Mortgage Rate News

Even with such options as Project Lifeline, foreclosures are still on the rise. Apparently, mortgage lenders aren’t as keen as the government thought they would be to restructure mortgage loan terms. At any rate, reports are that foreclosures in April were up 65 percent from the same time last year. The crisis continues.

Foreclosures moving up the food chain

But it’s not just the middle class over-reaching with subprime mortgage loans that is causing a problem. Foreclosures are moving up the food chain, with upper middle class and even wealthy homeowners starting to feel the pain. Indeed, the Washington Post reports on foreclosures in more affluent areas:

The foreclosure signs that have been sprouting up in less-affluent communities since 2006 are beginning to appear in the well-off suburbs, attached to houses that once cost $1 million or more. Although those kinds of homes are in the minority now, real estate agents predict the numbers will swell.

Who should fix this problem?

Meanwhile, the debate rages over who should be fixing the problem with rising foreclosures. While Congress debates a housing relief bill (that the President vows to veto), some homeowners are angry. After all, if those who made poor decisions get a bailout, shouldn’t those who made responsible decisions have the option to restructure their home mortgage loans as well?

It’s a bit of a sensitive topic.

And while there is a firestorm of anger over bailing out fellow “regular” Americans who made poor decisions, the rage doesn’t seem to be transferring to the bailout of investment banks and investors who made poor decisions (remember Bear Stearns and the bailout putting taxpayers on the hook?).

Why is it that we’re so angry about helping those with foreclosures, but we’re fine with bailing out investment banks and investors?

Tags: foreclosures, mortgage loan blog, home mortgage loans, mortgage lenders,
subprime mortgage loans, housing relief, Bear Stearns