PMI

No, not PMS, PMI – that mortgage insurance that you are required to purchase if you don’t put a 20% deposit down when you buy a house.  As I listen to the reports of the government wanting to bail out all the people whose homes are in forclosure, I have to ask – Where is the PMI?

These homes are not in foreclosure because people put down large deposits, but lost their jobs and can’t make the payments.  No, these are loans for homes that people couldn’t afford in the first place, put very little or no money down, had an adjustable rate mortgage that has now come due.  But, they would have also had to purchase PMI – the insurance for the mortgage company in case you foreclose.

So these folks are in foreclosure, but why isn’t the company that collected the PMI covering the mortgage?  Why are the tax payers once again, coughing up funds for people who don’t plan?

Fox news reported that the median home price of these forclosed homes is about $700,000 – WHAT????  We scrimp, clip coupons, shop garage sales to live comfortably (in our $90,000 home).  WHY should we have to bail these 1)Financial Institutions who loaned money to people they knew couldn’t repay and 2)People who bought houses they knew they couldn’t afford – out? 

Who has the PMI money?  That’s what I want to know!