Re: How MI/PMI affects a Short Sale?
Posted by NJD on August 27, 2008 at 06:21:57:
In Reply to: How MI/PMI affects a Short Sale?
Posted by Merdog on August 27, 2008 at 06:00:40:
The MI has insured the lender against losses due to a loan's foreclosure. If the lender intends on making an insurance claim to the MI, the MI has a duty to maximize recovery... and must conduct due diligence before agreeing the short sale is in its own (the MI company's) best, financial self interest.
It should scrutinize the BPO, the servicing records to insure lender compliance, and the origination file.
If it all checks out OK, and the MI agrees with the BPO value, it should approve the short sale, or, may impose additional conditions such as requiring the seller agree to a post-sale soft note.
Follow Ups:
- Re: How MI/PMI affects a Short Sale? - Merdog 07:12:05 08/27/08
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- Re: How MI/PMI affects a Short Sale? - DMP 07:24:21 08/27/08
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- Re: How MI/PMI affects a Short Sale? - Merdog 10:04:05 08/27/08
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- Re: How MI/PMI affects a Short Sale? - njd 11:03:33 08/27/08
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- Re: How MI/PMI affects a Short Sale? - Merdog 12:26:25 08/27/08
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