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THURSDAY, NOVEMBER 26, 2009
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'08 Subprime Fallout: At Least 1.4M Foreclosures

Mortgage crisis slams economy across the board

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(Newser) – The subprime mortgage fallout will continue through 2008, with 1.4 million Americans facing foreclosure, municipalities losing more than $6.6 billion in taxes, and housing values plummeting up to 16%, says a US Conference of Mayors report out today. The analysis projects slowed GDP growth and consumer spending and a rebound in 2009, the Journal reports.

US home values will drop by $1.2 trillion as prices decline 7% nationwide and the economy slows to a 1.9% growth rate, "a full percentage point lower than would have been the case without the mortgage crisis," the report says. Up to 450,000 loans will reset each quarter through 2008, USA Today reports, leading to “more and more homeless families.”

Construction workers put the finishing touches on an interior frame at Saguaro Estates Toll Brothers luxury home development, Wednesday, May 23, 2007, in Scottsdale, Ariz. A new report says that subprime woes will extend well into 2008, resulting in at least 1.4 million additional foreclosures. (AP Photo/Ross D. Franklin)
Construction workers put the finishing touches on an interior frame at Saguaro Estates Toll Brothers luxury home development, Wednesday, May 23, 2007, in Scottsdale, Ariz. A new report says that subprime...   (Associated Press)
A home is advertised for sale at a foreclosure auction in Pasadena, Calif. in this Aug. 14, 2007 file photo. Some 2 million homeowners hold $600 billion of subprime adjustable-rate mortgage loans, known as ARMs, that are due to reset at higher amounts during the next eight months. While not...
A home is advertised for sale at a foreclosure auction in Pasadena, Calif. in this Aug. 14, 2007 file photo. Some 2 million homeowners hold $600 billion of subprime adjustable-rate mortgage loans, known...   (Associated Press)
Contra Costa County public health worker Jeremy Tamargo looks at a water sample for mosquitoes from this dirty pool at an empty foreclosed home in Concord, Calif., Tuesday, Oct. 30, 2007. Dank, brown and fetid, the backyard pool has morphed from a once-sparkling turquoise to a breeding ground for mosquitos...
Contra Costa County public health worker Jeremy Tamargo looks at a water sample for mosquitoes from this dirty pool at an empty foreclosed home in Concord, Calif., Tuesday, Oct. 30, 2007. Dank, brown...   (Associated Press)
A realty sign stands in front of one of the many homes that are in foreclosure in the Villages of Queen Creek in Queen Creek, Ariz. in this Sept. 26, 2007 file photo. As the housing market crumbles, homeowners are worried about mortgage payments and sellers are worried about slumping...
A realty sign stands in front of one of the many homes that are in foreclosure in the Villages of Queen Creek in Queen Creek, Ariz. in this Sept. 26, 2007 file photo. As the housing market crumbles, homeowners...   (Associated Press)
The townhouse community of Milan by Lennar Corp. is pictured in Doral, Fla., in this Jan. 17, 2007 file photo. Lennar Corp., one of the nation's largest homebuilders, reported a record loss Tuesday, Sept. 25, 2007 of more than $500 million in its third quarter and sharply lower revenue from...
The townhouse community of Milan by Lennar Corp. is pictured in Doral, Fla., in this Jan. 17, 2007 file photo. Lennar Corp., one of the nation's largest homebuilders, reported a record loss Tuesday, Sept....   (Associated Press)
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