How Is The MI company dictating short sale approval when there is no MI!

The negotiator on my "Fannie Mae" owned loan/property is saying the borrower has a MI on the property and all terms are being dictated by that company!

 

Let me back up. My seller is asking for a B of A short sale on his property and he is not delinquent. The hardship is not important here, but it is legit.

 

The first lien will be completely paid off at closing. The second lien will be getting $22,000 toward the $80,000 borrowed. We are short selling the second.

 

Borrowers put down 50% when then purchased the property ($200,000) and did not need mortgage insurance. I verified by checking their original loan docs. I had to, the B of A negotiator said his system said they had MI!!

 

During early stages of negotiating, the borrower was asked to pay  or sign a note for $6000 at closing. I know.... but after much questioning and frustration. they finally removed that condition. But. the commission was reduced to 4%. The negotiator will not budge and says he can't because that is what the MI is saying.

 

I emailed him the fannie mae commission guidelines and am contacting fannie mai directly. So I guess what I am looking for here is .... where do I go from here. Or.... has anyone else come across any situations like this.

 

Could I be wrong, could there be MI insurance and the borrower is unaware of it? I am at a loss and frustrated.

 

Thanks for the time to read this and help me out!!

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They could very well have MI. I just closed a file...where there was NO MI...but...the bank added MI at some point after the loan was made. The seller NEVER paid towards the MI. Apparently it was done by the bank. Mine was also a B of A 1st and 2nd. The MI was on the 2nd....not the 1st. The MI company turned out to be United Guaranty....who was very easy to work with. I would ask the 2nd lienholder who the MI company is. Maybe you can go to them directly. If they won't give you...or your client...the MI company name....I would try United Guaranty...especially if the 2nd is a B of A / formerly Countrywide loan.
Great advice! The second is with B of A / formerly Countrywide loan.

Thanks you so much Laura! i am going to contact United Guraranty.
If you send me your email address, I will forward my UG contact info to you. I do now know if this person will be able to help...but she was a great help to me. At least it is a good place to start.

Terrie Leighton said:
Great advice! The second is with B of A / formerly Countrywide loan.

Thanks you so much Laura! i am going to contact United Guraranty.
They also use Old Republic who gave my client the ultimatum of pay 8500 or go to foreclosure.I gave up all my commission to prevent it because the seller had no money. BofA had approved the short sale before these charmers got hold of it. Try Old Republic too but don't hold your breath for a positive response or you will go blue

Terrie Leighton said:
Great advice! The second is with B of A / formerly Countrywide loan.

Thanks you so much Laura! i am going to contact United Guraranty.

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