NEW YORK, Mar. 1, 2008

Mortgage Late Payments Hit 21-Year High

Michelle Miller Reports On The Mortgage Crisis' Ripple Effects Through The Economy

  •  (AP / file)

  • Play CBS Video Video U.S. Facing Mortgage Crisis

    The number of U.S. homeowners behind on their mortgage payments has hit a 21-year high, and for many, the dream of home ownership is slipping away. Michelle Miller reports.

  • Video Upside Of The Mortgage Crisis

    The mortgage crisis has led to lower interest rates and home prices across the nation, benefiting first-time homebuyers. But lenders are reining in who they loan money to. Randall Pinkston reports.

  • Video Choosing Foreclosure

    Sandra Hughes speaks to real estate blogger Peter Viles about the current foreclosure crisis where homeowners, unable to make their mortgage payments, have voluntarily abandoned their property.

  • Timeline Credit Crunch

    Feeling the squeeze? Here's a look at actions and statements from key players in Washington.

(CBS)  According to the Mortgage Bankers Association, 1.35 million homes went into foreclosure in 2007. Another 1.44 are expected to default this year. That's double the number three years ago. Meanwhile, the number of U.S. homeowners behind on their payments has hit a 21-year high...sending ripple effects through the economy.

CBS News Correspondent Michelle Miller sat down with Donald Brown whose dream of homeownership is slipping away.

"I am struggling to keep my home," he told her.

Brown bought his North Carolina house two years ago, but when his monthly payment spiked 30 percent, he couldn't keep up.

"I am an example of what not to do," Brown said.

Across the country, homeowners are finding themselves strapped between rising mortgage costs and the basic necessities: food, transportation, and utilities. And they are starting to pay those bills with plastic more often.

"I am paying the interest only," Brown told Miller.

"Your minimum payments?" she asked.

"My minimum payments."

Traditionally, Miller reports, people make their mortgage payments first and let other bills slide. But in this downturn, while more Americans are defaulting on their mortgages, 60-percent are making car payments and 40-percent are making those credit cards payments.

"I'm in my last 30 days as far as losing the house," said homeowner Karen Smith.

Karen Smith got a home equity loan on her townhouse, but now she can't pay it back.

"How important is that credit card to you?" Miller asked Smith.

"Right now, it's part of my livelihood. I make my minimum and make sure that it doesn't close on me and I use it."

But only for the basics. As food and gas prices rise, Americans like Smith have less to spend on everything else and the nation's retail sector is taking the hit.

"Shoppers have been caught up in this new reality: 'I can't control the big things, so I'm trying to manage my spending on other things that I can control'," said retail strategist Candace Corlett.

The worst off businesses are stores selling home furnishings and entertainment. And in 2008, the International Council of Shopping Centers projects 6,000 stores could close as Americans decide what they can live without.




HOPE Coalition America provides financial guidance to homeowners in danger of losing their homes. Those facing notice payments challenges should call (877) 592-HOPE (4673).

© MMVIII, CBS Interactive Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.
Add a Comment See all 64 Comments
by wardoglrs March 4, 2008 8:01 PM EST
These two links Should be shared.Very disturbing

http://www.apfn.net/Doc-100_bankruptcy.htm


http://www.ideachannel.tv/
Reply to this comment
by nocolor March 4, 2008 7:24 AM EST
Brown bought his North Carolina house two years ago, but when his monthly payment spiked 30 percent, he couldn''t keep up.

I read the similar article at mixedcupid.****************As you may know Mixedcupid.com becomes the outstanding niche interracial dating site recently. Thousands of new members FREE to join daily to meet dream date there
Reply to this comment
by wardoglrs March 3, 2008 4:53 PM EST
Learn the truth
http://www.ideachannel.tv/
Reply to this comment
by davidlar2 March 3, 2008 2:53 PM EST
Ignoring issues of neoconserative morality vs. Democratic left wing morality vs. libertarian morality, the bottom line is that we can''t afford to be in Iraq. We also can''t afford to have hundreds of FBI agents in Thailand enforcing their drug laws. We can''t afford afford any of the foreign neoconservative adventures that Bush has gotten us into. And we can''t afford any of the foreign left wing adventures (ie Darfur) that Clinton wants to get us into. Has anyone looked at the budget deficit we have? If you want to make a case for these foreign adventures, what other spending will be cut? What taxes will we increase? (I know, raise taxes on "the rich" so that other people, not you sacrifice to pay for your wasteful concepts of morality.)
Reply to this comment
by hillaryin08 March 3, 2008 2:00 PM EST
How about we get us out of h.ell out Iraq and see how quickly our economy recovers?


