Short Sale Report - Radian Mortgage Insurance
Short Sale Report
| Avg. Days NOD to NTS | Avg. Days NTS to Auction | Total Avg. Days in Foreclosure | Commissions | Comments |
| not applicable | not applicable | not applicable | NA | 8 |
The five largest MI companies have recently been downgraded. They could become increasingly difficult to work with since their is no incentive to solve the problem early. If they approve a short sale now as opposed to cover the loss at a later date with a trustee sale they may choose to wait to take the loss. Although not really a "lender" mortgage insurance (MI) companies like Radian may have a stake in the Short Sale at least on covered loans. We are talking, in most cases, about MI coverage that was purchased, or paid for, by the beneficiary (lender) - we are not talking about traditional borrower paid mortgage insurance. Old Republic generally demands 20% of the outstanding lien (usually it's the junior lien) from the borrower. is the only way to describe most demands made by mortgage insurance companies when their cooperation is being requested to get a Short Sale closed. We continue to have more than occasional success when we attack the challenge head-on. It is time consuming. Particularly in those cases where the debt in non-recourse, you can be successful when battling with MI companies, including Radian. Just make sure you start early and have a big cup of coffee.
Comments
I think so in life every body in life have do the home insurance because it will recover the damage after any ki9nd of the disasters you are face it doesn't make any difference.
My daughter is selling in a short sale Radian outsourcings it collectors and they want 20,000 from her or they will not work with USBank to make the sale. They were very unfriendly sounding much like a "collection agency". Scary.
The article you posted about mortaging is interesting.
Sahara
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Patricia
Breaking News
www.techblog.ws
Unfortunately, my spouse decided to leave me in October 2010. We did not plan this as no one plans for a divorce. We were respectable professionals both with credit scores well above 800. We put 20% down on our home and as a result did not need mortgage insurance.
As we worked our way through the divorce procedures it became obvious that we would not be able to keep our home. As neither of us could afford the home independently only with Joint incomes could we remain in our home.
It appeared to be a godsend when we received an offer on our home in the first week it was listed given the tough California mortgage market. Wells Fargo Bank who originally originated the loan and an undisclosed investor who later purchased the loan both approved the short sale. However, unknown to us, the investor had purchased insurance from Radian Group, Inc. (which does not appear to have very stable ratings from the financial sector). Radian will not approve the short sale, even through we never had any relationship or dealings with this company.
As a result of their failure to approve the loan, they are offering me no choice other than to allow a foreclosure. The frustrating part is Radian will not provide any information other than a cryptic statement about curtailment of the balance.
There unwillingness to negotiate with us is causing a tremendous amount of anxiety to an already stressful situation as losing my spouse. It just doesn't seem fair that a company that I didn't even know existed would rather push me in full foreclosure that to attempt to help the bank and investor mitigate their losses. I cannot understand how Radian would not be responsible for mitigating the loss to the investor. Isn't this the point of Insurance? So Now rather than a $92,000 the investor and bank will take a $470,000 hit.
Radian is an evil, heartless company that I feel for any other consumer that has been pushed to the worst possible thing that could happen the loss of your home and then not even provide an explanation as to why. I agree with Patricia that this company is unfriendly. I suspect that the reason that Radian will not even negotiate is that California has a law that bars banks from comming back to the homeowners WHEN it is original purchase money (the first loan made against the property) since they cannot slap us with a bill they just blow you off.
I would encourage all of those with similar problems with Radian to Contact News media as to the unfair business practices.
I have worked with Radian representing a home owner faced with losing her home in WV , the executives made every effort to help and in fact they helped to obtain a reduction in the the pay off amount for my home owner. Radian would rather the home owner keep their home , in some cases they will advise the lender to lower the interest rates and lengthen the loan period .
If you are able to or unwilling to go though the process ask Radian to direct you to some one who will help.
remember the insurance company is by law and contract there to protect the insured and their investors , with your help the mortgage insurance company can help you.
Be advised that the mortgage insurance companies have been caught in this mess just like so many home owners, they were induced into insuring homes with inflated values . Gently talk to the Radian staffer and review some of the options , you will have to learn who the investor is and with the insurers help induce the them to cooperate .
As a paid consultant to home owners who sees the need for reform in the way lenders and service companies treat home owners I am well liked by the banks or service companies and do not represent any lender , insurer, or mortgage service company so trust me when I say with the right attitude Radian can help. Norman , Boca Raton Fl.
I read your post and I am reaching out to you for help. I am in the same position. Wells Fargo is the lender and Radian is the MI denying the Short Sale. I called them direct today and was told someone would call me and discuss the matter. If you have any contacts could you please help.
MY Seller had to move his parents are dying and he had to move to take care of them. We have doctors notes and all the documentation to proof it but they say it is not a Hardship.
Thank you for any guidance you can give us.
Debra Allen
Hi Debra,
Unfortunately there is no legal requirement, even with a hardship, that says the lender or MI company must approve a short sale. A few years ago MI companies wanted nothing to do with short sales. Then we went through a span of time when they wanted to mitigate losses and were willing to approve short sales. Now it would appear that they are declining to negotiate on short sales. I can only speculate that they would do this in order to buy more time. If they wait until the property goes to foreclosure they can delay they payment of the claim and buy themselves more time.
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