Back on the table, and helping to buoy the financial markets last week, is the possibility that wholesale relief will come to subprime mortgage holders next year.  It is estimated that some $362 billion in subprime mortgages will reset next year adding 30-40% to subprime mortgage borrowers monthly payments.  A huge majority of these resets will come in quarters two and three in 2008.  US treasury secretary Hank Paulson is advocating wholesale forbearance for subprime resets in 2008.

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This blog discusses subprime mortgage problems. Subprime problems began when lenders offered loans to potential home owners with bad credit or credit / income that did not meet the standards of traditional lending. Subprime mortgages for people with bad credit or no credit face an uncertain future. Once the hope of many to enter into home ownership has now been corrupted both by overreaching consumers and predatory lenders. I hope to follow the aftermath of this crisis.

Mortgage Lender Implode-o-Meter






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