Home Builders Pushed 100% Loans to Move Properties

A recent report from the Laborers' International Union of North America stated:

Homeowners who purchased at newer developments are more likely to have 100%-financed, adjustable-rate mortgages because of builders' efforts to push risky subprime loans. As a result… certain new-home communities are now littered with vacancies created by foreclosures that are pushing prices down. Zeroing in on Maricopa County in Arizona, the report found that more than a third of mortgages made by the finance arms of three major builders there — KB Home, Lennar Corp. and Richmond American Homes — were five-year ARMs set to adjust in 2010 and 2011.   San Diego County real estate blog