How do you access mortgage insurance if you are unable to make a payment?
I may not have a clear understanding of how mortgage insurance works. can anyone clarify?
- helprhomeLv 51 decade agoBest Answer
You don't! While you do pay, it is to protect the lenders position not yours! If they have to file bankruptcy. The insurance helps them not you! Now to address the real issues. If you can't pay and have a good reason...you should contact the lender and talk to them about your situation. The phone number is on the monthly statement. Don't speak to the collection department that is just an exercize in futility they get paid to COLLECT! See the problem? Find a way to speak to the loss mitigation department. Find a local REALTOR who specializes in Loss mitigation. You may e-mail me and I can refer you to someone who can help who doesn't charge you anything up front. You never pay a loss mit consultant who comes to your house! Never! You only pay the bank and they pay us. Watch what you do there are scams out there! Good Luck.
- godgedLv 71 decade ago
The others explained mortgage insurance, it is not like car insurance that protects you if you have an accident. I don't know of any type of insurance that covers your mortgage if you got into a bad loan and now cannot pay.
Contact the lender immediately to try to mitigate this. See if you can negotiate lower payments until you get back on your feet.
If they will not negotiate, you are better off selling than going into foreclosure. Have a Realtor review your situation to see if this is feasible.
The longer you wait, the more trouble you could be in.Source(s): Oregon Realtor
- Anonymous1 decade ago
Mortgage insurance protects the lender, not the borrower. If you can' t make the payments, you need to talk to your lender right away. Delaying will only hasten a foreclosure proceeding.Source(s): Realtor/Appraiser-MN
- Spock (rhp)Lv 71 decade ago
the loan owner handles this. the loan servicing company, as his agent, will do anything that needs doing.
in general, just because the loan owner eventually gets an insurance settlement does NOT relieve you of the obligation to make your payments on time and in full.
If you are unable to do so -- contact your mortgage agent immediately. the longer you stay silent, the worse it'll become.Source(s): experience -- ex-mortgage banker
- How do you think about the answers? You can sign in to vote the answer.
- leggonLv 43 years ago
You do not wish a production, you wish a rennovation mortgage, equivalent to an FHA 203K. That's wherein you borrow ample to shop for the residence and make the maintenance. Maximum maintenance can be capped at $35,000. realtor.sailor