could someone let me know how pmi could mess my short up..ive done quite a few shorts but nothing involving pmi..if someone could give me a run down or a scenario i would really appreciate it..
regards-pat
Mortgagees often require their borrowers to purchase private mortgage insurance on the low down payment products. The insurance is for the benefit of the lender in the case of foreclosure... and resultant lender loss.
PMI, like most insurors, are averse to paying on claims... and will scrutinize the circumstances to the "nth" degree. They aren't keen on paying on claims if the claims are inflated due to illadvised short sales.
Before the mortgagee can issue short sale approval, it would need it's own approval from the PMI since they are an interested party to the transaction.
The PMI will perform it's own due diligence and analysis. They'll advise the mortgagee if the proposed transaction would result in the best net recovery.. If not, the mortgagee would not be entitled to submit a claim for full reimbursement.
PMI is like a loss mitigation department on steroids.
_________________ Short Sale Practitioners can't predict, or guarantee results... but can take steps to insure the likelihood for success....[ Edited by TheShortSalePro on Date 04/19/2004 ]
Mortgagees often require their borrowers to purchase private mortgage insurance on the low down payment products. The insurance is for the benefit of the lender in the case of foreclosure... and resultant lender loss.
PMI, like most insurors, are averse to paying on claims... and will scrutinize the circumstances to the "nth" degree. They aren't keen on paying on claims if the claims are inflated due to illadvised short sales.
Before the mortgagee can issue short sale approval, it would need it's own approval from the PMI since they are an interested party to the transaction.
The PMI will perform it's own due diligence and analysis. They'll advise the mortgagee if the proposed transaction would result in the best net recovery.. If not, the mortgagee would not be entitled to submit a claim for full reimbursement.
PMI is like a loss mitigation department on steroids.
_________________
Short Sale Practitioners can't predict, or guarantee results... but can take steps to insure the likelihood for success....[ Edited by TheShortSalePro on Date 04/19/2004 ]
perfect response much appreciated....SSP, is your new SS primer out yet???
regards-pat