- More than 21 million homes in foreclosure equal $5.3 trillion dollars.
- 16.9 million homes foreclosed 3/4 of which have not been repossessed equals $4.8 trillion dollars in losses.
- Banks lose $21.2 billion dollars monthly in cash
- monthly loss of revenue equals $20.3 billion dollars.
- $812 million dollars monthly in lost opportunity.
“Mortgage rate hits 4-year high, signs of inflation drive 30-year loan to highest since late May 2002 in another blow to the housing market” reports CNNmoney.com on June 22, 2006. “The average rate on the 30-year fixed-rate mortgage jumped to 6.71 percent for the week ending June 22, up from 6.63 percent the week before. For homeowners using adjustable rate mortgages, a rise in interest rates can mean ballooning payments.”
These two facts made it almost impossible for millions of property owners to refinance their mortgages at a time when the ARM provisions on their mortgages were becoming effective. Thus, all of a sudden, these property owners were faced with much higher - after ARM adjustments - monthly mortgage payments, which they could not afford. Then lenders proceeded to foreclose on the properties, and eventually millions of families lost their homes, with many millions more still following the same path.
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