Foreclosures=PMI?

[Debbie]

What with the increase of foreclosures nationally, I often wonder how the PMI would be affected?

Cost of PMI go up higher in order to cover the loss of equity?

Mortgage lenders/Bankers will demand to the tried and true 20% required down payments?

Actual benefits to the investors regarding potential required 20% versus potential lack of buyers?

Any other thoughts/suggestions?

Debbie

[Debbie]

Thought I'd bump it up.....:SM083:

[mileycyan]

I used to work for a PMI company and dont even have an answer for you. BUT.... it seems to me that there are more and more programs out there than ever with no PMI.

[Aldo]

If you're doing your deals right, PMI isn't even a consideration.

[Burke]

If you're doing your deals right, PMI isn't even a consideration.

Aldo,

I think I know where you are going with this but would you consider elaborating?

Thanks!

Burke

[Aldo]

PMI usually shouldn't be a consideration because generally, PMI is not required when the downpayment is at least 20% regardless of the source of the downstroke on the condition that the lender approves. Creative financing, including getting cash back at closing, will show the proper downpayment which will be offset by terms elsewhere in the contract. You may recall my mention of one of my most-creative deals in which I purchased a property for $44K and paid for it with a $59K mortgage with no PMI.