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Home Foreclosures Hit Record

August numbers double, with no end in sight

By Kevin Spak, Newser Staff

Posted Sep 18, 2007 12:14 PM CDT

(Newser) – Another 108,716 American homeowners received foreclosure notices in August, a record total more than double last year’s figure. And this is only the beginning, say analysts, who expect even more subprime borrowers to default over the next 2 years. That will further depress housing prices, which are expected to drop 2.1% this year and 3.1% in 2008, reports Bloomberg.

Subprime mortgages represent just 7.3% of all home loans but account for 44% of new foreclosures. As borrowers default, banks are raising standards, making refinancing even harder. August's foreclosure total was 50% higher than July's and represents an average of one filing per 510 properties. The rate was highest in Nevada, which had one filing for every 165 properties.

[Images (3)]

[Videos (1)]

A home is advertised for sale at a foreclosure auction in Pasadena, Calif., in this Aug. 14, 2007 file photo. (AP Photo/Reed Saxon) (Associated Press)

Mortgage Bankers Association Reports Home Foreclosures On The Rise. (Getty Images)

A foreclosure sign tops a sale sign outside an existing home on the market in northwest Denver on Wednesday, Aug. 29, 2007. (AP Photo/David Zalubowski) (Associated Press)

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Home Foreclosures Hit Record