pmi and foreclosure

damoran · Joined: 03 Sep 2008 Posts: 2 2.11 Dollars($)

I posted this question earlier in another forum but think maybe it might be better suited here.....
this is really a two part question... 1) Am wondering if there is any way to tell if a homeowner has been paying pmi on their mortgage. Am looking at a property that is currently in short sale (with 3 outstanding mortgages) and heading to foreclosure. There have probably already been 7 other mortgages that were recieved and later discharged. 2.) Am wondering if this property goes into foreclosure and pmi was paid, would the banks be more willing to negotiate because they will have gotten some of their money back through pmi--and how much could they recoup?? Is it about 65% of the original mortgage or is the percentage different. I really like the house but it needs alot of work--more work than that outstanding mortgage...any help is greatly appreciated

adonis · Posted: Wed Sep 03, 2008 9:51 pm Post subject:

Welcome damoran,

Chances are that if the PMI is used to recoup some of the loan balance, then perhaps the banks will be more willing to negotiate. The amount that they'll recoup will be equal to the difference of the loan balance you owe after foreclosure or short sale and the PMI coverage offered to the banks.

damoran · Joined: 03 Sep 2008 Posts: 2 2.11 Dollars($)

thanks for responding...but is there any way to determine if PMI was indeed paid on this mortgage AND, if it was indeed paid, is there anyway to determine the percentage covered to the banks? thanks

Caron · Posted: Fri Sep 05, 2008 6:04 am Post subject:

You should contact the PMI company to find out if they've paid the coverage to the bank. Or else you can directly talk to the concerned officials at the bank.

vegas_storms · Joined: 12 Sep 2008 Posts: 50 1.24 Dollars($)

Likely only the first mortgage would have the PMI in any case

elnoralittle · Posted: Wed Oct 01, 2008 4:38 pm Post subject:

There is no real way to know the specifics of the loan.

what state is the property in?

I have a program that can run the address for you, but I need to be licensed in that state in order to do it. It might be able to help you, it's called core logic.

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