If we were paying PMI insurance and we decide to quit paying and walk away.;?
Posted by admin | Under FHA Secure Thursday Nov 13, 2008Will that keep the lender from coming after us? We refinanced seven months ago and now we do not want the house anymore this is an FHA secured loan.
PMI protects the lender. It is not designed to protect the borrower.
Actually FHA has a slightly different product. It is not called PMI (private mortgage insurance) it is called MIP (Mortgage Insurance Premium) Still it is designed to protect the lender not you.
I would not walk away without talking with the lender to see what can be done to sell or keep the house- you will regret it.
When you sign a loan contract, you promise to pay. You need a better reason than “we do not want the house anymore.”
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NO. Private mortgage insurance is supposed to help in catastrophic situations, like if one of you died or was disabled in an accident or something. It’s for if you want to keep your house but are suddenly and unexpectedly unable to make the payments.
It is NOT for people who have willingly committed themselves to making payments and then change their mind and decide they don’t like having adult responsibilities.
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I already answered your other question.
Regarding PMI: No, that won’t keep the lender from coming after you. And all the other drawbacks I already listed–ruined credit, possible tax liability, possible mortgage fraud charges, increased interest rates on other credit lines–still apply.
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PMI protects the lender. It is not designed to protect the borrower.
Actually FHA has a slightly different product. It is not called PMI (private mortgage insurance) it is called MIP (Mortgage Insurance Premium) Still it is designed to protect the lender not you.
I would not walk away without talking with the lender to see what can be done to sell or keep the house- you will regret it.
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This is VERY shortsighted behavior on your part and will have repercussions for a decade on your credit rating, ability to rent, to buy, to get credit.
LENDER will certainly come after you–you just made a new agreement 7 months ago. The PMI (or MIP with FHA) only insures the down payment you DIDn't make, not the whole loan. It doesn't protect you at all. Lender will come after you for the loan you owe, the costs of foreclosure or whatever, making it significantly MORE money they will chase you for.
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real estate attorney
Again, you will not “walk away” - it is a foreclosure.
PMI protects the lender, not you.
If you don’t want the house anymore, sell.
I strongly suggest you start loving honoring your obligations and making responsible decisions.
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Oregon Realtor
NO! That insurance protects the lender only from losses. They can still file a 1099 form to the IRS grossing up your income for the year causing you to have to pay more taxes. And if you decided you don’t want to pay taxes, I’m sure Uncle Sam has a nice holding cell for you to consider your future in. Also, the ramifications on your credit could be devastating for years to come. I suggest you do all you can to save the property.
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Realtor
No..it won’t keep your lender from coming after you..you owe them money. Either pay up or destroy your credit and future by being foreclosed on OR sell your house.
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