NLIC.org

Benjamin Said:

Will filing for bankruptcy benefit my home loan modification case (currently under review)?

We Answered:

There is no benefit to bankruptcy if you are up to date on your unsecured debt. There is a good chance you would spend a bunch of time and money going through the process and end up in Chapter 13 with only a small reduction in your payments. Things like car insurance could not possibly be reduced by bankruptcy and may actually go up if your credit is trashed.

Bernard Said:

For PMI insurance on a home loan. Isn't it the responibility of the Loan company to evaluate this annually?

We Answered:

The rule is that happens automatically when you reach 75% based on the original amortization schedule, not on the new appraisal.

Judith Said:

how long do you have to pay mortgage insurance on a home loan?

We Answered:

If you are referring to PMI insurance, after you have over 20% profit in the property many lenders will let you drop it. Some require more and none will ask you if you want to drop it. You have to pursue it or take another mortage out to move to a new company.


Article on the front page of Yahoo.



2. Writing off private mortgage insurance

When a homebuyer does not make at least a 20 percent down payment, lenders usually require private mortgage insurance, or PMI. For some loans taken out in 2007, PMI payments are now deductible.

Beth Said:

Why would an insurance company need information on someone who is not listed on a home loan?

We Answered:

homeinsurance.awardspace.us - try this one. Got my home insurance from them. As I know they provide such a service.

Alice Said:

Why would a home loan insurance company audit a loan file?

We Answered:

What you are paying is PMI - private mortgage insurance - that big cost you pay if you don't put 20% down.

It sounds like you are your near reaching 20% equity in your home. They may just be getting prepared for when you send a dispute to have that nasty PMI removed.
It was a lot of work to get mine removed - I had to prove that I had 20% equity - I even waited till I had 25% just to make sure.

Then again, maybe PMI companies are just getting paranoid. I would call them immediately - since I don't think you would be near paying over 20% only after a year.
/