PMI effecting short sales

[Anna Estes]

I have not seen this problem addressed in short sale discussions.
I am losing some short sales because of the Private Mortgage Insurance. The lenders refuse to discount the mortgage because the insurance company demands that the lender ask for the full market price of the property or they will not cover the loss â€" I am told. For example, if the loan value is 200k but house is worth 100k TRULY the PMI will ask for 100k or they will NOT insure or pay a claim of 100k loss to the backing investor {bank}. I don't have any spread to make a profit. Shall I stay away from properties with PMI? But, so many have it now days.
Any suggestions?

[James Ward]

To justify an offer:

1) Comps- we pull from around the property.
2) Repairs- we send in the entire repair list with prices.
3) Sexual Predators- we send in info about the area
4) Market Conditions- how long properties are taking to sell, how many are for sale, the price change
5) Other items of interest to assist in justifying the offer.
6) A few "unique" items... sorry but I must keep some things in-house.

Remember: The better you show how you have come about an offer, the more serious a Lender will take that offer.