The Simpsons lose their home through foreclosure

After defaulting on their mortgage, the Simpsons lose their home, according to the latest episode of the U.S. series. The episode is a parody of the subprime mortgage crisis and the tragedy thousands of families in this country are facing.

In Sunday's episode aired by the Fox network, the Simpsons receive a letter from the bank notifying them of an increase on their variable rate mortgage. The letter comes the day after the family host a massive carnival-style party, financed by a second loan on their house.

In the U.S., it is possible for a homeowner to receive a home equity loan from their bank. This allows the homeowner access to the amount they have already paid on their mortgage if they need extra cash.

Over the years, this practice has caused many people to use their properties as ATMs and now they are in the same situation as the Simpsons: the "party" is over and they are left owing a far greater amount to the bank than they originally borrowed.

As is the case for millions of American families, the Simpsons soon discover that the revised mortgage rate makes their monthly repayments skyrocket to an astronomical amount. Their mortgage becomes impossible to repay and they wind up losing their home at a public auction.

According to the most recent data last January, 274,399 homes, one out of 466, underwent foreclosure and were auctioned by banks, 18% up from the same month in 2008.

In the television series, the Simpson's house ends up in the hands of Ned Flanders, Homer's santimonious neigbour, who buys the house for $100,001 dollars (79,200 euros). Flanders then rents the house to its previous owners so that they are not left out on the street.