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.

---

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).

[macusweil]

Bushie you''re doing a heck of a job!!

George W Bush & the Fed kept interest rates low for far too long to keep money flowing and people''s minds off their mis-deed and the fact the Iraq invasion was going so badly. All of which created the housing bubble and sent to value of the dollar crashing 40%.

Now he and some others are in denial to the extent to which they have damaged the US economy.

At 45 years old I have never seen harder times in America than these, only heard of such in stories my father would tell from the great depression of the 20''s & 30''s.

Lord help us!

[b-easy63]

"And in 2008, the International Council of Shopping Centers projects 6,000 stores could close as Americans decide what they can live without."



Don''t worry retail stores!!!! Bush and the idiots (sounds like a band but it really is the name of the stupid Bushmeister and the idiotic, azz kissing Congress) are putting together a stimulus package to save you. It goes like this:

1. They borrow 161 billion dollars and give it to the low to mid income American taxpayers.

2. They beg the tax payer to forgo bills/debt and just go out and spend it all at your stores.

3. They have their fingers crossed that people are too ignorant or irresponsible to use the rebate for a bill and actually go out and buy a few things.

4. After each of them spends maybe 25.00 apiece at your store--you are stupid enough to see it as an incentive--and you go out and build new stores and hire lots of new workers to capitalize on the money that ...uhmmm...they no longer have...cuz they already...uhmmmm..spent it at your store.

5. Anyhoo. The plan is for all sides to ignore the dominoes falling and to plant yet another set at the end of the stack. Bush and the idiots only need this to work until Jan 29. 2009 after which (as far as Dubya is concerned) the economy can let ''er rip.

[jerr11]

While Americans are losing their homes, Gen Betrayus is handing out free cash to sunni warlords and islamist hoodlums to buy the peace.

Part of that great military strategy called "The SURGE."

If you can''t beat ''em, pay ''em (With American taxpayers dollars)

What a great military leader!

Give the man a medal!

[cpaide]

for more on this story check out bestrealestate24.com
Posted by newsstar0724

i checked it out, and it''s a scam. don''t go to that web site or you will be phished.

[shanev137]

And in other news...Exxon is getting set to post a new record after tax net profit of $75 BILLION dollars this quarter, thanks to a spike in oil and gas prices.

[duffyn]

Yee Gods $75 billion in ONE quarter. Now that is rediculous. Well, as soon as we get rid of their friend bush. We''ll get a bunch back. The house just passed a large tax bill on them. And we can use that to pay down the national debt idiot boy and his cronies (the connnservatives) have run up!

[missingamerica]

But all of Bush''s friends are doing great...

[notso9]

Yee Gods $75 billion in ONE quarter. Now that is rediculous. Well, as soon as we get rid of their friend bush. We''''ll get a bunch back. The house just passed a large tax bill on them. And we can use that to pay down the national debt idiot boy and his cronies (the connnservatives) have run up!


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

Posted by duffynight at 12:31 AM : Mar 02, 2008

Do you realize that ExxonMobil pays taxes on these earnings, therefore paying huge taxes as it is? These taxes are proportionate to it''s earnings. All that will happen if this did pass ( which it won''t because it is illegal ) is that the costs will be passed on to you and me. Who wins here? Also the profits aren''t coming from gouging at the pump like most think. Large oil companies are diversified with Oil Exploration ann production facilities. When one is making money, the other doesn''t profit as much.

[shanev137]

notso9 - You''ve been sucking on the GOP crack pipe and guzzled one too many barrels of their tainted Kool-aid....and now you''re flat out lying on a public posting board to make yourself feel better about voting for this scumbag.

All throughout your sugar daddy Bush''s 8 year dictatorship, big oil has been getting special tax breaks that are now being repealed, you idiot.


http://www.washingtonpost.com/wp-dyn/articles/A63958-2005Apr18.html
http://www.reuters.com/article/politicsNews/idUSN2748249220080227
http://www.reuters.com/article/reutersEdge/idUSN0824298020061108

[shanev137]

maxify55 - You''re absolutely right. The terrorists won along time ago, and they don''t live overseas.

[omega39-2009]

They wanted an economy based on service jobs, they got one.

