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A $698,000 Mistake: A Real Story from the Mortgage Crisis

By Brian Wolfman

Yesterday's Washington Post includes this long article about a Maryland woman who bought a $700,000 house in the distant Washington, D.C. suburbs during the housing/credit boom only to be foreclosed just months after moving in. The foreclosure was hardly surprising. The buyer had recently been a recipient of Section 8 housing assistance, she had never before paid more than $700 per month for housing, her previous year's earnings were about $15,000, and she was now expected to take care of a mortgage payment of more than $5,600 a month. The story of (over) optimism, gullibility, greed, and deception -- the loan papers flat-out lied about the buyer's income -- is worth reading.

Full post as published by CL&P Blog on November 28, 2009 (boomark / email).