Mortgage Crisis

Latest figures are indicating that as many as 4 in 10 mortgage holders in America could soon be "underwater," with the potential for millions to simply walk away.

Des Moines, IA is one of 28 metropolitan areas that have seen home prices go up in the third quarter, according to the National Association of Realtors.

An industry expert predicted at ULI's fall meeting that the new home market could pick back up by 2010, followed by a rally in the resale market in 2011.

The Department of Housing and Urban Development says the new rules will help buyers understand broker's fees will limit fee increases, and they are currently seeking legislation to give them the power to enforce the rules.

Almost 90% of the homeowners in Mountain House, CA, a planned smart growth community in the Central Valley, owe more on their mortgages than their homes are worth- the highest percentage in the country.

Afraid of losing their investment in a down market, homeowners aren't moving out of their neighborhoods - even if their jobs do.

Dawanna Williams of Dabar Development Partners discusses the narrower options for mid-sized developers in the current financial climate.

The Urban Land Institute reports on their new study, which predicts the real estate market will hit bottom in 2009 and 'flounder' through 2010.

Former Indianapolis Mayor Stephen Goldsmith is impressed by Mayor Christopher B. Coleman's efforts to revitalize depressed areas of his city, St. Paul. Coleman keeps the focus on increasing local investment through his 'Invest St. Paul' program.

Yorktown was a booming exurb of Chicago, until the mortgage crisis put the kibosh on a number of developments in progress. Residents of these 'ghost towns' find themselves stuck with properties they can't sell.

Some 12 million households now owe more on their mortgages than their homes are worth, leading economists to worry that foreclosures will continue to rise.

Upon gaining the presidency, Senator McCain would make the federal government spend part of its bailout money on bad home mortgages, allowing homeowners to stay put and make payments that reflect their homes' lessened values.

Greenwich, Connecticut is a rich enclave of hedge fund managers- and thus is feeling the pain of the current financial crisis like a ton of bricks. Ned Lamont, a Greenwich resident who ran for Senate in 2006, says, 'This is our Katrina.'

HUD Secretary Steven Preston said this week that the U.S. is facing a 'fundamental oversupply' of houses, which will continue to weigh down the economy.

The government takeover of Fannie Mae and Freddie Mac will likely bring lower interest rates, but tighter eligibility requirements and stricter monitoring of underwriting.

A foreclosed home in Lake Elsinore, CA has attracted some new residents- a family of bobcats.

Boston, Minneapolis and San Diego are flipping houses in an effort to prevent neighborhood blight- a strategy that appears to be working.

Witold Rybczynski wrote The Last Harvest about a new development being created in an exurban cornfield. NPR visits the half-finished community with Witold, which is suffering from the economic crisis.

While the mortgage crisis has hit hard in California and other prosperous regions, the cities that are sliding fastest into decline are still in the Rust Belt, with disappearing populations and bleak job prospects.

Early buyers in new housing developments are finding themselves stranded in virtual ghost towns as developers go belly up.