The Housing Bubble Blog-We Have To Pay The Price For The Great Gains

The Press Enterprise reports from California. “Inland home foreclosures this year have increased more than ninefold over the same period a year ago, driven by flat appreciation and sagging home sales. Ana Ibarra and her husband, Guillermo Macias, adore their five-bedroom house in a new tract of executive-style homes in north Fontana.”

“But Ibarra said the couple doesn’t have enough money to furnish the house. Ibarra said she and Macias, a 30-year-old commercial plumber, together earn about $5,400 a month after taxes. Since moving into their new house in December, they have spent $4,000 a month of that on the house’s interest-only mortgage, property taxes and homeowner insurance.”

“They have wiped out their savings. What’s more, they are responsible for a $2,000-a-month mortgage payment on another house they own in south Fontana. They rent that three-bedroom house.”

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