Ok all you mortgage guru's and financing wizards...I've got a scenario for you...
I was reading on of our fellow rainers post the other day about how to get PMI off your back. I've tried to find it again with no luck. I did find others though, and they were all about very informative post. Anyway...
Everyone knows that once you have 20% equity in your home that you can have the PMI removed from your mortgage. Back when the market was booming here in Myrtle Beach I would call all my clients whom I had sold property to on the anniversary of there closing and remind them to have there property appraised. Prices were jumping so fast that only one came back under the needed 20% required to have the lender remove the insurance. This is a good way to keep clients for life. It will be harder now because values are escalating like they were, but if you keep an eye on there neighborhoods and let them know when they should try this loophole you won't be forgotten.
Back to my point. Now with all the price erosion that has occurred due to the national mortgage meltdown....Can PMI be tacked back onto a mortgage? What I'm saying is can the bank now come back and have the property reappraised and add that PMI back to the payment? I've never heard of this happening, but all these post got my little brain working (dangerous I know).
Has anyone ever heard of anything like this happening? Is it possible? If you haven't please don't let the lenders in on this. I don't think we can handle anymore hurdles in this business, and with some families strapped to the limit they don't need anymore payment.
Weigh in lets here what you have to say...
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