Grab a Parachute
It has exploded into the worst housing crisis since the Great Depression. Home owners with near perfect credit scores are having their homes foreclosed. The subprime crisis has taken a fast leap into the conventional mortgage market, and little is being done to bring it to a halt.
The infamous frauds at Enron and World Com may pale in comparison to what has occurred to American consumers, who put their trust in the mortgage system only to have it violated.
The U.S. mortgage crisis first reared its ugly head in the subprime lending market, which caters to those with damaged credit. But the mortgage fiasco has spread into the conventional marketplace recklessly damaging the financial security and credit histories of hundreds of thousands of conventional mortgage borrowers, many of whom are investors in real estate for their retirement.
Housing Predictor forecasts that more than 3-million homes will be foreclosed due to the mortgage crisis in the U.S. through 2009. However, with an estimated 5-million adjustable rate mortgages due to re-set by the end of 2009, real estate analysts are estimating foreclosures will be much higher.
The mortgage crisis has slowed real estate market sales in the over-whelming majority of states. Just eight states still have markets that are appreciating, and some of them have weakening sales volume. After as much as ten years in a real estate boom, the American real estate marketplace has changed for the worse and now faces a possibly catastrophic future.
The housing collapse could be worse than the Great Depression. It has been forecast by a small group of economists for years, including Professor Robert Shiller of Yale University and economist Lyndon Larouche, a perennial presidential candidate, who first forecast the economic collapse 30 years ago.
A national recession isnt just likely any longer, according to Housing Predictor analysts, but its a certainty with all time record foreclosures in the majority of the U.S., rising unemployment levels despite what government figures show with the slow down in construction, increasing unemployed illegal aliens who are not counted in government statistics and higher prices for goods and services.
A series of lawsuits have ensued against mortgage brokers, bankers, mortgage companies and Wall Street investment houses as a result of allegations of misrepresentations and fraud. Mortgage brokers and mortgage companies have strongly protected themselves with a fuselage of strongly worded contracts, which indicates some fear they could be severely damaged by the outcome in court. Class action lawsuits have already been filed by Wall Street investors, and more class action suits are expected in what has evolved into at least a multi-billion dollar fiasco.
The Federal Reserve Board of Governors is charged with the job of protecting the countrys economic future to insure a balance of the nations economy against inflation. More than one million homes have already been foreclosed alone in 2007. The economic stability of the nation is in jeopardy and may well end in the nations worst economic disaster.
Foreclosures are increasing on a monthly basis and are only expected by economists to increase in coming months as mortgage companies make it impossible for borrowers to refinance and refuse to cut interest rates on mortgages to make payments affordable with falling real estate values.