Foreclosure Crisis Blamed On Zero Money Down

There is new evidence that the zero money down loans caused the crisis and not so much the subprime loans.  I would agree with this to a certain extent because if someone has no skin in the game they are more likely to walk away.  However, if you can’t afford the home because you got a stated loan it doesn’t matter how much you put down.  I guess you would be more likely to do whatever it would take to keep you home if you put money down. 

There is a pretty interesting chart in this article too.

http://online.wsj.com/article/SB124657539489189043.html#mod=rss_opinion_main