Foreclosures and subprime crisis still a threat to U.S. economy

(EMAILWIRE.COM, June 05, 2007 ) SACRAMENTO, CA – Foreclosure filings in the United States were up 62 percent in April of 2007 from the previous year according to an Irvine, California-based RealtyTrac. This glum news was somewhat tempered by the fact that foreclosure activity dipped from March of 2007 by about 1 percent.Statistics from RealtyTrac showed almost 148,000 filings in March such as default notices, auction sale notices, and bank repossessions. Slowdowns or declines in home values and problems with so-called subprime loans made to borrowers with shaky credit histories are widely credited with fueling the housing slump.A majority of cities on the top 10 most affected list are in California. Making matters worse for these troubled markets and the challenged borrowers who undergird these statistics is the fact that many of the subprime borrowers are now seeing their payments, after an introductory low mortgage period, jump significantly.“People call me every day from all across the country who want to sell their homes fast because they are facing possible foreclosure after their adjustable rate mortgage reset bring much higher payments. These folks, contrary to what they believed in the past, cannot easily sell their homes nor refinance them,” said Patrick McGilvray, J.D., CFP®, President of Sacramento-based http://www.TheHomeBuyingCenter.com. One housing industry watchdog, the Center for Responsible Lending, has been predicting that upwards of 2 million borrowers who took out subprime mortgage loans will lose their homes to foreclosure. Not surprisingly, they predict that most of the problems will occur in the markets that appreciated the most through 2005. Some of the reasons included a buying frenzy mindset that was fueled by a belief that prices could not do anything but continue to go up and unrealistic expectations by homeowners and real estate speculators and investors alike.A broader look at the American economy seems to suggest that things are going well, but the woes in the single-family housing market will most likely be a drain on other sectors for some months to come.Contact:Patrick McGilvray, J.DTel: 888-444-BUYERpatrick@thehomebuyingcenter.comhttp://www.thehomebuyingcenter.com###This press release was issued through Groupweb EmailWire.Com. For more information on press release distribution, go to http://www.emailwire.com.

Patrick McGilvray, J.D.
Patrick McGilvray, J.D.

patrick@thehomebuyingcenter.com