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Old 06-03-2009, 09:25 AM
 
179 posts, read 534,481 times
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hello everyone...
i've recently done many upgrades to my house and have done an appraisal that i was hoping would help me drop my PMI.
i spoke with wells fargo and they asked me to fax them a copy of the appraisal along with a request for what i just described....
i'm not sure how to word it though...any suggestions?
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Old 06-03-2009, 12:48 PM
 
26,585 posts, read 61,800,013 times
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Dear mortgage servicer,

Enclosed please find a copy of a current appraisal for my home located at 123 Any Street, Mytown, TX, 12345. My mortgage with your company is #1234567890.

I am writing to request the cancellation of PMI insurance for my account. As the appraisal shows, I have XX% of equity based on the loan to current value.

Unless I hear differently from you, I expect my August payment to reflect the cancelled premium.

Regards,

Name
Address
Phone
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Old 06-03-2009, 01:02 PM
 
Location: DFW
12,229 posts, read 21,376,502 times
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That's fine until the last sentence... They are not obligated to accept your appraisal that you ordered independently of them, for one thing.


How many years ago did you close on the mortgage?
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Old 06-03-2009, 01:14 PM
 
26,585 posts, read 61,800,013 times
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Which is why I said "Unless I hear differently from you." If they aren't going to remove the PMI, they need to let you know, not just leave you hanging.

And that's true, if it's been under 12 months since you closed, the PMI isn't going to get removed, no matter how much you've put into the house.
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Old 06-03-2009, 01:46 PM
 
Location: DFW
12,229 posts, read 21,376,502 times
Reputation: 33264
Quote:
Originally Posted by annerk View Post
Which is why I said "Unless I hear differently from you." If they aren't going to remove the PMI, they need to let you know, not just leave you hanging.

And that's true, if it's been under 12 months since you closed, the PMI isn't going to get removed, no matter how much you've put into the house.
Absolutely you'd want to know.. but I wouldn't count on hearing back from Wells Fargo, I'd count on being the one to follow up, and so I think it's pointless putting such a sentence in the letter.

If the loan was sold to Fannie or Freddie, OP has to have a minimum two year seasoning to get PMI removed with an appraisal.
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Old 06-03-2009, 08:35 PM
 
179 posts, read 534,481 times
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Quote:
Originally Posted by Debsi View Post
Absolutely you'd want to know.. but I wouldn't count on hearing back from Wells Fargo, I'd count on being the one to follow up, and so I think it's pointless putting such a sentence in the letter.

If the loan was sold to Fannie or Freddie, OP has to have a minimum two year seasoning to get PMI removed with an appraisal.
thanks guys...
it's been only 6 months!!!
i've done major upgrades and i have additional money to put down to bring my priciple down further.....

Purchase price was 378k. 10% down...my current balance is 338k. the appraisal is for 440k. i have another 12K to put down.
when i called them, they said that if you give us 36k today, your pmi will be removed right away. well, i don't have 36k! i have 12k and a 440k appraisal.

we'll see i guess? :-)

Last edited by Ultimatetruth; 06-03-2009 at 09:06 PM..
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Old 06-04-2009, 04:24 AM
 
26,585 posts, read 61,800,013 times
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They aren't going to remove it, sorry.
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Old 06-04-2009, 10:30 AM
 
Location: MID ATLANTIC
8,644 posts, read 22,786,365 times
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I agree, highly unlikely MI will be removed, unless the principal balance is paid down to 80% or the original sales price.

The only other time a mortgage servicer is required to release the MI is when the loan reaches 78% of the original as per the Homeowner's Protection Act of 1998 (see below). But many lenders have set up their own guidelines, but most default to this legislation. Right now, I am willing to be NOT ONE lender is going to release anyone from PMI unless they absolutely must. But here goes:

On July 29, 1998, Congress enacted the Homeowners Protection Act (HPA) to require lenders to cancel mandatory private mortgage insurance (PMI) on residential mortgage loans under certain circumstances. The Act’s provisions took effect July 29, 1999 and apply to loans consummated on or after that date.
The HPA provides:
(1) A right to cancel when the principal balance of the loan reaches 80% of the original value of the property securing the loan.

The mortgagor has the option of tying the right to cancel to either of the following cancellation dates:
• The date on which the principal balance of the mortgage, based solely on the amortization schedule for the mortgage loan and irrespective of the outstanding balance on that date, is first scheduled to reach 80% of the original value of the property securing the loan; or
•Â· The date on which the principal balance of the mortgage, based solely on actual payments, reaches 80% of the original value of the property securing the loan.
The mortgage must satisfy the following requirements to exercise this right to cancel:
•Â· The mortgage must submit a written request for cancellation to the servicer of the loan.
•Â· The mortgagor must have a "good payment history" on the mortgage loan. This means that the mortgagor has not made any mortgage payment 60 days or more past due during the 24-month period proceeding the cancellation date. In addition, it means the mortgagor has not made any mortgage payment 30 days or more past due during the 12-month period proceeding the cancellation date.
•Â· The mortgagor must satisfy any requirement of the holder of the mortgage, as of the date of the written cancellation request, for: (a) evidence that the value of the property has not declined below the original value of the property; and (b) certification that the equity of the mortgagor in the residence securing the mortgage is not encumbered by a subordinate lien.
(2) An automatic termination when the principal balance of the loan reaches 78% of the original value of the property securing the loan.
•Â· On that date the mortgagor must be current on the payments required by the terms of the loan. If the mortgagor is not current on that date, then the PMI requirement must automatically terminate when the mortgagor becomes current on the payments required by the terms of the loan.
(3) An automatic termination when the loan reaches the scheduled midpoint of the amortization period.
•Â· On that date the mortgagor must be current on the payments required by the terms of the loan. If the mortgagor is not current on that date, then the PMI requirement must automatically terminate when the mortgagor becomes current on the payments required by the terms of the loan.


FWIW, you can put all the "if we don't hear differently's" you want in communication with a servicer, but they are not enforceable, nor are the servicers required to comply. Nothing can void the terms of the legal instruments you sign at closing, unless the servicer specifically puts it formally in writing.

Good luck, but be prepared for a 2 year wait or plunk down an additional 10% of the original price.
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Old 08-09-2010, 02:19 PM
 
1 posts, read 16,617 times
Reputation: 10
I am in the same position, had the WF loan for over a year. Got a bank ordered appraisal that supports an 80% LTV, and proof of 15K in structural upgrades. They denied my request for PMI deletion due to the fact that they are not required to use "Current Market Value" and my structural upgrades didn't reach the $35K that was required to cancel the PMI.

Unless you can prove you have made structural improvements/ upgrades equal to or greater than the difference between your original purchase price and the Amount you currently need for an 80% LTV, in combination with a bank ordered appraisal supporting a current market value of 80% LTV.

EXAMPLE
Purchase price – $200K
Original Loan Amount – $190K
Current Loan Amount – $185K

WF Requires Both
* Bank ordered appraisal showing Current Market Value > $231,249.99
* Proof of structural improvements >31,249.99

I am going to re-financing to get that PMI removed now.
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Old 09-03-2013, 10:09 AM
 
1 posts, read 14,237 times
Reputation: 10
We recently had the same issue! You have to pay down or order an appraisal through them and then provide receipts to prove the appraisal is correct and you've made enough "capital improvements" to warrant the increase in the appraised value. We bought a foreclosure and put money down and they are still being jerks about it. Wells Fargo is an awful company to work with on these issues!
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