--------------------------------------------------------------------------------

Posted by roger_inkart at 10:48 AM : Mar 03, 2008

We are not leaving Iraq. Better get used to it or you will be jumping out of a window in Jan 09.
Reply to this comment
by roger_inkart March 3, 2008 1:48 PM EST
How about we get us out of h.ell out Iraq and see how quickly our economy recovers?
Reply to this comment
by element51 March 3, 2008 1:10 PM EST
I tried to bring up some points with jwind11 and all he does is take one sentence and twist it around to his benefit. He is quick to throw out how pitiful "libs" are but he never really identifies exactly "who" they are. In his last post to me he holds that all libs are "sad" and never take steps to help themselves. He also holds that the president is not to blame in any way for the situation the country is in. As I pointed out to him, it isn''t just the democrats who are in trouble...we all are. But he refuses to address anything that he doesn''t agree with. So, no, I have no respect for him. His comments are baseless, useless and self-serving.
Reply to this comment
by skyk-2009 March 3, 2008 9:23 AM EST
Does ANYBODY here have ANY respect for jwind(bag) ?
Let a jury of Your peers answer this simple Question


--------------------------------------------------------------------------------

Posted by terrorislame at 10:20 PM : Mar 02, 2008
+ report abuse

No! I agree with MCVet, the guys a full blown fascist. Anyone who doesn''t agree with him is a "liberal" or one of the other targets he brings up constantly. You can''t discuss anything with him or debate anything with him.
Reply to this comment
by terrorislame March 3, 2008 1:20 AM EST
Does ANYBODY here have ANY respect for jwind(bag) ?
Let a jury of Your peers answer this simple Question
Reply to this comment
by valentin73 March 2, 2008 10:16 PM EST
DON''T BLAME THE "FIRT-EVER" HOME OWNERS,

BLAME THE GREEDY REAL ESTATE MORTGAGE COMPANIES,

WHO ARE SELLING HOMES TO PEOPLE WHO SHOULD BE

RENTING AN APARTMENT. THIS IS HILARIOUS!!!!
Reply to this comment
by jwind11 March 2, 2008 8:42 PM EST
jwind11, Ok, Nimrod. Give me your facts and we''''ll enter them into evidence as murder by an elected official. Give me your evidence and I send them right to Congress. I''''m quite sure they waiting for it this very minute. We''''ll have non of this verbal abuse without evidence. Put up or shut up.

Posted by maxify55 at 04:27 PM : Mar 02, 2008

where and who did i verbally abuse?
Reply to this comment
by bill1fj March 2, 2008 7:59 PM EST
To many people making bad decisions.
Hopefully some of them can get refinanced with fixed rates that are decent.
Those that can''t will just have to work to get themselves back in a healthy financial situation.
In any case hopefully most of these people will learn something from this.
Good Luck to All.
Reply to this comment
by jwind11 March 2, 2008 7:05 PM EST
jerr11,
For the life of me, I can never understand why you are wasting your precious breath/time/energy trying so hard to transform/save an "Uneducated Fool"
(borrowed from j-whitman)?

Posted by Simplemind2 at 03:45 PM : Mar 02, 2008

how is he trying to transform?
Reply to this comment
by jwind11 March 2, 2008 6:41 PM EST
Posted by jwind11 at 03:36 PM : Mar 02, 2008


This is getting to be too much fun, but I have to go anD do other stuff.

You can call me any name you like, immature, lib, whatever.

But you can''''t change two facts:

935 LIES

$4000 DEAD AMERICANS BECAUSE OF THOSE LIES.

