I suspect this number is low, and if you factor in the number of homes that are struggling or who are underwater or who are behind on insurance or tax payments or who are just barely choking by….you’re probably talking about more than half of the homes in Amerika—and now from the Wall Street Journal…..
The foreclosure crisis that erupted four years ago has claimed more than five million American homes””about 10% of all homes with a mortgage. It began in lower-income neighborhoods and has spread to some of the most exclusive addresses in the U.S.
The seeds of the crisis were planted a decade ago when banks, discovering the high returns from selling bundles of securitized mortgages, relaxed lending standards and originated millions of adjustable-rate subprime mortgages. Such loans were designed to allow just about anyone to get a home loan.
When interest rates on the adjustable-rate mortgages finally climbed, many borrowers began falling behind on their payments, leading to the first wave of delinquencies and defaults.