Teaser Mortgage Rates Expire. . . . .Foreclosures Go Up

"Regional Spotlight: As Wisconsin Teaser Mortgage Rates Expire,

Some Unable to Pay"

RisMedia.com (03/13/07)

ForeclosuresWI.com President Robert A. Jansen reports that foreclosure filings in Wisconsin increased 27 percent during the first two months of this year, after increasing 34 percent in 2006. The latest trend is mainly due to such common problems as job loss and financial mismanagement. However, Jansen says a new ingredient has entered the mix, stating, "Much of the increase in foreclosures is the result of individuals stretching to buy more expensive houses than they could afford." He pointed to increases in the number of adjustable-rate mortgages (ARMs) that have made it possible for many Wisconsin residents to purchase residences beyond their means. When teaser-rate terms expire, though, borrowers' monthly mortgage payments routinely soar and foreclosure looms for some. To help ease the problem, the Wisconsin REALTORS® Association (WRA) is partnering with the Wisconsin Mortgage Bankers Association to launch a consumer awareness program this spring that will detail to the public the risks associated with some loan terms. New and existing mortgage customers are expected to be the biggest beneficiaries. WRA President Bill Malkasian states, "We have credible lenders and good laws. What we need is better education."