Posted on: 22nd Mar, 2010 01:44 pm
Hello,
Recently, my mother-in-law passed away. She was only 56 years old. She purchased her first home 3 years ago, and had PMI. The house is worth far less now, than it was when she originally bought it. My wife is the executrix of the estate (which has zero dollars). A neighbor told her that PMI would pay for house and it would be her's free and clear. I completely disagree. How does this work? Will the bank foreclose on the property now that no payments are being made? If so, does the PMI company pay the bank? If so, who ultimately gets the house? The bank, who was also paid by the PMI company? Please advise, we can't seem to get a clear answer on any of this.
Many thanks,
Eric
Recently, my mother-in-law passed away. She was only 56 years old. She purchased her first home 3 years ago, and had PMI. The house is worth far less now, than it was when she originally bought it. My wife is the executrix of the estate (which has zero dollars). A neighbor told her that PMI would pay for house and it would be her's free and clear. I completely disagree. How does this work? Will the bank foreclose on the property now that no payments are being made? If so, does the PMI company pay the bank? If so, who ultimately gets the house? The bank, who was also paid by the PMI company? Please advise, we can't seem to get a clear answer on any of this.
Many thanks,
Eric
Hi Ericlday,
If you stop the mortgage payments, the lender will have the rights to foreclose the property. If there is a deficient amount resulting from the sale of the property, then the PMI will help the lender to recover that amount.
Thanks
If you stop the mortgage payments, the lender will have the rights to foreclose the property. If there is a deficient amount resulting from the sale of the property, then the PMI will help the lender to recover that amount.
Thanks