Foreclosures about to rapidly increase

Foreclosures about to rapidly increase

www.reuters.com

Because the new monthly payments can be five or 10 times what borrowers are accustomed to paying, they "threaten a much greater hit to the consumer than the subprimes"

(visit the link for the full news article)

i dont know a whole lot about this kinda stuff but i do know that this isnt good news. especially if its going to be worse than the last round of foreclosures... : what will this do to our economy, will it create a "domino crash" effect? how much worse could this be than the subprimes? what else could possibly go wrong... october is coming up and that is when, so it seems, everything bad will happen... at least that is what i take away from the collective threads here on ATS..

hope all goes well..

www.reuters.com
(visit the link for the full news article)

reply to post by TheCoffinman


Here we go again...


these things were the worst invention ever!

whats worse is, because of the subprime disaster most of the real estate markets are depressed. meaning these folks who have these ARM loans cannot refinance because they dont have the loan to value ratio now required by banks who have tighnend up their lending. so in essence they are "stuck." nobody will refinance them at a fixed rate, and nobody will buy thier house because its not worth what they owe. result= a whole new wave of foreclosures.... and probably alot more bailouts.

Long live the boom and bust cycle of federal reserve banking.

reply to post by TheCoffinman


I was involved in the real estate business; to a degree. I did the traditional thought of "flip" for years. Any ways, I stopped before it all went south. The ARMs coming due soon are going to be a real killer. They aren't all coming due right now, but continually over the next few years in waves.

It looks like it will be like a Tidal Surge type effect You'd see from a Hurricane. Think about that; it equates out to the damage of a Tsunami, but doesn't get the same attention.

Combine this in with several markets that are set to burst, and I just don't think many can, or want to fathom what the next decade, or longer could be like.

Historically there has always been some enemy always willing to attack the USA; so We could create war spending, and gather People to the cause of defending Ourselves........

Either option of famine, poverty, and depression, or war, are both icky options.

S&F

The gov't already blew its wad on the Bankers. There's nothing left for this next round. We are in the final stages of the Debt spiral. They're having to increase the national debt ceiling almost Bi-Anually now and predicting doubling the Debt within 10 years last count. Only problem is, no one wants to buy our debt anymore. Meanwhile, the tax base is collapsing due to foreclosures and unemployment.

So what's the answer? Cap and Trade Energy Tax, Healthcare Tax increase, continuing Military occupation of the planet along with Trillion dollar Wars. Yeah, our govt's on toppa this one. Of course from their point of view the gov't take overs of Energy and Healthcare will increase their power over the public so to hell with the economy.

A fool and his money soon go seperate ways!

Always read the fine print.

reply to post by ProtoplasmicTraveler


So True. Unfortunately, there were enough fools to bring down the whole system this time.

The worst part of this problem is many of these loans are "bait and switch" We wanted to refinance our loan and roll other debt into it. Citi waited till the very last day, canceling FIVE previous appointments. We got to the lawyers at 9:00AM and did not close till after 7:00 PM. By then all the lawyers had gone home, leaving a no nothing clerk. We had no choice but to sign on the dotted line or be in very deep chimshee. Lo and behold the loan was not the fixed rate we demanded and were originally shown! Citi ditched the loan within 10 days.

Our neighbor works as a legal sec and said this was very typical. I have run into others who have had this "bait and switch" pulled on them too.

I hope there is a class action suit against Citi for this crap. Fleet bank got sued for similar practices several years ago.

reply to post by crimvelvet


No offense, but there's a whole lot more than one signature on 'the dotted line' so to speak. One of the papers you signed had the interest rate on it and I always pay close attention to that. Also, if you are unsure of something, don't sign it. Doesn't matter what 'threats' or pressure is put on you.