I just recently bought a foreclosed home. I never had any issue with a PMI company, however the bank dragged their heels on my purchase as well. I made an offer, they sent me a letter saying there was another bidder, and then I went without a response for 8 or 9 days. I sent the bank a letter stating that if I did not recieve signed acceptance in 24 hours, I was withdrawling my offer. 1 Hour after sending the letter I had signed acceptance. Its difficult to deal with a banks, but if you give them the impression that your willing to walk, they will respond because they dont want the operating expenses for an additional month, or months.