The media likes to blame the national foreclosure crisis on Adjustable Rate Mortgages (ARMS). The states that had the highest number of ARMS, Arizona, Nevada, California, Colorado, and Florida do lead the nation in foreclosures, but not all Foreclosures are because adjustable rate mortgages have reset and gone up. Foreclosures happen primarily because people bought houses they couldn't afford, and didn't have any savings for a rainy day. They banked on the trend that the real estate would continue to appreciate at double digit amounts every year. Well, that didn't exactly happen.
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