Posted on: 09th Feb, 2011 08:10 am
I am just realizing that I will no longer be able to afford my mortgage. My wife and I are separating and I need to move into my parents for their recent health concerns. After child support and the loss of my wife's income, I'm left with a net of a couple hundred dollars per month, with a gross payment of $1,050 for the mortgage. I only have one FHA loan, and have been paying PMI for 7 years. In the event of a full foreclosure, my questions are:
1) How typical is it for large banks to come after deficiency judgments when they have some recourse through PMI that was paid?
2) When they do collect from the PMI insuring company, how much do they recover? Is it only the difference in initial down payment on the loan and 20%, or the variance between what the bank ends up with and what I owe?
3) Can the PMI insuring company then come after me for what they had to pay the lender?
Any help is greatly appreciated!
1) How typical is it for large banks to come after deficiency judgments when they have some recourse through PMI that was paid?
2) When they do collect from the PMI insuring company, how much do they recover? Is it only the difference in initial down payment on the loan and 20%, or the variance between what the bank ends up with and what I owe?
3) Can the PMI insuring company then come after me for what they had to pay the lender?
Any help is greatly appreciated!
sounds like you are looking at walking away from your home and are moving in with your parents to take care of them. Realize when you let your house go into foreclosure it will hurt your credit and will remain on your credit for about seven years. There are other options like deed in lieu, or a short sale. These impact your credit less and you may also be able to get relocation assistance depending on the type of mortgage you have. Private mortgage insurance I am not sure how much the PMI will cover if you let the house go and how much they may recover if anything. IF the lender sells the house for less than what you owe they can come after you for the difference, and the PMI may also come after you but again this depends on certain criteria.
Good Luck
Good Luck
For loans that have mortgage insurance coverage, the servicer/investor must obtain mortgage insurer approval for HAFA foreclosure alternatives. A mortgage loan does not qualify for HAFA unless the mortgage insurer waives any right to collect additional sums (cash contribution or a promissory note) from the borrower. 6.2.2 Payment