Mortgage Crisis Hits a High Point In Iowa
A recent USA Today article describes the legal tangle that has been left in the wake of the sub-prime mortgage scandal. With foreclosure rates reaching “historic” highs, state lawmakers in Iowa and across the country are struggling to provide households with assistance as well as to curb predatory lending. One proposed California measure would limit mortgage firms from misleading minority home buyers by requiring contract language to be in the lenders native tongue. However, the problem has gone beyond first-time buyers to include elderly low-income residents as well as middle-class home owners, with public interest lawyers frustrated by the sheer volume of case and the weak consumer protection laws. You can read more from this article here.
It should be very interesting to see what happens to our economy as a result of the sketchy lending practices over the past few years. It’s scary as always but keep in mind that it’s just a natural shift back to reality after a boom time, even if it was an artificial boom.
Comment by FHA Loan Expert | February 1, 2008
A few months into this crisis, it’s tough to see where it’s going to end. It seems like every conceivable trick in the book has been hauled out to keep this going for as long as possible. Fun while it lasted!
Comment by MoneyBeat.com | Canadian Mortgage Quote | May 6, 2008
Here is a BBC news broadcast showing the gravity of the situation. Current foreclosure trends suggest the situation is getting worse
Comment by inti265 | June 7, 2008
Sorry I forgot to give the link. Here it is: http://mortgage-simplified.blogspot.com/2008/05/new-homeless-in-us.html
Comment by inti265 | June 7, 2008
The problem is more insidious than it appears. The reason all these loans were made in the first place is because – for awhile – they were profitable for the end institutions. There are a slew of complicated mortgage laws, but there was also a very motivated group of people – with large financial incentives – trying to circumvent them.
Comment by The Mortgage Information Man | August 3, 2008
There are places that tried to help, but lost out in vain as well. For instance, there are real estate sales agreements online, but did anyone choose to pursue this path?
Comment by Legal Forms | August 3, 2008
Todays news, here in the UK, has reported that the number of properties repossessed by mortgage lenders has risen by 48% in the past year. It also reports that there have been 18,900 repossessions in the six months to June, up from 12,800 in the same period last year.
It’s about time the Government stepped in and took some control over this situation.
Comment by Buy My House | August 8, 2008