Mortgage & Loan: Foreclosures On The Rise In Cali

The Los Angeles Times reports that more California homeowners are facing default. Money (or lack of it) quote:

When she started TerraCotta 2 1/2 years ago, company President Tingting Zhang said two or three people would come through her door on the typical day looking for help. Now, it's 30 to 40. "And we haven't reached the peak yet," said Zhang, who believes that the combination of rising interest rates and high-risk mortgages could spell defeat for a rising number of borrowers.

As I said once before, what is happening here is everyone's problem. It's the fault of the homebuyers for not saving enough and thinking they could sneak in to a million-dollar home with beer money.
It's the fault of the lenders for promoting toxic mortgage products to people who can't afford them and aren't ready to handle the sticker shock.
And it's the fault of enablers like Greenspan, Bernanke, Lereah, and so on...all of whom saw the writing on the wall and chose to spread lies in order to cushion their own arses.

I can't say much else without getting furious, so I'll just stop here and remember that it's going to get better...but it'll get worse first.

Posted at October 19, 2006 06:37 PM

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The Los Angeles Times reports that more California homeowners are facing default. Money (or lack of it) quote: When she started TerraCotta 2 1/2 years ago, company President Tingting Zhang said two or three people would come through her door on the typical day looking for help. Now, it's 30 to 40. "And we haven't reached the peak yet," said Zhang, who believes that the combination of rising interest rates and high-risk mortgages could spell defeat for a rising number of borrowers. As I said once before, what is happening here is everyone's problem. It's the fault of the homebuyers for not saving enough and thinking they could sneak in to a million-dollar home with beer money. It's the fault of the lenders for promoting toxic mortgage products to people who can't afford them and aren't ready to handle the sticker shock. And it's the fault of enablers like Greenspan, Bernanke, Lereah, and so on...all of whom saw the writing on the wall and chose to spread lies in order to cushion their own arses. I can't say much else without getting furious, so I'll just stop here and remember that it's going to get better...but it'll get worse first.