Mortgage Late Payments Hit 21-Year High

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

(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.

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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).

[wardoglrs]

These two links Should be shared.Very disturbing

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


http://www.ideachannel.tv/

[nocolor]

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

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[wardoglrs]

Learn the truth
http://www.ideachannel.tv/

[davidlar2]

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.)

[hillaryin08]

How about we get us out of h.ell out Iraq and see how quickly our economy recovers?


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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.

[roger_inkart]

How about we get us out of h.ell out Iraq and see how quickly our economy recovers?

[element51]

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.

[skyk-2009]

Does ANYBODY here have ANY respect for jwind(bag) ?
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.

[terrorislame]

Does ANYBODY here have ANY respect for jwind(bag) ?
Let a jury of Your peers answer this simple Question

[valentin73]

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!!!!