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:

4D Medicine raises £3.4 million for unique biomaterial platform

Ancient marine animal had inventive past despite being represented by few species, new study finds

Quantum sensor for the atomic world developed through international scientific collaboration

The research was wrong: study shows moderate drinking won’t lengthen your life

Save your data on printable magnetic devices? New laser technique’s twist might make this reality

Early onset dementia more common than previously reported – the incidence of Alzheimer’s disease seems to be on the rise

Pesticides potentially as bad as smoking for increased risk in certain cancers

NUS researchers develop new battery-free technology to power electronic devices using ambient radiofrequency signals

New protein discovery may influence future cancer treatment

Timing matters: Scripps Research study shows ways to improve health alerts

New gene therapy approach shows promise for Duchenne muscular dystrophy

Chemical analyses find hidden elements from renaissance astronomer Tycho Brahe’s alchemy laboratory

Pacific Northwest launches clean hydrogen energy hub

Tiny deletion in heart muscle protein briefly affects embryonic ventricles but has long-term effects on adult atrial fibrillation

Harms of prescribing NSAIDs to high risk groups estimated to cost NHS £31m over 10 years

Wearing a face mask in public spaces cuts risk of common respiratory symptoms, suggests Norway study

Some private biobanks overinflating the value of umbilical cord blood banking in marketing to expectant parents

New research in fatty liver disease aims to help with early intervention

Genetics reveal ancient trade routes and path to domestication of the Four Corners potato

SNIS 2024: New study shows critical improvements in treating rare eye cancer in children

Wearable devices can increase health anxiety. Could they adversely affect health?

Addressing wounds of war

Rice researchers develop innovative battery recycling method

It’s got praying mantis eyes

Stroke recovery: It’s in the genes

Foam fluidics showcase Rice lab’s creative approach to circuit design

Montana State scientists publish evidence for new groups of methane-producing organisms

Daily rhythms depend on receptor density in biological clock

New England Journal of Medicine publishes outcomes from practice-changing E1910 trial for patients with BCR::ABL1-negative B-cell precursor acute lymphoblastic leukemia

Older adults want to cut back on medication, but study shows need for caution

[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.