Having an agent who has short sale experience is critical. With this much at stake you can't afford a "clueless agent" Call the broker and ask him/her to assist this agent who is in over their head!
$157,000 Sale amount
$ 7,000 Borrower down
$ 15,700 Assumed 10% Insured (PMI)
Now you go to short sale and your bank is taking a loss, assuming the balance on the above you've paid $120 per month for insurance plus an upfront fee, the PMI company may want you to make up their loss which they now need to pay to your first lender.
In any event, your realtor can push to get more clarity for you.
All the Best to you.
PMI can be trouble. The insurance company can possibly put the plug on your deal. The $13,500 additional money that the Bank in the 1st position is asking for is probably to satisfy the Ins. Company. The PMI Company is now in control of your deal. The bank in first position will take its orders from them.
I dont know all the numbers in your deal , but the PMI company could ask for some cash and also ask for a soft note ( unsecured ) to allow the deal to go through. Short Sales can be tough and when you throw in the PMI company its gets tougher.
I would work through the bank in 1st position and take thier advice. If they give you a note at least the property can be sold and you can go back to them at a later date and negotiate that note down for a discount.
WEICHERT COASTAL REO
For thought... What you have paid and what you owe does not make a difference now. The bottom line is what the bank will accept. If the bank has provided an acceptable number you give your buyer a chance to match that number and or immediately advertise your short sale has been approved for $95k. This maybe a good deal for someone who is able to do a quick transaction however I do not know the current condition of your home.