The Foreclosure Report

Ten Percent Of Subprime Borrowers Are Late

Delaware Online has this report on delinquencies. "The initial advice all credit counselors give to homeowners facing foreclosure is: When you find yourself in a hole, stop digging. A culprit, said Mike Shannon, a Realtor and foreclosure specialist in Dearborn Heights, Mich., is the prevalence of subprime lending programs, those that help borrowers with poor credit obtain mortgages at higher interest rates, and no-money-down, interest-only mortgages."

"'The leniency in lending leaves people in jeopardy, especially when they're doing 100 percent financing, using 80 percent as the primary mortgage and a 20 percent equity line,' he said. 'It really becomes a problem if that financing is based on a two-person-income household and something happens.'"

"Nationally, 10 percent of subprime borrowers are late with their mortgage payments, while 3 percent of all sub-prime borrowers are in foreclosure, according to the mortgage bankers group. In Michigan, nearly 16 percent of sub-prime borrowers are delinquent, and 9 percent are seriously delinquent or in foreclosure."

posted by Ben Jones @ 8:20 AM