• Home prices have fallen by 5% to 10% nationwide, and market experts predict that prices will decline by an additional 20%.
• 30% of families now holding recent subprime mortgages are upside down: they owe more on their mortgage than their home is worth. Foreclosures will increase because families cannot sell the home, refinance the mortgage, or get a home equity loan.
• Holding an upside down mortgage now matches “exploding” interest rates as the major factor driving families into foreclosure.
• Foreclosures reached an all-time high in the fourth quarter of 2007, and they are projected to get even worse. Fitch has concluded that 43% of recent subprime loans made will be lost to foreclosure.
• At least two million American families are expected to lose their homes to foreclosures initiated over the next two years.
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