What are the chances that a lender will file for a deficiency judgement after foreclosure on a property in Tennessee? What does it depend on? Why would they file one if the owner can’t pay anyway? How would the PMI help the owner of the property?
Deficiency judgments are allowable in Tennessee - I don’t think anyone but the lender can answer whether or not a deficiency will be pursued. That said, given the avalanche of current foreclosure activity coupled with pro-consumer sentiment, I think it is unlikely that servicers will be pursuing deficiencies as a standard practice.
PMI does nothing for the owner, it insures the lender only in the case of default. If the lender was made whole by the insurance they wouldn’t come after you for deficiency, but the insurer could via subrogation
You never know if the lender will file a deficience judgment. However, HSBC will always require a person in a short sale situation sign a personal note before they will approve a short sale.