Home Foreclosures Hit Record

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.