It was suggested from someone in the Short Sale forum that i post this question in the insurance forum in the hope that someone can help!!

I am negotiating a short sale with Bank of America. One loan,owed on loan $705k, the net for the bank is 632k on the HUD. The MI company wants the borrower to sign a promissory note for $90k. Can someone help me with this? Am i correct in saying the PMI company would pay the bank 20% of the loan amount to the payoff? which would be $141k, the net after all expenses from the buyers offer is $632k to the bank which totals $773k, which is $68k over the original note! plus the PMI is asking for $90k from the borrower?

Also in the loan docs it states the insurance premium is between the lender and the MI company, the borrower is not a party to the contract? If anyone can give advice i would be very grateful.
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"I fell asleep and dreamed i was a butterfly, and now i'm awake i dont know!"