Posted by JT-IN on June 05, 2007 at 05:19:24:
I doubt that they are just shaking you down here. Many lenders use outside, third party insurers for these Jr positions. Ask them who the insurer is…? Also, in light of current market conditions in many parts of the country, many times these insurers are willing to make a settlement in advance of a foreclosure sale. Aka “throwing in the policy”, which means if the maximum claim could be 20K, they agree to pay the 20K in advance, and then let the lender dispose of the asset however they see fit. This is your only out here.
Mortgage insurance question - Posted by Brian_wa
Posted by Brian_wa on June 04, 2007 at 20:25:48:
I’m currently working with First Franklin on a short sale deal. Borrower bought the house and obtained two loans, both from First Franklin. One is for 80% and the other is for 20%.
Well, I’m trying to negotiate with First Franklin but they claimed to have some sort of insurance which protects them from losses due to default or foreclosure. I don’t believe this to be the case. I think they’re just playing games in trying to get as much money from me. Can someone shed some light? Could this be the truth?
Sincerely,
Brian