About sub-prime mortgages

Lots of news lately on sub-prime mortgages and the end of the real estate boom but I have not had time to post anything. That is just as well as I think I encountered a very good post on the subject at The Bankruptcy Litigation Blog: The Subprime Squeeze Is Looking More Like a Hangman's Noose. The title itself pretty much captures my feelings on the subject. Indiana lead the nation in foreclosures not so long ago and it may still do so, but we can certainly expect to maintain a high level in the near future.

With the new bankruptcy laws imposing problems for debtors, the creditors will have more foreclosures, and the creditors really do not want to be holding real estate when they could be holding paper that will make them money. I know of no easy solution. I can suggest that debtors and creditors work together to solve any potential defaults. That solution might work if the debtors were certain who held their mortgages. For debtors solving their financial problems means getting proactive rather reactive in shoring up their finances and cutting their expenses.