FHA, PMI, or neither?
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Default insurance for loans with LTVs exceeding 80% comes in two forms:
- mortgage insurance premiums (MIPs), as required by the Federal Housing Administration (FHA); or
- private mortgage insurance (PMI), available from private insurers.
The rate of default insurance, and the underlying interest rate, varies depending on the LTV.
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Hello Bradley,
Im not sure if you can answer my question, have you had any experience with GMAC FIXED SECOND (E-TRADE) IS THE INVESTOR.My client has lost 1 buyer because they will only release the lien and not the liability (this is a investment property) and they are now on there 2nd buyer and e-trade is demanding 11,000.00 on a 30,000.00 second.The first has offered them 3,000.00 and theseller has offered 5,000.00 to settle.The luck as of yet. The selling agent is at a lost and has no idea how to proceed,should we just throw our hands up and say ill be sending the keys in …start the forclousure process and E-TRADE geys no money.Thanks for your time.
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AS a Mortgage Banker who has closed many Short Sale Purchases with a 2nd loan in California I see a 10% buy out to the holder of the 2nd. Although I am not in on the up front paper work concerning the Short Sale Agreement I do see the final Agreement and Bank Approvals on the Short Sale. What I am seeing here is a 10% buyout either all from the holder of the First or a combined 10% buy out with the holder of the first and the new buyer. On a $30,000 2nd loan the $3,000 buy out on that 2nd could be paid by the new Buyer or paid 1/2 each from the holder of the first note and the new buyer. I have also seen the Real Estate Agent for the Seller and the Buyer agreeing to a small reduction in Commission on that 10% buy out on the 2nd to make the Short Sale Purchase happen. I do not understand why some lenders who hold the 2nd note would decide to take nothing over a little must center around some kind of a tax advantage that I have not heard about. I too would love to know why this is taking place. In California the lenders have no recourse on collecting either way unless they agree to a short pay off of the loan, so why not go for it. I do not get it.
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