Home Buying in 66062>Question Details

Genevieve, Other/Just Looking in Phoenix, AZ

My brother has a mortgage with PMI insruance. He had an accident last year and now cannot pay his mortgage.

Asked by Genevieve, Phoenix, AZ Sat Apr 25, 2009

He hasn't defaulted yet; he is trying to sell it. But because of the market, he is having to sell it for $52,000 less than is owed. Will his PMI insurance cover the difference of the sale?

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Hopefully, he has a good Realtor who is experienced in Short Sales. The bank should waive the deficiency. There are also other great options for him if he wants to keep the house.
0 votes Thank Flag Link Thu Jan 24, 2013
Your brother should talk to his mortgage company. Generally, selling for less than what is owed is considered a "short sale" and must be approved by the lender. PMI insurance protects the lender although it is paid for by the buyer. Best wishes
0 votes Thank Flag Link Sat Apr 25, 2009
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