Short Sale with PMI

Foreclosures, Short Sales, Tax Foreclosures
1

I’m trying to complete a short sale with Chase Home Finance on a defaulted loan that is scheduled for auction here in Georgia on Dec 6th and have FAX’ed everything (??) into the Loss/Mit Rep. They called yesterday and said Chase has to submit our offer to the PMI insurance company since our offer ($73K on a $112,500 loan balance. . . . original loan - $116K in SEP-2002) is too low and, as such, Chase cannot stay/stop the auction on Dec 6th.

Wanted to see if anyone has suggestions and/or used another approach when a defaulted loan has PMI. It appears that PMI does not cover 80% of the loan, but a much lower amount. The Loss/Mit Rep said this PMI only covers the top 12% of the loan amount. Could use some clarity here, if someone knows more about PMI coverage.

Thanks!

Atlanta_bob

2

Hi Atlanta_Bob,

I try to keep it simple. Ask them what’s the lowest they will take to stop the sale and get the deal done. Sometimes they will tell you, and at this point you have nothing to lose, remind them of the market time and their holding cost.

good luck,

Tony