Private Mortgage Insurance And Assistance For Troubled Homeowners–How Can Mortgage Insurers Help?

Private mortgage insurance is something that some homeowners will typically rarely consider or, if they have mortgage insurance, are unsure of how this type of insurance policy could help assist troubled homeowners who may need more affordable options when it comes to meeting their mortgage payment. While home loan modifications, extension program from federal mortgage assistance initiatives, and state-directed home loan aid have all been routes that homeowners have explored, there are questions as to whether a homeowner’s mortgage insurance company can help them in their foreclosure prevention pursuits and in general dealings with their mortgage servicer.

According to an article on MarketWatch.com, there are in fact some benefits that may come from a homeowner’s mortgage insurer which homeowners may use if they are having trouble making their mortgage payment. The article states, Typically, insurers lose $50,000 to $60,000 for each insured mortgage that is foreclosed upon. So it is in their best interest to do whatever they can to keep people in their homes.

Essentially, a mortgage insurance company may be able to help a homeowner by simply acting as an intermediary between a servicer and the borrower. While these insurance companies are no guarantee when it comes to homeowners finding foreclosure prevention assistance, they can be one route that homeowners take to help them deal with mounting mortgage payment difficulties, working out solutions with their lender, or there are even reports that some insurers will offer relocation assistance to homeowners who may fail to find the assistance that will keep them in their home.

There have been reports that housing counselors, as an example, have been another asset that homeowners have used as a way to help negotiate or restructure home loan payments to a more affordable level in cases where homeowner’s are simply having trouble due to financial strains in their life that are creating an inability on the part of the homeowner to meet their mortgage payment obligation. While there are some homeowners who were able to refinance, for example, and acquire a more affordable mortgage payment, factors like unemployment and underwater mortgages have left few options for many who are seeking a long-term solution on their mortgage while they attempt to get back on their feet financially.

While home loan counselors, for instance, may help homeowners through the modification process or offer suggestions that can be implemented in a homeowner’s personal life to offer them more affordability, cut wasteful spending, and ultimately find the funds they need to make their mortgage payment each month, it would seem that mortgage insurers can also be an asset to homeowners who are struggling as they too can act as an intermediary between servicers and homeowners to find affordability and solutions that will keep a homeowner in their home.