US /

As Mortgages Melt Down, Owners Burn Up

Debt-motivated arson another facet of US subprime crisis
By Kevin Spak,  Newser Staff
Posted Apr 21, 2008 12:11 PM CDT
As Mortgages Melt Down, Owners Burn Up
While exact data is hard to come by, debt-motivated arson appears to be on the rise in a big way.   (Shutterstock)

(Newser) – US homeowners are literally burning down their homes instead of paying their subprime mortgages. Last year saw a dramatic nationwide jump in apparently debt-motivated arson, the Los Angeles Times reports. “I'm busier now than a one-armed paper hanger,” said one investigator. “What is happening is terrifically economically driven.” So far, the numbers are small, but they have insurers on edge.

Insurers believe some homes destroyed in last fall’s California wildfires were actually cases of opportunistic arson. One industry group said there hasn’t been a spike, but others say that’s just posturing designed to deter copycats. “People upside-down on their house with variable-interest-rate loans … are pretty quick to burn their property right down,” said one fraud investigator. (Read more arson stories.)

We use cookies. By Clicking "OK" or any content on this site, you agree to allow cookies to be placed. Read more in our privacy policy.
Get the news faster.
Tap to install our app.
X
Install the Newser News app
in two easy steps:
1. Tap in your navigation bar.
2. Tap to Add to Home Screen.

X