Comment

Comment by Adam Woodhall on June 6, 2011 at 11:29am

NFCU is a tough bank to work with. I am the admin for their group on this site, they can be very difficult, so read up and prepare yourself.

I agree with Trina's proposition, but with one proposed change. NFCU no doubt wants a promissory note from the seller already, as they always seem to do, so see if they will modify the terms of their approval. What I mean by that is have them take 15k less in the proceeds, give that to the MI company on the HUD, and increase their promissory note. Same amount of money goes in and out. It seems unlikely a borrower paying 200-300 a month for a prom.note would be bankrupted when the month prior to the short they were paying easier more than that in a mortgage...? They just lowered their monthly debt by going to a prom.note over a mortgage....perhaps I am missing something...fifteen thousand is a small promissory note, relative to what banks and MI usually ask for....

Comment by Trina Gonzales on June 3, 2011 at 7:34am

Wow!  This sounds like one of the MI catch 22's.  Have you attempted to revise your HUD1 to include this fee and ask the negotiator to pay it?  Mortgage insurance companies have to be negotiated just like a lien holder and they can kill your deal altogether.  I'd try that 1st.  Then, if your seller can contribute, if other parties can contribute you may want to try that.  If other parties pay it, make sure that the verbage in the MI approval letter protects your sellers from deficiency judgement of any types.  For review and advice in that respect, I recommend you ask a real estate lawyer for advice.