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Mortgage insurance companies as we all know are helping banks and homeowners to avoid foreclosures.
Surprisingly as it sounds these mortgage insurance companies will even put some of their own money to help homeowners to make the payments for their homes.

1.Why do mortgage insurance companies willing to put their own money?
2.How can we know if we're insured by these insurance companies?
3.Why these big corporations help banks and homeowners?
4.Will the insurance companies help the homeowners also if they're not insured?

Lots of homeowners don't have a lot of knowledge about their loans. Some people don't even know their own Interest rate.
So I will assume that most of you out there will not understand the term pmi (private mortgage insurance).

What is pmi?
pmi is a policy which the bank act as the beneficiary and the borrower makes a monthly payment for the insurance of course.
The pmi(private mortgage insurance) protects the banks in bad times like today, when a lot of homes are foreclosing or selling through a short sale and the banks are loosing a lot of money.

When do you pay pmi?
normally if you buy a house or refinance your existing house there will be a very important issue that can also prevent you from qualifying, and that is the ltv (loan to value).
If you take a loan with more then 80% ltv (loan to value) then you will probably will pay pmi.
Some of us will remember great times that we could loan more then 80% of the value of the home but then we also had to take a second mortgage loan or an equity Line of credit loan of 10% or even 20%, but those days are long over.
Today banks will want you to put more down so you're not going to let go from the house and also so the banks will have a pmi(private mortgage insurance)to be protected.

I know that it sounds that the insurance companies are just there to protect the banks.
That's not true they're helping homeowners too, as I said before that they will help you with payments and they will also partner with credit counseling agencies to help homeowners with their payments.
Insurance companies will try contacting you through phone or they will be mailing you letters to refer you to different websites so you can get an idea what to do next with your home and save your home from a foreclosure.

Mainly what you really need to do if you have any problem with your house and you're negative with your payments first you should contact your lender.
Your lender will guide you what to do next.

Yanni Raz