Indian Foreclosure Rate Still Rising

Posted in General, October 9th, 2006 |

Foreclosures in Indiana climbed this spring, along with interest rates and energy prices, which have been blamed for squeezing homeowners on a tight budget out of being able to make mortgage payments.

The Mortgage Bankers Associationreported that the percentage of mortgages that from 2005 to 2006, the rate of foreclosure rose to .43% nationwide. This figure is an increase from the first quarter, which had a rate of 0.41 percent.

Even with the increase, the new foreclosure figure is still low by historical standards and thus not overly worrisome to lenders. But it suggests that some borrowers are feeling pinched.

Foreclosure rates in the second quarter were highest for homeowners with adjustable rate mortgages, and bad or no credit. ARMs are usually the type of loan most readily available to those less financially secure, an ironic fact considering they are often the hardest to keep up with, as their rate is given to sudden increase. If rates continue to rise, and expect to see this trend continue in Indiana, which already has one of the highest foreclosure rates in the country.