Tag Archives: mortgages

Another wave of mortgage loan defaults is about to hit.

The day of reckoning looms: Another wave of mortgage loan defaults is about to hit.

The loans are a problem now because an increasing number are hitting their 10-year anniversary, at which point borrowers usually must start paying down the principal on the loans as well as the interest they had been paying all along. More than $221 billion of these loans at the largest banks will hit this mark over the next four years, about 40 percent of the home equity lines of credit now outstanding.

For a typical consumer, that shift can translate to their monthly payment more than tripling, a particular burden for the subprime borrowers that often took out these loans. And payments will rise further when the Federal Reserve starts to hike rates, because the loans usually carry floating interest rates.

Read the whole article. The possibilities, especially for some large banks like Wells Fargo and Bank of America, are not good.

Another billion in free money for homeowners who can’t pay their mortgage

The Obama administration is offering another billion in free money to homeowners who can’t pay their mortgage.

So, considering the trillions in debt that is overwhelming the budget of the federal government, I wonder where is billion dollars coming from. Do they grow it on trees? I’d really like to know, since it would be nice if I could manufacture cash out of thin air as easily whenever I thought I needed it.