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Shirley Said:

Will PMI coverage factor in on whether the mortgage company can file a deficiency judgment against me?

We Answered:

As long as you are making payments on the mortgage and are not in default, the mortgage company will not seek a judgment against you. Even if the value of your house declines below the amount you owe, your contract with the mortgage company remains in good standing if your payments are current. Home prices have fallen recently and many homes are worth less than their mortgages. It is when the debtor goes into default that the trouble starts.

Home prices will again recover. It may take a few years, but unless you have to sell, you are better off just keeping the house and maintaining the payments.

Yvonne Said:

Why would I receive 2 1098's from my mortgage company with the same interest amount but a different PMI amount

We Answered:

Did you refinance halfway through the year? If so that could be why you have the same interest amounts. Definitely call your mortgage company to avoid double deducting your mortgage interest just in case.

PMI is deductible in 2007 taxes if your loan was originated in 2007.

Rhonda Said:

Can PMI be taken out by Mortgage company?

We Answered:

If you have a standard mortgage, and put less than 20% down, you WILL have PMI added to your mortgage, but it's paid for by YOU, not your mortgage company.

PMI should have been included with your escrow amount, but EXCLUDED from your good faith estimate - it's neither principle nor interest.

The insurance that the mortgage company takes out, is called mortgage impairment (sometimes called forced placement), and it gets charged to your account. PMI is completely different.

It doesn't matter if mortgage impairment pays the bank, or if PMI pays the bank, NEITHER pay on behalf of the borrower - the borrower STILL owes the money, even if PMI paid the bank back some of that money.

ie, you pay for PMI, but it will never benefit YOU.

Tanya Said:

If I default on my mortgage, does the PMI company pay my mortgage to the bank on my behalf? if so for how long?

We Answered:

vb has the right idea; keep in mind we are in unchartered territory;
the fed has ever ordered some lenders to STOP foreclosure procedures.

hold onto your britches.