A number that has many analysts watching in order to anticipate the market are foreclosures. The Center for Responsible Lending released a new report on foreclosures in the subprime market and their real cost to homeowners. The prognostic was that foreclosure rates will increase in many markets as housing appreciation slows or reverses. An estimated 2.2 million borrowers could stand to lose their homes. That is a very steep number.
One out of five subprime mortgages originated during the past two years will end in foreclosure. That’s roughly 20%. This exceeds the worst foreclosure experience in the modern mortgage market, which occurred during the “Oil Patch” disaster of the 1980s.
