6.5 Million Loans May Be Foreclosed Upon By The End Of 2012

ForeclosuresRI President and co-founder, Jeremy Shapiro North Carolina's mortgage lenders are trying their best to help troubled borrowers avoid losing their homes but are barely keeping pace with the increase in the foreclosure rate. The State Foreclosure Prevention Working Group consists of state attorney generals and banking regulators trying to prevent mass home foreclosures. The group reported that more borrowers are in "loss mitigation" with their lenders, but those gains have been matched by the increase in delinquent loans. California lenders sent a record 1,392 foreclosure notices to Sonoma County homeowners in the first quarter, more than triple the number from a year ago. Only two other California counties, Merced and Colusa, experienced a bigger increase in foreclosure activity. An unexpected number of Californians are losing their houses as home values tumble and mortgage payments increase on high risk loans issued near the peak of the housing boom. Falling U.S. home prices and a lack of available credit may result in foreclosures on 6.5 million loans by the end of 2012. The foreclosures could put 12.7 percent of all residential borrowers out of their homes. There are about 2.7 million subprime loans whose risky characteristics sparked the worst housing market since the Great Depression.

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