Home Buying in 43214>Question Details

Achurch12000, Home Buyer in 43214

PMI company has asked for a copy of my appraisal...what does this mean??

Asked by Achurch12000, 43214 Wed Apr 27, 2011

My short-sale debacle continues! On April 8, 20111 my short sale package was sent to the PMI Company for final approval (Chase already approved it). Today, the PMI company asked for a copy of my appraisal (I am the buyer). My realtor said she has never encountered this before. Can anyone tell me why the PMI company has asked for a copy of my appraisal?

This particular short sale was already approved by the PMI company in November 2010 (the sale fell through due to a buyer contingency).

Help the community by answering this question:

Answers

8
Where did the value of the appraisal come in? Most appraisers are coming in very close to the contract purchase price these days and if this is the case in your situation there is no reason for you not to provide the bank with a copy of your appraisal. If the value came in significantly above the contract purchase price I would refuse to provide this and tell the PMI company they need to order their own appraisal. As was suggested the PMI company is attempting to determine the current value and if it makes more sense for them to allow the short sale now, or to force the foreclosure and delay the payment on the policy. If the appraisal is significantly above the contract purchase price the PMI company is likely to require the purchase price be increased to help reduce their payout.
0 votes Thank Flag Link Wed Apr 27, 2011
PMI insures the seller's lender's losses up to a certain point (if in fact this is what you're referring to), that being so, the PMI can affect the outcome of the already approved short sale. The fact that your agent hasn't encountered this before doesn't sound too reassuring, and I am not dismissing the fact that a great outcome has been achieved thus far, because if you're addressing these issues at the 11th hour, is precisely at the delicate point where when push comes to shove, someone may wind up having to do something more, e.g., sometimes the players try to get someone else, the agent(?) to leave a little more money (from the commission) on the table. It isn't that the PMI is stalling necessarily, but if they have issues with the appraised value, you may be in for another round of the rollor coaster ride you've been on for as long as this has been going on. Good luck!
0 votes Thank Flag Link Wed Apr 27, 2011
If it's the seller's PMI company, I guess they're questioning the validity of the appraisal... they clearly think it was low.
0 votes Thank Flag Link Wed Apr 27, 2011
Alan May, Real Estate Pro in Evanston, IL
MVP'08
Contact
To add to my question...the seller's PMI company is asking for this information...not my bank,,,
0 votes Thank Flag Link Wed Apr 27, 2011
To add to my question...the seller's PMI company is asking for this information...not my bank,,,
0 votes Thank Flag Link Wed Apr 27, 2011
Not to answer a question with a question, but is this request coming from the PMI company that has insured the seller's mortgage? Do they need the current value to determine a recourse dollar amount later I wonder?

Or is this request regarding your loan?
0 votes Thank Flag Link Wed Apr 27, 2011
Chances are they want to see if the value of the property has gone up or down so they can can eaither A) ask you for more money, or B) confirm that they want to continue to insure it if the value has fallen significantly. Either way, they are most likely assessing their risk. If you want the house, go ahead and give it to them.
0 votes Thank Flag Link Wed Apr 27, 2011
Prices have changed, no big surprise, since November 2010. That approval is long gone. They want to see confirmation that your home appraised for enough to insure your loan.

I haven't heard of it either, but PMI is getting tougher and tougher, and unless you're prepared to put 20% down, you have to play by their rules.
0 votes Thank Flag Link Wed Apr 27, 2011
Alan May, Real Estate Pro in Evanston, IL
MVP'08
Contact
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2016 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer