There are approximately 57,200,000 loans in the United States. 42,900,000 out of that 57,200,000 were originated between 2003-2007. (many of these at a 6% or lower rate) 

Delinquencies are skyrocketing for the following reasons:

Too much money was lent to unqualified buyers with too little skin in the game

Owners pulled equity out and spent it

Monthly payment hikes occurred at the worst time

Price declines have placed a huge amount of people in a negative equity position

Unemployment has significantly increased the problem

Owners are finding it acceptable not to make their house payment

Loans are often non-recourse

IRS lets people off the hook

*ABOVE INFORMATION COURTESY OF BRUCE NORRIS www.thenorrisgroup.com*

I do see an opportunity to acquire properties with fixed rate, long term debt that will cash flow as rentals. In most cases they will be worth less than they are owed but by implementing good property management skills these can pay off big in the long run.