Can someone explain the Mortage Insurance side with Short Sale transactions.
I'm involved in a short sale purchase and still pending a binding agreement on a second round offer I made for a property. BoA negotiator has indicated interest in approving my offer, but it is depending on the Mortage Insurance claim agreement. While I understand the process of banks claiming the insurance claims to protect themselves, why would the MI company be interested in doing this during a Short Sale-Preforeclosure situation - don't they normally get involved with claims after Foreclosure?
Does the bank actually negotiate a financial situation for the MI firm to want to settle up without going to Foreclosure process because I don't see what the incentive is without forcing the bank to move to the dreaded Foreclosure phase. How often do MI companies actually settle in SS process vs playing hard ball and forcing the bank to the next phase?