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Profile picture for portageline

I live in Ohio. Can a PMI company sue me after I agreed to sale my home in short sale?

A rep. of Sun Trust Mortgage has been calling me 2 months after the "Short Sale" of my home which the lender was Bank of America. This person wants to meet to discuss my closing agreement back in 2007. I had no ideal who the PMI company was on my BAC loan. I dont know how much the insurance pay the bank. Now i am concern the pmi company can sue my for any deficiency on the short sale. If anyone has any answers for me I would be grateful.
  • March 15 2013 - West Akron
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Answers (4)

Did you make payments to SunTrust Mortgage? They are not a PMI company so not sure why they would call you, particularly if you were not making mortgage payments to them. Lender's would likely send certified mailings regarding previous debt issues. Meeting in person is a highly unlikely request from a lender, so I would talk to the person and suggest they send a request in writing regarding their purpose in contacting you.
You can then decide on how to proceed, including seeking legal assistance.
  • March 16 2013
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Profile picture for portageline
Its clearly stipulated in the Short sale agreement if home was purchase to be lived in by owner the lender will forgive the loan, and will not ask for repayment from the borrower. However if the Mortgage Insurer is technically part of the lender, do they have a legal loophole they can use?
  • March 16 2013
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Profile picture for Eric Brown Realtor
Have your RE attorney review the short sale documents to know for sure what was agreed to. It seems strange to me that a PMI company could sue the borrower in a short sale situation. In a short sale the bank agrees to take a loss, therefore I would think that the bank would have gotten approval from the PMI company if they were intending on making a claim. However depending on the terms of the agreement you could be liable, like I said earlier Call Your Attorney. 
  • March 15 2013
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In certain circumstances, under Ohio law, a lender can sue the defaulted party for losses incurred in the repossession and resale of a foreclosed home.

You would be advised to contact an attorney that specializes in foreclosure law. Chances are (with legal assistance) you may be able to negotiate the debt down to a more reasonable amount.
  • March 15 2013
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