PRESS-NEWS.org - Press Release Distribution
PRESS RELEASES DISTRIBUTION

With The Housing Market In Shambles, Who Will Pay?

Although the real estate market began its collapse several years ago, banks and lenders continue to sort out the related issues today.

2010-09-18
September 18, 2010 (Press-News.org) Although the real estate market began its collapse several years ago, banks and lenders continue to sort out the related issues today. According to the New York Times, during the real estate boom years banks nationwide lent homeowners more than approximately a trillion dollars in the form of home equity loans. These loans were secured solely by the value of homes, which once seemed to increase without bound.

As home values rapidly declined, though, so did the ability and willingness of these homeowners to repay their home equity loans. The American Bankers Association reports that the delinquency rates on home equity loans are higher than those of all other consumer loans, including credit cards and car loans.

Lenders want to blame the borrowers for taking on debts beyond their means. Borrowers insist that lenders are also to blame, as they extended credit to individuals and businesses well in excess of reason, even using predatory lending practices at times. Whereas home equity lines of credit were once only available to those with the strongest credit history, lenders pushed to expand the availability of these loans under the assumption that the growing real estate market would support the risk.

Arguably, there is plenty of blame to go around. Almost everyone involved in the real estate market trusted that the housing market would continue to expand, with little concern that the values might eventually decline. Now that the market has collapsed, however, lenders and borrowers are left arguing over who will be held accountable. More important than the question of who will accept the blame is the question of who will accept the consequences.

Thus far, it seems that the consequences will be shared. Lenders are writing off their losses at unprecedented rates -- the New York Times reports that in the first quarter of this year, lenders wrote off $7.88 billion in home equity loans and home equity lines of credit. However, borrowers are also not getting off consequence-free. Borrowers who default on home-equity loans will notice the effects in their credit ratings for a long time to come. These defaults may also have debt relief tax consequences.

It is important to note, though, that this is not the end of the crisis for the California housing market. Unfortunately, the worst is yet to come. A new wave of foreclosures will arrive in the near future, as option adjustable-rate mortgages (ARMs) reset and borrowers find their monthly payments drastically increasing.

According to Business Week, when option ARMs reset, the monthly mortgage payment typically increases 65 percent or more. As many homeowners are already struggling to meet monthly mortgage payments, a rise of this magnitude will likely force many to enter foreclosure.

For those facing foreclosure or struggling to meet monthly mortgage payments, there may be options. Speak with a knowledgeable attorney to discuss your circumstances and develop a strategy for weathering the current financial climate.

Article provided by The Mellor Law Firm
Visit us at www.mellorlawfirm.com


ELSE PRESS RELEASES FROM THIS DATE:

Social Media in Divorce Proceedings

2010-09-18
New social media such as Facebook, MySpace and Twitter have provided a forum for many of us to interact with friends. Whether catching up with friends with whom we may have lost touch, sharing pictures of our families or our weekend adventures, or using the media to brag or "vent" about something we feel strongly about, social media allows us the ability to do all of this and more. While this may seem like innocent fun, many are finding out that what is posted or "tweeted" on or through these media sites can and will be used against them in family court. In a world ...

Workers' Compensation and Social Media Sabotage in New York

2010-09-18
Workers' compensation helps many employees injured on the job to heal without the threat of financial ruin. These workers face an inability to work coupled with unexpected medical bills; luckily the workers' compensation system helps them to stay afloat. Unfortunately, some people abuse the system by exaggerating the extent of their injuries or by providing evidence for an injury that did not actually occur. These dishonest few have made it more difficult for employees with real injuries, who are now watched with critical eyes. While social media websites like Facebook ...

Child Custody Tips for Texas Parents

2010-09-18
When deciding child custody arrangement, it is important to understand that the court will always decide custody disputes based on the "best interest of the child" standard. With this in mind, remember that there are ways to prepare for custody hearings that may increase your chances of achieving your desired result. It is important to understand the terminology and presumptions that are used by the court. In Texas, custody is referred to as "conservatorship." There is a presumption that the parents should serve as "joint managing conservators," however, this does not ...

Spikes in Auto Recalls: Is the Auto Industry Growing More Cautious?

2010-09-18
Automakers have recalled nearly 20 million vehicles in the past year, including some recalls involving marginal safety risks. The spike in recalls prompts industry observers to wonder if manufacturers have become more concerned with safety, whether they're under pressure from an energized federal watchdog or whether they're simply doing all they can to avoid the damaging publicity Toyota endured during its massive recalls late in 2009 and early this year. In the first half of 2010, carmakers recalled 10.2 million vehicles, according to the Detroit News. That's about ...

FDA Warns Use of Reglan Can Lead to Uncontrollable Facial Movements

2010-09-18
Of all the various rules, regulations and warnings issued by the U.S. Food and Drug Administration (FDA), the most serious is a black box warning. The name refers to text that must appear in a black box on the drug package insert, warning users of very serious side effects. In February 2009 the FDA released a black box warning for metoclopramide, better known in the U.S. by its trade name of Reglan. Prolonged use of Reglan has been associated with tardive dyskinesia, a muscular disorder in which the patient has frequent uncontrollable movements of the face and mouth, ...

