2008-08-06 11:41:00
New LIUNA Report Says More Housing Problems Coming in 2010 and 2011
Many Subdivisions Are Ticking Time Bombs Waiting for Interest Rate
Resets
Angry Homeowners Tell Corporate Home Builders to “Fix
This Mess”
–(EMWNews)–LIUNA – the Laborers’ International Union of
North America – will release a new report detailing the implications for
homeowners when five-year adjustable rate mortgages (ARMs) reset in 2010
and 2011. The report will be released during a press conference outside
of the KB Home headquarters in Los Angeles, California. LIUNA will be
joined by ten homeowners from a KB Home development in Buckeye, Arizona
as well as religious leaders and community representatives who believe
the worst has yet to come in the housing and mortgage crisis.
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WHAT: |
Press Conference at KB Home headquarters to release a new report detailing more housing problems to come in 2010 and 2011. |
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WHEN: |
Thursday, August 7th, 2008 at 1:00 p.m. |
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WHERE: |
KB Home headquarters, 10990 Wilshire Boulevard, Los Angeles, CA 90024 |
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VISUALS: |
Angry homeowners impacted by the housing and mortgage crisis with signs |
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NOTE: |
Homeowners who bought their homes from KB Home and received their mortgage from Countrywide KB Home Loans, a joint venture between KB Home and Countrywide Financial, will be available for interviews. Please contact Dawn Page at (480) 619-9263 to make interview arrangements. |
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The report examines mortgages originated between 2005 and 2006 in
Maricopa County, Arizona by the lending subsidiaries of three of the
nation’s largest home builders: Richmond
American, Lennar, and KB Home. Report findings reveal that more
than one third of all the mortgages are five year ARMs that will reset
in 2010 and 2011.
The report indicates that many homeowners with five-year ARMs will be
trapped in their loans and unable to refinance before their interest
rates reset due to high loan amounts and decreasing home values.
According to the report, home values in the area have declined an
average of more than $50,000 in just the last year with the value of
Lennar homes dropping by an average of $61,600, KB homes by an average
of $55,600 and Richmond American homes by an average of $49,500.
In addition, the report shows that half of the mortgages were 80/20 loan
combinations, in which there is a first mortgage for 80% of the sale
price and a second mortgage, also known as a piggy-back loan, for 20% of
the price.
The half-million members of LIUNA – the
Laborers’ International Union of North America –
are on the forefront of the construction industry, a powerhouse of 10
million workers who build America.
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Laborers’ International Union of North America (LIUNA) Hay, 202-942-2285 |
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