Friday, May 18, 2007

“The actual crisis hasn't started yet”

A report and video from CBS 2 on the current foreclosure situation in Chicago.

“A record number of homeowners are now defaulting on their loans and risk losing their homes – 7,000 in the Chicago area in April alone.”

“Debbie Clark owns a home in Marquette and recently got the shock of her life. Her adjustable rate mortgage, or ARM, will jump from 7 to 13 percent in a year.” (Something tells me we'll be hearing a lot these stories next year.)

“For the last two years, she's paid about $1,000 a month. In August, it jumps to $1,300, in February $1,410, finally capping at $1,635.”

“They would say do not worry, when you have to worry, because if you don't worry, they will come two years later, hike your mortgage up so high that you cannot even eat,” she said.

“When a broker or realtor or some other person talks somebody into taking a loan that they really can't afford, that's no different then robbery... The broker, the realtor is not your friend. These are business people who only make money when you close on a loan.” said researcher David Rose from the National Training and Information Center. (Someone who tells the truth maybe?)

The actual crisis hasn't started yet,” said John Groene of Neighborhood Housing Services. “We'll see that in a couple years.”

The full report can be read here. Be sure to see the video, well worth it.


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