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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: jjs_ynot who wrote (4823)	8/29/2002 12:04:15 PM
From: GraceZ	Respond to of 306849

I imagine the PMI companies are on the hook first in a foreclosure. In those cases where people have avoided PMI by taking out a secondary at the time of origination, its that secondary holder that's SOL. Over and over again people have had to learn the hard lessons of easy money. States change their laws to protect one group or another but the liability just pops its head back up somewhere else. Off setting or trying to minimize risk always winds up creating the conditions for moral hazard. People have to feel the full brunt of their financial blunders otherwise they continually make bad decisions, en mass. The attitude that is so prevalent here is that the public needs to be bailed out of their mistakes. It is this very thing that causes all the problems.