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On Thursday, the Mortgage Bankers Association said more than one in six F.H.A. borrowers was behind on payments.
Up to two years can pass between a borrower's falling behind on payments and an auction.
The families are behind on payments, but no lenders have foreclosed.
G.E. has already acknowledged difficulties selling its credit card operations as concerns grow about consumers falling behind on payments.
Foreclosures increased 65% from a year earlier and defaults doubled, and twice as many families fell behind on payments as caught up.
In addition to the potential for being held responsible for repaying a large mortgage if your relative or friend fell behind on payments, there are other potential risks.
Worse, loans are decaying remarkably quickly: the number of borrowers falling behind on payments in the first few months has leapt, to around 4% of the total.
But instead of the bad bank retaining non-performing loans (where borrowers are behind on payments), all Laiki's domestic loans are going to BoC, net of expected losses.
In December, the first subprime lenders started failing as more borrowers began falling behind on payments, often shortly after they received the loans.
Furthermore, the increasing number of borrowers falling behind on payments means charge-off rates are almost certain to increase as the economy worsens.
It is behind on payments for Air Nauru's one and only aircraft.
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