Back story: My friend and coworker had decided last fall to give up her house and let it go to foreclosure. She owes way more than it's worth. She went a good 6 months without anything happening, but then when thing began rolling she suddenly changed her mind. She started negotiating with the loan company (not a big name) and they agreed to modify her loan (got it in writing) but she had to make 3 payments first. In the meanwhile, the collection place is still pursuing her. The mortage company said it would stop once she agreed to the 3 payments. I said well don't count on it. She had to go to court once already and no one showed up and the judge would not even look at her assistance papers. She has to go again tomorrow and expects the same results. She's made 2 payments to the loan company already. They will not return her phone calls or emails concerning all of this. She doesn't have a lawyer and can't afford one.
Ok, the question she was asking me today is about PMI. She's been paying PMI for 5 years and from everything read, that should have at least paid for some of her missed payments. However, the lender says it's for their protection. Well, of course, so why didn't they use it? It sits untouched. I was confused after talking to her and was hoping maybe I could pass along some clarification? Appreciate it!
Ok, the question she was asking me today is about PMI. She's been paying PMI for 5 years and from everything read, that should have at least paid for some of her missed payments. However, the lender says it's for their protection. Well, of course, so why didn't they use it? It sits untouched. I was confused after talking to her and was hoping maybe I could pass along some clarification? Appreciate it!
Bankruptcy Wizard
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