Just curious...what is the offer amount?
You've stated that Provident is forgiving $13,000.....are you saying that your client OWES $120,000 on the mortgage? If your client's current loan balance is MORE than $120,000, then the note holder is forgiving more than that. An appraisal has established fair market value at $120,000 for this property, so you MUST find a buyer willing to pay fair market value or something pretty close to it. Additionally, these pre-approved short sale programs have mandated "net profit" criteria that must be met. The net profit is basically the offer amount, less any seller concessions, junion lien contributions, seller's relocation expenses, and real estate commissions. My suggestion to you is to either re-neogtiate a more reasonable offer with the buyer or place the property back on the market.
I had a short sale with Provident Funding recently that was approved but in the "Notice of Agreement" they specifically stated they had the right to sue the seller for any unpaid balance. Now, keep in mind, my seller was will to come to the table with $5,000 and sign a note for $10,000. Also, they reduced my commission to 4% total. My seller now is going to let the house foreclose after consulting with an attorney. The attorney said if the lender wouldn't change the language in the Notice of Agreement, he would be better off to let it foreclose. Then there is no recourse. The negotiator was Jessica L......... She was the most uncooperative negotiator I have ever dealt with.
Also, if there is PMI.........it probably won't go through as the lender can then let it foreclose and collect the PMI too! Isn't that what we would call double-dipping???
It probably means there is PMI. Like I said if there is, it is probably not going to work.
That is my first question now before I even go on a short sale listing. Is there PMI?
If there is I don't take it anymore.