Promissory Note from MI company

Foreclosures, Short Sales, Tax Foreclosures
1

I’m trying to negotiate out a promissory note for the seller on a short sale. Typically we try to increase the purchase price so they will waive the note. Lately, the PMI companies are rejecting this approach. I have no problem paying the contribution on the sellers behalf at closing as long as the bank says its ok. The conflict is when they want the seller to be the one to contribute.

I have heard of work arounds in which I can purchase personal property for the note amount etc. I’m looking for the cleanest solution(s) possible that won’t violate any laws etc.

Does anyone have any recommendations?

thanks in advance!

2

I have been accepting the promissory notes. The note becomes an unsecured note since nothing is backing it up.
I have successfully negotiated a payoff on these promissory notes after the deal closes for pennies on the dollar since the note isn’t backed by real estate.
I had a $12,000 promissory note negotiated down to $ 1800 after the deal closed.
I hope this helps.

3

I have heard about negotiating the promissory note or deficiency judgements after the sale as well.

Who is paying the note after the sale…you or the seller?

4

The seller in most cases.