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PMI questions and foreclosed home questions

My name is Brooke Dubuque and I am currently enrolled at Kaplan University. I have a 10 week project that I am currently working on. The project involves changing something in my community for the better. For my project I need some information on foreclosed homes. Answer them to the best of your ability and knowledge. If it is possible I would like to contact you again through email with future questions for my assignment. Thank you in advance.


1). Does PMI insurance cover foreclosed homes?

2). Does PMI insurance cover the note when someone is in default on a foreclosed home? If so, up to what percentage?

3). Do homeowners have to carry PMI insurance? If so why?

4). If PMI insurance does not cover the deficiency amount owed on the home then does the bank sell the property for the deficiency amount owed, or the asset value of the house and property?

5). What is an average number of foreclosed homes that a bank, or your bank has on record at any given month?

6). It is my belief there are around a thousand foreclosed homes in Horry County sitting vacant, is that a realist number?

7). What is the average deficiency amount?

8). Is there a limit to how long a house can be up for sale before the price is lowered?

9). Are there any website/places someone can go to bid on a house without other mortgage brokers or realtors bidding on it too?

10). If there is only $20,000 left owed on a house and that’s the only amount the bank is losing why not sell the house as is but maybe add on another 5 or 10 thousand dollars to the closing cost for the bank to still make a profit.

11). When the banks pay someone to fix up a house before selling it, do they shop around for competitive estimates for repairs or check behind the contractors to see if the work is done correctly and to code ?

12). If a bank knows they do not want to sell a house for no less than $50,000 at an action then why does the bank not have the starting bidding closer to 50,000 instead of $10,000?

Again thank you so much for your time. You are helping a lot by answering my questions.

Answer Question

Asked by family0530 at 10:58 AM on Sep. 13, 2012 in Home & Garden

Level 6 (119 Credits)
Answers (2)
  • I think you'e probably going to need to call a lender to get answers to these questions...or more than one lender.

    We just refinanced our home, so I believe I can answer a couple of questions about PMI. Not all homeowners have to have PMI. It depends on how much you put down on your loan if you have to start with PMI. You have to have a certain amount of equity in your home before you don't need PMI. So if you buy a house for $300,000 and you only put down 10% you will probably be paying PMI. If you put down 50% you probably won't have to. I don't know what the percentage of equity necessary to avoid PMI is, a lender could answer that though.

    Also, when you have paid your loan down to a certain amount, you can request that your PMI is removed. Again, I don't know numbers.

    I'm not sure if that helped at all, but I would call some lenders for answers. Good Luck!

    Answer by ohwrite at 11:14 AM on Sep. 13, 2012

  • Thank you for the info on PMI. This has help.

    Comment by family0530 (original poster) at 2:14 PM on Sep. 19, 2012

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