Why Doesn Mortgage Insurance Cover A Deficiency Judgement in The Case of a Short Sale?
Usually your mortgage insurance only covers your deficiency up to a certain dollar amount. Anything over this amount and your mortgage insurance carrier will insist that you are judged for the deficiency. Your lender will try to collect this deficiency from you before they file a claim with the mortgage insurance company. Ultimately, the mortgage insurance is not there for your protection, just the lender’s.
Related Questions
- If I don’t use a lawyer to get the bank to waive a deficiency judgement on a short sale then how long does the bank have the right to come after me fro the deficiency?
- If we are successful with the short sale, can I be sued for a deficiency judgement?
- Where can I find example short sale cover letters?
