There were more foreclosures in California in 2008 than in the previous nine years combined. Appalling, isn’t it? That’s a lot of pain and broken dreams.
Foreclosures are now being driven by job loss, not subprime risk-taking.
“The people who are defaulting now are not really people who recklessly got into loans they never could have afforded,” said Evan Wagner, the communications director for IndyMac Federal Bank,… “These are people who have lost their jobs or who have had their hours cut back at work.”