Friday Nov 04th, 2016
Did you know that when you are ready to purchase a property you will hear the word insurance, over and over again.
Mortgage Insurance, Life Insurance, House Insurance
Who do you know that has no idea why they have to pay for mortgage insurance, when they’re buying a property with less than a 20% down payment.
The reason buyers pay mortgage insurance is to protect the lenders money. Yes that’s right, buyers pay to insure the lenders money.
If the Buyer, now owner, stops paying the mortgage payments, the lender will, after several letters, sell the house, usually under power of sale.
If the property sells for less than the mortgage owed and the expenses incurred, by the lender to sell the property, the insurance company will pay the lender the difference and go after the defaulted owner for the difference.
We will be happy to discuss this topic at more at length. We are Bonnie and Paul Jones and “we are always there to lend a hand”