If you have PMI insurance, dosen't that mean you loan will be paid off in case of foreclosure? Supposedly, most borrowers have it.
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Not all those who wander are lost....
--J. R. R. Tolkien -
From Widopedia below (high risk purchasers and low or no down payment borrowers usually have this insurance, which they pay for, due to the risk of default); your answer is in the middle of the below paragraph...
"Lenders mortgage insurance (LMI), also known as Private mortgage insurance (PMI) in the US, is insurance payable to a lender that may be required when taking out a mortgage loan. It is an insurance in the case that the mortgagor is not able to repay the loan, and the lender is not able to recover its costs after foreclosing the loan and selling the mortgaged property. The annual cost of PMI varies and is expressed in terms of the total loan value in most cases, depending on the loan term, loan type, proportion of the total home value that is financed, the coverage amount, and the frequency of premium payments (monthly, annual, or single)."_________________________________________
Filed 5 Year Chapter 13: April 2002
Early Buy-Out: April 2006
Discharge: August 2006
"A credit card is a snake in your pocket" -
I often wondered just what PMI was! So, if I let my house go, the insurance will cover any loss to the mortgage company.Filed C7: 3/21/08
341 Meeting: 4/23/08
Objections to discharge due: 6/23/08
Discharged 6/30/08Comment
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