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Need help can a lender slap on mortgage insurance without the borrower knowing.

Posted by sheryl gay on March 30, 2010 at 5:15am in Short Sale Discussions

ASC is the serving company for my borrowers loan we are doing a short sale on he's property. They e-mailed me and said that the mortgage insurance(Radian) wants 25k signed note from borrower. Called borrower they pulled out their doc's and stated they do not have mortgage insurance. And if the lender did this then he will just filed bankruptcy.Anyone else go through this?

 

Sheryl

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Replies

  • Bryant Tutas March 31, 2010 at 11:26am
    Of course they can. The lender is the one paying the premium. They certainly have the right to protect their investment. This is very common with 2nd mortgages.
  • Juan Reyes March 30, 2010 at 6:09am
    I was told a few years ago by a VP at BOA, that even though they were offering programs such as 100% no MI , the loans still had MI and that it was built into the rate.

    I agree, I'm not sure how much disclosure there was.
  • Stephanie Lim March 30, 2010 at 5:52am
    I have had this situation pop up as well. I've wondered about the legalities as well. It seems like it should have been disclosed that there was a LPMI policy going on the property, but I don't think a lot of disclosure took place. Interested to see other people's take on this.
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