Some people are losing their homes because they can't make the new "adjusted" payments...
But others will simply walk away because they owe more than the house is worth...negative equity in effect is like feeding a dead horse...
Most mortage companies will..."bid in" at the loan amount at the foreclosure auction...just to keep the low ballers and distress scavengers "off the court house steps"...
And also so they don't have to give up their real estate security...then seek an "unsecured" "deficiency judgment" against a debtor who may be "judgement proof" or close to bankruptcy.
Others debtors are just losing their jobs... Some are getting divorced...
The speculators are probably going to "dump" their losers and file Chapter 11...
Which means Feddie and Fannie are going to be doing some bailouts...which they can't really afford to do...
But remember the FED is the banker of last resort for Kongress...and that means a real chance of a lower dollar...a weaker bond...and higher rates NO MATTER WHAT THE FED DOES NEXT WEEK...
