The Pennsylvania Association of realtors recently conducted a study of those who experienced foreclosure over the last 12 months. It reveals a group of borrowers who were hopelessly overextended an unable to withstand the smallest amount of financial hardship. Of course, that isn’t how the realtors spin it….

Everyone in California loves that Piggy Bank in their house. Most people here are so kool aid intoxicated that they take the free money for granted. It is just another California entitlement.

The 30-year fixed rate mortgage provides a reasonable balance between affordability and buying power. Historically, it has been associated with stable housing markets. Despite these facts, some foolishly want to see it replaced with adjustable-rate mortgages.

Most borrowers who walk away from their homes, agree to short sales, or get pushed out in foreclosure assume that is the end of the matter. They are wrong.

Strategic default provides a major stimulus to the California economy. Nearly $2,000,000,000 per month flows into the local economy that used to flow out to debt holders in other places.