1 in 33 Homeowners Projected To Be In Foreclosure Within The Next Two Years

ONE IN 20 CALIFORNIA HOMEOWNERS is projected
to be in foreclosure as a result of their subprime loan
made in 2005 and 2006—exceeding the U.S.
average of one in 33 homeowners. The state’s
subprime crisis has transformed into a foreclosure
crisis. Years of rising home values and new loan
products made homeownership a possibility for
many individuals. The boom ended abruptly,
however, as house prices stagnated and then fell,
and once-favorable lending terms reset to include
higher interest rates and principal payments,
revealing the true costs of the new mortgage loans.

THE FACTS: The ripple effects of the foreclosure crisis

1 in 20 homeowners is projected to experience
foreclosure on their home as a result of their high-cost loan

24 percent of all loans made in 2005-2006 were subprime

64 percent of all homeowners will likely feel the ripple
effects of foreclosures from subprime loans

Affected homeowners are expected to lose $14,282 on
average in property value

$107 billion is projected to be lost from the combined
state and local tax base

DEFAULTING ON THE DREAM: