More Homeowners Defaulting on Mortgages
The New York Times has an article today about how more homeowners are defaulting on their loans. Per the Times,
"Industry experts and officials believe the current rise in default rates is a function of looser lending practices by mortgage companies in the last few years and the end of the housing boom last year, rather than the more traditional economic weakness that drove up defaults in the past.
As sales fell, the number of homes on the market rose and home prices began to weaken last year, borrowers had a harder time selling or refinancing their properties. Some, though experts say it is hard to say exactly how many, probably also experienced payment shock from the resetting of adjustable rate mortgages."