NEW YORK, Mar. 1, 2008
Mortgage Late Payments Hit 21-Year High
Michelle Miller Reports On The Mortgage Crisis' Ripple Effects Through The Economy
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(AP / file)
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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.
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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.
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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.
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Timeline Credit Crunch Feeling the squeeze? Here's a look at actions and statements from key players in Washington.
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).
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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.
Let a jury of Your peers answer this simple Question
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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.
Let a jury of Your peers answer this simple Question
BLAME THE GREEDY REAL ESTATE MORTGAGE COMPANIES,
WHO ARE SELLING HOMES TO PEOPLE WHO SHOULD BE
RENTING AN APARTMENT. THIS IS HILARIOUS!!!!
Posted by maxify55 at 04:27 PM : Mar 02, 2008
where and who did i verbally abuse?
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.
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?
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
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''
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
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.
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?
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!
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
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