Could use some ideas on getting a prom note reduced
I have a listing that AHMSI is the servicer, Freddie Mac is the investor. The loan has PMI as well. This is a military family with orders to move in a couple of weeks. They will be getting a significant drop in pay soon. The PMI company did not request a cash contribution or a prom note, but the investor requested $2500 cash at closing and a $15k prom note(0% interest, $250 a month over 5 years). The sellers don't have anywhere close to the 2500 and they can't afford the payment on the prom note, once their pay drops next month.
We countered at no cash contribution, no prom note and of course it was turned down. I've got a couple of other ideas, but I was wondering if I could get any input from you guys and gals? Thank you!
Replies to This Discussion
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Permalink Reply by Wendy Rulnick on
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See if the military member can get a letter from higher up stating what his pay will drop to. Instead of countering with zero, offer something.
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Permalink Reply by Pam Graham on
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Wendy, we are working on the letter and are gonna see if we can get the amounts reduced by half. Hopefully they will take that.
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Permalink Reply by Joseph Alfe on
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better yet, turn it over to an attorney. prom notes and deficiency negotiations are the practice of law.
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Joseph, how would that be practicing law?
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http://www.realestatelawseries.com/wp/the-unauthorized-practice-of-...
http://blog.berlinpatten.com/2011/02/08/is-short-sale-negotiating-t...
Every state is basically the same. You are NOT practicing law by contacting lenders on behalf of a seller to facilitate a short sale. You ARE, or "MAY BE" practicing law when you discuss or negotiate promissory notes or deficiency. This is why I require every seller to have an attorney. Since lenders will pay reasonable attorney attorney fees, why wouldn't you have this extra layer of protection for you and your seller?
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