Buying A Bank Foreclosure

by Jennifer
(Decatur, Alabama USA)

Ask Kate about buying a bank foreclosure and PMI approval: Hi Kate, My fiance and I just recently put in an offer on a foreclosure house. It has been about a week and a half now.

Jennifer continues... The seller finally sent the listing agent an e-mail saying they were waiting on a PMI approval. Does this mean that they accepted our offer? How long does it take to get a PMI approval?

Kate Answers: Buying A Bank Foreclosure

Dear Jennifer,

If only I could wave a magic wand over the process of buying a bank foreclosure for you.

Waiting on the bank to accept the offer creates anxiety. Then throwing PMI approval into the mix tops it off.

So I applaud you for seeking answers to better understand the process.

When a home buyer has less than a 20 percent downpayment, private mortgage insurance is required. To obtain coverage, the home buyer needs to be approved by the PMI provider.

Has the bank accepted your offer pending PMI approval?

Oh... I really don't know. Banks are hard to predict because they do not have the emotions driving their actions like a private seller does. Generally when the bank says they are waiting on a PMI certificate, it means until you can demonstrate the approval, they won't commit.

This is part of the process I referred to earlier if you are buying a bank foreclosure.

How long does it take to get PMI approval?

I have seen PMI approvals take merely minutes and others up to a few weeks. Some of that depends on the home buyer's credit package but the time frame is also dependent upon the volume of PMI applications.

I wish you the very best in your pursuit of buying a bank foreclosure. I have also included my Guide to Private Mortgage Insurance at the bottom of this page. Be sure to check it out. You'll feel like you hit a gold mine!

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Best Wishes,

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If you still have questions regarding buying a bank foreclosure or PMI approval, write me at Ask Kate where every question is a good question.

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