[truthspeake2]

As far as I''m concerned, this is Bush''s second recession that he can add to his legacy...2001 and 2008 and I don''t care what the so-called economists or Fox News says!

[mythoughtsr]

This country is a joke and I live here. Just about all our products come from other countries and some even have poison to hurt our children...and we allow it.

Our jobs are outsourced to other countries and we aren''t getting the service we need because we can''t understand them...and we allow it.

Our government sits and enjoys fat raises and they pass laws that double our credit card payments and make it next to impossible to file for bankruptcy when we can''t handle it anymore...and we allow it.

Our government lets people go without homes and health care and eliminates a once thriving middle class and creates a two class system ~ the haves and the have nots. Bush even used those exact words in a speech and everyone in the room (the haves) all laughed at us...and we allow it.

The sad thing is? Nothing will probably be done about it because, you guessed it...we allow it.

[Renegade.Rivers]

Remember, "no question" the economy is slowing, while rejecting suggestions that the nation is on the brink of a recession.

"I''m concerned about the economy because I''m concerned about working Americans," the president said at a news conference today at the White House. "I don''t think we''re headed to a recession." G. Bush, Feb 28, 2008.

Some day their will be a book written, "The Liars and the Lies of the Bush Administration."

[hypnotoad72]

notso9 -- so you''re saying the money the oil companies make is going back into further exploration, drilling technologies, patents, and alternative energies? Then it''s fine by me.

I still miss the days when conservatives bashed Bill Clinton for the exorbitant price of gas (a painful $1.00/gl) in the late-1990s.

[hypnotoad72]

Simplemind2 - don''t be a simpleton.

People should have thought before buying SUVs, but who will buy them now?

Cell phones - where''s the nearest pay phone, and does it still cost a dime? Ask a store clerk if they''ll let you use their phone in an emergency. People abuse the things, but society has made them more than a frivolity.

Who were buying the mcmansions? It wasn''t difficult to hear about how poorly built they were; heating costs must be ludicrously high.

In the glory days (1950s), one person could do a job, the spouse would stay at home and properly raise the children. These days, both parents have to work much longer, leaving the electronic nannies for the babies; who in turn grow up with violent, foul word-spitting tendencies... the schools do sod all as well; saying it''s up to the parents to raise their kids. (which makes sense, guess who whines when we have schools trying to do what parents won''t, but *** well should because some parents can''t be bothered in the first place, which is why we have bullies, whose actions ruin others'' lives.)

[hypnotoad72]

simpleton - how about offshoring? Even 5 years ago, people were not afraid of losing their jobs and thought they''d still have them today. ;) While currently not much of a factor, the repercussions of offshoring are going to hit us hard -- sooner or later.

[laland69]

People need to shut the hell up and stop blaming others for their financial difficulties. When the real estaste market was booming everybody was benefiting. Homeowners were refinancing their homes and using all that money to do stupid things with those funds. Many homeowners had plenty of opportunity to secure themselves financially.

[barbjc1]

O.K. for starters, why haven''t these people really looked at their contract for their mortgages before signing them. I am on an ARM but it can''t go up more than 2% in a year, it has a lid of 15 1/2%, and it is based on the prime rate.
Besides I made sure it was a mortage I could afford even if I lost my job, which I did in 2002. My daughter makes good money, she bought a house and her payment is also one she can afford if she lost her job and had to work as a temp until something came along.
Chasing the mythical Jones will get you into big time financial trouble.

[barbjc1]

Well you all can not only blame Bush, but you kept voting in the good ole boy Republicans in Congress.

[joyous88]

welcome to te conservative republiCon economy, as brought to you by Reagan the bush team. Trickle down?

yes it will trickle down,
but will never trickle down to us, we are not wealthy republiCons or haliburtons

[barbjc1]

I don''t feel very sorry for a lot of this because instead of buying clothing, household pretties that say Made in China. I use my sewing machine and make it myself.I not only get what I want that way but I know the quality of the product.
I cook because it is not only healthier, it is cheaper. Wow, what a unique concept.

