And hello 50% falls in home values. No matter what lying realtors on commission try to tell you.
Subprime Mortgage Woes Push New Foreclosures to a Record High
WASHINGTON (AP) -- The number of homeowners receiving foreclosure notices hit a record high in the spring, driven up by problems with subprime mortgages.
Analysts said the problems in the formerly red-hot housing markets of California, Florida, Nevada and Arizona reflected in part speculators walking away from mortgages they can no longer afford.
During a five-year housing boom, the prices in these areas surged, creating what many analysts have described as a speculative bubble as investors bid up the price of homes hoping to quickly resell them for a profit.
Now with home sales falling, the inventory of unsold homes rising and prices stagnant, some speculators are choosing to default on their mortgages.
September 06, 2007
FLASH: Foreclosures soaring, and in mortgage meltdown cities failed flippers are just turning in the keys