MI Co Killing Deal...help!
I am dealing with GMAC on a short and the buyer is a vested professor at the local university who has $600K in a retirement which she CANNOT access at all right now until she retires. We have a great offer above BPO, all cash and the MI company is demanding that the borrower contribute $75K to the short sale in order to make it go through. Not even giving a note as an option. They saw the $600K on her financial statement and are standing firm on this. The negotiator has told me that the guy she deals with is usually reasonable and she has never seen anything like this.
Does anyone have any ideas as to what to do next? I do not easily give up on short sales but am pretty close on this one. Any help is much appreciated. Thanks!
Hi ShortSalePro:
you are absolutely correct. You have given out some really
good advice over the years!! Good to here from you!
Jeff Adams
[ Edited by bargain76 on Date 01/25/2010 ]
The bank wants an additional $75k to add to the offer price that is already above BPO? Do I understand that right?
Your offer is above BPO and is all cash. Well if bank wants to extort an additional $75k from you then I would walk. Bank is shooting themselves in the foot. They will foreclose and eventually probably list if for sale as an REO for much less than your initial offer. Then you can buy it for much less with much less headaches from the bank.[ Edited by JohnLocke on Date 01/13/2010 ]
The MI company wants the seller to contribute $75K of their own money to the deal in order to approve it. Raising the price would not even do it. They simply seem to want the seller to be on the hook for a part of the loss.
I see you are in California, is the property also in CA?
If so the seller should walk away or live in the property without making payments for the next 2-years.
The house is the collateral for the loan and the lender has no recourse against the sellers personal assets.
The alternative is to obtain competent legal counsel to help assist with your negotiations with the lender.
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SSP,
Since we go back many years on this board and personal contact off the board.
Your advice to the posters here has been some of the best I have seen in your field of expertise.
How about expounding on what you have been doing for the past 12 months, I for one am interested.
John $Cash$ Locke
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