Do you owe more on your home than it is worth?: "Its study extrapolated national trends that showed 17 percent of home loans between 2002 and 2007 were subprime and that 30 percent of all mortgages during that time would be upside down. In Pima County over that same period, 38 percent of home loans were subprime.
That and rapidly falling property values lead the council to project that a third of all mortgages in Pima County could be more expensive than the property they back.
A subprime loan is one made to a borrower who doesn't qualify for a home loan under Fannie Mae or Freddie Mac lending guidelines."
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That is a heck of a lot of subprime loans. How much of this mortgage crisis is caused by deregulation of the lending process, and how much by government policies that basically forced lenders to make loans to people who couldn't afford to buy any house at all? I don't know, but when this whole debacle is studied it will be interesting to see how the under-regulation vs. over-regulation balance comes out.
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