It depends on where you live. In Nevada, the odds of losing a home to foreclosure could soon be about the same as getting the flu if predictions in a new Pew Charitable Trusts report come true.
One in 11 Nevadans will be in foreclosure within the next two years as a result of subprime loans made in 2005 and 2006, Pew Charitable Trusts predicts in “Defaulting on a Dream: States Respond to America’s Foreclosure Crisis.” (The chances of catching the flu in a given year is about 1 in 10, according to the San Diego Union Tribune.)
Nationally, the group predicts that one in 33 current homeowners will be in foreclosure within two years. Go to page 10 of the report to see what the foreclosure odds are in your state.
BusinessWeek editors Chris Palmeri, Prashant Gopal and Peter Coy chronicle the highs and lows of the housing and mortgage markets on their Hot Property blog. In print and online, the Hot Property team first wrote about the potential downside of lenders pushing riskier, "option ARM" mortgages and the rise in mortgage fraud back in 2005—well ahead of many other media outlets. In 2008, Hot Property bloggers finished #1 in a ranking of the world's top 100 "most powerful property people" by the British real estate website Global edge. Hot Property was named among the 25 most influential real estate blogs of 2007 by Inman News.