Wachovia this AM – another lender talking about borrowers walking away from the mortgages, and acting surprised.
This is the housing industry’s fault. We’ve told people that a house is more than a roof over your head, it’s an investment. We loaned them money like it was a margin account – based on the asset value, not on ability to pay the loan.
Guess what – they are treating it just like an investment. When you are underwater on an investment, you get out, take your lumps and move on. We shouldn’t be surprised homeowners are doing the same.
2 responses so far ↓
Mobile Notary Review // April 15, 2008 at 12:55 pm |
It’s quite sad. I really hate to see what the next year will bring. Already in Riverside County CA 1 in 9 homes are in foreclosure.
Greg Knowles // April 15, 2008 at 3:22 pm |
This is a sad state of affairs for many families. The lenders acting surprised is just like you said, surprising.