e.g. Miami or Miami-Dade or Florida or 33132
The financial meltdown that has hit America is mainly because of the crisis in mortgage payments. The roots can be traced back to the forceful introduction of sub-prime mortgages, ARM mortgages and the like. The ostensible and laudable reason was to advance loans to the weaker section of society that could not afford conventional prime loans because of lack of income levels and good credit score.
At the time of the housing boom, when the price of property was increasing at a dizzy pace these mortgages flooded the market. With huge commissions acting as incentives brokers forced these loans on gullible financial illiterate borrowers who did not understand the dangers in small print. They took loans with floating interest and were made to understand that the interest rate would go down but not float up. But when the reverse happened and the housing market began to fall the borrowers began to lag behind in mortgage payments. From the very beginning the bulk of the borrowers did not have the affordability to keep pace with these ballooning mortgage payments.
With thousands and in fact millions tripping on mortgage payments the credit flow to banks dried up. The banks began to foreclose on thousands of houses that in the end turned out to be white elephants because they could not be sold but required maintenance. It all led to a national crisis of tsunami proportions.
The government has taken many measures to ease the foreclosure crisis. One of the most important steps being taken is to see that the modified mortgage payments do not exceed 31% of the income of the borrower. But without any reduction in principal the borrowers are again falling behind mortgage payments.
It is loans that have started to flood bankruptcy courts and brought down the people on their knees as they hunt for any sort of shelter and handouts of food for survival.
Countless Americans are on the verge of losing their homes to foreclosure due to a delay or default in payment of their mortgages. It all started with a high and steady leap in the interest rates of subprime mortgage and a corresponding fall in the real estate market thereby lowering the prices of houses all [...]
Apart from sub-prime lenders who trouble homeowners by filing foreclosure suits against them, frauds or con actors are also giving homeowners hard times.
The cases of people fooled by con actors are more common in Arizona. As mentioned in the report of Better Business Bureaus released recently, there are about 1.69 million homeowners in Arizona who [...]
The foreclosure issue is being used in the political scenario as well. While the Clinton campaign was approaching registered Democrats to invite them to come to the speech, a staff member happened to find Kristi Schofield of Hampstead. Kristi and her husband are being foreclosed and hence are forced to move out of their house by the 24th of august. Being parents of three children, this is not an easy situation for them.
The booming real estate market has encouraged a new player in the market i.e. Credit extending agencies. These agencies provide loans to people at low interest rates. Wooed by this, people buy a new house thinking the rates will not change much. But the scheme that seemed to work very well in the beginning has [...]
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