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> People couldn't afford to pay their morgage because they got more house than they could afford initially. Or they lost their jobs because of the recession.
by twblalock 8y ago
> People couldn't afford to pay their morgage because they got more house than they could afford initially.
Or they lost their jobs because of the recession.
- derekp7 8y agoNot just that, but they got talked into 5-year balloon mortgages, where they would be forced to refinance after 5 years (the upside being that they got lower monthly payments than a 30-year fixed). Well, 5 years later rates have gone up to where they can't afford the new payments, so end up losing the house.