Short A 1ST Mtg With MTG Insurance

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If the Loan has mortgage insurance will the lender still do a Short?

My Assumption is that MI (Mortgage Insurance) covers 80% of the note face value so why would the Lender take an offer less than 80%on either a 1ST or 2ND mortgage?

Thanks!



1 MTG 380k

House worth 285k, tops after repairs of 10k

No 2nd MTG

BPO, came in at 315k, way too high

My offer 220, cash, Lender said NO, told me 315k

Comments(5)

  • TheShortSalePro23rd May, 2007

    It is always the responsibility of the taxpayer to report income... (IRS considers forgiven debt taxable income)
    and it is immaterial if the forgiving lender issues a 1099, or not.

  • cash4housesandnotes23rd May, 2007

    Thanks ShortSalePro. Would you happen to know whether or not you can obtain hard money loans to buy notes on delinquent mortgages?

  • TheShortSalePro23rd May, 2007

    What would be the collateral for the loan?

  • charlotteinvestor23rd May, 2007

    Once you own the property you can give them a temporary lease. Since they were facing foreclosure, their option to finding another place will be very slim. So by giving them a lease. They may stay the whole term of the funds and then stay until you evict them. So you may have to deal with them leeching for three months maybe.

    Also to minimize your risk to a lawsuit, you will have to keep accurate records of call logs, personal meeting logs, and the different disclosures stating that selling to you is their only option. Plus, you have to make it perfectly clear that you are not represent the homeowner, and that you are a buyer and not providing any advice. Anything you told the homeowner must be through your own experience.

  • cash4housesandnotes23rd May, 2007

    Thank you charletteinvestor and mcole.

    I definitely don’t want mooching tenants. I am a nice guy, and I was just looking at a way to give ensure them they will get a little something something to help them move. While I have found that most people find me very trustworthy, I am sure their situation makes them very weary of the term “under the table”.

    Thanks for the advice of regarding keeping accurate records of call logs, personal meeting logs, and the different disclosures stating that selling to you is their only option. I will take that to heed.

    I don’t offer any written advice and don’t even like giving verbal advice (personal or business). In either case I simply present options available and possible pro’s/con’s. I plan to do it the same way with real estate investing.

    I think my disclosure addendum is very good, so hopefully I will not have to worry about getting sued.

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