According to this study produced prior to the FHASecure Initiave by the Center for Responsible Lending, a person who took out a subprime loan on a home in the Phoenix MSA in 2006 has a 21.1% chance of foreclosure within the lifetime of that loan.

That means one in five people who took out a subprime loan in Phoenix in 2006 are going to be facing foreclosure in the future.  It is less than half of that if someone took out a subprime loan between 1998 and 2001.

Does this sound shockingly terrible?

It is.

But it gets worse.

If you live in Bakersfield, California and took out a subprime loan on your home in 2006, you have a 24.2% chance of facing foreclosure in your future. 

It looks to me like these statistics point to one of the main reason we we have blogs like this in Bakersfield and like this in Phoenix.

Glancing at the report, it looks like the average % chance that someone who took out a subprime loan in 2006 will see foreclosure is about 19%.  One in five. 

Can the newly-announced FHASecure program  fix this problem?  Not entirely.  But it certainly can’t hurt.