I am wondering if anyone else has experienced this situation. We got word from our negotiator 3 weeks ago that we would have a deal if the buyers came up in sales price. The buyers went for it and we got the documentation into the negotiator. We have been waiting for the approval letter to come and then 2 days ago I get hit with the fact that the MI company wants $5000 cash or a $10000 promissory note from my single mother who doesn't have any savings or money to continue paying the mortgage payment. She doesn't have a 2nd lien and was denied for a HAFA short sale for god knows what reason. I told the negotiator that my seller would let it foreclose if that was the case and we are waiting to hear what happens from here. Any advise would be helpful
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what are the terms of the note? typically this would be 10 years with 0% interest. that is $83.00 per month to make this go away. You really need to have that talk with your seller. I would bet $83.00 per month for 10 years that she has the means to pay it somehow. Is she a smoker or drinker? $83 does not go far with particular habits. Find the money!
Her thinking is that if she lets it be foreclosed on then her credit will be ruined but she won't owe anything. Her credit is really already ruined. What do you say to that?
Sure her credit may be bad now but that can be rebuilt. Does she really want a foreclosure on her credit and worse, the lender attaching a deficiency to her? What makes her think she won't owe anything if it forecloses?
We are a single action state and this is her primary residence and her only lien holder.
Single action meaning that the lender can not sue for a deficiency?
She must have disposable income for the MI company to try to squeeze 5K from her
Always find out upfront what % MI the loan has before even starting a SS
Have you countered yet? Try to fight and counter with maybe $1,000 cash contribution and see what they say.
MI Companies are tough. Counter and counter...Sellers are too fearful of promissory notes. They can always be re-negotiated later after COE. However, if you're in CA, like I am, my Sellers do often say "forget it, let it go to the Sale!" Non-pursuit here..I am a big believer in "doing what I have to do to get it done." There has to be a way to get this done!
I'd much rather have a defaulted note on my credit than a foreclosure. Negotiate as hard as you can and then just let the seller make a decision.
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