Has any "expert" spoken of potential massive mortgage defaults?

[elfin]

If there was no flood insurance/hurricane insurance, people only get the value of only their structures -- and NOT the land.

Given the refinance and credit gobbling habits encouraged by the finance/credit corporations, many may find the insurance payment not enough to pay off their obligations - hence default or bakruptcy before the deadline.

And what will be the effect on mortgage guaranty companies and on to the general economy???

[nashville_brook]

1. is there any way to ask for legal grace from being forced out for

these people. i've been listeing to the radio all day and all day the news could be described as "how people are going to get screwed." man -- they are going to lose everything.

[orpupilofnature57]

2. Let's make sure Dick's old store ( Halliburton ) isn't in control of that!

[MindPilot]

3. people only get the value of only their structures

no, you don't even get that; you get the cost of rebuliding if you rebuild, and the depreciated value of your belongings.

[Sgent]

4. However

I can't imagine that many mortgage companies will allow a mortgage w/o flood insurance.

[VOX]

5. This is applicable to the entire nation. In the frenzy of home-buying...

...in the last 2-3 years, many, many people who could *barely* afford a house did so only by entering into tricky situations with mortgages that were very lenient for the first three years -- but that would hammmer them after that.

Those first three years are beginning to close now, and these folks will be faced with **massive** mortgages payments, which they probably will not be able to make.

In the next year or so, there may well be nationwide a staggering number of mortgage defaults.