ccerenz2

SoCal Homeowners Did This to Themselves

This professor is on to something. In my neighborhood 8% of the properties are in the foreclosure process. These are homes at $900K and above. Having access to the tax records, which includes mortgage data, it is clear that those in trouble ran up the mortgages through refi, and second mortgages.
Some of these people thought they could live on a deficit because the house price was always going to rise, but others took trips, boughtexpensive cars, houses full of furniture etc. The interesting thing to me is this. Yes, they lost their homes, but they drove away in the cars, moved out the furniture, and are still wearing the expensive clothing.