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#1111112 - 01/14/09 09:04 PM PMI on foreclosure
BankLady Offline
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Joined: Jan 2009
Posts: 4
If a loan is in foreclosure, should the lender continue the PMI payments for the borrower?

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Lending Compliance
#1111270 - 01/15/09 12:08 AM Re: PMI on foreclosure BankLady
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,229
Galveston, TX
Why would you not? That would one of your sources of repayment - PMI insures the bank not the borrower.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#1112079 - 01/15/09 10:56 PM Re: PMI on foreclosure rlcarey
BankLady Offline
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Joined: Jan 2009
Posts: 4
Thank you for your response. That is what I thought. Maybe I should have got a bit more detailed in my question.

At what point during the foreclosure can the bank stop paying the PMI? Once it's placed in OREO? Once a claim is filed? At what point during the delinquency or foreclosure process can a claim be filed?

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#1112146 - 01/16/09 02:10 AM Re: PMI on foreclosure BankLady
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 47,517
Bloomington, IN
If the property is in foreclosure then why are you not already in communication with the PMI company? The questions you are asking can be best answered by talking with your PMI rep and/or reviewing your contract with the PMI company.
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The opinions expressed are mine and they are not to be taken as legal advice.

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