Chicago IL – The Stop Foreclosure Institute recently received a question from Max. Here is Max’s Question.
“If I pay mortgage insurance and default on my loan, why wouldn’t that cover the deficiency amount? Max.”
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 60-75% of all short sales, you won’t owe a deficiency. E-mail me at firstname.lastname@example.org and I can research your specific situation.)
The other problem is that many 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 and 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 seller agreed to a promissory note of $10,000 to be repaid over the next 10 years with Zero Interest. Their Monthly Payment was $83.33.
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 and aggressive short sale agent.
They will work to get an promissory note or deficiency waived. Thinking about a short sale?
I can help you short sale your property and never pay the bank another penny. Send me an e-mail at email@example.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 (312) 953-6725
Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.
Need to short sell in Chicago? Visit the Short Sale Super Man site fr your Chicago short sale needs www.ShortSaleSuperMan.com
Thinking about a loan modification? Our Chicago loan modification kit has the instructions you will need to get a loan modification approved with your bank. Click here to request a copy.
Thanks for reading this, Phil Buoscio.
Phil is a Real Estate Agent at http://shortsaleagentadvocate.com/. Chicago Short Sales Realtor:
Phone: (312) 953-6725. firstname.lastname@example.org.
View My homes for sale at www.BetterLivingRealty.com.
Phil Buoscio, is a broker with Better Living Realty he leads the sales team “Phil Buoscio Team” and specializes in short sales in Chicago Illinois. Chicago Loan Modification Help can be referred to you. We don’t do loan modifications ourselves but we work with those who do.
We know Chicago Short Sales. I am a Chicago Short Sale Realtor. Chicagoland Short Sale Realtor. Chicago IL Short Sales. Chicago Realtor. We do business in Pilsen. McKinley Park. Bridgeport. Wicker Park. West Town. Ukranian Village. Lincoln Park. Near North. River North. East Village. Logan Square. Uptown. Edison Park. Portage Park. Hermosa. Lincoln Park, South Loop, West Loop. Bronzeville. Hyde Park. Kenwood. Oak Park. Brookfield. Cicero. Berwyn. Evanston. LaGrange. LaGrange Park. Riverside. We sell condos, single family homes, lots, land, multi units, two flats, three flats, etc.
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 Phil Buoscio’s personal views and do not reflect the views of http://shortsaleagentadvocate.com/.
This information on Chicago Short Sales: I Have Mortgage Insurance. Won’t That Cover The Deficiency? is provided as a courtesy to our viewers to help them make informed decisions.