Real Estate Woes: The Subprime Mortgage Crisis by CAP

http://www.americanprogress.org/issues/2008/01/barr_testimony.html

With each passing release of housing-related data, the picture becomes bleaker for the estimated 1.8 million homeowners with subprime mortgages whose interest rates have reset this year or are due to reset before the end of next year. Many of these borrowers and their families hold the 22 percent of adjustable rate subprime loans currently delinquent or the 3.84 percent of subprime loans that entered foreclosure in the second quarter of this year. For those still current on their loans, they can look forward to increases in monthly payments averaging 30 percent to 50 percent when their rates reset.

There have been a number of proposals offered to help these and other troubled borrowers, but the range of solutions suggested to date still leaves a significant number of families without any solution to their problems.

For more of CAP's work on the current housing crisis please visit
THE CENTER FOR AMERICAN PROGRESS
www.AMERICANPROGRESS.org

Category:

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Tags:

• subprime
• mortgage
• house
• real
• estate
• realtor
• money
• debt
• credit
• finance
• foreclosure
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[ourearthhome]

Sub-prime loans allowed the real estate boom to continue longer than it otherwise would have. Sub-prime loans did not cause the crisis nor did any of the public policies that encouraged and subsidized home ownership by those who otherwise could not have been players at all. The crisis in the housing market was bound to happen because Americans are allowed to speculate with real estate so there is has been a 18-20 year boom and bust cycle that has gone on for centuries if one follows the data.

[mannyfeseha]

thehelpfund.blogspot

[mannyfeseha]

thehelpfund.blogspot

[blackacadian]

Quick and to the point. Another fine example of governmental deregulation.

[jediknight1988]

Great video of this issie.