Mortgage Property Insurance Coverage Act
This post was written by Adam / The Atacan Group on December 8, 2008
Posted Under: News, Seller Resources
Posted Under: News, Seller Resources
Most people are not aware of the recently enacted Pennsylvania Law that benefits Homeowners by placing a “Cap” on the amount of property insurance that a mortgage lender can require.
The new law prohibits all mortgage lenders from requiring borrowers to obtain property insurance coverage on owner-occupied private residential property that exceeds the replacement value of the buildings on the land securing the loan. It also prohibits all mortgage lenders from requiring borrowers to insure the value of the land. The law is known as the Mortgage Property Insurance Coverage Act, PA Act 2008-51, and became effective on July 4, 2008.
Reader Comments
Pennsylvania law offices seem to actually work, goodjob for them.
I hope that law will be enforceable.
Now that the housing market went into the toilet, has anyone thought of the NEGATIVE aspects this has? If your home was worth say $230,000, and you have a mortgage for that amount, now 2 years later your home has decreased in value, and the replacement cost is now $160,000 that is all the lender will get should the house be a loss. Who is going to eat the $70,000? That is not right!
Thanks for the detailed information about real estate, This is really helpful post.
Thanks again !!