Some 700,000 homes funded by subprime mortgages could return to the market in 2008 and 2009, according to an upcoming report by Lehman Brothers.Lehman economist Michelle Meyer told MortgageWire that many of the homes in question were purchased in 2005 and 2006 using stated-income, 80/20 loan combinations and no-money-down subprime mortgages. She could not offer a geographic breakdown, but said her impression is that many of the homes are in California, Florida, and Michigan. Currently, some 4 million homes are on the market. Lehman said it expects the subprime crisis to return 300,000 homes to the market in 2008 and 400,000 in 2009. She expects "fewer" to return this year. The Lehman report will be released March 16.
Processing Content
