Subprime foreclosures could hit 35 percent

That’s the word from Kenneth Rosen, chairman of the Fisher Center for Real Estate and Urban Economics at the University of California at Berkeley, speaking at an Urban Land Institute gathering in Dallas.

And, he says, we are nowhere near the bottom of the subprime collapse:

He thinks foreclosures could rise as high as 35 percent of all subprime loans in the next 18 months, from 13 percent in late 2007.

Can you say “Holy Shit”?

Rosen expects continued tightness in commercial mortgage lending, too. And, he says odds are about 50-50 the recession will be deep, not mild.