Rocklin Short Sale Deficiency - Doesn't Mortgage Insurance Cover The Bank's Deficiency?

Rocklin Short Sale Deficiency – Rocklin Short Sale Specialist, Mark Peek, recently received a question from Tom. Here is Tom's Question.

"If I pay mortgage insurance and default on my loan, why wouldn’t that cover the deficiency amount? Tom."

Here is the answer to Max's Question: Yes, the Mortgage Insurance should pay your lender for any loss. So that reduces the amount that your lender will lose on the short sale.

There are a couple of problems. Many Mortgage Insurance Companies have gone bankrupt. They can't pay on their claims.

In this situation your lender may or may not pursue you for the loss.

(I've written extensively on deficiencies on other blog posts. In most short sales, you won't owe a deficiency. E-mail me at mdpeek@gmail.com and I can research your specific situation.)

The other problem is that some Mortgage Insurance Companies have terms written into the mortgage that they can pursue you for the loss.

They are more aggressive with trying to be repaid. In the few short sales we have negotiated where the lender asked for a promissory note, the person requesting it usually was the Mortgage Insurance Company.

But, they only ask for a promissory note about half the time. In addition, the promissory notes are usually for an amount lower than the loss.

For example on one short sale, the loss was around $59,000. The Mortgage Insurance Company required a promissory note of $10,000 to be repaid over the next 10 years at Zero Percent Interest. Their Monthly Payment was $83.33. In many cases we can get the note waived.  In a small amount of cases, a promissory note can't be avoided but can be negotiated to a lower amount.

We won't know if they will ask for a promissory note until the short sale is in progress. If you know you have Mortgage Insurance, then you need to find an aggressive short sale agent who will fight to get it waived.

Thinking about a short sale?

I can help you short sale your Rocklin home and never pay the bank another penny. Send me an e-mail at mdpeek@gmail.com. I will contact you for a free consultation.

When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at (916) 580-6084

Discover how other sellers successfully completed a Rocklin short sale and request a free consultation.

Thanks for reading this, Mark Peek.

Mark is a Real Estate Agent at Keller Williams Realty. Rocklin Short Sale Deficiency. Placer County Short Sale Specialist:

Phone: (916) 580-6084. mdpeek@gmail.com.

"Know Your Options"

View My homes for sale at www.BuyorSellinFolsomLake.com.

Mark Peek specializes in loan modification assistance and short sales in Rocklin CA and surrounding areas. Rocklin Loan Modification Help, Rocklin Short Sales. Rocklin Short Sale Realtor. Short Sale Realtor. Rocklin CA Short Sales. Rocklin Real Estate. Rocklin Short Sale Deficiency. Short Sale Process Rocklin. Placer County Short Sale Specialist.

Copyright 2010 SFI Marketing Institute, LLC. All Rights Reserved. This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing. The views expressed here are Mark Peek's personal views and do not reflect the views of Keller Williams Realty on a Rocklin Short Sale Deficiency.

This information on Rocklin Short Sale Deficiency - Doesn't Mortgage Insurance Cover The Bank's Deficiency? is provided as a courtesy to our viewers to help them make informed decisions on a Rocklin Short Sale Deficiency.