Home Mortgage Defaults At A Tenfold Increase!
Just as I predicted in my financial crash reports, home mortgage defaults are now TEN TIMES what they were just last year!
HOME MORTGAGE DEFAULTS AT A TENFOLD INCREASE!
Just as I wrote in the summer of 2005, mortgage defaults are currently up tenfold, as compared to last year, according to the website ForeclosureS.com, a nationwide foreclosure lists publisher. President Alexis McGee stated that they listed 1,551 new foreclosures in April 2006, and as of May 13, 2006, foreclosures were up 35% from the same period of 2005.
"According to our research, foreclosure activity in New Jersey reached a level of 4,425 filings in the first quarter of 2006 as opposed to just 459 in the same quarter in 2005. That's an almost tenfold increase," warned Ms. McGee. She added that she expected the situation to get worse through the rest of 2006 and into 2007.
Ms. McGee expressed concern that homeowners were now using their home mortgages as a kind of an ATM MACHINE, spurned on by predator lenders, who are all too eager to allow their customers to fall deeper into debt. Also, 49.5% of all new home mortgages are considered 'high-risk' loans, due to the debt load carried by these borrowers.
Recent changes in federal bankruptcy law will see to it that these people eventually pay up, and we are now beginning to hear about 'interest-only' loans, which means that while the clock ticks away bigger and bigger debts, the principal of the loan remains unpaid. Effectively, these customers are paying rent on their own homes, which drags them evermore deeper into debt.
Such loans are only going to lead to trouble for these borrowers.
Ms. McGee found it "amazing" that some banks are still pushing home equity loans, and such loans are typically 125% of the market value of the home, and with the housing bubble about to burst, this is more trouble for people who already cannot pay their debts.
The bottom line is this . . .
I discussed all of this in the KENTROVERSY PAPERS SPECIAL REPORTS as listed below, and I encourage my readers to take another look at these important documents. While it brings me no pleasure to be right about this, but, I am happy that I was able to bypass the entire home mortgage screw-job for myself and my family.
© 2006 Kentroversy Papers
All rights reserved. Used with permission.
The following sources were used in the creation of this Kentroversy Paper . . .
Northeast Foreclosure Activity Up Sharply (May 22, 2006 6:01 ET)
Will You Survive The Coming Financial Crash? PDF Download (June 6, 2005)
Housing Bubble: Bankrupting Suburbia (July 18, 2005)
Housing Bubble Insanity (August 7, 2005)
Are You Smart With Your Money? (December 6, 2005)
Will You Survive The Coming Financial Crash? Redux (April 12, 2006)
Home Equity Loan