My grandmother died recently and left her house to my mother. The house is worth about $20,000 less than is owed on it.
If the house has private mortgage insurance (PMI), this is fine because the loan will be paid off and the house can be sold for a small profit. If there is no PMI then we will just let the bank have the house.
My question is, how do we find out if there is PMI?
In 2005 apparently my grandma took out a home equity loan, but other than that, we can't seem to find any paperwork detailing the home loan.
We know the house was originally purchased in the 1960's for approximately $15,000 but since then the bare minimum was paid, and multiple loans were taken out against it until now. The house is worth $40k if we're lucky, and has a $60k loan.
Anyone have advice on finding out about PMI Insurance?