Loans to subprime borrowers at root of US foreclosure hike in September

The latest report released by RealtyTrac Inc. reveals U.S. home foreclosures doubled in September from a year ago as homeowners with subprime loans struggled to make payments on their adjustable-rate mortgages.
 
There were 223,538 foreclosure filings last month, including default and auction notices and bank repossessions, an 8 percent decline from August, the research company said today. California had the most with 51,259 and Florida was second with 33,354. The national foreclosure rate was one for every 557 households, according to RealtyTrac.

As many as half of the 450,000 subprime borrowers whose mortgages will re-set through November may lose their homes because they can't afford the higher payments, according to a report by Credit Suisse Group. Borrowers are going into default as soon as their mortgage payment re-sets faced with payment hikes 50 to 100 percent higher than the original “teaser” rate payment.

Read more on this story in the Real Estate and Housing News Section.

How to stop your foreclosure

If you are one of the thousands of homeowners going into foreclosure, you may interested to learn about how to stop your foreclosure and save your house.  Review the "How To" Guide – Stop Your Foreclosure located in the Real Estate Investing Guide Section.

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