American dream ends in property market crash .........This is news to me!

[babsbunny]

http://news.independent.co.uk/world/americas/article2426222.ece

American dream ends in property market crash
By Rupert Cornwell in Washington
Published: 06 April 2007
Even now, the ads on television, radio and the internet continue: "Is your credit bad? Don't worry, we'll provide the loan for the home of your dreams ..." What those commercials should, but do not, add is: go through the small print with a toothcomb. Or else you, too, could be swept up in America's subprime mortgage crisis.

Just as in Britain, homeownership is a traditional goal of American society. But as interest rates have climbed and the housing market has slumped, the number of what are politely called "delinquent" loans has soared. And as home repossessions grow, civil rights groups and presidential contenders alike are stepping into the row over the high risk, or subprime, mortgage market.

In the most sweeping call yet, a coalition of civil rights organisations have demanded a six-month moratorium on foreclosures. They want lenders - whose reckless and sometimes predatory policies are largely blamed for the crisis - to help victims refinance their mortgages, or face law suits.

[evlbstrd]

1. Not to me.

I'm on the edge of delinquency.

[Warpy]

2. They did take advantage of the stupid

and the desperate. After all, what 77 year old would take on 30 years of debt if she had thought it though? There had to be some motormouthed salesmen in there somewhere.

Foreclosure and getting out from under a predatory loan may be the best thing to happen to a lot of people.

The ones who are going to get hurt the worst are the builders, as speculators are forced to sell houses they've held empty, hoping to make a fast buck before the interest rates went up on their loans, putting an oversupply of essentially new houses into a market where there are few customers.