Comments on: I’m buying a short sale, PMI Negotiator has it.. whats taking so long?

By: glenn

glenn — Wed, 10 Feb 2010 07:30:59 +0000

It is very frustrating – I agree.

But remember that CW is not the seller. They are trying to decide if they will be better off cutting their losses and accepting a short amount as the full payoff of the mortgage. The PMI company is taking all or at least part of the loss (they insure to riskiest part of a mortgage loan) so they have to sign off on this agreement.

Part of what they are doing is checking out the seller to see if they have assets that the mortgage company can go after. They are also checking to see if there is any fraud going on- or has gone on in the past.

PMI and CW have no real interest in being in any hurry.

The clerk that is approving this gets paid an hourly wage and if they make a mistake they may get fired. But if they fallow the rules and because of that it takes so long that you walk away and the deal falls thru the clerk is not criticized at all.

So these deals take a very long time- and sometimes when they are finally approved the buyer is forced to act quickly or the deal will fall thru.
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By: jonny j

jonny j — Wed, 10 Feb 2010 06:46:59 +0000

I’m surprised your realtor didn’t warn you that this is par for the course with a short sale. No one has any reason to rush except you and the real estate agents (they don’t get paid until settlement). Everyone else is collecting a salary regardless of how fast or slow they process things…..and you are 25th in line.
A short sale can be VERY frustrating, many buyers won’t even consider dealing with one. But, I’m sure your getting a bargain, which will hopefully make the wait worth it.
By the way PMI negotiator has had it for 6 working days (July 3rd was a holiday)
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By: David Z

David Z — Wed, 10 Feb 2010 06:02:59 +0000

I am buyer on day 70 of a short sale offer submitted to bank. It is hard to say why these are so slow.

Each one is unique. all we can say is they must be evaluating if this is better than allowing it to foreclose.

I was able to defer earnest deposit until lender approved short sale.
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By: Mel

Mel — Wed, 10 Feb 2010 05:23:59 +0000

they are trying to get more money from you. I'd bug them everyday and threaten to back out.
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