Private mortgage insurance (PMI) protects the lender in the event of default. The lender owns the policy not the borrower. It is not like other types of insurance that you could buy in the event you had a sickness or disability where the policy would make your payments for you...you are the owner of those policies...similar to the AFLAC commercials. PMI is a bank-owned product, not a borrower owned product. Therefore it is not a foreclosure protection policy for the borrower.
If you are having trouble making your mortgage payments, I suggest you contact the bank directly and see if you quality for any of the Making Home Affordable Programs called HAMP or HARP. Thes programs are set to expire after 12/2012. Based on what you find out from the bank as to whether you qualify for any of these programs, I would then contact an attorney.
Serving Fairfield County Connecticut... more
It will all depend on your lender. I would agree that some banks are collecting fromt he insurance companies that than go after the owners. I had this happen with a Deutshe Bank loan.
Keep in mind that you will only get a small percentage of what the cabinets are worth, so you need to ask yourself if it is worth it. most banks have a "cash for keys" program where they will pay you to vacate after the foreclsure if everyting is left in good condition. This may be a better course of action for you.
Depending on your bank there are many ways to avoid foreclosure, that may be in your best interest. Make sure you have checked all the options.... more
Jane a mortgage is made on a home and if you strip out essential items which make it habital it would then be considered a shell. I would consult with a real estate attorney because it sounds like you are seeking legal advice. I'm sorry to hear of yohardship. Best of luck in the future.... more