PMI Mortgage Insurance v. Cavendar

PMI Mortgage Insurance Company appeals final orders of the trial court entered in favor of Eileen A. Cavendar and Billy Joe Cavendar, defendants below. We reverse.

In 1981 Eileen and Billy Joe Cavendar purchased a condominium unit and executed a purchase money mortgage in favor of a financial institution. As part of the transaction, PMI issued a mortgage insurance policy in favor of the lender.

The Cavendars divorced and sold the property. The subsequent owner defaulted in 1988. The lender obtained a final judgment of foreclosure and was the successful bidder at the foreclosure sale. Pursuant…