Half of Cleveland’s sub-prime loans resulted in foreclosure

Wow, the other half are sure to follow.

Report: About Half Of Cleveland's Subprime Loans Ended In Foreclosure

POSTED: 11:33 am EDT May 11, 2008

CLEVELAND -- The Cleveland Plain Dealer is reporting that about half of the city's subprime mortgage loans written by top lenders in 2005 ended in foreclosure filings.

Subprime mortgage loans are generally given to people with poor credit and come with higher fees and interest rates.

Now Cleveland is dealing with one of the highest foreclosure rates in the nation.

The Plain Dealer said all five of the city's top lenders in 2005 have since been absorbed by other companies or have gone out of business, and there is no accurate way to determine what percentage of subprime mortgage loans may have been based on fraudulent or unscrupulous lending practices.

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