PMI and Foreclosure question

[Aprilshowers]

Hello,
I am not sure if I can or need to file for bankruptcy yet.
My problem is my house. I can not afford it. I can not afford to fix it up to sell it, and I can not keep paying for it every month without getting behind on the credit card payments.
I stopped paying the mortgage and received the notice of foreclosure this week.
My question is this.
When does the PMI insurer pay the mortgage company for the claim, and when do they come after me for the deliquency after the foreclosure sale?
If it makes any difference I live in Ohio.
Thanks in advance

PS- I REALLY don't care if they take this house, it has been nothing but a money pit.

[lrprn]

Here's a link to the Oho foreclosure laws - http://www.foreclosureuniversity.com...elaws/ohio.php

There's a timeline at the top and details about the Ohio foreclosure process in the text.

Since Ohio is a judicial foreclosure state, that buys you more time since the lender has to go to court to get the foreclosure started.

The average foreclosure time in Ohio appears to be between 4 months to well over a year before the foreclosure auction occurs and you have to be out of the house - just depends on how badly your mortgage company wants your house. That depends on the market in your area right now and how easy it will be for your mortgage company to sell the house to recoup their losses.

Since the housing market is depressed just about everywhere at the moment, chances are you'll be in the house a longer rather than shorter time.

[Aprilshowers]

Pmi??

Thank you for the link.
I have seen the time lines, that is not the question.
I can not find any discussion about PMI and its uses at foreclosure.
All I can find is that it protects the lender, I accept that.
I am afraid that there are circumstances when they will still come after me for the shortage on the mortgage.
I came to this forum because of all the great help you have given other people.
I need some of that help now.

Can somehow tell me of their experiences in foreclosure when they DID have PMI?

[B12]

PMI, private mortgage insurance does not pay the mortgage off in case of borrower default.

PMI insures the difference in your loan to value.

Lenders figure if they get 20% down at time of purchase, then if the buyer forecloses, they can get at least 80% of the home value in a quick sale. When they can't get 20% down, they go to a private insurer to make up the 20%. They make you pay the insurance.

For example, if you put down 10%, the lender will make you buy insurance for the extra 10%, hence PMI.

So, when you foreclose, the lender gets its money from the PMI company up to 20% and can be assured it can sell the house for 80% of its value.

The caveat is, houses are depreciating faster than ever, so the lender might be stuck selling for less than 80% of value.

As to WHEN the lender gets paid, it doesn't matter to you.

[Aprilshowers]

Thank you so much for the answers.

Are there times when the insurer will not pay the lender the 20%?

Is there anything I can do to make sure they do not come after me for the 20%? (either the lender or the insurer)

I looked at the mortgage papers and can not find anything, and
I have googled these kind of questions and there is absolutely nothing for guidance!

I am afraid there is some clause like "Acts of God are not covered"
like in most insurance policies.

[B12]

There should be something in your closing papers referencing PMI.

"Acts of God" does not come into play. Make sure you keep the homeowners insurance paid until the deed is fully out of your name.

Taxes and HOA dues do not have to be paid depending on what you want to do.