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More questions to help my friend

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    More questions to help my friend

    Back story: My friend and coworker had decided last fall to give up her house and let it go to foreclosure. She owes way more than it's worth. She went a good 6 months without anything happening, but then when thing began rolling she suddenly changed her mind. She started negotiating with the loan company (not a big name) and they agreed to modify her loan (got it in writing) but she had to make 3 payments first. In the meanwhile, the collection place is still pursuing her. The mortage company said it would stop once she agreed to the 3 payments. I said well don't count on it. She had to go to court once already and no one showed up and the judge would not even look at her assistance papers. She has to go again tomorrow and expects the same results. She's made 2 payments to the loan company already. They will not return her phone calls or emails concerning all of this. She doesn't have a lawyer and can't afford one.

    Ok, the question she was asking me today is about PMI. She's been paying PMI for 5 years and from everything read, that should have at least paid for some of her missed payments. However, the lender says it's for their protection. Well, of course, so why didn't they use it? It sits untouched. I was confused after talking to her and was hoping maybe I could pass along some clarification? Appreciate it!

    #2
    The interesting thing, is that most people could afford an attorney if they took just one (or two) mortgage payments to fight. The problem is, that if she is trying to fight foreclosure on her own, she probably has a very difficult battle since most judges won't really listen to the mortgagor themselves.

    In any event, PMI is insurance for the lender. They use this insurance once they foreclose and there is a shortfall (deficiency) between the amount owed and the amount the property sold for (at auction or a regular sale).
    Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
    Status: (Auto) Discharged and Closed! 5/10
    Visit My BKForum Blog: justbroke's Blog

    Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.

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      #3
      Thanks justbroke for your answer. I'm not sure why she's doing things the way she is, I just listen.

      Comment


        #4
        Originally posted by TRfromillino View Post
        Thanks justbroke for your answer. I'm not sure why she's doing things the way she is, I just listen.
        That is about all you can do--just be a kind and caring 'shoulder'.

        See if you can get your friend to join this forum...
        "To go bravely forward is to invite a miracle."

        "Worry is the darkroom where negatives are formed."

        Comment


          #5
          This is so interesting and helpfull . here we can ask any Querry or our problem related to Bankruptcy or Foreclosure. Thanks

          Comment

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