More Americans in default on thier mortages.

[ClaireZ]

As more and more of the good manufacturing jobs go overseas, as more companies cut jobs, as gas and fuel prices increase, more and more people are in serious danger of losing thier homes.

The number of foreclosures is expected to rise this year. The rates of new foreclosures in Michigan, Indiana, Wisconsin and Georgia are at their highest since 1979.

"This is evidence of a structural change - an economic chain reaction," Duncan said.

http://biz.yahoo.com/usat/060316/13462024.html

 

[ACougar]

You haven't seen anything yet... wait until were experiencing high inflation and interest rates get close to double digits.

 

[ClaireZ]

You haven't seen anything yet... wait until were experiencing high inflation and interest rates get close to double digits.

True, too many of the new mortages are adjustable ARMS,and many of the people got these by piggybacking a loan for the down-payment. For some reason the banks and mortgage companies have been greatly reducing qualifications, and many people, especially those who now have "interest only" mortages will have no chance of keeping thier homes as the interest rates adjust upwards.

 

[Psalms34]

Well here in California, people are selling there houses and moving to other states in hordes. Property prices have gotten so high that just the taxes alone are killing people. What once was a modest $60k house may easily be on paper for $500k and so the tax is insane. Yeah maybe great for those that moved here, bought a house and maybe find a buyer to sell to now but for us that have lived here for generations with no desires to leave… we are up the creek w/o a paddle.

So California is now the top of the list for people leaving and Texas is the #1 growing state. Personally I think all our problems would end if we could just split California into two states and let the tax mad politicians in Sacramento have Northern Ca. and leave us hard working southerners alone I think the whole entire country would benefit economically if we could just ditch N.California

 

[ACougar]

True, too many of the new mortages are adjustable ARMS,and many of the people got these by piggybacking a loan for the down-payment. For some reason the banks and mortgage companies have been greatly reducing qualifications, and many people, especially those who now have "interest only" mortages will have no chance of keeping thier homes as the interest rates adjust upwards.

Thier only hope is if salaries keep up with inflation, not likely IMO.