Zero Money Down Problems.

During late 2004 and 2005 buyers in most of the Misery Map(States that got affected the most: Califoria, Nevada, Wash., Florida) have lost equity on their peak of market purchases. In fact, 14% of homebuyers in 2005 put zero money down, and had no equity to lose. That’s backing $215 billion in mortgages, and it doesn’t take too much intuition to figure out who they are: mostly subprimers on the Map of Misery. In fact faced with a 10% mortgage payment and negative equity snake eyes, these desperate homeowners will either turn over the keys or be forced to do so, and sooner rather than later. Just think about it, why would these home owners care about foreclosing when they have nothing to lose? This is what happens with way too much hype on owning a property with zero down. For U.S. that is, those sub-prime lenders just interested in making ka-ching ka-ching. Don't us smart Canadians feel proud now.