Foreclosure on $130K a year

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We’ve read a lot of articles about foreclosure, but we haven’t seen anything as detailed as Dr. Housing Bubble’s by-the-numbers account of a couple’s slide into foreclosure. Check it out, it’s worth reading the entire thing.

In brief: Couple makes $130K a year, drive his and her Mercedes-Benzes, and they buy a big house in Costa Mesa in 2004 for $675,000 with no money down. Oh, and they take out a 2/28 mortgage, with the first two years fixed at a teaser rate of just 2.75%.

What happens? Well, the $130K a year income suddenly goes down, the interest rate and the house payment go up, and the housing market hits a slump, and suddenly Mr. and Mrs. Mercedes are missing mortgage payments. Lots of them. Dr. Housing Bubble has the household budget every step of the way, from living large to moving out.

This one is an eye-opener: a foreclosure tale without pity, and with plenty of numbers.

Thoughts? Comments?
Photo Credit: L.A. Times