PMI Provides Information to Help Homeowners Facing Foreclosure
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Walnut Creek, CA, November 11, 2008 /PRNewswire/ — PMI Mortgage Insurance Co., a leading mortgage insurer and proponent of sustainable homeownership, has found that many homeowners who are facing foreclosure are unaware of the potential solutions available to them. Many lenders are also overwhelmed with the flood of inquiries from their borrowers, so PMI is providing information to help homeowners make the appropriate decision that addresses their specific needs.
"Foreclosures benefit no one and impact the fabric of communities," said John Jelavich, VP of PMI's Homeownership Preservation Initiatives. "Individuals facing foreclosure are not aware that in most cases lenders can be flexible to develop solutions that will meet the economic situation faced by their borrowers with the goal of keeping them in their homes."
Options available for homeowners who are behind in their payments include:
- Loan modification: your lender can revise the terms of your loan in order to make it easier for you to afford your monthly payments.
- Forbearance agreement: your lender can suspend your mortgage payments for a set period until your financial hardships can be resolved.
- Reinstatement/payment plan: if you've missed payments, but have the ability to pay your bills going forward, lenders allow you to repay missed payments over time to bring your loan current.
Options available for homeowners who cannot afford mortgage payments anymore, include:
- Loan assumption: your lender may allow a qualified borrower (family member or friend, for example) to assume the terms of your home loan.
- Deed-in-lieu: you voluntarily turn over the deed for your property to your lender, which can help reduce damage to your credit.
- Pre-foreclosure sale: you sell your home - even at a loss - and the lender agrees to accept less than the total amount owed as complete or partial satisfaction of your loan. This option is also far less damaging to your credit than foreclosure.
For more information, visit: www.homesafepmi.com. PMI was the first mortgage insurer to join the Hope Now Initiative, a nationwide effort to help homeowners prevent foreclosure.
The PMI Group, Inc.
The PMI Group, Inc. (NYSE:PMI), headquartered in Walnut Creek, CA, provides innovative credit, capital, and risk transfer solutions that expand homeownership and fund essential services for our customers and the communities they serve. Through its wholly and partially owned subsidiaries, PMI offers residential mortgage insurance and credit enhancement products. For more information: www.pmigroup.com.
