Will Purchasers Have To Reimburse PMI?

From Inman News

"I had a loan that was greater than 80 percent of the value of my home. My loan required me to purchase private mortgage insurance (PMI).

But I recently had to do a deed in lieu of foreclosure because I could no longer afford the increases in the adjustable-rate mortgage. Now the PMI company has come after me for the $43,000 it paid the lender due to the deed in lieu.

Is the PMI company allowed to subrogate and go after me for its loss? Isn't the reason you buy premiums for this coverage and insurance is a calculated risk on their part, so that I wouldn't have to pay?"

For the answer to this question, please click here to read the full article at Inman News.