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Home mortgage ‘reset’ shock to hit suburbs
June 13, 2008 in Home Related | Tags: garden design, garden fencing, garden fountains, garden furniture, garden home, garden ornaments, garden planning, gardening, gardening equipment, gardening product, home and garden, home buying, home closets, home construction loan, home cooking, home improvement, home insurance, Home Loan, home rack wine, home renovation, home repair, home security cameras, home theater, interest rate | Leave a comment
In Twin Cities suburbs, where home construction once boomed, hundreds of square miles are dotted with the homes of tens of thousands of subprime borrowers who will skid into higher monthly payments in 2008. Seventy-seven percent of such loans were taken out after 2004.
Older, urban neighborhoods have already seen a cascade of foreclosures in recent months. Declining interest rates could provide a respite for some, but the breather on higher payments may be short-lived.
“Foreclosure rates, certainly for 2008, will remain high and, in some places, at historical levels,” said Michael Grover, an author of a new study published by the Federal Reserve Bank of Minneapolis. “We certainly are not out of the storm.”
Indeed, by one measure, the study may understate potential economic troubles ahead for tens of thousands of Minnesota homeowners.
