PMI - Got a call today - Loan Modification Forum

azpoor · 09-14-2009, 06:21 PM

My loan was 100% financing so I have PMI on it. Today I got a vmail from a servicing company calling for Triad Guaranty(my PMI company) and to call them back. If I go into foreclosure will there be any action the PMI company can take against me? I'm in non-recourse loan and non-recourse/anti-deficiency Arizona.

Moe Bedard · 09-14-2009, 07:06 PM

No. The PMI company's best interest are in you getting a modification, but if you default they are on the hook. Just like you have car insurance and hit another car. Your insurance cant sue you, they just have to pay up. That is the risk they took.

azpoor · 09-22-2009, 11:07 AM

The PMI servicer has called a couple more times and sent a letter. I was reading on other posts that the PMI company ended up suing them after the foreclosure. I am worried about that happening to me. Can the PMI company sue me? Again I'm in AZ: anti-deficiency state & I have a purchase money non-recourse loan.

racoon · 10-08-2009, 09:33 PM

Moe,

I don't know if it is because this member is in Arizona, but the PMI company can sue you. They sued me for the deficiency they paid to Chase. We are going to see this more and more. My belief is, when they do an asset check, if they determine they can get a repayment from you through a chapter 13 or negotiation they will pursue a judgement. We experienced the nightmare of being sued by MGIC, happy to say we came out on the other end of it OK. Long story, all documented in my post.

KT in CA · 10-09-2009, 09:37 AM

I believe Professor Shay's commented on this in another post quite awhile back. According to him, the PMI company has no greater right that the lender does. So for example in CA if the lender can't come after you for the deficiency due to the one-action rule and a non-judicial foreclosure, then the PMI company can't either. I'm guessing AZ is the same thing since it's anti-deficiency. But in NV, it appears they can come after you so that's is why the PMI company did.

azpoor · 10-09-2009, 02:56 PM

Racoon - What state was your house in?

KT in CA · 10-09-2009, 03:49 PM

Racoon is in Nevada I believe.

dogatemy · 10-10-2009, 02:52 PM

Quote:

Originally Posted by azpoor

The PMI servicer has called a couple more times and sent a letter. I was reading on other posts that the PMI company ended up suing them after the foreclosure. I am worried about that happening to me. Can the PMI company sue me? Again I'm in AZ: anti-deficiency state & I have a purchase money non-recourse loan.

There is nothing to stop them from filing the suit but if you show up for court and cite the law then chances are you'll win unless there are some mitigating circumstances that demonstrate your decision to intentionally commit waste.

I would be willing to bet a significant number fail to appear leading to a default judgment.

09-14-2009, 06:21 PM	#1 (permalink)
azpoor Senior Member Join Date: Apr 2009 Posts: 60 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	PMI - Got a call today My loan was 100% financing so I have PMI on it. Today I got a vmail from a servicing company calling for Triad Guaranty(my PMI company) and to call them back. If I go into foreclosure will there be any action the PMI company can take against me? I'm in non-recourse loan and non-recourse/anti-deficiency Arizona.

09-14-2009, 07:06 PM	#2 (permalink)
Moe Bedard Founder Join Date: Aug 2007 Location: Southern California Posts: 16,887 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: PMI - Got a call today No. The PMI company's best interest are in you getting a modification, but if you default they are on the hook. Just like you have car insurance and hit another car. Your insurance cant sue you, they just have to pay up. That is the risk they took. __________________ Moe Bedard Founder LoanSafe.org "America's #1 Home Loan Forum" LoanWorkout.org "America's # Loan Modification Blog" Get My FREE Loan Modification E-Book \| Please donate to LoanSafe.org \| Loan Modification Training For Attorneys \| Rate Your Mortgage Servicer The comments by me and the materials available at this web site are for informational purposes only and not for the purpose of providing legal advice. Most of the information you find here is easily available on the internet. You should contact your attorney to obtain advice with respect to any particular issue or problem. The opinions expressed at or through this site are the opinions of the individual author and may not reflect the opinions of the firm or any individual attorney. Please Read our Privacy Policy and Legal Disclaimer Here.

09-22-2009, 11:07 AM	#3 (permalink)
azpoor Senior Member Join Date: Apr 2009 Posts: 60 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: PMI - Got a call today The PMI servicer has called a couple more times and sent a letter. I was reading on other posts that the PMI company ended up suing them after the foreclosure. I am worried about that happening to me. Can the PMI company sue me? Again I'm in AZ: anti-deficiency state & I have a purchase money non-recourse loan.

10-08-2009, 09:33 PM	#4 (permalink)
racoon Senior Member Join Date: Nov 2007 Posts: 73 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: PMI - Got a call today Moe, I don't know if it is because this member is in Arizona, but the PMI company can sue you. They sued me for the deficiency they paid to Chase. We are going to see this more and more. My belief is, when they do an asset check, if they determine they can get a repayment from you through a chapter 13 or negotiation they will pursue a judgement. We experienced the nightmare of being sued by MGIC, happy to say we came out on the other end of it OK. Long story, all documented in my post.

10-09-2009, 09:37 AM	#5 (permalink)
KT in CA Senior Member Join Date: Dec 2008 Location: Vacaville, CA Posts: 488 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: PMI - Got a call today I believe Professor Shay's commented on this in another post quite awhile back. According to him, the PMI company has no greater right that the lender does. So for example in CA if the lender can't come after you for the deficiency due to the one-action rule and a non-judicial foreclosure, then the PMI company can't either. I'm guessing AZ is the same thing since it's anti-deficiency. But in NV, it appears they can come after you so that's is why the PMI company did.

10-09-2009, 02:56 PM	#6 (permalink)
azpoor Senior Member Join Date: Apr 2009 Posts: 60 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: PMI - Got a call today Racoon - What state was your house in?

10-09-2009, 03:49 PM	#7 (permalink)
KT in CA Senior Member Join Date: Dec 2008 Location: Vacaville, CA Posts: 488 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: PMI - Got a call today Racoon is in Nevada I believe.

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