Housing Ponzi Scheme Hits Close to Home
At least, this example hits close to the home of someone I know quite well, who sent the story my way.
Jon Colvin, 38, a telephone network technician and father of six children, had just informed CitiFinancial that he would be unable to make his March mortgage payment, and would probably miss April's, too. He hoped the news would finally scare the bank into renegotiating a mortgage he can't afford for a house he can't sell -- and now wishes he had never bought.
"It's not something I feel proud doing," Colvin said of missing the payments. "But how else am I going to get the bank's attention?"
Even those nice, rational people in Minnesota gave in to the bogus promises of easy credit and constantly-rising home prices.