This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/6957738.stm
The article has changed 4 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| Surge in US home repossessions | Surge in US home repossessions |
| (30 minutes later) | |
| The number of home repossessions in the US soared in July, figures suggest, underlining the woes facing the sector. | The number of home repossessions in the US soared in July, figures suggest, underlining the woes facing the sector. |
| There was a 93% jump in filings for repossessions on the same month a year ago, and a 9% rise on June's figure, property firm RealtyTrac said. | There was a 93% jump in filings for repossessions on the same month a year ago, and a 9% rise on June's figure, property firm RealtyTrac said. |
| The mortgage industry has been hammered by rising default payments. | The mortgage industry has been hammered by rising default payments. |
| Separate data showed a surge in job losses in the construction sector and among real estate firms, largely prompted by the slump. | Separate data showed a surge in job losses in the construction sector and among real estate firms, largely prompted by the slump. |
| Heavy exposure | Heavy exposure |
| Falling sales and decreasing prices have made it harder for homeowners who have hit difficulties to sell their homes and clear their debts. | Falling sales and decreasing prices have made it harder for homeowners who have hit difficulties to sell their homes and clear their debts. |
| The RealtyTrac data showed there were 179,599 foreclosure - or repossession - filings in July. This equates to one for every 693 households. | The RealtyTrac data showed there were 179,599 foreclosure - or repossession - filings in July. This equates to one for every 693 households. |
| California, Florida, Ohio, Michigan and Georgia accounted for more than half of the cases. | California, Florida, Ohio, Michigan and Georgia accounted for more than half of the cases. |
| Borrowers with sub-prime loans have been particularly hard hit. | Borrowers with sub-prime loans have been particularly hard hit. |
| Companies are not surprised by what's happening, but the reality of the situation and the speed with which it occurred is shocking John ChallengerHousing industry consultant class="" href="/1/hi/business/5144662.stm">Q&A: Sub-prime lending | |
| The US sub-prime mortgage sector offers higher-risk loans to people with a poor credit history. | The US sub-prime mortgage sector offers higher-risk loans to people with a poor credit history. |
| As US interest rates have risen and the housing bubble has burst, a growing number of sub-prime borrowers have defaulted on their loans. | As US interest rates have risen and the housing bubble has burst, a growing number of sub-prime borrowers have defaulted on their loans. |
| Because the lenders have often sold on the debt, this has led to extensive financial difficulties for a number of investment funds with heavy exposure to the sector - prompting fears of a wider financial crisis. | Because the lenders have often sold on the debt, this has led to extensive financial difficulties for a number of investment funds with heavy exposure to the sector - prompting fears of a wider financial crisis. |
| Analysts say that the biggest worries for investors is not knowing the eventual scale of the problem. | Analysts say that the biggest worries for investors is not knowing the eventual scale of the problem. |
| Many sub-prime loans were given to borrowers who not furnish paperwork proving their income. | Many sub-prime loans were given to borrowers who not furnish paperwork proving their income. |
| Leading lenders such as Countrywide have said they are now tightening their lending standards as well as making staff redundant. | Leading lenders such as Countrywide have said they are now tightening their lending standards as well as making staff redundant. |
| Data from consulting firm Challenger, Gray & Christmas said the housing industry had announced 87,962 job cuts so far this year - 75% more than recorded for all of 2006, with 41% linked to housing market troubles. | Data from consulting firm Challenger, Gray & Christmas said the housing industry had announced 87,962 job cuts so far this year - 75% more than recorded for all of 2006, with 41% linked to housing market troubles. |
| Nearly a quarter of the year's cuts had been announced in August alone, it said. | Nearly a quarter of the year's cuts had been announced in August alone, it said. |
| "Many companies expected the mortgage situation to implode. They've just been wondering when the bubble would burst," said chief executive John Challenger. | "Many companies expected the mortgage situation to implode. They've just been wondering when the bubble would burst," said chief executive John Challenger. |
| "Companies are not surprised by what's happening, but the reality of the situation and the speed with which it occurred is shocking." | "Companies are not surprised by what's happening, but the reality of the situation and the speed with which it occurred is shocking." |