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Iam in the process of executing a short sale on a house in FL.The lender is in agreement however the PMI ins. wants me to sign a

Hampton, VA |

Does the PMI insurer have the athority to stop the sale? they want a prommisary note of $50,000 to ok the sale.We have negotiated it to $35.000 but I do not see how they have this right.The alternative is foreclosure.would we be better off doing the latter?

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Attorney answers 1


My experiience in Florida is that it is quite common for the PMI insurer to ask for a promissory note. If you are contemplating bankruptcy, a note to a PMI insurer is a type of debt that can be discharged in a bankruptcy. Since you live in Virginia you would need to file in Virginia although the foreclosed property is in Florida.