Guest blogger Marie Nelson explains some of the fine points of a short sale.
Private Mortgage Insurance: What is it and What is its Use During Short Sale?
In the wake of the growing financial crisis, foreclosures are now being almost considered the order of the day. However, selling your own home might as well be one of the ways to combat these kinds of problems. In this case, having to sell the house at a price below the outstanding mortgage might be the only option available to you. Selling a house or for that matter a property for an amount that is below the outstanding mortgage is often referred to as short sale. PMI or private mortgage insurance is something that is required to protect lenders against short sale. It doesn’t provide any kind of protection to the borrowers though.
As you go through the features of PMI, it will be easier for you to understand why it is availed by borrowers though they aren’t protected by it.Continue Reading