The Center for Responsible Lending has issued an interesting new report regarding the California foreclosure crisis.
As described by the Credit Slips blog, the findings contradict “the stereotype of the California foreclosure crisis as resulting from house flippers and social climbers overreaching to buy 4,000 square foot mansions.”
Credit Slips notes that “the typical foreclosure story is not a family reaching too far in order to buy an unaffordable house, but more likely, of using home equity to pay credit card debt and maintain a middle-class standard of living in the face of stagnating incomes” and concludes that “…the last to arrive at the bottom rungs of the middle class ladder are the first to be pushed back off.”
Creditors Rights 101 