Insurer Can Sue for Unpaid Mortgage Debt
Private Mortgage Insurance can sue you after foreclosure or short sale for the deficiency balance
The most important thing to learn before short selling a property or being foreclosed upon by the lender is whether or not the deficiency will be waived. If the deficiency has been waived then your responsibility to pay that debt has been excused. If the deficiency was not waived when your property was short sold or foreclosed upon and your loan had private mortgage insurance, then be prepared for a potential lawsuit.
