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Insight: A New Wave Of U.S. Mortgage Trouble Threatens

Saturday, November 30, 2013 - 6:53 AM
U.S. borrowers are increasingly missing payments on home equity lines of credit they took out during the housing bubble, a trend that could deal another blow to the country's biggest banks.  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.

At a conference last month in Washington, DC, Amy Crews Cutts, the chief economist at consumer credit agency Equifax, told mortgage bankers that an increase in tens of thousands of homeowners' monthly payments on these home equity lines is a pending "wave of disaster."

http://www.reuters.com/article/2013/11/26/us-usa-mortgages-homeequity-insight-idUSBRE9AP05J20131126
6
ShorebreakShorebreak2,371 posts since
Apr 6, 2010
Rep Points: 12,654
1. Saturday, November 30, 2013 - 10:08 AM
This sounds just a tad hyped. With everyone refinanced at down around 4%, they owe plenty less than they ever did. So the only ones who will face this problem are those who have lost their jobs and still have not been able to get a new one. That means very few. 
3
me1004me1004343 posts since
Jan 16, 2010
Rep Points: 2,357
2. Saturday, November 30, 2013 - 10:22 AM
This could also happen because so many have had their healthcare cancelled and are having to pay so much more for new policies.  Could impact their income and mortgage payments.
5
paoli2paoli21,142 posts since
Aug 10, 2011
Rep Points: 5,094
3. Saturday, November 30, 2013 - 6:26 PM
"With everyone refinanced at down around 4%, they owe plenty less than they ever did."?

Over 12 Million Mortgages Still Underwater, Dragging the Economy

Experts call it negative equity. To the general public, the term is underwater mortgages. Regardless of what it is called, 12.2 million Americans have mortgage balances that are greater than the value of their homes.

Over 12 Million Mortgages Still Underwater, Dragging the Economy - 24/7 Wall St.
7
ShorebreakShorebreak2,371 posts since
Apr 6, 2010
Rep Points: 12,654
4. Thursday, January 9, 2014 - 4:43 AM
The problem with mortgage debts is on the top of importance. Crisis in this sphere is going to influence economy with great force. Bank loan or service on the web will help people to postpone the trouble but if the level of unemployment doesn’t decrease it will not help.
2
Anfiska  PritchardAnfiska Pritchard1 posts since
Jan 9, 2014
Rep Points: 2
5. Sunday, February 16, 2014 - 1:58 AM
U.S. Mortgage Trouble is really a big trouble, mortgage bankers that an increase in tens of thousands of homeowners' monthly payments on these home equity lines is a pending "wave of disaster." apply and get cash now  how people income increase and Could impact their income and mortgage payments.
1
Priyankasingh1Priyankasingh11 posts since
Feb 16, 2014
Rep Points: 1
6. Sunday, February 16, 2014 - 6:47 AM
This article is about lines of credit. Why would ANYONE get a variable loan of any kind. 

Is it the banks pushing them for bigger commissions or the people borrowing that have no idea what they are doing? 

Never have housing expenses that costs over 1 weeks take home pay. 
1
AllyAlly778 posts since
Jan 16, 2010
Rep Points: 2,266
7. Sunday, February 16, 2014 - 11:45 PM
#4 and #5 You scrounging for customers??
1
RicochetRicochet131 posts since
Jan 19, 2010
Rep Points: 358
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