What relationship existed between subprime mortgages and foreclosures when home prices fell?

Question

(1 point)
Responses

The value of homes remained generally higher than the mortgage, so foreclosures decreased.
The value of homes remained generally higher than the mortgage, so foreclosures decreased.

Many people with subprime mortgages could not make their payments, so foreclosures increased.
Many people with subprime mortgages could not make their payments, so foreclosures increased.

Banks offered more subprime mortgages to avoid further foreclosures.
Banks offered more subprime mortgages to avoid further foreclosures.

The Federal Reserve lowered interest rates to avoid further foreclosures.

Answer 1

Many people with subprime mortgages could not make their payments, so foreclosures increased.