
Mortgage insurers have the right to collect from former homeowner on losses the mortgage insurer incurred in a foreclosure. Whenever a purchase or refinance transaction amount exceeds 80% of the value of a property, the lender will force the borrower to purchase private mortgage insurance -- not for the borrower's benefit, but for the banks benefit. It's widely known that lenders can go after former homeowners for losses incurred in a foreclosure, but what's less widely known is that mortgage insurers can do the same thing. Many former homeowners are finding out the hard way. Homeowners billed for houses lost in foreclosure By Jenifer McKim and Jess Aloe New England Center for Investigative Reporting, January 18, 2015 When Guillermo Galindo…[READ MORE]