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.
This entry was posted
on Tuesday, December 26th, 2006 at 1:44 pm and is filed under Housing Foreclosures.
You can follow any responses to this entry through the RSS 2.0 feed.
You can leave a response, or trackback from your own site.
Please note: LegalHelpers.com encourages readers to engage in conversation. Comments that are submitted are not posted to the site immediately. We reserve the right to edit or alter your comments and/or to remove comments that violate our code of conduct. No comment may contain: Potentially libelous statements; such as accusing somebody of a crime, defamation of character, or statements that can harm somebody's reputation. Obscene, explicit, or racist language. Personal attacks, insults, threats, harassment or inciting violence. Commercial product promotions. Personal information such as e-mail, address or phone number. Web site addresses other than those on LegalHelpers.com.
