American Dream's Harsh New Reality

As the housing boom of the early part of this decade unwinds, the U.S. is facing a harsh new reality: Annual home foreclosures may surpass new-home sales from builders.

Nearly 2 million homeowners are expected to lose their houses this year and next as the mortgage mess becomes a painful experience for condo-flipping gamblers and struggling families alike.

The latest data from the Mortgage Bankers Association Thursday showed that the nation's foreclosure situation continues to worsen. A record number of mortgage holders -- 0.65% of all borrowers -- entered the foreclosure process in the second quarter. Loans already in the foreclosure process accounted for 1.4% of all mortgage loans outstanding at the end of the second quarter, slightly lower than the recent high in 2002. ...