Historically, statistics show that 2/3 of the population is not “mortgage worthy” - ie, their responsibility level is such that they cannot be trusted to make the payments on a house.
What a 67% “ownership rate” tells me is that half of these people are going to default.
The “American Dream” is achieved after you make the decisions necessary to make yourself “mortgage worthy”.
It's not that high. The average credit score is 720 which indicates less than 3% likelihood of default. Now there are income factors at work there as well...but saying "2/3 of the population is not mortgage worthy" is hyperbole.
at the start of the GWBush presidency home mortgage lenders had to assume the loss of the value of the collateral. NOW under the Bankruptcy reform act, the homestead mortgage can not be stripped into secured and unsecured portions. Lenders know this and thus they have set themselves up for an all or nothing fall.
That said, the new move (among the bankrupt with the finacial income to fight it) is to challenge the home mortgage docuemnts and move the entire mortgage into the unsecured pile of debt.
The article is a slimy misrepresentation of ecconomics and law.
Some would rather have a “Great Society” than the “American Dream”.
http://www.google.com/search?hl=en&q=Lyndon+Johnson++%22Great+Society%22
President Bush’s appointed ambassador the the Netherlands is Ameriquest owner and king of Sub-prime, Roland Arnall.