Default rates continue to fluctuate up and down indicating the housing market still is very fragile, note Matthew and Mark Kayton, co-founders of Underwater Mortgage Protection.
More than 7.1 million homeowners are currently “underwater” and another two million are “near underwater,” according to industry data, so mortgages are still a real threat,” says Matthew Kayton.
AmTrust introduced the insurance program to provide a safety net for both homeowners and lending institutions and “to fill the void in the insurance marketplace.”
UMP protects homeowners with negative equity when they decide or need to sell their property byhelping borrowers to pay off their mortgage and closing costs.
Homeowners in distress can use the insurance to avoid foreclosure or a short sale.