Foreclosure in Bullhead City>Question Details

Stan, Home Seller in Bullhead City, AZ

I am pursuing a short sale. PMI want $10,000 from me. WHY?

Asked by Stan, Bullhead City, AZ Wed Sep 28, 2011

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Not sure why your not getting attorney advice.. you should be.
And you need to look at if from the lender or PMI insurance companies point of view. They are taking the loss.. You signed up for. What you negotiate with your lender or in this case the PMI company is your business, but paying less than 10% 0n your dept not a bad business exchange.
Get a lawyer,
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1 vote Thank Flag Link Wed Sep 28, 2011
Stan, if you've not already done so, I would HIGHLY recommend that you consult with an attorney. You're treading waters in the deep end of the pool, and the waters are shark infested. Please do NOT rely on the 'comments and advice' given by strangers on a national forum like this. Make an appt immediately with an attorney who can properly advise you on your options and risks.
1 vote Thank Flag Link Wed Sep 28, 2011
If you are the seller then simply put the sales price of the short sale is $10,000 less than your bank perceives what market value is. It is important to price a short sale near market value to avoid this. They may also think you have the ability to pay it and want you to contribute something. I would ask the negotiator you are using to negotiate for you for the short sale. They should be able to explain it in more detail
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1 vote Thank Flag Link Wed Sep 28, 2011
They should not be getting any money from you. What you need is a new short sale negotiator or at least a second opinion:

Good luck stan1
0 votes Thank Flag Link Thu Sep 29, 2011
Dear Stan:

Hi. You really need to ask your Realtor. No one here in this public forum has read your purchase contract or is aware of the property and situation.

Your Realtor and / or short sale negotiator are the ones talking to your lender on the house you are selling. They are best to know what the bank's reasoning is.

May I wish you the best.

Jeff Masich
HomeSmart Realty
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0 votes Thank Flag Link Wed Sep 28, 2011
This is Stan again. PMI is private mortgage insurance that the bank secured on my loan since we put down less than 20%. There is an offer on the house that the bank accepted at $180,000. We owe $280,000. If I don't pay the $10,000 to PMI they will not proceed with the short sale and then it looks like it have to go to foreclosure.
Also the bank is going to give me a 1099 for probably $100,000. Why if they are getting money from PMI?
0 votes Thank Flag Link Wed Sep 28, 2011
Bill - in the world of short sales, there can be multiple lienholders on a property -- not just the mortgage company. HOA's and PMI companies are other common lien holders. All of them want a piece of the pie.

Stan, you need to make sure you have a good negotiator working on your behalf. Put it to them this way -- they can either accept $X and go away quietly. OR...if they insist on the $10K, then you're likely going to have to foreclose on it, and then they get ZERO! I've used this strategy with HOA's and when they realize it's better to get something (even if it's only $1,000) rather than nothing, they usually agree to it.
0 votes Thank Flag Link Wed Sep 28, 2011
They must think you have it,or you're willing and able to come up with it. Banks are not interested in anything but their net dollars on any given short sale transaction, which is why an overwhelming majority of them NEVER make it to closing. Good luck to you!
0 votes Thank Flag Link Wed Sep 28, 2011
Hi Stan:

We need a bit more information. In my world, PMI stands for "Private Mortgage Insurance", and with you being the seller that does not make sense.

Please give us more info so we can help you better.
0 votes Thank Flag Link Wed Sep 28, 2011
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