Happy pissin''''

Posted by jerr11 at 03:40 PM : Mar 02, 2008

and yet you still couldn''t back up your post.....typical...bye loser
Reply to this comment
by jerr11 March 2, 2008 6:40 PM EST
Posted by jwind11 at 03:36 PM : Mar 02, 2008


This is getting to be too much fun, but I have to go anD do other stuff.

You can call me any name you like, immature, lib, whatever.

But you can''t change two facts:

935 LIES

$4000 DEAD AMERICANS BECAUSE OF THOSE LIES.

Happy pissin''
Reply to this comment
by jwind11 March 2, 2008 6:36 PM EST
The only losers are the ones screwed by the neocons and still begging for more.

Keep on pissin''''.

You''''ll feel much better after you get out all that scum you''''ve been holding inside.


Posted by jerr11 at 03:35 PM : Mar 02, 2008

typical immature lib response when asked to back up their posts...so predicatable
Reply to this comment
by jerr11 March 2, 2008 6:35 PM EST
come on loser lib!!

Posted by jwind11 at 03:31 PM : Mar 02, 2008


The only losers are the ones screwed by the neocons and still begging for more.

Keep on pissin''.

You''ll feel much better after you get out all that scum you''ve been holding inside.

Reply to this comment
by jwind11 March 2, 2008 6:33 PM EST
It''''s all documented in Heaven. Ask Pat Robertson. He''''ll tell you it''''s a sin to kill and lie.

Or haven''''t you heard of the 10 commandments?

You know the one God gave to Moses?

You kill and you bear false witness and you''''re damned for all time.

That''''s our Liar-in-Chief, the one and only GW Bush.

DAMNED FOR ALL TIME!


Posted by jerr11 at 03:32 PM : Mar 02, 2008

what about people who make untrue posts on here?
Reply to this comment
by jerr11 March 2, 2008 6:32 PM EST
wow, you can document that? why haven''''t you told the media? they need to know

Posted by jwind11 at 03:27 PM : Mar 02, 2008


It''s all documented in Heaven. Ask Pat Robertson. He''ll tell you it''s a sin to kill and lie.

Or haven''t you heard of the 10 commandments?

You know the one God gave to Moses?

You kill and you bear false witness and you''re damned for all time.

That''s our Liar-in-Chief, the one and only GW Bush.

DAMNED FOR ALL TIME!

Reply to this comment
by jwind11 March 2, 2008 6:31 PM EST
This much I know:


And you''''''''''''''''re singing the praises of our LIAR-IN-CHIEF!

Posted by jerr11 at 12:11 PM : Mar 02, 2008

waiting.....where did i sing his praises?

Posted by jwind11 at 12:16 PM : Mar 02, 2008

come on loser lib!! can''''t you back up your posts? or are they all made up?

Posted by jwind11 at 12:20 PM : Mar 02, 2008

still waiting on this one... or are you going to be typical lib and disappear or change subject
Reply to this comment
See all 64 Comments

60 Minutes

The secrets of tennis legend Andre Agassi; the growing threat of cyber wars; and more.
Read More

Latest News
News in Pictures
Scroll Left Scroll Right
  • The Fall Of The Berlin Wall The Fall Of The Berlin Wall

    Looking Back at the Wall that Once Divided Germany On the 20th Anniversary of Its Collapse

  • Patricia Clarkson Patricia Clarkson

    Television and Film Actress, Yale School of Drama Graduate and Academy Award Nominee

  • Day in Pictures Day in Pictures

    A Glimpse at the Day's News as Seen Through a Camera Lens

  • Andre Agassi Andre Agassi

    Former Top-Seeded Tennis Star, Gossip Column Favorite and Philanthropist

  • Yankees Victory Parade Yankees Victory Parade

    The Yankees Celebrate Their 27th World Series Championship with a Ticker-Tape Parade Up Broadway

  • Orlando Office Shooting Orlando Office Shooting

    A Gunman Opens Fire at the Offices of an Engineering Firm Where He Once Worked

Connect with CBS News

Stay connected with the CBS News using your favorite social networks and online news applications: