Foreclosure Rates Examined

I heard a news clip today regarding the alarming rate of mortgage loan defaults and late payments due to our subprime lending crisis. The clip stated (I believe – I was multi-tasking at the time) that 13% of the mortgage loans in America are subprime and 15% of those are in foreclosure. If my math skills have not totally escaped me, 13% times 15% is about 1.95%. So . . . .the news hype is about 1.95% of all the loans out there being in foreclosure? I understand that the 1.95% could become a full 13% and yes, that sounds pretty scary. I do suspect, however, that 100% of the subprime loans will not reach foreclosure. The clip further stated that 97.4% of Americans make their mortgage payments on time, which sounded great to me. Nothing here gave me any cause to be alarmed. I just wanted to share. Have a great weekend.