Headline writers are always looking for reasons WHY something happens. A recent example is yesterday's headline that the stock market was down 147 points on sub prime woes. Well sub prime woes are nothing new, it is simply that there are more and more headlines about them. This B/W article reports that now consumers are more likely to pay a credit card bill than the mortgage. Reasons given are that they have little or no equity to lose anyway, and that it takes several months to evict. And in that event, they still have the credit card to make ends meet and the car to get to work. I suspect there is yet another reason. Borrowers are not naive, what we may have is a sort of 'double dog dare' standoff. So the lender threatens to foreclose, who is the lender going to sell the house to, and is the lender that ready to admit to a loss? Probably not thinks the borrower, and indeed other posts here have suggested that lenders are slower to foreclose for just those reasons.
All in all,the economy is slowing down.
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