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Old 10-13-2008, 10:40 AM   #7
dcJet
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Join Date: Feb 2006
Posts: 345
Many of the defaulted loans were caused by the bursting of the housing bubble and the resulting devaluation of home prices.

Many home owners found themselves with loan balances that were greater than the value of their houses so they just walked away from their homes and their mortgages.

These aren't people who couldn't afford their loans. These were people that refused to pay them.
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