Probably Reinventing The Wheel...but Check This Out!
Here's my idea.
The only reason a bank is willing to take a killing on foreclosures is when there was PMI on the note! Correct?
Seems simple, so why not just find foreclosure listings, find out if the mortgage has PMI and then really low ball the bank!
If I were the bank I'd take anything just to sell and claim the insurance $$.
What are your thoughts everyone?
Has anyone done this? My sticking point is how in the world I would get a foreclosure list and then search the mortgages...I guess I could get a free-lance researcher to bird dog the lis pens and research the mortgages????
Let me know what yall think!
Wes
If you are speaking to preforeclosures (before the mortgagee repossesses) I think your premise is flawed.
The short answer is if PMI is involved, they'll investigate (due diligence) the possible claim and set their own criteria for short sale...
[addsig]
I don't get it?
From what I understand, as long as the house is in foreclosure...I can make an offer and the PMI will pay the difference between full market value and my offer.
Any insight on how the PMI pays out would help...i'm not an expert just testing out an idea
Thanks for the help,
Wes
I have never seen a trace of PMI indicated on any of the notes I have looked at.
The insurance carries with it some basic requirements. The VA and HUD have similar programs. Sometimes you will see the lender start the bidding low, say $100. Everyone knows how much the judgment is and has an idea how high the bank will go. If nobody wants to pay what they think that number is, they simply don't bid and the bank gets away with minimal recording expenses.
However when there is insurance involved, the lender may be required by the insurer to start the bidding at the full judgment amount. Otherwise as in the previous case, the bank would buy for $100 and collect the insurance for the difference. Then they would sell for all profit. This just keeps the crooks from being more crooked than they already are.
Quote:
On 2004-05-28 16:55, sumtersc wrote:
I don't get it?
From what I understand, as long as the house is in foreclosure...I can make an offer and the PMI will pay the difference between full market value and my offer.
Any insight on how the PMI pays out would help...i'm not an expert just testing out an idea
Thanks for the help,
Wes