foreclosure, variable rate loans, sub-prime

Attorney Melchionne cited by Waterbury Republican-American on Foreclosures

In response to continually increasing foreclosures, The WAterbury Republican-American newspaper called on Attorney Melchionne to comment. Not surprised by the increase, Attorney Melchionne explained that many variable rate mortgages have not yet had their first rate resets which will result in "sticker shock" when payments increase by 50% or more. When coupled with rising unemployment, layoffs, and work cutbacks, foreclosures will increase putting further pressure on falling real estate prices. Read the story here.