Why are there so many people losing there homes mostly in California, Nevada, Florida and Ohio?

Answer 1

Too many people want things they can't afford.

Answer 2

Many people bought homes using adjustable rate mortgages. When interest rates started going up they could no longer afford the mortgage payments. If you borrow $400K or more to buy a house, even at 4% interest the interest is like $4K a month. When the ARM interest goes to 8%, the $4K payment becomes $6K virtually overnight.

Be aware of what your getting into and what the risks are.

Answer 3

Because the Mortgage company's were handing out loans to people who did not necessarily have good credit ratings. and probably should not have been buying housesl They were using no down payments, adjustable rate mortgages, interest only loans and bought way over their heads places they could really not afford. Now a LOT have gone in to forclosure as they can not afford to pay their monthly mortgage payments.

Answer 4

many many people are losing their homes in mi also! Some just because they are having problems keeping up with payments due to job problems, others reached to high and grabbed to much when they signed for that huge payment. And some signed up with those adjustable rate mortgages and it gets you in the end,.

Answer 5

They were taken in by the lure of adjustable rate mortgages. Most fully understood the downside risk and should not be too surprised that they now have difficulties

Lesson....live below, not at your means.

Answer 6

Don't know about the other states but in Ohio there are few good paying jobs!

Answer 7

Many peopple are having trouble paying their mortgages, then penalties kick in, and they are having even more trouble.