Foreclosure Crisis—Part II

Today’s article is part 2 of the article which was posted yesterday:

The Foreclosure Crisis and What It Means to You.”

ForeclosureSo to recap: Mortgage terms are approved for so long (15, 30, or even 40  years) because they are assets on the banks’ books—assets which give them the power to lend eight times the amount of that asset. Yes, this means that the mortgage companies are making money on air—nothing new if you’ve been reading my previous articles on Financial Preparedness