Welcome to Home Mortgages
Miramar Home Mortgage Article
This is a selection made from among articles on Miramar Home Mortgage. For a permanent link to this article, or to bookmark it for future reading, click here.
from:
Mortgage Crisis Giving More Woes to the Economy
By Martin Lukac
The economic scenario seems to be getting worse as the financial sector continuously reporting huge losses from exposure to the mortgage market. Even the residential sector, the commercial real estate sector, and sectors like credit cards, auto loans are moving to a negative territory and are quite at risk.
However, default mortgage rates this year have already shaken the financial sector. And now it is expected that millions of adjustable rate mortgages will reset, giving higher interest rates (according to the new loan agreement), which is just impossible for the homeowners to pay. But the homeowners, who are having $600 billion of subprime adjustable rate mortgage loans that is the ARM, are about to reset at higher amounts during the next eight months. Its not all the mortgages that are in trouble but homeowners who default or fall behind on the payments are a problem.
Now the situation is such that this mortgage crisis is forcing people to get out of their homes, besides hampering the economy as a whole. It is expected that the housing slump may get worse by more empty homes in the market, causing prices to plunge by up to 40% in real estate spots, such as California, Florida, and Nevada.
According to a recent report by the Goldman Sachs, the estimated industry wide losses from declines in the market value of subprime mortgage related collateralized debt obligation, to be almost $150 billion. Moreover, the third quarter write-off settled down at $18 billion from the financial firms but some firms indicated that the write-off in the fourth quarter would come to $22 billion. However, the losses could even hit $300 billion, as estimated by the Organization for Economic Cooperation and Development.
This worse situation of the housing sector is resulting into bigger problems, that is the unemployment and the higher consumer losses. It is estimated that almost 100,000 financial services jobs related to the credit and lending have already been lost, from local bank loan officers to traders dealing in mortgage backed securities. And moreover, this kind of countless job losses would curtail consumer spending that makes up two-thirds of the economy. However, thousands of workers of the housing industry could loss their job and it is expected that this would affect the car dealers, retailers and other dependent on the consumer paychecks badly.
Other indication shows that borrowers who took out loans in the first six months of this year are already falling behind on their payments as compared to the borrowers who took out loans last year. And this is making it harder for would be buyers to get new mortgages. This is in fact, is a frightening indication for the homebuilders with projects going begging on the market, and also for the homeowners desperate to unload property to avoid default on their loans.
Besides these sectors, there is one more vital sector that is foreclosure. The number of homes in foreclosure is expected to move high after more than doubling during the third quarter as compared to year earlier, to 446,726 homes nationwide. This is one foreclosure filing for every 196 households in the nation, a 34% jump from three months earlier.
RateEmpire provides Purchase Loan and Refinance Loan financial marketplace which connects consumers with multiple mortgage companies that compete for their business. For more information please visit Mortgage Crisis Giving more Woes to the Economy
Article Source: http://EzineArticles.com/?expert=Martin_Lukac
http://EzineArticles.com/?Mortgage-Crisis-Giving-More-Woes-to-the-Economy&id=853091
Miramar Home Mortgage Specific links
Miramar Home Mortgage
- Looking for Miramar Home Mortgage?
-- http://www.shopica.org/
See the Latest Tech News and Reviews!
- Come to the TeXtra network and see all of our latest videos, free!
-- http://www.mevio.com/
Get Hired
- Earn more money with a better job now
-- http://www.hotjobs.com/
Women's Shopping Finds!
- Latest Trends and Fashion in Shopping, Style & Beauty
-- http://www.shefinds.com/
Howie Mandel from the Buy.com shoot
- See Howie Mandel show you how to get the best 'deal' shopping online at buy.com.
-- http://www.youtube.com/
Miramar Home Mortgage News
South Florida Sun-Sentinel - Fort Lauderdale Sun-Sentinel
What's in the bailout bill for you? For struggling homeowners, very little. There are slim pickings for the almost 273,000 Florida homeowners who are behind on their mortgage payments. And the more than 213,000 Florida homes already in foreclosure
Read more...Financial mess bad for business in South Florida - Fort Lauderdale Sun-Sentinel
The nation's financial meltdown has moved beyond Wall Street and into the lives of South Floridians: buyers of homes and cars, owners of small businesses and people who plan to use credit cards during the upcoming holiday season. Banks are denying ...
Read more...MILITARY: Pentagon announces Marines' Afghanistan assignment - North County Times
Local Marines probably will be included in a 2,000-member force headed to Afghanistan in November, a Pentagon spokesman said Monday. Maj. David Nevers said "there is a good chance" that troops from Camp Pendleton and Miramar Marine Corps Air Station ...
Read more...13abc Friday headlines - WTGV
The inability to reach a deal has left many in congress frustrated, and pitted House Republicans against many of their fellow members in congress and the Bush Administration. Many House Republicans say they are philosophically opposed to government ...
Read more...On Fannie Mae and Freddie Mac, Bob Barr doesn't hold back - Los Angeles Times Blogs
Perhaps an issue has fallen into the lap of Bob Barr that will give his little-noticed presidential campaign some traction -- especially among libertarian-minded Ron Paul backers who have not exactly flocked to Barr's banner. The issue would be the ...
Read more...