This is one messes up story and I think it's only going to get worse for a while. This housing market had gone nutty. I feel bad how much credit was made available to consumers. Most of whom got in way over their heads.
Have you seen any disasters like this happening in your area?
How to lose your home in a few easy steps - For many homeowners, said mortgage broker Donovan, “The question is ‘How far do I wreck myself? Do I make myself penniless and then lose the house? Or do I just walk away now and have something to start over?’”
For Toothman, the nightmare continues. She cannot qualify for a car loan. Her credit card interest rates jumped from 5 percent to 22 percent, due to missed payments while juggling mortgage bills. She wonders who will date a woman with $82,000 in debt.
“I feel burned,” she said. “I’ve always been one who paid the bills on time. I always did things the right way. If they had counseled me (correctly), I could’ve made my payments.”
It is going to get worse before it gets better. There are a ton of Adjustable Rate Mortgages that are getting ready to reset, when that happens people's payments could increase substantially which will lead to you guessed it, more foreclosures. Mortgage industry has sold Adjustable rate Mortgages (ARM's) up until a few months ago where the criteria changed a little to prevent foreclosures.