Nation's mortgage troubles worsen
Homeowners with adjustable-rate mortgages, struggling to deal with sharp increases in their loan payments, pushed the nationwide foreclosure rate to a record 0.65 percent this spring as the crisis in subprime lending intensified.
The problem was largely limited to the industrial Midwest and to four housing-boom states -- California, Florida, Nevada and Arizona. But some economists warned that the situation will worsen in coming months as an estimated 2 million more adjustable-rate mortgages, taken out with low introductory interest rates, begin resetting to much higher rates.
I'm more amazed everyday as I watch the mortgage industry pretty much destroy itself from the outside in. What drove all of this? Was this all driven by the "housing boom"? Or was it greed? I remember a year or so before we got our home this absolute panic in the Orlando area. Everything that was being built you had to get in on because...well because someone's going to get it before you do! But where did that "boom" come from? Sudden influx of people coming across the border? People have 5, 8 or 10 children at once?
And now you know what we've got?
Everyday I walk with my dog, with neighborhoods filled with "FOR SALE" signs, "FOR RENT" signs or the hybrid "FOR GOD SAKES PLEASE BUY THIS HOUSE" signs. People just packing up and abandoning their houses. This is a new experience for me, how can you work so hard to buy this thing, and then leave it to rot? Buying a house isn't like buying chewing gum, there's friggen paperwork and everything!
Every time I see another news article, I think about this toothpaste for dinner comic. It's so right it's scary.
Link to the full Orlando Sentinel article.