What is the name of your state? MI
My grandma passed away in February. Everything was left to her children (my mom and aunt) in the will. My grandma had just purchased a house 4 years ago and the mortgage company made her get PMI. She was 68 at the time. Shortly after moving in the plumbing went bad and while fixing that they found some major problems with the house. There was asbestos all through it so she had to replace the furnace and all of the vents. the floors were rotting and falling through, the wiring was old and outdated. She never got the wiring fixed but she fixed everything else. There was an above ground pool that she had taken out.
In the 4 years since she bought the house for $104,000 the economy has gone bad and now the value of homes are less. My aunt has a Realtor sister in law that told her that since the house is likely to appraise for less than what is owed that the lender can go after her and my mom. Neither of them really have much money, my aunt is retired and my mom barely has the money to pay her bills. This lady (aunt's sister in law) has my mom and aunt in a panic because they think grandma's creditors are gonna come after them for the money and give them bad credit if they can't pay or worse yet go after their houses.
I honestly believe this lady is off her rocker but I told them I'd do some research but came up with nothing. Can anyone here help me with this question so I can ease their minds. They've been under enough stress after losing grandma so I decided to try to research this one for them.
My aunt can get a GM lawyer because her husband retired from GM so they have contacted a lawyer but have not been able to get answers just yet. They were under the first impression that the PMI was mortgage life insurance but just found out the other day that it was PMI so we know the house will get foreclosed. Losing the house is not a big deal because we all have our own homes but losing it then being forced to pay whatever the amount over the appraisal is would be impossible. Did I confuse you? Sorry I am confused by the whole thing myself.
My grandma passed away in February. Everything was left to her children (my mom and aunt) in the will. My grandma had just purchased a house 4 years ago and the mortgage company made her get PMI. She was 68 at the time. Shortly after moving in the plumbing went bad and while fixing that they found some major problems with the house. There was asbestos all through it so she had to replace the furnace and all of the vents. the floors were rotting and falling through, the wiring was old and outdated. She never got the wiring fixed but she fixed everything else. There was an above ground pool that she had taken out.
In the 4 years since she bought the house for $104,000 the economy has gone bad and now the value of homes are less. My aunt has a Realtor sister in law that told her that since the house is likely to appraise for less than what is owed that the lender can go after her and my mom. Neither of them really have much money, my aunt is retired and my mom barely has the money to pay her bills. This lady (aunt's sister in law) has my mom and aunt in a panic because they think grandma's creditors are gonna come after them for the money and give them bad credit if they can't pay or worse yet go after their houses.
I honestly believe this lady is off her rocker but I told them I'd do some research but came up with nothing. Can anyone here help me with this question so I can ease their minds. They've been under enough stress after losing grandma so I decided to try to research this one for them.
My aunt can get a GM lawyer because her husband retired from GM so they have contacted a lawyer but have not been able to get answers just yet. They were under the first impression that the PMI was mortgage life insurance but just found out the other day that it was PMI so we know the house will get foreclosed. Losing the house is not a big deal because we all have our own homes but losing it then being forced to pay whatever the amount over the appraisal is would be impossible. Did I confuse you? Sorry I am confused by the whole thing myself.