[joyous88]

insane mccain ''four'' more of the same

[mythoughtsr]

BarbJC1, oh for God''s sake, not everyone can sew business suits *rolling my eyes*. I''ve made my kids PJs for years as well as curtains, pillowcases, sheets etc, but not everyone is a master seamstress. I''ve scratch cooked for my kids for 20 years but that STILL doesn''t stop prices from going up, jobs being lost because of jobs going to people in other countries and houses being lost NOT just because people are buying mansions Simplemind2 and having cell phones. I have a VERY small single family house with three kids and ONE bathroom. We don''t own an SUV, we own a car that seats five. Pay isn''t going up, just the price of everything. I don''t expect the government to pay for anything of mine, I just expect them to do their JOBs, which is something they haven''t done for years. So don''t go tooting your own horn about how perfect your life is. Everyone else is working hard too but property taxes went through the roof as well as gas prices and salaries didn''t go up at all. Some people are lucky to even have a job.

[omega39-2009]

simpleton - how about offshoring? Even 5 years ago, people were not afraid of losing their jobs and thought they''''d still have them today. ;) While currently not much of a factor, the repercussions of offshoring are going to hit us hard -- sooner or later.

Posted by hypnotoad72

That is exactly why we are where we are. A large cross section of this country now finds themselves working part time or going from temporary assignment to temporary assignment. These people are no longer able to make the long term commitment to buy a house, car or even put anything but necessities on a credit card.

[hypnotoad72]

That is exactly why we are where we are. A large cross section of this country now finds themselves working part time or going from temporary assignment to temporary assignment. These people are no longer able to make the long term commitment to buy a house, car or even put anything but necessities on a credit card.

Posted by omega39
--------------------------

I did hear the average lifespan at a job is now 5 years. Which makes even a modest house far harder to buy and keep. Especially if one has to relocate to another state to get a job. This is not good, for many reasons. Especially if one has a family.

And one bad illness can kill a financial life...

But I''ll also say this -- "The truth is in the middle". I will not deny some made bad refinancing decisions to get cheap money. But those who pin the blame entirely on one side or the other are simply dim. People can take personal responsibility, but it''s also true a person can do everything right and still end up losing due to external factors. I shouldn''t point at laland69''s comment as plenty others say the same thing like good parrots, but there is more than one side to this issue. And we all need to make changes...

[random_radar]

Reserve your spot under the freeway now! Cardboard boxes are going to be in short supply. People are going to be fighting over shopping carts. Don''t delay, get ready now!

[jerr11]

Reserve your spot under the freeway now! Cardboard boxes are going to be in short supply. People are going to be fighting over shopping carts. Don''''t delay, get ready now!

Posted by random_radar at 12:42 PM : Mar 02, 2008



Part of G W Bush''s enduring legacy!

The "mission accomplished" president!

LOL

[barbjc1]

Dear Mythoughtsr,
I was not tooting my own horn, I was simply stating ways that I use to avoid Made in China products. When I bought my property 9 1/2 years ago gasoline was .879, today it is $3.159. Please do not misunderstand me, what I am saying is the American people are the most resourceful on this planet. We need to start using it.
I understand your misunderstanding of what I said. The cost of food is why many urban areas are encouraging people to grow gardens, not only the cost but the safety of the food also.

[jwind11]

Part of G W Bush''''s enduring legacy!

The "mission accomplished" president!

LOL


Posted by jerr11 at 01:01 PM : Mar 02, 2008

you can get a box next to loser lib randomradar cant you jerr?

[jwind11]

why did you leave the other board jerr? i ask you to back up your post and you disappear....what gives? could it be that you can''t back up any of your posts? hmmmm..i wonder

[element51]

jwind11...I think you miss the point of most of the posts here. What is happening is not just happening to democrats, or as you call them, "libs". Everyone is going through the same thing. If you want to blame the democrats for everything, that''s fine but I think many will agree that the current administration''s policies are also a big factor. I don''t hear people "whining", I hear people trying to figgure out how to cope. If you have done well the past few years I''m glad for you but everyone has not seen the same thing as you. Please don''t be so quick to critisize and condemn the rest of us. Remember, there may come a time when your little world will turn upside down.

[jwind11]

Remember, there may come a time when your little world will turn upside down.

