Why does the REO Bank “seller” submit my purchase offer to MI (Mortgage Insurance) for review?

Question by Chris: Why does the REO Bank “seller” submit my purchase offer to MI (Mortgage Insurance) for review?
We have made an offer on a REO single family home in California. The bank has now submitted the offer to MI (Mortgage Insurance) for review. Why would a REO property need to do this?

Our offer is a cash purchase with no loans needed.

Thanks for your answers and information !

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2 comments to Why does the REO Bank “seller” submit my purchase offer to MI (Mortgage Insurance) for review?

  • godged

    Because most lenders have over-complicated this process to get comfirmation from 12 ladies dancing, 8 maids a milking, 7 lords a leaping, 1 appraiser, 2 Realtors, and partridge in a pear tree to decide if this is an acceptable contract to enter. And those of us on the front lines wonder why the banks are in trouble, NOT.

  • Ed Atun

    The bank is losing money on this house. They had “insurance” in case they ever lost money. The insurance was MI. They are finding out how much the insurance company is going to pay them before they finalize their response to your offer.

    THis is not happening much since no one used MI during the realty boom years.

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