The mortgage default crisis has an ominous new face. It's your neighbor with a traditional fixed-rate loan.
No longer is the real estate bust simply the result of exotic, subprime loans that doubled payments and blew up in homeowners' faces. As the Sacramento economy buckles, even the safest mortgages have become part of a new wave of loan defaults, experts say.
With capital-area job losses reaching 45,000 in the past year and unemployment at 11.1 percent, lenders, bankruptcy attorneys and debt counselors all say they're seeing rising delinquencies among prime borrowers with fixed-rate loans and good credit.
Any idiot could have seen this coming with the current ZOMBULATION POLICIES AND ZOMBATIC FALLOUT FROM THE ZOMBULATOR.
Soon the delinquinies will EXPLODE with hundreds of thousands facing massive wage cuts and furloughs in upcoming months.
THE FU VIRUS IS EVEN ATTACKING OUR UNIVERSITIES & COLLEGES!
Aspiring nurses, teachers and community college transfer students planning to enroll at Sacramento State in the spring may be forced to delay their education.
California State University officials announced this week that the 23-campus system will not accept applications for the 2010 spring semester, and campuses on the quarter system stopped taking applications for the winter term July 6.
"We're planning for the worst – that we're going to have to take that hit," said John Kepley, a Sacramento State spokesman. "But until they make that decision, all we can do is plan."
The admissions freeze is aimed at implementing $584 million in cuts to the CSU budget. CSU officials have set a two-year goal to reduce student enrollment by 40,000.
The Zombulator is spreading the FU Virus across the nation. It is already at pandemic stage, now the only question is how many will be infected before the process plays out.