Foreclosure Spike Linked to Subprime Mortgages

Foreclosures climbed sharply in 2006 as a result of several factors, including the growth of subprime mortgages, rising energy costs, and slowing home sales, according to Default Research Inc., a foreclosure research company based in Mt. Pleasant, Pa.The largest increase was recorded in Nevada, where foreclosures skyrocketed 166%, the company reported. Serdar Bankaci, president and chief executive officer of Default Research, said the company processed more than 250,000 pre-foreclosures last year. "You can expect to see the foreclosure rate continue to increase in 2007 -- not as much as [in] 2006 -- but there will be excellent opportunities to help homeowners in distress and turn a profit, too," he said. Default Research can be found online at http://www.defaultresearch.com.