New Hampshire housing advocates say they’ve noticed a troubling trend, the
mortgage crisis is spreading to prime borrowers.
Most of the
foreclosures in New
from subprime mortgages made to borrowers who don’t qualify for traditional
loans, usually because of bad credit or low income.
This summer has seen a sharp rise in foreclosures in the subprime mortgage market. Subprime lending refers to the practice of making loans to borrowers who may have problems with their credit history, or are unable to show proof they can repay the loan. This subprime mortgage meltdown has led to a global financial crisis, involving declines in the stock market and the near bankruptcy of several mortgage lenders.