiency judgement - but they need to seek legal advice to wiegh their options.

Permalink Reply by Patsy Clevenger on April 20, 2011 at 7:27am

Bryant

 

How do you find out who the MI company is?  B of A won't disclose it.  I'm asking the seller if he knew he had it.

Bryant Tutas said:

Patsy. You can certainly negotiate these figures down. Usually they ask because the seller has the means to pay. Make then an offer. I've had 100k note request negotiated down to zero before. The sellers may very well have to contribute something.

 

They should seek legal advice about what happens with a prom note if they default.

Permalink Reply by Jason Yacoub on April 20, 2011 at 8:32am

Hello Patsy

 

they have to Disclose that info to borrower, but seller has to send in a written request via cert mail and good to send fax,email of same letter and send to all heads of banks their info is listed on this site search for it you must do it now while you have time, if you do that they will call you to negotiating let them know you will be filing a complaint
Patsy Clevenger said:

 

Bryant

 

How do you find out who the MI company is?  B of A won't disclose it.  I'm asking the seller if he knew he had it.

Bryant Tutas said:

Patsy. You can certainly negotiate these figures down. Usually they ask because the seller has the means to pay. Make then an offer. I've had 100k note request negotiated down to zero before. The sellers may very well have to contribute something.

 

They should seek legal advice about what happens with a prom note if they default.

Permalink Reply by Patsy Clevenger on April 20, 2011 at 3:14pm

Hi Brian

Yes it was a Countrywide Loan new construction with Lennar.  Client just informed me that he did know he had MI.  I'm a fighter and haven't lost one yet so will give it a go...:-)

Brian Avery said:


Is the MI borrower paid or lender paid? Do you know if the BofA loan was originally Countrywide? This will make a difference. If it is lender paid your seller may not even know they have it. It is built into a higher interet rate. If it is borrower paid find out who initially did the loan and see if you can find a certificate number. Sounds like you are negotiating the MI directly through BofA so I would not be suprised if it is lender paid MI.

 

Brian
Patsy Clevenger said:

Bryant

 

How do you find out who the MI company is?  B of A won't disclose it.  I'm asking the seller if he knew he had it.

Bryant Tutas said:

Patsy. You can certainly negotiate these figures down. Usually they ask because the seller has the means to pay. Make then an offer. I've had 100k note request negotiated down to zero before. The sellers may very well have to contribute something.

 

They should seek legal advice about what happens with a prom note if they default.

Permalink Reply by ElizabethWeintraub00697006LyonRE on April 23, 2011 at 11:37am

The loan is non-recourse if it's purchase money but when you do a short sale, it can change the terms of the loan. I think that's one of the reasons that SB 931 passed and added Section 580e to the California Civil Code, which says a loan in first position that is forgiven in a short sale does not carry recourse anymore. It will probably be challenged -- that's what the lawyers tell me.

 

But MI is a horrid nightmare in many situations. Because MI has to pay whether the home goes to foreclosure or through a short sale. They are truly on the short end of the stick. And they won't back down much. If you're really lucky, the MI will go belly up in the middle of your deal. I just did one with a MI that asked for a $50K prom note or $25K in cash. The sellers settled for $10K in cash. We went through 5 counter offers.

 

Elizabeth Weintraub

Broker-Associate #00697006

Lyon Real Estate

Permalink Reply by William J Archambault Jr on April 24, 2011 at 4:17pm

Pasty,

You have no standuing with the MI company!

The MI company insures the bank and no bank is going to let you talk to their insurance company.

 

You problem is witrh the bank!

The MI company is under no obglation to pay anything if the bank settles with the browwer, nothing, nada! But, MI often agrees to pay some thing for the same reason the bank settles.

 

Get some knolegable help! Call Bryant.

 

Bill

Permalink Reply by Patsy Clevenger on April 27, 2011 at 12:53pm

Thanks Jason

 

I'm actually very professional and do the right thing for my sellers.  I'm not in this for the pay check that's why I LOVE LOVE LOVE this site.  Whenever you get into a pickle with the servicer you can always rely on this site to guide you in the right direction.  This crap with the MI is crazy...The only reason for me to tell my seller to sign a promisory note would be to get a commission and that is not the right thing to do.

Jason Yacoub said:

Yes its enforeable and no way out of it if seller signs promissory note, they will take seller to court and get judgement and garnish

1. you can negotiate 1-5 cent on the dollar

2. advise seller that it is collectable and have him sign an advisory to that affect or other option is to walk away and go to foreclosure but that will affect seller credit for a min of 7 yrs and that could cost more that PN

3. make sure they get legal adive

 

Be a Pro and do the right thing for your seller its your duty

RSS

Members

© 2024   Created by Short Sale Superstars LLC.   Powered by

Badges  |  Report an Issue  |  Terms of Service

********************************** like buttons ************************