I have a homeowner who is strapped. Sale is approved, MI wants $5000 and homeowner doesn't have it. She offered $2000 and they said "no" - she has to BORROW the $2000. The servicer is claiming she doesn't really have a hardship and looking at her tax returns. They keep throwing her gross yearly income at me. She doesn't NET that and if you look closely at her financials, she is in the red over $800 a month, which is why she is trying to sell.
Anyways, homeowner put in writing that she wants MI company contact info, and servicer refused. Any ideas?
Not sure QWR allows us MI info
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Ask for the investor to approve a claim reduction. They'll generally do this as a last resort but many times they are delegated and won't even ask the investor. If it is a GSA loan, call the GSE directly and tell them MI is holding up a short sale and you like to ask for a claim reduction before the file is closed. This has worked for me a number of times but requires patience and intense escalation. Resubmit a new RFD Letter and Good luck!
Non GSE. Private lender/investor. I'm getting no where as the "investor" who I'm dealing with doesnt even feel there is a hardship, yet the company sent a form to my seller they are an excellent candidate for a short sale..which they are, approved, but MI stuck their ugly foot in the door.
I spoke to the lender tonight and they will not allow the buyer to contribute the $5000. It seems easy right? Nope.
We resubmitted clearer financials, showed the loss of $800 a month and the increase in HOA dues, along with a $2000 must pay assessment by the HOA and they STILL said the homeowner could afford the home????
I was told on the phone tonight if she was 6-7 months behind, it would probably be accepted. She is only 2 months behind. It's shocking.
Smitty, will the buyer's lender allow them to contribute if there was a seller concession making it a wash? If so, try resubmitting with a seller concession for that amount and and be sure to ask the MI company if the buyer's can contribute. Alternatively if the seller is willing, MI usually takes double the cash offer in a prom. note (if they do prom notes-some don't). So offer a $10K prom. note no interest over 20 years or something? You just have to keep turning this one and looking at it from different angles...and worst case is you may need another buyer (non-FHA/VA-I'm assuming that is what this buyer is since the lender is limiting the buyer's contribution and it must be more than 1% of the purchase price?). Let us know how you work it out!
Seller can't do prom note. They want $11000 in form of prom note and seller is $-800 in red every month now. a prom note would be unsustainable.
Already talked to investor and they won't allow buyer to contribute. I'm running out of ideas