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helpinNE · 04-21-2009, 06:58 AM

MH_Sucker

Are you in a recourse state? Are your loans recourse? Can the lender come after you after a foreclosure is complete?

If you are NOT in a recourse state and if your loans are NOT recourse than you do not have much to worry about if you do not sign the promissory note and the house goes into forclosure.
However, if your loans are recourse, you do have cause to become concerned, especially with the PMI because the insurance company will come after you to try and recover any monies they had to pay to the mortgage company (Read Racoon's story on here).
If you do have recourse loans, it may be in your best interest to sign the note but make sure you understand what you are signing, even if you have to have an attorney read it over. As for the $2,000 at closing, if you do not have it tell them that. If the realtor's want to close the deal bad enough, and the $2,000 is a deal breaker, they will reduce their comission to cover this. At this point, if the house does not close, your realtor and the selling realtor have the most to lose because they will get nothing if it falls apart.
I had a family member who did a short sale and at the last minute one of the mortgage companies changed the figure they needed and it was going to require them to bring cash to the table they did not have. In the end it was the realtors who each took $500 less commission at closing. For them it was either take $500 less or get nothing at all.
Best of luck.

04-21-2009, 06:58 AM	#7 (permalink)
helpinNE Senior Member Join Date: Jan 2009 Posts: 63 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: ?'s about PMI MH_Sucker Are you in a recourse state? Are your loans recourse? Can the lender come after you after a foreclosure is complete? If you are NOT in a recourse state and if your loans are NOT recourse than you do not have much to worry about if you do not sign the promissory note and the house goes into forclosure. However, if your loans are recourse, you do have cause to become concerned, especially with the PMI because the insurance company will come after you to try and recover any monies they had to pay to the mortgage company (Read Racoon's story on here). If you do have recourse loans, it may be in your best interest to sign the note but make sure you understand what you are signing, even if you have to have an attorney read it over. As for the $2,000 at closing, if you do not have it tell them that. If the realtor's want to close the deal bad enough, and the $2,000 is a deal breaker, they will reduce their comission to cover this. At this point, if the house does not close, your realtor and the selling realtor have the most to lose because they will get nothing if it falls apart. I had a family member who did a short sale and at the last minute one of the mortgage companies changed the figure they needed and it was going to require them to bring cash to the table they did not have. In the end it was the realtors who each took $500 less commission at closing. For them it was either take $500 less or get nothing at all. Best of luck.