Posted by element51 at 01:22 PM : Mar 02, 2008

it has couple of times, i had 2 choices, blame the president for it and still be in that predicament or pull myself by my own bootstraps and take responsibilty for myself...i have chosen the latter....libs choose the former and stay in their rut forever. its sad.

[jwind11]

While you''''re so busy blaming people. Walk into the bath room and point the finger at the idiot that signed on the dotted line. Your integrity is only as good as that name you just signed. It''''ll never be what it once was if you fail to do as you say you''''ll do. No matter who''''s fault it is.

Posted by maxify55 at 01:36 PM : Mar 02, 2008

what? what are you babbling about?

[ringading3]

Greedy stupid people are the cause of this meltdown. Ignorant borrowing deserves payback!

[myidoncbs]

RingADing3 says, "Ignorant borrowing deserves payback!"

What you, and all of the "I made it on my own so f##k everybody else" crowd are (conveniently) overlooking is the fact that the economy is today is NOT what it was at the time people borrowed. Good jobs have disappeared overseas, the remaining jobs pay less than before, yet gas costs more, food costs more, medicine costs more, etc. What was once "affordable" no longer is affordable. Plus, there is the MAJOR factor that many of the LENDERS were unscrupulous, making loans to people they KNEW people could not really afford, but telling them that they could afford it.

And here''s another big factor for you id.iots to consider: EVERYTHING is interdependent. Once a certain number of houses are foreclosed, NOBODY will buy them, so not only will you have millions of homeless people, but you will have millions of empty homes, and many banks will collapse because they can''t unload them, and the ripple effects throughout the economy will spell total disaster for everyone!

So, just keep up your ign.o.rant feeling of superiority over those that are left homeless. You''ll get what''s coming to you soon enough!

[jwind11]

So, just keep up your ign.o.rant feeling of superiority over those that are left homeless. You''''ll get what''''s coming to you soon enough!

Posted by MyIDonCBS at 03:02 PM : Mar 02, 2008

the people that don''t rely on government will be just fine

[hypnotoad72]

Reserve your spot under the freeway now! Cardboard boxes are going to be in short supply. People are going to be fighting over shopping carts. Don''''t delay, get ready now!

Posted by random_radar
-------------------------

Ever the optimist... not. Still, some people made lousy decisions and now have to pay the price. Including those with Masters degrees; their jobs lost for the same reasons too... oh well.

[jerr11]

why did you leave the other board jerr?

Posted by jwind11 at 01:10 PM : Mar 02, 2008


When I see a dog pissing in the wind, I just leave him alone.

He can''t help himself. He''s got to release all that scum he''s been holding inside.

[jwind11]

why did you leave the other board jerr?

Posted by jwind11 at 01:10 PM : Mar 02, 2008


When I see a dog pissing in the wind, I just leave him alone.

He can''''t help himself. He''''s got to release all that scum he''''s been holding inside.


Posted by jerr11 at 03:12 PM : Mar 02, 2008

you need to back up post that i asked you to before

[jerr11]

you need to back up post that i asked you to before

Posted by jwind11 at 03:18 PM : Mar 02, 2008


Keep on pissin''.

You''ll feel better after you get all the scum out.

[jwind11]

Keep on pissin''''.

You''''ll feel better after you get all the scum out.

Posted by jerr11 at 03:21 PM : Mar 02, 2008

translation: you can''t back it up so you are making childish comment to change subject... typical lib

[jerr11]

translation: you can''''t back it up so you are making childish comment to change subject... typical lib

Posted by jwind11 at 03:23 PM : Mar 02, 2008


Since you insisted so nicely, I''ll have to oblige with some facts:

935 LIES

4000 DEAD AMERICANS, BECAUSE OF THOSE LIES

HALLIBURTON RAKING IN THE PROFITS

IF THIS IS NOT THE WORK OF SATAN, WHAT IS?

G W BUSH - SON OF SATAN

DAMNED FOR ALL TIME.

[jwind11]

G W BUSH - SON OF SATAN

DAMNED FOR ALL TIME.


Posted by jerr11 at 03:27 PM : Mar 02, 2008

wow, you can document that? why haven''t you told the media? they need to know

[jwind11]

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

[jerr11]

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!

[jwind11]

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?

[jerr11]

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.

[jwind11]

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

[jerr11]

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''