Mortgage Insurance Delegation Approved for Fannie Mae / Freddie Mac
Why did your short sale note get approved ? Why did it take so long? One of the many reasons could be that your lien holder took out a Mortgage Insurance policy on your loan. No, Mr. Amateur Short Sale agent, it is not the MI you think it is.
Mortgage Insurance has been a pain in my A** for years. The servicer and the investor all agree to terms on a short sale, however, a third party monster called (Mortgage Insurance) sometimes will kill the deal or extend it until it gets closer to the foreclosure date. To move forward, the MI company will need to sign off on the short sale. Very few servicers have the authority or strength to battle the MI company to agree to terms. I would usually have to go around my servicer and negotiate with the MI company directly to get my approval in hand.
GOOD NEWS! For most loans in the country, meaning all Fannie Mae and Freddie Mac loans, all major MI companies have delegated the authority to sign off on the short sale to the servicer. This is great news. It will shave off weeks in processing and increase the approval ratios of MI backed short sales.
Short Sale & REO Pro
El Granada, Ca 94018