"I'm in the trenches everyday. I deal with clients everyday. They haven't seen anything yet."
That warning comes from Deep Grewal--a-14-year veteran of mortgages and lending, president of Grewal Mortgage Inc. of Lansing. By the way, he calls himself an optimist
"A lot of people got upside down on their properties," he explains.
His own business, once 20-some employees, has shrunk because to 11 and as foreclosures rise, and home values fall, he says just finding a bank to loan to customers has become a chore.
"They were lending money to just about anybody," he says. "Now they've swung the pedulum way too far over...Right now, in the last two weeks, they are not extending credit to anybody."
The root of the problem is adjustable rate mortages--or sub-prime. High rates are sending anyone who had one scrambling just to pay.
"Meridian Township, Delta Township, the city of East Lansing, it's happening everywhere," says Ingham County Treasurer Eric Schertzing. He's seen foreclosure rates sky-rocket locally. He petitioned Ingham County Tuesday night for more money for counselors to help people before it gets that far.
Ingham County offers help through several organizations. Residents can ask for help by calling 2-1-1 on a landline.
The deeper issue may be where it could take the economy--especially here in Michigan where the problems far worse than in most states.
Grewal says realtors, home builders, and contractors are also trimming staff and--this from an optimist, remember--he says it will get worse.
"Unless the federal reserve does something, a lot more people are gonna lose a lot more jobs."