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Zero Down Is a Foreclosure Factor (Duh)

Posted on July 03, 2009

There is a kind of weird OpEd in today s WSJ by Stan Liebowitz. The professor makes the incredible discovery that zero down payments, 100% LTV financings tend to slide in great numbers into foreclosure: What is really behind the mushrooming rate of mortgage foreclosures since 2007? The evidence from a huge national database containing millions of individual loans strongly suggests that the single most important factor is whether the homeowner has negative equity in a house that is, the balance of the mortgage is greater than the value of the house. This means that most government polic...

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