Quote:
Originally Posted by Elspode
This whole mess was created by a deliberate chain of events. First, the Feds take away tax credit for consumer loans, leaving only mortgage interest as deductible. The lending market, knowing a good thing when they see, begins offering equity loans in order to put people's home equity into the pockets of others.
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Others factors besides a market gone mad with easy money, rabid investors, and shady lenders have a perfect storm beginning to spin in Florida. Hurricanes caused insurers to either raise prices or flee the state entirely, leaving homeowners to suddenly find themselves paying more than four times what they once were for insurance and now stuck with state coverage that has been bankrupt for years. Mix that with reassessed property taxes on those high home values everyone was cheering as the great windfall of the new century and suddenly mortgages, new and old, are out of reach.
The proposed solution? Eliminate homeowner property taxes. What a disaster.