[sacramento]

My husband and I, both retired, bought a home in 2007. My husband passed away in April, 2008. I am left with a mortgage that carries a $78 monthly PMI payment and is at a high rate by today's standards. I am paying 7.375% and the PMI was sprung on us one day before the closing! Is there anyone who could try to negotiate with my mortgagee re the PMI rate and the high interest rate? My original mortgage broker is now out of business. I approached the mortgagee to renegotiate the PMI and they turned me down flat! I don't want to sell my home but I am seriously considering foreclosure. Any help will be appreciated.

[ScottGem]

The problem here is whether you can qualify for the mortgage under your own income. If you can, you should be able to find lenders who will refinance with a rate around 5%. Shop around.

By the waym you don't make a lot of sense when you say you don't want to sell but are considering foreclosure. Why would you walk away from whatever equity you might have instead of selling? If you can't afford this home because you are now alone, then sell and trade down to something you can afford.

[sacramento]

I can't sell the house because the real estate market is horrendous and I could not even get what I paid for it! Also, because of the PMI, I have only paid down 1% of the principle of the loan.

[ScottGem]

Well then you join the ranks of the thousands of people caught in the real estate crisis. I would contact your local senior associations to see what help they can give you.