Nearly 900 Californians a week are losing their homes because they can’t afford to pay the mortgage ÃƒÂ¢Ã¢”šÂ¬Ã¢â‚¬Â up from about 100 a week a year ago ÃƒÂ¢Ã¢”šÂ¬Ã¢â‚¬Â providing fresh evidence that the housing market’s troubles are nowhere near over.
Home prices could well drop because of this, with some saying it could also trigger a recession.
It’s not just California either, The Housing Bubble Blog has a daily litany of the troubled real estate markets nationwide. Adding to all this is the outright fraud, which Bubble Markets Inventory Tracking cheerfully expounds upon, naming names, and detailing the transactions.
Ain’t capitalism wonderful, with greed and exploitation ruling the day. And yes, many of those who signed up for one of those negative amortization ARMs with an artificially low rate expecting real estate prices would rise forever so the house would just be their little unending piggy bank were just as greedy as the exploitative mortgage brokers and predatory bankers.
Dunno, guess I was insufficiently greedy to exploit all of that. My condo in L.A. doubled in value in three years, and when Sue and I got married, the house kept going up in value. It never even occurred to us to pull out money from it because, well, you do have to pay it back. Oh that…
There’s this bizarre notion that home equity is somehow free money. Pay off your credit cards debts! Yeah, and pile on the mortgage payments, and hope the value goes up so you can do it again. It’s like a hamster going faster and faster on a treadmill, one day it will collapse from exhaustion.