Mortgage lenders to pump $200 billion into markets

NF Reporter · 03-19-2008, 02:18 PM

Reuters - The two largest U.S. mortgage finance companies on Wednesday won approval to pump up to $200 billion into the distressed U.S. mortgage market, the latest step in government efforts to ward off a credit crunch.

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waltky · 04-01-2008, 10:47 PM

Time is running out to make a difference...

Mortgage fix - The clock is ticking
April 1, 2008: Senate leaders reached a deal on Tuesday that could expedite help for the troubled housing market. But hurdles remain and time is running out.

Quote:

The Senate, in a surprise move, has agreed to work out a bipartisan housing package that could come to the floor as soon as Wednesday. Such deals - quickly brokered between Democratic and Republican leaders - will have to be the order of the day in both the Senate and the House if lawmakers hope to stem foreclosures this year. Indeed, Congress is facing a deadline: Housing experts say that bills must get signed into law by July and take effect no later than the third quarter to prevent a substantial number of foreclosures this year.

Nationwide, 1.5 million subprime adjustable-rate mortgages will reset to higher interest rates this year - with May and June being peak months, said Rick Sharga, a spokesman for Realty Trac, an online marketer of foreclosure properties. Many of those borrowers are vulnerable to foreclosure either because their monthly payments will become unaffordable when the rate changes, or they already are having trouble making their payments.

Foreclosure filings typically are issued after a borrower has been in default for 90 days. Those borrowers then usually lose their home within three to four months if they can't work out a deal with the lender or find a way to pay what they owe. Translation: Those whose loans reset in May and June could be in the foreclosure process by September and lose their home by the end of the year or early in 2009, Sharga said.

Election-year pressure

waltky · 04-24-2008, 06:51 AM

What about the ones losing their homes and their kids??...

The Youngest Victims Of Foreclosure
April 23, 2008 - In Midst Of Mortgage Crisis, Kids Are Left In Limbo

Quote:

It's the week after spring break and instead of hitting the books, 11-year-old Matthew Antico is helping his mom, Sharon, and brother, Wesley, pack boxes. "Lots of memories on the walls, I notice," CBS News correspondent Kelly Cobiella said. "Yes, me and my friends drew all this," Matthew said. He's also saying goodbye to his childhood room. "I'm gonna have to make all new friends," Matthew said. "It stinks."

The Anticos are leaving their Bradenton, Fla., home because they have to. The bank foreclosed on it in February after Sharon lost her job and fell behind on the mortgage. For the first time in her life, she and her kids are homeless. "What do you do when you have kids and you're in that situation?" Sharon Antico said. "You don't know what to do; you really don't know what to do."

They're not alone. In their county of Manatee, 400 kids are homeless due to the foreclosure crisis. And the numbers are rising in other housing hot-zones across the country. Cleveland public schools have nearly 1,700 homeless students, 500 more than a year ago. Minneapolis schools have 5,600, up more than 1,000 more homeless kids than last year. Deb Bailey runs Project Heart, a group helping homeless families on Florida's west coast. "It's not even the tip of the iceberg," she said.

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waltky · 09-27-2008, 05:46 AM

'Car sleepers' the new US homeless...

Sleeping in cars
Saturday, 27 September 2008 - Desperate moves by victims of the US housing crisis

Quote:

Santa Barbara boasts a classic laidback California lifestyle, with uncongested beaches, wholesome cafes and charming Spanish-style architecture. Of course there's a hefty price tag: nestled between the gentle Santa Ynez mountains and the inviting Pacific Ocean are multi-million dollar homes.

But in this sun-washed haven of wealth, many live far from the American dream. In a car park across the street from luxury mansions, the evening brings a strange sight. A few cars arrive and take up spaces in different corners. In each car, a woman, perhaps a few pets, bags of possessions and bedding.

Across the street from homes with bedrooms to spare, these are Santa Barbara's car sleepers. Homeless within the last year, they are a direct consequence of America's housing market collapse. In this woman-only parking lot, Bonnee, who gives only her first name, wears a smart blue dress and has a business-like demeanour.

'4x4 homes'