Housing Bubble's Killer Side Effects

The main issues of the housing bubble, the credit bubble, the fraud, house prices, etc. get a lot of attention. However, there's other issues that affect home owners who didn't participate in housing speculation. Skyrocketing insurance rates and property taxes.

Homeowners challenge whopping assessments

The assistant state's attorney's modest waterview home on a half-acre lot in Arnold was valued at $281,000 three years ago. ... His latest assessment weighed in at a whopping $1.8 million, a six-fold increase in value, well above the average 55.5 percent increase seen across the county.

What happens when a state creates a budget using record property assessments, but then when it comes time to collect is faced with record foreclosures?