If you get into the short sale flipping business you will eventually encounter deals that have mortgage insurance.  On these deals, you not only have to deal with the investor, or servicer, but you will also have to deal with getting final approval from the MI company.  The MI company can derail the whole transaction carefully if they are not happy with the deal structure.

This video details a real life deal where the mortgage insurance company has the last say, how that “last say” effects the seller, and how it relates to us, the investor, in the deal.  In this video, the MI company is asking for a $10,000 promissory note from the homeowner, and I explain how they would be asking for the prom note regardless of if I, the investor, am invovled or not. 

This is an awesome video and should be watched several times if you don’t “get it”.  I will follow-up with another video once we get final approval, go to closing, and collect the check.  Ofcourse, in order to do that, I will need to use our transactional funding.

PS – In between recording and posting this video I can tell you our mitigation fee was treated like a realtor commission.  Meaning the lender capped us at 3% of $31,000 versus the $5,000 we were asking for.  That’s part of the game!!!