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. (More subprime mortgages stories.)