Why Would Bank Short A Property Covered By PMI?
Looking at my first short sale deal. House only owned by foreclosee one year, no equity to speak of. If my delinquent homeowner has been paying PMI, what is the bank's incentive (Countrywide, in this case) to accept a short sale price when they can (I'm guessing) get the full amount from the PMI company? Should I approach a short sale any differently as a result of the presence of PMI? Should I, as one poster suggested, offer simply to buy the note from the bank at a discount, not "short" it per se? Owners are ready to move out now. Thanks.
If it's a candidate for short sale consideration... it will survive PMI scrutiny. The basis for any ss is, of course, the perception of the property's as-is, fair market value.
Don't forget to incude a copy of the Proposal for the PMI rep.
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