The sub prime mortgage crisis could result in foreclosures of over 1 million homes in the next six years. The cost of a federal bailout could top 120 billion. The sub prime mortgage crisis is the result of people being lured with teaser rates that can only adjust upward. Now that they are adjusting the borrowers simply can not afford the new payment. With home prices falling and the days of quick appreciation over this crisis will only deepen. People will walk away from their homes because they will be worth less than they paid for them. With the bankruptcy laws changed, people forced into foreclosure could be looking at a lifetime of debt. How can we insure that this does not happen again? How can we help those families forced into foreclosure without a federal bailout? This issue will only grow as we approach the 2008 elections.
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