So you purchased your East Valley home with a 80/20 loan so you would not have PMI. Now you need to sell your home and you find out the PMI company is asking for a cash contribution or a note for $10,000 to be signed. Why is that?
Well it turns out that investors who purchased your mortgage didn’t trust you so they purchased PMI for them. That is all well and good, and allowed, but that PMI company is not allowed to ask you for a contribution. Well they can, but they are not supposed to.
When they do this it is called 3rd party bad faith. The problem, even through you are right it is going to be more expensive to fight it than just pay it. I think this is going to end up leading to a class action law suite.
Here is today’s list of top real estate posts of the day.
1) Just When You Thought It Was Safe… – Once again Elizabeth Newlin thoroughly entertains as she educates. I personally wish she wrote more, her stories are so entertaining when she does. Good education in here for those looking to purchase Short Sales.
2) What is LPMI? – What is lenders paid mortgage insurance? It is an alternative to PMI you may want to consider.
5) Let Uncle Sam Pay to Replace Your Drafty Windows – You have until the end of the year to make energy saving upgrades in your house and get a tax credit. Here is a good post on tips for replacing your windows. The only part I don’t like is the headline, Uncle Sam isn’t paying you squat, it is the tax payers in the country that are. But the program is out there, I would take advantage of it if you need upgrades.
6) Hate your real estate agent? Here’s why! – I found this very interesting, the market condition seems to be tied to ones satisfaction with their real estate agent.
7) CREATING LEADS VERSUS CONVERTING LEADS – Great piece on the difference between generating leads and making them customers. You need to find what works for you and concentrate on that.
8) What’s ‘Good’ Leverage? Maybe Not What You Thought – This is what I love about Jeff Brown, he takes your common perception of investing and spins it upside down. He makes you question everything you thought you knew about investing.
10) Multiple Offers, 2010 Style… – We have been dealing with it for a year now in the Tempe/Phoenix area. Sounds like other parts of the country are now facing the same thing.
1) Realtor Property Resource (RPR) & you – A call to action – It’s been a fun week in the real estate community thanks to RPR, this won’t be the last day it dominates the top posts. Here is a video from Greg Cooper asking for input.
2) In which I announce the death of RPR – Rob Hahn has been in the forefront of the RPR discussion for the past week and has been a must read. Here he talks about how RPR may never likely get off the ground if the MLS companies do not play ball.
5) 33 quality touches for real estate agents – Ever read Gary Keller’s book “The Millionaire Real Estate Agent” and think touching someone 33 times in a year may be overkill? Here is a way to do it with today’s modern technology.
The idea behind mortgage insurance is relatively simple: an insurance entity agrees to insure against default on a loan in exchange for premium payments.
The insuring entity may be a “private” mortgage insurance company or a government entity, but the company that issues mortgage insurance is not a lender.
Conventional loans use Private Mortgage Insurance – also [...]
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