Short Sale SellersPMI’s can Complicate Short Sales
Sometimes PMI companies can complicate short sales further by requiring a note to be signed by the homeowner. What to do?
A PMI is an acronym for private mortgage insurance, given to those that placed less than 20% down for their property.
In this type of situation, the short sale may not work. Many times the cutoff point for the amount of loss is usually about 12% and that is after attorney fees and additional fees.
Working with lenders like Countrywide can make short sales greatly difficult as they do not negotiate with the PMI companies no longer, which can be quite difficult to obtain good terms from. In quite a few cases, the PMI company may be requesting the homeowner to sign the promissory note before proceeding forward with the short sale. Many times the seller/homeowner is quite surprised by the request and do not want to sign the note. Over a period of 5 years, could result in payments being over $100 a month. If the note isn’t signed the short sale cannot go forward.
Tags: pmi company, private mortgage insurance, promissory note, short salee and pmi
