Forum

Short sale on a second home with PMI

Posted by Diane Rogers on December 15, 2010 at 1:16pm in Short Sale Discussions

Second Home & PMI...

I have a short sale in Equator and GMAC is the lender. It is a second home and has PMI. My negotiator said he has to request the seller come to the closing table with $2,000 and that the PMI company may ask for much more than that and ask them to sign a promissory note. Can anyone shed some light on this? Thanks.

You need to be a member of Short Sale Superstars to add comments!

Join Short Sale Superstars

PMI, home, second

Email me when people reply –

Replies

Laura Marshall December 22, 2010 at 1:51pm

And try to find out who the PMI company is. I had one with Suntrust and Genworth was the PMI company. I was able to deal with them directly and my client did not have to cntribute any money or sign a note. I had one with Radian and they wanted a $75,000 note from a homeowner who made $900 per month (In Southern California). It's always nice to be able to go to the source when necessary.
Wendy Rulnick December 17, 2010 at 12:58pm

It depends on the MI company. Sometimes they insist on the seller paying, since the seller owes the money... Ask.

Diane Rogers said:

Thanks Frank & Jeff. Maybe this is a silly question... Can the buyer come up with some or all of the funds on behalf for the seller?? My clients are saying they have "no money..."
Smitty December 16, 2010 at 3:57pm

Diane,

I can't speak for GMAC or BOA but Indy Mac allowed the buyer to contribute some money, so I think it's possible.
Diane Rogers December 16, 2010 at 11:33am

Thanks Frank & Jeff. Maybe this is a silly question... Can the buyer come up with some or all of the funds on behalf for the seller?? My clients are saying they have "no money..."
Jeff Payne December 16, 2010 at 5:48am

The PMI companies are tough to deal with. They have to pay a claim and want to recoup as much as they can. If you can get it done for $2000, you are doing great! Most likely you can settle with a promissory note
Frank Mir December 15, 2010 at 4:36pm

I had the same sceniro with BOA on a second home with PMI and received full deficeincy waiver with $5,000 cash contribution.......