More and more in the news, there are stories regarding people in foreclosure based on the increase in mortgages. ACORN has done a study of home mortgages and stated the top 10 areas most at risk for ‘rate adjustment’ shock include Detroit and Flint, Michigan, Memphis, TN, Jackson, MS, McAllen, El Paso, Laredo and Brownsville, TX, Birmingham, AL and Springfield, IL. When the rates adjust some people will not be able to manage their payments. Some will be in lower income brackets and not have access to resources when their rates adjust higher. Therefore, they will more than likely end up in a foreclosure situation. The number of houses returning to the market will increase again.
