Lender Says They Submitted Offer To PMI. Is This Good News?
I've been negotiating with a lender for some time on this short sale, the entire package has been submitted and is complete. They've now indicated they submitted my offer (at my offer price) to the their PMI for this short sale request.
Short Sale Pro and others, I'm assuming this is good news, but can you explain if I'm just overly optimistic on this? Do lenders submit short sale offers to their PMI if they won't agree to the offer price in the first place?
As always, thanks!
Martin
PMI is never good news.... but this step speaks to the fact that your Proposal is in the ballpark... otherwise they would have kicked it back and said, Not Enough, Try Again.
Short Sale Pro,
Why is PMI always bad news?
Martin
Because PMI is the lender's cushion against loss.... and now you'll have the PMI company in a position to decide if your Offer is within reason.
Ever try to get an insurance company to pay a claim?
[addsig]
Private Mortgag Insurance. The instrument of last resort.
When the property will not pass the inspections of the building department. When the appraiser thinks the true value is so low, riding about 80 % of Market Value. When the Bank will not lend as the area is subject to full atomic attack and FHA feels that there is a possibility that value is a teeny bit short. Then and then only comes in the hero of last resort. The Private (as in parts)Mortgage Insurer. Money you pay out that does you no good. I always try to eliminate it as fast as possible. I do this by reappraisal or if necessary I threaten an action at law to bring it up for ajudication by a proper authority, My favorite threat is the Insurance Commissioner of the State of California. I mean I have never done it but I have thumped a few tables. So far I have been lucky.
In your case, the lender is putting you on notice that he intends to make a claim to the PMI company for loss on taking the offer. I would be interested in knowing what PMI company it is and how much below the unpaid balance of the mortgage you offered. Might give us some information that would be of use if this market takes a downward spin. I notice the higher residential properties are slowing on sale. That is 2 to 6 million single residences.
Please post as your offer proceeds.
Lucius 8-) 8-)