A multi-state foreclosure prevention task force said today that 70 percent of U.S. borrowers who are seriously delinquent on their subprime mortgages "are not on track for any loss mitigation option" such as loan modification.

The group, organized by Iowa Attorney General Tom Miller, released a report that called the "lack of interaction between mortgage servicers and homeowners ... a major problem." (The Baltimore Homeownership Preservation Coalition launched an ad campaign recently to urge borrowers not to put off calling for help.)

Almost half of delinquent borrowers who have contacted their servicers are working on a loan-modification plan, the report noted.

Other findings:

A significant percentage of subprime adjustable rate loans are delinquent before they experience payment shock from their first adjustment, reflecting weak underwriting or fraud in the origination of the loan.