Private Mortgage Insurance

During times of financial crisis, people may struggle to make regular payments on important debts, and may run the risk of serious penalties like repossession of personal property and foreclosure. During foreclosure, the bank will typically sell the home to recover the costs of the individual's mortgage loan, but in some cases, the home sale will not cover the amount of money that was borrowed.

Private mortgage insurance (PMI) policies are designed to cover the amount of money still owed to a lender following the sale of a house in foreclosure, and many lenders require this policy be in place before lending money for the purchase of a home. While foreclosure is a common occurrence for persons facing serious financial struggles, those who wish to save their homes may consider other legal options including mortgage modification or bankruptcy to keep their property. For more information, contact the Maryland mortgage modification lawyers of Chaifetz & Coyle, P.C. at 443-546-4608 today.

Private Mortgage Insurance

This type of insurance will reimburse the lender if the borrower defaults on a mortgage loan and the sale of the home does not cover the amount of money borrowed. PMI policies usually include:

• Borrowers with a down-payment of less than 20% may be required to establish a PMI policy
• Monthly premium payments
• Payments are typically one-half of one percent of the total mortgage loan

If the borrower makes all of his or her payments on time, the PMI insurance policy may eventually be canceled. This action usually takes place when the equity in the home reaches approximately 25%.

Contact Us

If you are a homeowner who is struggling to make regular payments on your mortgage loan, there are options you may be able to take to prevent foreclosure. Contact a Maryland mortgage modification lawyer from Chaifetz & Coyle, P.C. today at 443-546-4608.