I happen to work for one of the few remaining subprime mortgagors (non-sales position). Unfortunately, it IS as bad as is being reported. Too many risky loans (option ARMS and IO's, which my company did not originate thankfully, why we are still around) were being done in the past 3-4 years and now they are biting the mortgage companies and the borrowers in the butt.
The number of subprime loans 60 days late nationwide have doubled to 14 percent over the last year, and 4.7 percent are in foreclosure. That's 1.5 out of every 10 homes (subprime) on the brink of foreclosure and 1 out of every 20 that ARE in foreclosure nationwide. That's some pretty significant numbers. Once you look at the West Coast, primarily CA, it is much worse.
In Stockton, CA...one out of 27 homes are in foreclosure. That's not just subprime...but actually 1 out of every 27 homes period. In Detroit, its 1 out of every 29 homes. Las Vegas, 1 out of every 31.
(Edit: spelling)