mortgage insurance

[Tallard]

If I had to sell my house and there wasn't enough equity to cover the outstanding mortgage the lender claims on the mortgage insurance he made me take out. Does the mortgage insurer then have the right to recover the money from me? If he does is there a time limit on this?

 

[I AM ALWAYS LIABLE]

<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by Tallard:
If I had to sell my house and there wasn't enough equity to cover the outstanding mortgage the lender claims on the mortgage insurance he made me take out. Does the mortgage insurer then have the right to recover the money from me? If he does is there a time limit on this?<HR></BLOCKQUOTE>

My response:

Perhaps it's just me, but I'm really trying to understand what it is you are trying to convey. Your first sentence starts off as a question (beginning with "If") and then ends as a statement (No question mark). Is it possible for you to rephrase your entire post for me, please? Then perhaps I, or maybe someone else, can assist you.

Thank you.

IAAL

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[This message has been edited by I AM ALWAYS LIABLE (edited April 05, 2000).]

 

[Tallard]

Thanks for the reply. I will try to explain the situation more clearly. If I buy a house for say $100,000 and get a $95,000 mortgage on it the mortgage provider is likely to make me take out a mortgage protection policy in his name to protect his interests. If I then sell the house for say $90,000 and there is still say $94,000 left to pay on the mortgage there will be insufficient funds available to cover this by $4,000. If I am unable to pay the $4,000 myself the mortgage provider can claim the outstanding amount from the mortgage insurer. My question is can the mortgage insurer then pursue me for the $4,000 he has had to pay out to the mortgage provider?