A lot of folks no longer have a mortgage (foreclosure/abandoned) and are paying rent instead.Originally Posted by DJD
They no longer have credit card debt (bankruptcy) or can't get credit to start with.
They are receiving government assistance in record numbers.
Those that aren't in that shape are tightened down, being more fiscally responsible, and only buying what they can afford to pay for / pay off, so as not to get in that shape...which is what those that got in that shape ought to have been doing in the first place.
The housing bubble bursting got us in to a lot of this mess. Blame that on the banks over-lending, blame that on people over-spending, whatever...but when you bought a house for $250K, expecting it to be worth $270K in the next year or so because that what had always happened (90's)....you took out an equity line to pay for some other crap you wanted to buy....and now the house is worth $175K IF you can sell it at all, and you're loaded up with 2 big mortgage payments....stuff starts becoming a problem quickly. Throw in a layoff, a pay reduction, or a loss of your job altogether and it's a disaster.
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