Open Question: Foreclosure and PMI?
I have a house that I bought in 2004 and being rented out right now. I keep loosing money on the house because rent is less than mortgage. I am need to get rid of it (bad timing I know!). The mortgage has PMI. I talked to the lender (countrywide) and they said I should try a short sale. How bad is a short sale on my credit ( I have excellent credit)?
The other question is how does the PMI company come to play, when there is a short sale. I assume that they would pay the lender, but do they come after me for the difference?
In other words, if I default, is having PMI going to be good or bad news for me?.
