Profile picture for bundyelvis

My lender is charging me private mortgage insurances because my home went down in price.

I have been living in my home for 12 years. I have never been late on the mortgage payment. I received a notice today from my lender that the cost of ( PMI)  Private mortgage insurance  will be added to my house payment because the value of the home went down. I owe 465,000 on the home that is only worth 235,000. 1160 square feet. There lucky I am making the payments. I really have know reason to stay. What a world we live in today. Anyone else receive a notice like this??
  • January 27 2009 - South Lake Tahoe
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Answers (5)

Best Answer

I just happened to be poking around and saw your post.  I really can't see how your lender can get away with that especially given the fact that an MI company wouldn't stand a million miles near a scenario like that.  Conventional, in some cases, caps off at a 95% and even the government has a limit on first liens.

Be sure to get legal advice about that and get as much detail from your lender as you can about the MI company they are referencing.  It seems as if anyone will say anything.

I wish you the best.
  • January 27 2009
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Profile picture for Steve Humpfle.
I would be willing to bet this is one of those scams to remove some extra money from your wallet. I have seen things like this before in email form. Please make sure the letter is really form your lender and not a fake.
  • January 28 2009
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Profile picture for Clearpoint
I am very confused by this one.  What MI company is going to come in after the fact and insure a percentage of a loan forget for a moment the loan is beyond any MI LTV limit?  It makes no sense, and unless they can show you exactly where that was in your note tell them to take a hike.
  • January 28 2009
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Ask them for evidence that they have the legal right to do this.  There would have to be a clause in your Note that would grant them permission to do this.  Pull out the note and read it.  I don't think it is there. 
I've been doing loans for more than 30 years and have never seen a bank/lender go back to the borrower to have PMI added to a loan . . . especially 12 year after the fact.    I'd tell them to "pound sand" -

  • January 28 2009
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I would recommend that you pull your Financial Agreement (Note) with the lender and review it thoroughly for any provisions about PMI, Contact your lender. If you fail to get satisfactory results, then you may want to seek legal advice on this.
  • January 27 2009
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