Why are there so many foreclosures and banks going under now?

Question

Why has this happened, right after the real estate market was encouraging people to buy houses?

Answer 1

Yes, everyone was encouraged to buy a house.  Then we learned that owning a house can be a huge drain on a family's money.  And when money is tight, you can't just move like when you are renting.  So people mailed the keys to the banks.  Which dumped the houses at a low price. Very sad. /

Answer 2

My Dear,

Foreclosures are result of non-payment of mortgages. For the past few years, the real estate values.

Answer 3

It is all a game.

Banks are collapsing - because they stopped doing what they used to do - write sensible loans.  When you can get a loan for a house, with zero down, interest only - not even covering the interest expense(but partial payment going to the loan balance), and put 10,000 in your pocket to live in a house of course you will have bank failures.

It is only going to get worst - it does not matter how many politicians - try to fix the problem.  They are the ones who caused it.  Smoke and mirrors - like at the circus.

you need to read a book called the Collapse of the Dollar, and how to profit from it.

It is the same thing that always happen when you have too many people competing for a scarce resource.  The prices het run up beyond thier actual value, and people begin to realize they over paid.

www.dollarcollapse.com  - first chapter is avaiable on web.