Foreclosing San Diego?
As if the city of San Diego didn’t have enough problems with the enormous pension scandal and the as of yet still unfinished audits going on, it looks like the number of mortgage defaults in January rose from 374 in 2005 to 536 in 2006 according to the Voice of San Diego.
The scarier part is that in “2005, more than 70 percent of home loans in the county were interest-only or negatize-amortization loans.” This incredible rise in these types of agressive loans cannot bode well for the future.
“Loan Performance reported that in 2005, 26.7 percent of loans made to homebuyers and those refinancing their mortgages were negative-amortization loans. In 2004, that number was 9.9 percent. In 2003, it was 1.1 percent.”
If this continues, pretty soon we will have to come up with double-negative amortization loans to pay off the insanity of our 1st mortgages in this beautiful city.