Nearly 5 thousand home forclosures predicted for the bay area alone in next year

[n2doc]

4,800 subprime Bay Area loans at risk of foreclosure by 2008
Kelly Zito, Chronicle Staff Writer
Wednesday, October 24, 2007

Nearly 4,800 subprime loans made to Bay Area borrowers in 2006 are likely to fall into foreclosure in the next couple of years, costing homeowners, cities and lenders as much as $1.5 billion, according to an advocacy group for lower-income families.

Such scary statistics are prompting more cities to call upon lenders to modify problem loans and curtail what are termed predatory practices.


snip:
San Francisco's foreclosure rate remains well below those of other areas such as eastern Contra Costa County and parts of Oakland. But Liz Wolff, ACORN research director, pointed out that the interest rates on many subprime loans taken out in 2005 and 2006 will not reset until next year or 2009 - and almost certainly soar higher.

"We're just at the beginning of this mess," Wolff said.

Using lender and federal home loan data and nonprofit research on foreclosures, Wolff found 617 homes in San Francisco and San Mateo counties with high-cost loans made in 2006 that are in danger of repossession, amounting to $210 million in costs to the homeowners, lenders and investors and local government and in lower home values for neighbors.

In Santa Clara County, the group said 1,124 high-cost loans are likely to go into foreclosure, amounting to $370 million; and in Alameda and Contra Counties, 3,021 loans are at risk, amounting to about $875 million.

link:

http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2007/10/24/BUSHSUPF7.DTL

[natrat]

1. its nuts---san francisco home prices still rising---solano county one of the worst in the state

[soothsayer]

2. I think something like 14 million subprimes were written and HALF are

expected to go into foreclosure. Next 6 months should be a pretty wild ride. This is just the tip of the iceberg.