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Do You Have Mortgage Insurance On Your Home Loan And Are Thinking About A Short Sale?

Sunday, May 6th, 2012

Welcome Mark Peek here with Keller William’s Real Estate, your short sale expert for the Sacramento area. Today’s subject is mortgage insurance. Do you have mortgage insurance on your loan and are considering a short sale? Sometimes it’ll show up on your mortgage statement as PMI or it could have another coding.

If you have mortgage insurance on your loan and are contemplating a short sale, it’s extremely important to understand and make sure you are presenting a pertinent hardship. They’re one of the few individuals that actually read a hardship letter and will examine your entire credit report and examine all of your bank statements. Mortgage insurance companies have to pay out the loss whether it is a short sale or a deed in lieu to foreclosure, but there’s actually no incentive for them to consent to a short sale. Sometimes it is to their advantage to do so if the loss is less and they’re going to pay out less of a premium. However in most scenarios in our area with the home values that have declined the way they have, in some cases it is been 50%, that mortgage insurance premium has been maxed out.

So, how do you influence a mortgage insurance company to consent to a short sale and agree with everyone else? They want something, so they are going to dig through everything you have got; that is why it’s important to work with someone who knows and can identify that ahead of time before it becomes an issue. There are many ways to mitigate and get around it. It’s important to name all of your decision makers and your mortgage insurance company is one of the most important ones. If you don’t come up with a strategy ahead of time, it can actually boomerang on you and keep you from getting your short sale approved.

If you have any extra questions, please fill out the Getting Started form on our website or contact me. If you are interested in a short sale and are questioning if it’s the best option for you, fill out the Short or Stay Calculator. It will generate a detailed report on whether or not it is a good financial decision for you to complete a short sale.

For more information on short sales and how to avoid foreclosure, or you can also and get started today.

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