Posted on: 15th May, 2009 03:14 pm
Hi,
I have a condo in florida. I purchased this condo with three other partners. Al of us are on the deed but I am the only one on the loan. This condo is now about to be foreclosed on. I do pay PMI for this loan. If the property is foreclosed, would other three be responsible for deficiency judgment in Florida? Will their credit be affected. How about PMI that I pay every month, will that take care of the deficiency judgment?
I have a condo in florida. I purchased this condo with three other partners. Al of us are on the deed but I am the only one on the loan. This condo is now about to be foreclosed on. I do pay PMI for this loan. If the property is foreclosed, would other three be responsible for deficiency judgment in Florida? Will their credit be affected. How about PMI that I pay every month, will that take care of the deficiency judgment?
Hi Shaw,
As your other three partners are not on the loan, they will not be responsible for the deficiency and their credit will also not be affected by the foreclosure. If you purchased a PMI and have been making its payments on time, the lender should be protected against any losses in case you default. In that case if the property goes into foreclosure, the lender can collect the insurance on the policy instead of getting a judgment against you. Thus, having a PMI on the loan will help you avoid a judgment to a great extent.
As your other three partners are not on the loan, they will not be responsible for the deficiency and their credit will also not be affected by the foreclosure. If you purchased a PMI and have been making its payments on time, the lender should be protected against any losses in case you default. In that case if the property goes into foreclosure, the lender can collect the insurance on the policy instead of getting a judgment against you. Thus, having a PMI on the loan will help you avoid a judgment to a great extent.
Hi Shaw,
Welcome to our forums.
I'm afraid but your partners won't be responsible for payment of the deficiency judgment. This is because they don't have their names on the loan. As such they aren't liable to pay off the mortgage. Their credit will also not be affected adversely.
The PMI is usually utilized to pay off your mortgage when you're in default. As such, I feel the insurance company should reimburse you for the deficiency payment. It's better if you talk to the insurance company once. I'd like to mention here that a lot depends upon what is stated on the insurance policy. So, you need to check out the papers regarding your PMI policy.
May god bless you
Samantha
Welcome to our forums.
I'm afraid but your partners won't be responsible for payment of the deficiency judgment. This is because they don't have their names on the loan. As such they aren't liable to pay off the mortgage. Their credit will also not be affected adversely.
The PMI is usually utilized to pay off your mortgage when you're in default. As such, I feel the insurance company should reimburse you for the deficiency payment. It's better if you talk to the insurance company once. I'd like to mention here that a lot depends upon what is stated on the insurance policy. So, you need to check out the papers regarding your PMI policy.
May god bless you
Samantha
It generally happens with the partners this way. In the beginning, they take decisions colectively, but with pass of time, the differences in opinions start and the risk takers are always in trouble. The same thing had happened with me and what I did, is , I took another loan on my partners' name, and my worry was little reduced.
It is good, if you have good relations. What you can try at this situation, is to make the payments on time anyhow and also take out a policy as suggested above. While in business, I used to take loans on the firm account instead of taking it individually.
It is good, if you have good relations. What you can try at this situation, is to make the payments on time anyhow and also take out a policy as suggested above. While in business, I used to take loans on the firm account instead of taking it individually.