I’m buying a short sale, PMI Negotiator has it.. whats taking so long?
I am buying a short sale property in the Detroit Metro Area. Here is what has been happening:
4.21.09 – Offer accepted by seller
4.23.09 – Realestate Office cashed Earnest Money Check
4.28.09 – Full Package sent in to CW with all docs and our pre-approval.
5.14.09 – Apraisal/BPO check cashed, done that week and sent to CW. Full Package with Appraisal / BPO sent to CW.
5.28.09 – found out that appraisal was done weeks ago and it approved for 71,000 or something like that.
6.2.09 – Told by Mortgage Lady that the house is ours, just waiting for a closing date… which I assume means CW accepted offer.
6.3.09 – Realestate Lady tells me "hoping to close in 2.5 weeks" (should be 6.22.09)
6.11.09 – Real Estate Lady tells me "setting a closing date in 7-10 days" (should be 6.22.09) Also, says CW has 24 files ahead of us, we are #25 in line.
6.19.09 – Mortgage Lady talks to Buyers Agent, no new news.
6.25.09 – Mortgage Lady and Buyers Agent say a few more weeks still to get a closing date (about Thursday 7.9.09)
6.26.09 – Sent in My Hardship Letter to CW (yes, me the buyer sent in a hardship letter, Buyers Agent who is a short sale specialist thinks it’s a good idea if we can get CW to sympathize with us and might bump our file up.. don’t know if it worked though..lol)
7.1.09 – Offer RE-submitted to PMI Negotiator to accept $1,000 from seller because they asked for $1000.00 from seller. (should have an answer next week sometime)
7.13.09 – It’s day 83! Today, no news as of yet (12:45pm). PMI Negotiators has had file for 13 days now and that’s after it was resubmitted with money from the seller that they wanted.
So, I guess my question is… how long does this PMI Negotiator take? They have had the re-submitted file for almost 2 weeks. What is going on?
Everything went so fast in the begining I thought we would be closing in 2 months..but In 1 week and 1 day, this short sale is going to be starting it’s 4th month…. Ridiculous.
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.
January 1st, 2010 at 4:23 am
they are trying to get more money from you. I’d bug them everyday and threaten to back out.
References :
January 1st, 2010 at 4:47 am
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.
References :
January 1st, 2010 at 5:16 am
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)
References :
January 1st, 2010 at 6:03 am
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.
References :