Toyota Issues Yet Another Recall

2010-09-18
In the wake more than 1,000 complaints to the National Highway Traffic Safety Administration (NHTSA), Toyota is recalling more than 1.1 million Corolla and Matrix vehicles, model years 2005-2008. The recall centers on a faulty electronic control module (ECM), which is a circuit board that helps control the engine's operation. A faulty ECM can lead to vehicle stalling without warning and at any speed, and then not restarting. One NHTSA complaint states: "I was driving 60 mph on the freeway and was almost hit from behind [when the engine stalled]. Another time I was ...

Michigan's Specialty Drug Teams Target College Students

2010-09-18
A 2009 incident involving a Grand Valley State University student who was shot by a specialty-drug-team officer highlights the fact that Michigan State Police target college students through drug busts in dorms and campus apartments. Accordingly, it is important for students to know their rights and options regarding police interaction and drug charges. The Specialty-Drug-Team Shooting Derek Copp, a GVSU student, said he was studying with his roommate at their Campus View apartment when he heard a knock at their sliding glass door in March 2009. Deputy Ryan Huizenga ...

Texas Cities Cracking Down on Overdue Child Support

2010-09-18
In 2009, the top 10 child support evaders in Texas owed more than $500,000 in collective back payments and interest to their children. One parent alone owed over $130,000 in support for his two children. In March of this year, an ABC report noted that the most wanted list of child support evaders, published by the Office of the Attorney General, owed over $1 million in delinquent payments, with the top offender owing more than $160,000. According to the Office of the Attorney General's Child Support Division, Texas law requires the Office of the Attorney General to develop ...

A Spate of Motorcycle Accidents Highlights the Risks of Hitting the Road

2010-09-18
The winding roads of western North Carolina are a haven for motorcycle enthusiasts around the south. With the increase in bike traffic, however, comes a higher risk of accidental injury or death. The recent death of former police officer Gerald Droze proves that even the most experienced riders are vulnerable when sharing the road with larger vehicles. The freedom and sense of liberation associated with motorcycling -- the wind in your hair, the sun on your face, the speed and joy of passing cars by -- can prove to be a distraction. Many people, particularly novice operators, ...

Proposed Motor Vehicle Safety Act Holds Automakers Accountable

2010-09-18
For the most part, motor vehicles hitting the roads in the United States are some of the safest in the world due to diligent efforts of government oversight agencies like the National Highway Traffic Safety Administration (NHTSA). As this year's massive recall of millions of Toyota-brand cars, trucks and SUVs reminds us, however, there is always room for improvement. In addition to ensuring the safety of millions of drivers operating potentially dangerous vehicles, the recall served another very important purpose - it brought to light gaps in the regulatory system that, ...

LAST 30 PRESS RELEASES:

NPS team makes key breakthrough on path to electric aircraft propulsion

Berkeley Lab awarded two new centers to counter climate change

Stanford researchers unveil new material infused with gold in an exotic chemical state

Research Highlights for September 2023

JMIR Publications places No, 348 on The Globe and Mail's annual ranking of Canada's Top Growing Companies

Argonne National Laboratory launches South Side STEM Opportunity Landscape Project at DuSable Black History Museum and Education Center

Allergy study on 'wild' mice challenges the hygiene hypothesis

Ancient plant wax reveals how global warming affects methane in Arctic lakes

Atopic dermatitis: Viruses discovered as new therapy option

Larger lymph node threshold optimizes nasopharyngeal carcinoma outcomes

BPS celebrates Max Planck-Humboldt medal awardee Kandice Tanner

Cleveland Clinic researchers develop new model for prioritizing lung transplant candidates

American Academy of Arts and Sciences to induct UVA's Garcia-Blanco

Illinois-led team puts cows and microbes to work to reduce greenhouse gases

DOE announces $264 million for basic research in support of Energy Earthshots™

New drug a breakthrough for brain tumor that strikes young people: NEJM editorial

Genome study reveals 30 years of Darwin’s finch evolution

Ghent University’s research team envisions a bright future with active machine learning in chemical engineering

Climate change and carnivores: shifts in the distribution and effectiveness of protected areas in the Amazon

Can ChatGPT help us form personal narratives?

An intelligent control method reduces carbon emissions in energy-intensive equipment

Groundbreaking control method reduces carbon emissions from zinc oxide rotary kilns, boosting profits for zinc smelting industry

Small but mighty new gene editor

Study finds SARS-CoV-2-associated sepsis was more common, deadly than previously thought

Use of electronic clinical data to track incidence and mortality for SARS-CoV-2–associated sepsis

Misinformation, trust, and use of ivermectin and hydroxychloroquine for COVID-19

Neighborhood factors, individual stressors, and cardiovascular health among Black and white adults

New research reveals link between childhood mental health problems and quality of life for young adults

New insights into how the human brain organises language

Visual search: Context facilitates more effective strategies

[Press-News.org] With The Housing Market In Shambles, Who Will Pay?
Although the real estate market began its collapse several years ago, banks and lenders continue to sort out the related issues today.