Mortgage Mess - Or Monster?
November 30, 2007 | 10:54 am | by t-blender |Rate It:
latimes.com: The mortgage meltdown is taking a rising toll on the broader economy, increasing pressure on the Federal Reserve to slash interest rates for a third time next month in hopes of averting a recession.
Homeowners will see their property values sink by $1.2 trillion next year, and 524,000 fewer jobs will be created — both a result of the trouble caused by loan defaults and rising foreclosures, according to a report released this week for the U.S. Conference of Mayors.
The fallout is weakening consumer spending, and auto sales next year will be their worst since 1998, according to the study by research firm Global Insight.
Amid widening concern over a sharp economic downturn, Fed Chairman Ben S. Bernanke suggested late Thursday that the central bank was prepared to cut its benchmark interest rate when it meets Dec. 11.
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indybay.org: From 2002 to 2005, Murrieta and Temecula were two of the hottest real estate markets in Riverside County, California. Every weekend, corners would be cluttered with signs advertising real estate for sale. Often, one or two signs would be posted for rental properties.
Now on weekends, many street corners are posted with different signs: Bank Repossession, Foreclosure Sale and House for Rent. Unfortunately, this is a familiar scene that is happening across America as hundreds of thousands of working class families are losing their homes in the worst mortgage crisis since the Great Depression.
Within the next few months, millions of adjustable rate mortgages are scheduled to reset and millions of working class families are in jeopardy of losing their homes. Many homeowners will be faced with increased mortgage payments that will increase by hundreds and even thousands of dollars.
Most working-class families are faced with a double dilemma: their expenses are constantly going up while their income is remaining the same or declining. The recession and inflation are consuming any extra funds that would be available to pay any increased mortgage payments.
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