Foreclosures Skyrocketing in Military Towns

[Liberal_in_LA]

http://www.nuwireinvestor.com/articles/foreclosures-skyrocketing-in-military-towns-51885.aspx
Foreclosures Skyrocketing in Military Towns

Published on: Thursday, August 07, 2008 Written by: Cali Zimmerman

Foreclosures in many military towns are increasing at rates drastically above the national average, according to RealtyTrac’s Q1 2008 U.S. Foreclosure Market Report. Military personnel may have been targeted by unscrupulous mortgages because of credit problems that can sometimes result from the frequent moves required of them. Although it is unknown how many of the foreclosures in these areas are specifically attributable to military personnel, these skyrocketing rates could have an adverse effect on already struggling markets across the country.

Because subprime mortgages offered lower rates and easier terms at the outset, many military families opted for these loans rather than pursuing the government-backed Veterans Administration loans that are specifically intended to assist servicemen and women. Last year the number of people taking out new VA loans totaled 135,000, marking the program’s fourth consecutive annual decline and the lowest it has been in 12 years, according to Bloomberg. Military members and veterans could find themselves facing foreclosure while simultaneously dealing with combat zones or trying to readjust to civilian life.

[ColbertWatcher]

1. I wonder how much of this can be linked to extended tours? n/t