Help me out here; I am running out of superlatives to describe the foreclosure situation. In April, forclosures were up over 100 percent compared to the same month last year.

Here is another shocker - 8 out of 10 subprime loans have variable interest rates. Sit back in your chair and think about that one for a moment. Lets repeat; eight out of ten loans given to people with bad credit will shortly reset to higher rates. This means just one thing; the US housing market is sitting on a foreclosure time bomb.

May 7 (Bloomberg) -- U.S. homeowners entered the foreclosure process in April at more than double the rate of a year ago as tightening credit made it more difficult to refinance and a swelling supply of unsold homes made it tough to sell.

The number of homeowners in all three phases of foreclosure rose last month over the same period a year ago, according to Sacramento-based, which gathers data from county courthouses nationwide. Those receiving their first notice of foreclosure from a bank climbed 127 percent, those with homes going up for sale by auction jumped 164 percent and those whose homes were repossessed by banks went up 40 percent.

Eight of 10 subprime loans, given to borrowers with bad or limited credit histories, adjust over time to higher interest rates and many homeowners can no longer afford their mortgages. With existing home sales at a four-year low, it's more difficult to sell because there are so many homes on the market.