It's getting interesting out there. The foreclosure rate is increasing exponentially and the media is eating it up like a Chinese buffet. You can't turn on the tube without a well-polished reporter spewing forth another factoid about the topic, and rue the day that an evening news broadcast doesn't mention the floundering housing market.
But is this compounding the problem? Foreclosure was the dirty word of the lending world just a few years ago. You had to be on the brink of financial ruin or the victim of a traumatic life change to walk away from your home. It's getting easier now. Heck, millions of people are doing it, so why can't I? It's the lender's fault anyway for sticking people in bad loans to begin with, right?
I remember back in high school (the mid 80's) when my history teacher said that one out of four of us would be divorced in our lifetime. It was shocking. Decades before, divorce was an abberation, a social blip. Now look at the marriage statistics. Half of everyone joined in holy matrimony end up breaking their vows. Did our society create this monster by making it more socially acceptable to divorce? I drive by this little office now and again called ASAP Divorce, and for $199, they can make it happen.
I'm starting to see the same thing in the lending world. People signed promissory notes; they gave their word that they'd pay back the money they borrowed, and now they're starting to walk away. And for $995, you can get a company to help you do it. Yes, there are consequences, but I can repair my credit in 9 easy steps, wash my hands clean of a bad situation, and life will go on.
What will be the lasting effects on our country's financial fiber? Is the foreclosure boom just beginning? Does anyone have any answers? Or are we headed for moreclosures?