Education is the Best Defense

I am a firm believer in education, and I think it is of particular importance to anyone with a home loan (regardless of whether it is in foreclosure or not).  As I’ve written before, the current mortgage industry is very different than what we typically think of–with the local bank down the street holding the note until the loan is paid of in 30 years.

There are two pieces I highly recommend to help educate yourself about what you don’t see about the mortgage industry.  The first is “The Big Short” by Michael Lewis (author of “The Blind Side,” Liar’s Poker,” and “Moneyball”).  It is a past-faced book that will give you some background into the mortgage industry and many of the things that led to this country’s financial collapse.  The other piece is “The Story of the CDO Meltdown:  An Empirical Analysis” by Anna Katherine Barnett-Hart.  It is a much more technical analysis and pretty dense reading, but it was very well done (and don’t be fooled by the fact it was written by a college senior at Harvard–it is better than a lot of the work many professionals have put out).

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