Sonia

The Mortgage Meltdown: Is the Other Shoe About to Drop?

More trouble is coming. People who purchased homes many years ago with 20% down are now under water, even if they were not tempted to take money out with second mortgages. A friend in Ohio owes more than 30K more on her modest home than it would sell for; there are a number of foreclosed homes in her long-established neighborhood. Her income as a real estate agent is collapsing and she questions how much longer she can pay her mortgage. To stop a vicious downward spiral, the government needs to refinance all mortgages across the board at 3% interest, allowing owners to stay in their homes and young people to be able to buy. Second mortgages should be outlawed. Not so long ago, TV ads invited "get a loan to take a vacation" - the ultimate stupidity!