One other thing? What happened to the PMI money? My understanding is that anyone who took out mortgage with less than 20% down had to pay for PMI, Primary Mortgage Insurance,. If the Note Hold got paid by the insurance company, shouldn’t the insurance company be on the deed of trust and foreclose on the deadbeats? Or, is the Note Holder foreclosing, reselling the house and keeping the insurance money?
That wasn't the case. There wasn't PMI with some of the sub-prime loans. The lender just charged high interest rates in lieu of PMI. Another way around the PMI was the 80/20 piggyback loans