http://www.enn.com/business/article/22030Davenport, Iowa - A rising tide of foreclosures has impacted local and regional economies in the Midwest, as nationwide up to 2 million adjustable rate mortgages with low "teaser" rates shoot upward to much higher interest rates during the next 18 months. A disproportionate number of these impending foreclosures will affect the Midwest.
High-cost loans become unaffordable to many families as interest rates rise after the introductory rates. Some geographic areas are more affected than others, but the resulting "contagion effect" can be far reaching. When considering overall racial disparities in prime and subprime mortgage lending, a recent report by the National Community Reinvestment Coalition (NCRC) found that Milwaukee, WI, was the fourth worst metropolitan area in the country. These high-cost loans threaten the financial well-being not only of homeowners in Milwaukee, but millions of families across the country.
In fact, the foreclosure crisis has already had an impact in neighborhoods across the Midwest. What do foreclosures mean to a local economy? A special report by the U.S. Congressional Joint Economic Committee (April, 2007) estimates that the full cost of foreclosures for all stakeholders - borrowers, neighboring homeowners, lenders, city and local governments --can reach $80,000 per home.
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this is very sad Very depressing
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