Subprime Mortgages the numbers

A study called the GAO Report which is a derived from complied data on Alt – A and Subprime Mortgage loans in regard to loan performance was recently released.

The numbers show that Subprime Mortgage loans between the years 2000 and 2007 have a fourteen percent foreclosure rate and that an additional four percent are in foreclosure. The study further shows that nine percent are currently in delinquency which brings the numbers to a twenty seven percent failure rate.

The true percentage of the failure rate is actuality is much higher. Subprime mortgage loans in the amount of fifty eight percent have been paid by the property owner via refinance or sale of the property. A large number of these refinances are also falling into foreclosure; delinquency or distress. One third of the subprime mortgages that are still out there are current.

The study does not break down the different subprime loans that were made available between 2000 and 2007. The study includes all Alta – A and Subprime Mortgages; this means Arm products, Option Arm products, no- documentation loans, and high interest rate loans.

Individuals that conned the American Homeowner into all the benefits that subprime mortgages could offer are currently in prison or being sued. It’s very difficult to see what a twenty seven percent foreclosure rate and the countries over two and a half million dollar loss in real estate has brought this country other than misery.