US-Bernanke: 45% of foreclosures NOT sub-prime

I think that could be taken as a signal that the problems are spreading from the initial sub-prime group.

forbes.com/markets/feeds/afx … 74769.html

Blue Horseshoe

Jumbo Mortgages ( over $417k ) have also been stressed for a long time . You pay a lot more for a jumbo than for a mortgage at $416k even though both are prime as such.

14 million homes in the US are in negative equity.
Who knows what the figure in Ireland is.

In the USA a mortgage holder in negative equity can leave the keys of the house in the door and scarper.He will lose the amount he has paid into the house.However the banks cannot pursue him for the balance of the loan.
His credit rating is screwed but why should he care about that ,beats paying massive and increasing repayments into a fast depreciating asset.

But unfortunately in Ireland the loan does nt die if you walk away.The banks can pursue you and your assets and garner your wages until you die if necessary for repayment of that mortgage.