Lenders' insurance company just called!

[Tom_Mi]

I didn't pick up.

They called about the apartment building I surrendered in bankruptcy..it's been foreclosed..I'm done with the place.

I think they're the lender-paid pmi-type people, that the lender must have filed a claim with.

They said I don't owe them anything, but they needed some information. Should I cooperate?

Frankly, the threat of deficiency on that building is what pushed me to CH7, and it irritates me that the bank had this insurance all the time they were threatening me with deficiency judgements.

[justbroke]

They said I don't owe them anything, but they needed some information. Should I cooperate?

You don't owe them anything. Take their call and ask them what the question is about. If it's financial, then tell them that it was discharged and you'll not be answering any financial questions related to yourself. They might be asking about the lender themselves.

Frankly, the threat of deficiency on that building is what pushed me to CH7, and it irritates me that the bank had this insurance all the time they were threatening me with deficiency judgements.

Of course they were. That's their job, to protect their "pool". Private Mortgage Insurance (PMI) companies, while they charges lots of money, are hurting these days. If they deplete their funds, they themselves go bankrupt. While that may be funny... fewer PMI insurers will exist. PMI insurance will go up and fewer people will be able to afford home ownership. In this new climate, PMI is going to be a hard requirement for loans that are higher than 80% LTV. No more of these 80/20 combo loans.

[Tom_Mi]

Part of me wants to meddle a bit...but it's probably dangerous.

I'd love to tell the insurance guy how the bank denied my cash short sale offers and is now foreclosing at 35k less than my offers were...perhaps to get the claim cancelled and screw the bank.

but there's nothing in it for me, so I'll probably just ignore them.

[StartingOver08]

Part of me wants to meddle a bit...but it's probably dangerous.

I'd love to tell the insurance guy how the bank denied my cash short sale offers and is now foreclosing at 35k less than my offers were...perhaps to get the claim cancelled and screw the bank.

but there's nothing in it for me, so I'll probably just ignore them.

This is so true. I wanted to tell the Mtg Ins company the same thing. The banks turn down most of the short sale offers because they get the mortgage insurance payment only when the property is foreclosed. Part of the requirements to collect on the insurance proceeds is to show the house was on the market. As you discovered, either the bank/servicer will come back with a condition the seller can't meet or the buyer can't meet (like sell for more than market value) OR the bank will drag it out so the buyer walks!

Makes you wonder why the mortgage insurance companies have not picked up on this strategic tactic by the lenders??

[Tom_Mi]

Well, I did my duty and called the guy. He said he was just collecting data for the insurance company, and wanted a general "story" of how my propert(ies) went into the crapper.

I told him...but also accidentally made sure he knew they denied my short sale offers, likely because his money was easier to collect.


One thing that bugged me, he called my employer to verify employment! I think he was only verifying my employment when I applied for the loans, to determine if the lender was scrupulous..but I'm still irritated that anyone calls my day job like that.

Oh well. He'll stamp his papers and the bank will get their dough.

and the beat goes on.