The answer is that it depends on a few factors:Type of loanHow long you've held the loanIf you've paid on timeHere are some good articles from The Mortgage Professor on this topic:Cancelling Private Mortgage Insurance (1)Cancelling Private Mortgage Insurance (2)This article contains the procedure for putting in a "qualified written request" with your servicer so you're not getting the run-around with people over the phone:Is There Recourse Against Bad Mortgage Servicing?

And abrasive as it may be to you...that's just common sense to most.I'm in emergency medicine...after paying for your health insurance....how would you like your doctor to get halfway through a procedure only to say....uh sorry that'll be another $xxxxx to show you how we finish this heart transplant...or is that his right too?

And what states this procedure is very long and expensive ???

Every state has different procedures.  

Hi @Andy ArgonautRent to Own, Id rather call it "Lease then own".Lease Purchase Advantages For Buyers Low money down to get into property.Qualification restrictions are not as great as in conventional financing.Past credit problems are not usually a road block, as they would be in the case of conventional financing procedures.

I want to know what sort of procedure or check list I should follow in order to avoid such a situation.

And what,s the step,s or procedures to the title company process ?

The only thing I know for sure is not to give any money upfront before work is being done and/or complete.Reading a book only takes you so far in your comprehension of the renovation procedure.

I am not certain the procedure with a short sale.  

This is standard operating procedure for any real estate purchase, be it for a traditional retail buyer or a real estate investor.