how does PMI affect a foreclosure?

[LindaLu]

I'm trying to get a HARP or HAMP on my loan to save my house but having a heck of a time with my lender...I have PMI...does that influence the lender or investor in any way since my loan is insured?  I wondered if maybe they aren't helping me as much because they know they will get the money because the loan is insured...

Just curious how PMI comes into play when a foreclosure happens

[Anonymous]

It will have littel to nothing to do with it.  Basicly almost everyone applying for these has PMI becuase if you had the 20% equity when you bought the house to avoid PMI, the chances are you are not overly underwater and could have just done a refi when things got bad to a lower rate, etc.  I know in my case PMI was never brought up.

[LindaLu]

thanks for responsding Mickie..I just figured since it protected the investor that they didn't really want to help you because they knew they were getting their money anyway..and if they can get the full amount owed from PMI rather than lose money their a HAMP or HARP that they were not approving me for this reason.

[Anonymous]

NO, as a matter of fact, I do not think PMI covers the whole loss, I think it is just a partial coverage.  By the time a bank or investor adds in the non covered loss, the cost to foreclose and evict, maintenance on the home, taxes while going through the process, and realtor's fees to sell, they are not making money by foreclosing.  All of the nuts saying banks are trying to foreclose to take over people's homes are pretty much clueless.