Foreclosures In Columbus Are Rising - WTVM.com-Columbus, GA News Weather & Sports

Columbus

Foreclosures In Columbus Are Rising

"Alot of people actually financed homes they could not afford,"says economist Dr. Mike Daniels.

And now some economist say the local housing bubble could burst.  Experts say forclosures in Columbus are up 25 percent from last year.  The culprit -- rising mortgage rates.  Something a lot of homeowners didn't budget for.

"I don't think people really read the fine print about what was going to happen to their payment when the interest rates went up,"says Daniels.

 Many home buyers opted for high risk interest only loans that allow a low down payment and low monthly payments -- that is until interest rates soared.   So far they've gone up 16 times since june of 2004.

"The rate is rising and some people can't handle the payment and it's sad but it's true. So again The American Dream is still here some will have to struggle to make it happen,"says Bill Enfinger American Equity Associates.

One way of doing that is to refinance your home.

"Maybe look into a fixed rate mortgage that way you know what your payment is every month for 30 years fixed and maybe you'll be more comfortable with that instead of getting a bill every month with your bill rising,"says Enfinger.

Another way to avoid foreclosure is to apply for a 40 or 50 year mortgage.  Experts say if all else fails selling your home is a way to move on and start from scratch.

The Consumer Credit Counceling Service says 200 people filed for bankruptcy last march mostly caused by foreclosures.

By Jade Hindmon

jhindmon@wtvm.com

 

Powered by Frankly