Subprime foreclosures could affect as many as 2.4 million

[Lone_Star_Dem]

Subprime losses lead to drop in home ownership
Despite the mortgage industry's claims to the contrary, an advocacy group says that subprime foreclosures will leave 1 million fewer homeowners.

By Les Christie, CNNMoney.com staff writer
March 27 2007: 4:28 PM EDT

NEW YORK (CNNMoney.com) -- About 2.4 million holders of subprime mortgage loans made between 1998 and 2006 will lose their properties to foreclosure, according to a report from the Center for Responsible Lending, a non-profit policy and advocacy organization for home owners.

Worse, that will result in a net home ownership loss of one million households.
foreclosure.

CRL's analysis rebutted the mortgage industry's claims that the increase in subprime loans has opened up home ownership for millions of low income buyers. Instead, CRL contends, relatively little subprime lending is used for first-time home buying.

Testifying before the House Finance Committee today, CRL's president, Michael Calhoun, said the primary reason for the jump in foreclosures is "the abandonment of underwriting standards."

http://money.cnn.com/2007/03/27/real_estate/subprime_losses_spike/index.htm?postversion=2007032716

[fed-up]

1. predatory lenders that LIED about loan terms-bait/switch tactics-fixed>ARM nt

[Iwasthere]

2. CNN headline News at noon said that they did a poll and 34 % stated...

That they didn't even know what kind of loan they had. "YIKES!"

[WilmywoodNCparalegal]

3. A serious question

With all landlords and management companies checking credit reports and scores and with foreclosure having a major impact on credit, where do all the people who lose their homes to foreclosure go to live?

[Lone_Star_Dem]

4. Good question

Subprime rental rates?

[CelticWinter]

5. Thats the sad part----

these people are so screwed its not funny. Only way out for the time being will be either live with family or end up renting from a slumlord and lets face it the slumlords will be foaming at the mouth to rent their dumps to desparate people and probably raise the rent too.