We are well into our strategic default and our biggest concern in our PMI. I know they can and do collect deficiency judgments, but what rules/laws to they have to follow in doing so?
I thought that I had it all figured out: The same rules apply to them as apply to the lender. For example, I'm in Utah so the lender has 3 months post trustee sale to pursue legal action against me, so the PMI company would only have 3 months as well. Also they can only collect 20% of the original loan amount that they backed.
The reason I bring this up is I met with a foreclosure defense attorney today who told me that this was not the case. He said that while the lender could only get a deficiency judgement within 3 months, the PMI company typically has 4 years. He said they are 2 different contracts and therefore different rules apply. This contradicts what I previously thought as well as what another attorney told me.
Can anyone clear this up or shed some insight? How much do PMI companies actually pay to the lender if someone defaults on a property, how much can they pursue you for and how long to they have to do it?
Good luck everyone.