does PMI pay mortgage in case of the death of the insured?

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PostPosted: Tue Apr 28, 2009 4:06 am   Post subject: does PMI pay mortgage in case of the death of the insured?  

Insured died in 2008. left a balance of $46,000.00 on mortgage. No other name on deed or mortgage. Can administrator of estate file claim to have PMI pay off mortgage?

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PostPosted: Tue Apr 28, 2009 10:39 am   Post subject:   

Well PMI or the private mortgage insurance protects the interests of the lender and not that of the mortgage owner. Hence, the lender is required to claim against the insurer to get the remaining of the mortgage amount.



However, I doubt that the PMI Company would pay over the death of the mortgagee, since PMI would normally pay-off when the borrower defaults. I guess in this case the estate would be responsible for the remaining of the loan.


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Karen
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PostPosted: Tue Apr 28, 2009 10:50 am   Post subject:   

Well, I see no reason why you shouldn't ask. Since, you are the executor of the property you are in the capacity to inquire with the PMI company. IMO its worth trying.


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PostPosted: Tue Apr 28, 2009 1:36 pm   Post subject:   

I _think_ PMI would pay the loan but then it's a question as to if the PMI carrier would pursue the estate as Karen mentioned. Remember, PMI does not protect the owner of the home... it protects the mortgagee and therefore allows the home owner to obtain the loan.

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PostPosted: Sun May 10, 2009 7:08 pm   Post subject:   

Hi

The PMI might not but yaa if the mortgage co takes care of insurance.. then there is a possibility they might pay it as well...

they normally use this insurance during workouts on payment options.. however its the last option used by the mortgage co to help a borrower keep his house.. but most of the co's dnt infrom their borrower.

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PostPosted: Tue Jun 23, 2009 10:33 am   Post subject: insurance  

My ex and I purchased a house 12 yrs ago. I moved out 2 yrs after we bought the house. I left him the house and I took the kids. About 3 months ago my ex has been missing and we believe his room mates killed him and buried him some where. The lender hasn't received a payment going on now for three months. Should the insurance on the loan pay the balance on the house. I need help can some one give me good advice please!!!!

Scrub


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PostPosted: Wed Jun 24, 2009 3:04 pm   Post subject:   

Quote:
Should the insurance on the loan pay the balance on the house.
You should contact the mortgage company and PMI carrier to inform. Do you have an interest in the house?
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PostPosted: Tue Oct 27, 2009 11:17 pm   Post subject: pmi and death  

if a person has PMI insurance, is upside down on the house and then dies and leaves the house to 1) his wife who was not his wife when he bought the house and is therefore not on the deed or 2) his 30 year old daughter--who is also not on the deed., what happens to the mortgage on the house???


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PostPosted: Tue Oct 27, 2009 11:22 pm   Post subject: pmi and death  

Neither the wife or his daughter have a financial interest in the house. But neither one can afford to take on any debt from the house. The will has not yet been finalized


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PostPosted: Mon Nov 09, 2009 5:01 pm   Post subject: PMI Removed from Mortgage Payments  

I was informed that if my house value increased 20% then the PMI amount could be removed from my debt. With the real estate market in terrible shape, can I qualify if I have upgraded the residence opposed to just waiting on the market to increase?


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source123
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PostPosted: Wed Nov 11, 2009 8:40 pm   Post subject:   

So if PMI pays out on default of the loan, and the mortgage holder dies - wouldn't the mortgage payments also stop, hence triggering the banks ability to claim on the PMI?



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PostPosted: Thu Feb 11, 2010 2:45 am   Post subject:   

My aunt bought the house 2007and she passed away in 2009 she had a PMI on her mortgage before she passed away we were paying her mortgage for almost 6/8 months and also taking care of her in hospital she gave a quit clame deed to us in case of her death she want us to be the benifeshry of that property since passed away we do not have good cradit and our income is arround $60000. what should we do now should we inform bank to reduse the mortgage and replace our name or PMI will pay off the mortgage or what should I do now ??? Please can any body tell me.


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PostPosted: Thu Feb 11, 2010 2:45 am   Post subject:   

My aunt bought the house 2007and she passed away in 2009 she had a PMI on her mortgage before she passed away we were paying her mortgage for almost 6/8 months and also taking care of her in hospital she gave a quit clame deed to us in case of her death she want us to be the benifeshry of that property since passed away we do not have good cradit and our income is arround $60000. what should we do now should we inform bank to reduse the mortgage and replace our name or PMI will pay off the mortgage or what should I do now ??? Please can any body tell me.


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PostPosted: Fri Feb 12, 2010 12:33 am   Post subject:   

If I were in your shoes, I would call the bank and tell them your situation. They may infact lower the rate, however if you have bad credit they may not. Is there any equity in the property? If so, that may help you and persude the bank to lower the rate. At this point and because of the housing crisis, banks are making a lot of deals these days so they do not want to end up holding the bag.

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PostPosted: Thu Feb 25, 2010 1:35 pm   Post subject: homeowner dies  

my ex died,condo in probate only had his name our daughter inherited everything does the pmi pay off loan


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