"More than a million people
with interest-only mortgages face a financial crunch when they have to pay them off, a watchdog is warning.
Some 2.6 million UK householders have the mortgages but the Financial Conduct Authority said estimates suggested that nearly half would not have savings or other funds to cover the final bill.
The average shortfall is £71,000, according to FCA research."
posted by marienbad
on May 2, 2013 -
Mortgage fraud, faux-democracy and escrache in Spain.
Those unfortunate enough to lose their homes are also burdened with a debt for life.
Anatomy of an ‘escrache
Spanish banks repossessed 30,000
family homes in 2012 and those who take part
in doorstep protests may face fines of up to 6,000 euros in Madrid.
Between 2002 and 2008 an average of 754,000 new homes were built in Spain every year. It is currently estimated that up to 6 million homes remain vacant.
posted by adamvasco
on Apr 14, 2013 -
The latest foreclosure horror: the zombie title
The Kellers are caught up in a little-known horror of the U.S. housing bust: the zombie title. Six years in, thousands of homeowners are finding themselves legally liable for houses they didn't know they still owned after banks decided it wasn't worth their while to complete foreclosures on them. With impunity, banks have been walking away from foreclosures much the way some homeowners walked away from their mortgages when the housing market first crashed. [more inside]
posted by the man of twists and turns
on Jan 11, 2013 -
First the Bubble. Then the Short. Now the Long.
Some neighborhoods in Oakland are as devastated as any of the worst hit regions across America — Atlanta, Las Vegas, Phoenix. Now the morphing of the housing bust and foreclosure epidemic into a lucrative multi-billion dollar opportunity for major investors is also uncannily centered upon Oakland and the greater Bay Area, where companies flush with hedge fund cash are buying up homes by the thousands.
The entire sweep of the US housing bubble, financial crisis, and foreclosure wave can therefore be told by looking at persons and companies with intimate links to Oakland and the Bay Area. What follows is one account.
posted by the man of twists and turns
on Dec 11, 2012 -
Bank of America agreed to pay $335 million to resolve allegations that Countrywide Financial engaged in widespread discrimination against African-American and Hispanic borrowers on home loans. The Department of Justice is calling this the largest settlement in history over fair residential lending practices
. According to the DOJ’s complaint, Countrywide systematically charged more than 200,000 African-American and Hispanic borrowers higher fees and interest rates than white borrowers with similar credit profiles. [more inside]
posted by 2bucksplus
on Dec 21, 2011 -
Right Wing Radio Duck "Donald's life is turned upside-down by the current economic crisis and he finds himself unemployed and falling behind on his house payments. As his frustration turns into despair Donald discovers a seemingly sympathetic voice coming from his radio named Glenn Beck. "
posted by Arthur Phillips Jones Jr
on Oct 2, 2010 -
Mortgage financing giant Fannie Mae announces
policy changes designed to encourage borrowers to "work with their servicers and pursue alternatives to foreclosure"...and threatens borrowers with new penalties for strategic default. [more inside]
posted by 2bucksplus
on Jul 1, 2010 -
Wajahat Ali, a solo practitioner from California, takes on Wells Fargo in an attempt to get his clients' home loan modified. Lots of ball dropping and passing of the buck ensues. He describes
the Kafka-esque nature of the experience.
posted by reenum
on Jun 20, 2010 -
Betting Against the American Dream
. In 2005, just as Wall Street started to get cold feet about the housing market, the Magnetar
hedge fund helped create a new wave of billion-dollar mortgage-backed securities, pushed bankers to include riskier sub-prime mortgages, and then shorted the securities, making millions when the bubble finally burst. Traders on both sides of the deals pocketed enormous fees even if their banks went under when the securities failed. Pulitzer Prize-winning ProPublica
, This American Life
, and NPR's Planet Money
track down some of the big winners in the housing/financial crisis. No time to read or listen? It seemed so much like a scheme from The Producers
, they even recorded a show tune to explain it all
posted by straight
on Apr 15, 2010 -
A lot of people figure things out, but it takes a special talent or maybe personality to figure it our and do something about it. Previously
, we heard about the man who wrote the software that blew up the economy. Now we find out whom
that software was written. [more inside]
posted by JohnnyGunn
on Mar 15, 2010 -
Bank Accused of Pushing Mortgage Deals on Blacks
: "They referred to subprime loans made in minority communities as ghetto loans and minority customers as 'those people have bad credit', 'those people don't pay their bills' and 'mud people,' " [a Wells Fargo subprime loan officer] said in his affidavit, filed in the NAACP's lawsuit (pdf)
against 13 mortgage lenders. "The company put 'bounties' on minority borrowers. By this I mean that loan officers received cash incentives to aggressively market subprime loans in minority communities."
posted by hayvac
on Jun 8, 2009 -
The laughed at him.
Foretelling the doom and gloom of the mortgage crisis as a pundit in these 2006-2007 interviews, Peter Schiff
held to a grim economic outlook. Recently in the Washington Post, Schiff writes
: "Our leaders irrationally promoted home-buying, discouraged savings, and recklessly encouraged borrowing and lending, which together undermined our markets."
posted by thisisdrew
on Nov 14, 2008 -
Among European countries, Spain has been hit
particularly badly by the global credit crisis. Miguel Marina, a recently unemployed real estate agent (what else?) has been one of its victims. Unable to keep up with his mortgage payments or to find a buyer for his home, he has found an original solution: he's raffling
at 5€ a ticket. [more inside]
posted by Skeptic
on May 28, 2008 -
Will States Respond to the Foreclosure Crisis?
Their headline is that 1 in 33 homeowners are projected to face foreclosure in the next two years. But I found the stat that neighboring homes will lose $356 billion in value a rather staggering number to swallow for those not facing the threat of foreclosure.
posted by jacobw
on Apr 17, 2008 -
Countrywide Empties Out on Widowmaker
gives a vivid idea of the turmoil in the mortgage market, and the difficult American real estate environment. "You sold your unlimited subway card after the 5th race, plunged full-bore on a filthy hot dog, a beer and a 9-1 shot that finished next-to-last. You are Countrywide."
posted by Adamchik
on Aug 16, 2007 -