When foreclosures started increasing in number, the top reason was that lenders were giving too much to too many without proper checks and balances — sometimes fraudulently, but more often within the lax underwriting practices at that time.

The second reason was that buyers were using their home as ATM machines, borrowing more and more because they could, and in some cases with no intention of ever making the first payment, let alone subsequent payments. They even flipped homes with no value added — right at the closing table — with no controls imposed. With ever-rising unemployment rates and devalued investments, that picture has changed dramatically.

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