A report from the Center for Responsible Lending estimates some 2.2 million households that took out subprime loans in recent years have lost their homes to foreclosure or will likely do so. These foreclosures could ultimately cost owners up to $164 billion — mostly in lost equity.The study also projects that one out of every five subprime mortgages taken out in the past two years will end in foreclosure. Subprime loans are typically used by borrowers that are high credit risks and often have prepayment penalties and higher interest rates.But it’s not just the high-risk borrowers finding themselves in trouble.Millions of Americans have taken out adjustable rate mortgages and interest only loans with teaser rates. Those initial rates have ended and many homeowners are watching their monthly mortgage payments skyrocket. And, with the market slump, some people now owe more on homes than they’re worth.Read about the rise in foreclosures in the East Valley here. Check out the Center for Responsible Lending’s complete report here.

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