Bubble or no, homes were overpriced. Homeowners borrowed from their own
homes and maxed out home equity loans. Contractors overbuilt. Foreclosures
will increase as homeowners struggle to pay increased mortgage payments,
thanks to lenders that used ARM loans and the likes of interest only loans
to get the Borrower into the house with the smallest payment (so they could
afford to buy more house than they really could afford).
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