Can the PMI company sue a home owner that completed a short sale or was foreclosed on?

Many homeowners think that the Private Mortgage Company (PMI) company is something that protects the homeowner.  The PMI that is paid by the home owner is actually a insurance that covers the lender in the event if you default on the loan.

There are more and more lawsuits being filed from the PMI company against the home owner that was in default.  Even though a short sale is completed there can still be a deficiency.   A lot of the deficiency could come from the 2nd lien holder that had to take a bigger loss when a short sale was completed.  The lender can claim the loss with the PMI company for their loss that they had incurred when they completed the short sale or if the house was foreclosed on. The PMI company can stand in your lender’s shoes to try to collect the money back from you, a legal concept known as “subrogation.”

You may request the PMI company to show proof that they have the right to go after you for the deficiency.  This is why it is critical to find out if your lender will waive all rights to go after you for any types of deficiency after the property has been sold. Please speak to a attorney or a qualified RealtorShould I buy a Dallas Short Sale?. Read more ... » when you are thinking about short selling your house or facing foreclosureShould I buy a Dallas Short Sale?. Read more ... ».

You have options.  Make sure you explorer all options because this can affect your future for quite some time.  Please contact us for any questions you may if you are facing foreclosure.  We can help!  JC & Associates

What’s the National Association of Realtors (NAR) thoughts on our future real estate market?

NAR offered some projections to the Realtors at a Conference Expo in 2012.  Chief Economist Lawrence Yun for NAR says that he expects for the share of distress sales to decline about 25% in 2012 to about 8% in 2012.

As long as the credit guidelines doesn’t tighten up they expect the market to continue to recover.  If the guidelines continue to tighten up that will have many buyers not be able to qualify to buy a home.  The increase of home prices should also continue.  Mr. Yun has predicted for the market to increase 6 percent in the median existing-home prices for 2012.  He also thinks there will be a 5.1 increase next year and comparable gains in the future.

He anticipate for existing-home sales to move up each year to about a 9 percent increase and for this year it would be 4.64 million, 5.05 million for 2013 and 5.3 million for 2014.

He also thinks that the Gross Domestic Product (GDP) will increase in coming years from 2.1 this year to 2.5 percent in 2013.  The unemployment rates should also drop to the 7.6% range in 2013.

Mortgage rates is expected to increase to an average of 4 percent next year.  Inflationary pressure could case the mortgage rates to increase to 4.6 percent in 2014 NAR had announced.  So if you are interested in buying you should take advantage of the low interest rates now.

Please contact us at 214-469-9990 if you are interested in buying and taking advantage of the low interest rate today.  Although home prices are increasing it still makes more sense to many to buy instead of renting.  We look forward in helping you with any of your real estate needs here at JC & Associates.

What if the bank doesn’t have all the proper documents to foreclose on a home? 

Can they still go ahead and foreclose?  

What happens if they go ahead and foreclose without all the proper documents?

We are entering into some interesting times in the real estate industry.  This case that we are about to mentioned is based in the state of Ohio.  The Supreme Court has ruled that a bank has foreclosed on a property without the validating of all documents and proof of ownership of the note when it was foreclosed on.

For many years, it’s been a standard practice across the state of Ohio and many other states to foreclose on a house even without the proper documents in order – and show proof of ownership of the note.  It’s not uncommon for the for the notes to be packaged up and resold repeatedly to another company.  As this happen over and over the process has become very sloppy and very difficult to track.  When the notes are being sold over and over the documents get misplaced or lost!  Local courts have allowed for this lawsuits(foreclosures) to proceed assuming that the documents will eventually be turned in for those lawsuits.

As consumer advocates, many have believed this is improper and shouldn’t be allowed.

The Supreme Court has agreed with the ruling when the party initiates a foreclosureShould I buy a Dallas Short Sale?. Read more ... » lawsuit it is determined at the time of the filing.  What this means is that the lender must have all proper documents and show ownership at the time of the lawsuit.  If they can’t then the lawsuit will be voided.

It’s unclear on how this will impact the current lawsuits that are currently being filed.  It’s going to be very interesting to see how this all plays outs.  Many homeowners have been foreclosed on and proper documents and proof of ownership were not presented.  Though it is unsure if any of the homeowners will get their property back, but many have been foreclosed on and resold to another person.

When a home is purchased here in Texas there is a title policy purchased.  The purpose of the title policy is to confirm that there is not a cloud on title.  Things that can cloud the title would be things such as a IRS lien, mechanical lien, utility lien, etc….  If this is the case then the bank never had clear title to sale the property.  Wow, we are in some interesting times!!  Many attorney’s feel that we are going into uncharted territory and is also unsure how this will all play out.  This can potentially open into some land title issues some say.

We will keep you posted as time will tell on how this will all play out.  If you have any legal questions regard your foreclosure we recommend you contact an attorney for assistance.  Please feel free to contact us if you have any questions regarding other options in assisting you in avoiding foreclosure.  We are glad to be here to help educate you on what is going on the US market and local Dallas market!