Bankruptcy

Foreclosure Rates Set to Skyrocket

By Richard K. Gustafson

The New York Times news service has reported that 1 out of every 5 subprime loans are likely to go into foreclosure over the next two years. The highest default rates are expected to be in cities in California, New Jersey, Washington, DC, Michigan, and Nevada.

Translated into raw numbers, the report, based on a study done by the Research Center of Responsible Lending using data supplied by Moody’s Economy.com, predicts that about 2.2 million borrowers who took out loans from 1998-2001 will lose their homes!

Subprime loans make up one-quarter of the mortgage market, so what happens to subprime loans has an important impact on the entire industry.

For more details, you can access the story at: http://www.signonsandiego.com/uniontrib/20061220/news_1b20foreclos.html.

Full post as published by Consumer Bankruptcy Blog from Legal Helpers on December 26, 2006 (boomark / email).