What is the profile of the average person who defaulted on his subprime mortgage?

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It seems that the subprime mortgage debacle has turned out to be very serious, so much so, that it has world-wide implications. Even here in China, the Chinese are worried about it. Does it make sense to analyze this problem, to see what caused it so that it doesn’t happen again? Why don’t we start by looking at the actual person who defaults on his loan. What kind of person is he? What demographic does he fit? What is his profile?

2 Comments
  1. Reply
    Red-Chrome
    May 18, 2011 at 10:57 am

    I think that is an excellent question and I have absolutely no expert knowledge to answer it and will read other people’s answers with great interest. I think that person is :
    (1) in need of accomodation for his family (aren’t we all)
    (2) is rather enthusiastic, over enthusiastic, and did not quite measure the financial commitment a mortgage entails. It is a life commitment.
    (3) is a victim of over enthusiastic lenders.

    Apart from those three I don’t know.

  2. Reply
    scrooge
    May 18, 2011 at 11:18 am

    poor working class

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