There have been some pretty daunting figures on the radio lately regarding the predicted foreclosure rates for the coming years.

The issues at hand revolved around the effects of subprime lending in what you could call some rather hasty lending practices. With the housing market bursting with opportunity it seems lenders were rushing to offer home loans to whomever qualified, which apparently was just about anybody.

According to a report on N.P.R., one in five subprime loan borrowers will end up in foreclosure in the coming year. The Center for Responsible Lending estimates that those numbers account for roughly 2.2 million homeowners falling victim to risky subprime lending across the nation.

It's not just subprime borrowers either; the recipients of adjustable rate mortgage loans are also finding themselves in quite the financial bind. In many cases borrowers received high-risk adjustable rate loans packaged in an attractive low- start rate. Many were approved without consideration of whether or not they could afford the loans after they would inevitably 'reset' for the worst.

The damage has been done and the aftermath is yet to show its face. Forecasters estimate that over $1 trillion in ARMs will 'reset' with increased rates towards the end of 2007.

The causes behind many of these homeowners with adjustable rate mortgages heading into foreclosure are due in part to the difficulty of refinancing into a traditional loan. Unfortunately, because of higher interest rates on a 30-year fixed-rate mortgage the homeowner's payments would still be higher than their initially low teaser rate.

Additionally, many homeowners will not qualify for refinancing due to the current housing market slump. In some markets home values are now less than what the homeowner originally paid during the real estate rush. Those who received 100% financing will especially be feeling the pressure this coming year.

It's a grim picture for many homeowners throughout the U.S. On the upside, preventative measures are being taken throughout the nation including legislation that will enforce certain guidelines governing these risky business lenders. Also, foreclosures can prove to be an affordable housing alternative for those homebuyers left in the dust from the real estate boom. Let's just hope they too won't fall victim to the imprudent lending practices plaguing the country today.

More info on your stop foreclosure information search:

Get Free Foreclosure Advice and Free Refinance Quotes
Get your free on-line foreclosure refinance quote and free advice from foreclosure mitigation specialist in minutes. Compare real offers from top national subprime and hard money lenders... more...

Understanding Subprime Lending And Its Implications To The Current Graduate Student
IN THE BEGINNING In a manner similar to the numerous economic crises before it, the subprime lending bust actually began decades before anyone knew it. The Community Reinvestment Act of 1977 pushed banks to extend more credit in communities where they operated. This drew many lenders to ... more...

Home Foreclosure Help - Are You Eligible for the Hope Now Alliance Program?
For those looking at home foreclosure and need help, as it stands, out of the approximately 1.5 million homeowners offered home mortgage workouts by the Hope Now Alliance program instituted by the federal government, only slightly more than one in four were offered loan modifications, with ... more...

Foreclosure- When Ignorance Is Not Bliss
We've all heard the saying 'ignorance is bliss?; but purchasing a house or condominium with this attitude may be until the collector starts sending a homeowner those inevitable letters and they receive phone call after persistent phone call from their loan servicer regarding their late payments. ... more...

Increasing Foreclosure Problem
The recent report released by Mortgage Bankers Association on Mortgage Foreclosure numbers, revealed that at present the mortgage market is involved in the most awful foreclosure crisis in the recorded history. It is almost 15 percent of the sub prime borrowers defaulted and the prime borrowers ... more...