The plunge in home prices in the U.S. as a result of the collapse of the subprime mortgage market may force banks and lenders to write down as much as $1 trillion from their balance sheets according to one expert.Bill Gross, who manages Pacific Investments Management Co. -- the largest bond fund in the world -- said the massive writedowns would blunt bank lending as well as force the sales of assets.

Thus far, financial lenders have reported nearly $500 billion in losses and writedowns.

In related news, foreclosure filings rose 14 percent in the second quarter -- the eighth consecutive quarterly climb according to RealtyTrac, a provider of real estate data. The figures encompass repossessions, default notices and auction sale notices.

There were foreclosure filings on nearly 740,000 properties during the second quarter -- a 121 percent spike from the year-ago quarter.

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