No one's talking about it, but what about the private mortgage insurance (PMI) or mortgage insurance premium (MIP) bullshit that was supposed to protect the investors from things like this?When the lovely and high-finance Mrs. Borepatch and I bought our first hous, back in the Pleistocene Age, PMI was the biggest monthly irritant we had. Each month, we had to shell out something like $150 for what was essentially an insurance policy. Once we owned 20% or 25% of the house value, we could drop the PMI. Happy dance time.
So, if PMI is for people who don't have enough principle, why doesn't that cover the forclosure issue? Is PMI "so 1980s" these days?