Can my mortgage insurance company help me with foreclosure?


Your mortgage insurance does have a purpose - it is not only additional bucks to your monthly payment as when you are facing foreclosure if you are behind with payments, you also have a variety of other options. One of them is asking for assistance your mortgage insurance company.

Since they have insured to pay from 0 to 20% of your loan to your lender in case you default, depending on your down payment, they will not be happy if you face foreclosure. Rather, the mortgage insurance company will try to keep you in the house and help you get current on the loan by lending you an amount to cover for late payments.

This is a viable option even if you have been late for more than several months. Since your mortgage insurance company probably has a department to help troubled borrowers with a repayment schedule, the best you can do if you are delinquent and foreclosure is banging on your head is to contact them. They will be paying the lender any way if you are foreclosed on, so they might be a lot happy to pay less helping you stay in ownership.

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