Mortgage crisis highlighted in New Yorker magazine

The Feb. 4 issue of the New Yorker magazine included a six-page story on the mortgage crisis in San Bernardino County, in which an estimated 168,000 homes are underwater and won’t regain their full value for up to two decades.

County government and the cities of Fontana and Ontario are considering responses, one of which, since dropped due to protests, was to use eminent domain to seize some of those mortgages from banks and drastically reduce the principal.

The article pointed out that Fontana’s mayor Acquanetta Warren owes $170,000 more on her home than it’s currently worth. Michael Tahan, a Fontana councilman, said he’s one of the few homeowners left on his foreclosure-heavy block.

Category: Mortgage Rates