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Orlando Short sale and PMI July 26, 2009

Posted by orlandoshortsalefl in Foreclosure in Orlando, orlando foreclosure, Orlando pre foreclosure, Orlando real estate, Orlando Short Sale, Orlando short sale Realtor, Orlando short sale taxes, Orlando short sales, Stop foreclosure.
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Good Morning,

I have not been able to blog in a while. We have been working with new clients and negotiating with the banks. In the month of June and July we have closed 5 Orlando short sales. We also received 4 new approval letters from various lenders. These homes will be closing within 30 days. All of the banks, Wells Fargo, Aurora, Bank of America and Regions bank have worked with us on getting the approvals and the short sales closed. This is GOOD NEWS.

I have noticed the Private Mortgage Insurance (PMI) companies are now becoming a problem. Not everyone has PMI on the loan. The majority of the people who did not put down 20% down or did not do an 80/20 loan will have mortgage insurance. make sure you check your mortage documents.

OK, so here is the problem. Some of the PMI companies are requiring the clients to sign a promissory note. This is an amount to offset the PMIcompanies loss. A promissory note is a unsecured promise to pay back a debt to the lender. Unless the PMI company agrees to the short sale there can be no deal.

This is a challenge do to the fact the PMI company can ask for thousands of dollars spread out in monthly installments usually interest free. However if my clients had this additional money per month, they would not need my help with a short sale. On a good note I can negotiate with the PMI company, just like I do with the banks.

Also, not every PMI company will require a contribution. This will vary and is based on the PMI company themselves. I am trying to negotiate with Radian a PMI company. They are requiring a $55,000 promissory note over 30 years. This note is worth more than the condo.

The bottom line is, find out if you have PMI on your mortgage. Let your Realtor know up front. Make sure you ask your agent if they have negotiated with a PMI company before. The PMI negotiation is NOT the same as negotiating with the lender. I have experience with both of these situations.

Contact me today and I will customize a plan for the resolution of your short sale. www.scottnwendy.com or paganorealtor@gmail.com

Remember foreclosure is the last resort.