The biggest investment many people make is their home and in recent years that investment has turned sour. Rapidly rising home values appeared to be a sure bet. As home values went up and equity magically increased, many homeowners sought and were given second mortgages which left very little net equity.
Like all financial bubbles, the inevitable crash has arrived. A major cause was Wall Street's securitization of "sub prime" loans. A great explanation can be found at CrisisofCredit.com. As housing prices fell, and as homeowners lost jobs or had other financial problems, their second mortgages and high interest rate loans combined to make many homes unaffordable.
One option to avoid unaffordable monthly mortgage payments is a short sale. A…
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