Through deficiency judgment, court holds you liable for the mortgage debt that remains unpaid after foreclosure. When the selling price of a property is less than the actual loan balance, it becomes difficult to eliminate the mortgage debt completely. In such a circumstance, the lender may take legal action against the borrower to collect the amount that remains unpaid after selling the property. Apart from the unpaid debt, there are the other charges associated with the foreclosure procedure that can be included into the deficiency judgment. Continue reading How far can a Mortgage Lender go to collect Deficiency Judgments?
Private Mortgage Insurers leading the way in housing recovery
One of the earliest indicators of the housing meltdown which began in 2007 was that issuers of Private Mortgage Insurance (PMI) began to contract their underwriting guidelines for issuing PMI policies. In fact, so bad was the meltdown that many PMI companies either stopped issuing policies altogether while some were even forced file for bankruptcy protection. Continue reading Private Mortgage Insurance helps lead the way in the Housing Recovery
What Private Mortgage Insurance and why do I have it?
Years ago when your grand parents bought a home they saved each extra penny they could until they had enough for a down payment that was equal to at least 20% of the price of their dream home.
More likely your grand father was likely was returning veteran of WWII or the Korean War and then they used their entitlements benefits under the GI Bill and probably bought their firs home with a VA loan with no money down.
For the rest of us who can’t put together a tidy sum of 20% in cash for a down payment on a home which in Raleigh could be as much as $35,000 there’s Private Mortgage Insurance (PMI).
Private mortgage insurance exists in a variety of forms.
Here is an example of just a the most common;