As the unemployment rate threatens get into double digits from the current rate of about 9%, analysts expect foreclosures to go up significantly in future. The new wave of foreclosures will include not only sub-prime borrowers, but also borrowers who were once financially healthy but are falling into bad times as a result of job loss. Mark Zandi, chief economist at Economy.com, a provider of economic analysis, has said that "loss of jobs and loss of overtime hours and being forced from a full-time to part-time job is resulting in defaults. They're coast to coast."

According to Economy.com, unemployment will account for 60% of mortgage defaults this year. The Obama administration announced a $75 billion incentive program for mortgage companies that reduce payments for troubled homeowners, in February. The program was estimated to help at least 4 million homeowners facing foreclosure. With the employment situation not showing any signs of improvement, experts are now wondering how effective the plan will be. Alan Ruskin, chief international strategist at RBS Greenwich Capital says he doesn't "think there's any chance of government measures making more than a small dent."