People are losing their homes even with help
So reports Reuters.
Apparently, even after the mortgages are renegotiated, a few months
later over a third of the homeowners are delinquent and heading
towards foreclosure.
This isn’t particularly surprising. If I buy a house with an ARM, and
you raise that to where I can’t afford to pay the mortgage, I’ve
probably spent MONTHS falling behind on other bills to try and keep a
roof over my head. Even if you lower the rate, I’m still deep in a
hole elsewhere. Sooner or later, that just catches up with you (trust
me, I know). The fact that I’ve been shifting debt around just means
ALL my debt is screwed up, that whole Peter/Paul thing.
And, of course, things get worse if, say, I lost my job or took a pay cut.
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