ping
... and so it begins....
If these lenders overreached by raising interest rates in their ARMs, I hope they enjoy caretaking all these vacant properties.
Meantime, the borrowers who are gainfully employed will all get a second chance to buy a the right sized home in the right location at the right price and on the right terms next time.
Non-traditional mortgages will do that every time. Nothing like a 30-year, fixed rate to give you a little cost certainty (well, aside from taxes and insurance anyway)...
a solid second point, IMHO... I'll never understand people who buy "all the house they can afford" rather than "all the house they expect to need".
I don't remember the world ending in 1991. There have been Booms and Busts since this country was founded and we survived...
Folks don't forget the bankruptcy law also changed.
Many creditors INTENTIONALLY held back on collection acts in order to take advantage of the new law. Such as the elimination of the "bankruptcies default the contract" prohibition, or the lien stripping on homes.
However given the incredibly POOR writing of the new law, and the MASSIVE holes in many of the provisions, judges are forced to use prior legislation to fill in the gaps for the sake of consistency and equity.
It also matters regarding the level of homestead protection given by a particular state. I would look to the trend in the last five years before going all "weeee're dooooomed".
"Some of the states that had the biggest booms over the past few years are now experiencing the highest number of new foreclosure filings,"
How hard was THAT to figure out?
initial foreclosure notices
Most of these do not go to completion. Every year there are two newspaper pages of tax foreclosures published here, and maybe 10-20 end up in actual tax foreclosure. The owners use the time between publishing and foreclosure as a grace period.
What goes up must come down
Spinnin' wheel got to go 'round ...
Blood Sweat & Tears (1970)