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.