Contrywide insured loans problem

[waldengroup]

I have really appreciated this site as it has a lot of truth in it and is a great reference for anyone who may be loosing their home.
I have been helping out home owners in default as well here for over a year now and I have recently negotiated a short sale with Countrywide because the home owner was not approved for a loan modification. However Countrywide came back and state before they could approve the sale and put off the foreclosure the company that had insured the loan wanted the home owner to sign a $15,000 promissory note which would be interest free @ $150 a month. This is the first time I have ever had Countrywide or any loan company state something like this. Has any one else had to deal with this type of situation before. Sadly the home owner declined to sign the promissory note and the home went into foreclosure.

[Moe Bedard]

That unfortunately would be a legal document and we are unable to give the members legal advice, so if anyone was dealing with a similar issue we would advise them to have an attorney look it over.

[waldengroup]

Thank you for responding, I am aware of the legal aspects we can not advice on I just wanted to know if this is becoming a more common thing with lenders and if any one else has had the problem and how they handled it.
In California most of these loans were written under a non-recourse loan and the lenders can not go after the home owner for the loss generally speaking so how can the the company that insured the loan want a promissory note signed which means they are a 3rd party on the loan.
When the home goes into foreclosure they will certainly take a bigger loss on the sale than if they had let it go under a short sale. Can they still go after the homeowner for the promissory to be signed when the home goes into foreclosure.

[Moe Bedard]

that is an attorney question you may want to direct it to the attorney associated with this forum........or one that you might know being a Realtor.

[colahhh08]

HOw would one know if they had a non-recourse loan?

This is not an issue of recourse or non-recourse it is an issue of MI - Mortgage Insurance that was in place to guarantee the loan. The MI company was a participant in the loss and did not want to bear the burden of the loss entirely. As such they made a demand on the borrower to ante up the entire or a portion of the losses that they were exposed to....that was their contribution to the Short Sale negotiations. They can and will participate in the negotiations as they are obligated to pay losses on the loan to the lender and in the body of that negotiation will look to recover those losses.....

Which MI company was this, RMIC, MGIC, PMI, GE, UGI, TRIAD, RADIAN?