I HAVE MORTAGE INS. CAN I JUST GIVE MY HOUSE BACK. GETTING A DIVORCE.

Asked by mark.coovert, Tobyhanna, PA Thu May 9, 2013

IF I DEFAULT ,THATS WHAT THE INS. IS FOR RIGHT

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6
, ,
Thu May 9, 2013
Ron is right, mortgage insurance pays the claim to your lender if you default on the loan. This is meant to soften the blow if they have to take a loss when selling your home and YES it is possible they could pursue a judgment against you.

Not to mention that it would kill your credit scores and you wouldnt be able to purchase a home for at least 3-7 years.

You should consult your attorney on this before you jump to any decisions. Sorry about the divorce and best of luck to you
1 vote
Lorena Sienko, Agent, Westfield, MA
Wed Jul 29, 2015
Mortgage Insurance covers the bank. Talk to an agent, try to sell
0 votes
Brian Basile, , Pennsylvania
Fri May 10, 2013
Hi Mark,

Unfortunately everyone is correct. The mortgage insurance does nothing for you. As a local mortgage lender based in Plymouth Meeting, PA. I can answer any questions you may have. Divorce's can be tricky, and the first thing I would do is seek advice from your attorney. I know a lot of divorced couples have bought out the other half with a refinance, but again, that you would have to discuss with your attorney, and every situation is different. If you would like to talk, give me a call or shoot me an email.

Brian Basile
NMLS 88395
Vision Mortgage Capital
620 West Germantown Pike
Plymouth Meeting, ,PA 19624
908-917-7701
bbasile@visionmortgagecapital.com
0 votes
Jonathan Kos…, Agent, Tobyhanna Township, PA
Thu May 9, 2013
You can give back the house at anytime, but mortgage insurance only cover the amount owned to the lender over 80% off the purchase price........the insurance was mandatory for low down payment loans......time for a plan "B".....sorry
0 votes
Curly Sue, , Texas
Thu May 9, 2013
No, mortgage insurance is not for you - its for the lender. Your credit will take a big hit & you won't be able to finance another home for years.
0 votes
Ron Thomas, Agent, Fresno, CA
Thu May 9, 2013
That mortgage insurance protects your LENDER!
It doesn't do a thing for you!

It appears that Penn. is a RECOURSE State; which means that your
lender can come after you with a DEFICIENCY JUDGEMENT for the difference.
This is in addition to the damage to your Credit.
You should talk to a local Realtor, or a Real Estate Attorney, or both.
0 votes
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