Ohio May See Rise in Delinquent Mortgages in 2009 and Beyond
Ohio, like most of the nation, is likely to see an continuing rise in the number of mortgages in default in 2009. The Wall Street Journal reported that nationwide, the number of defaults is expected to rise from 4.67% in 2008 to as high as 7.17% in the fourth quarter of 2009. Adjustable rate mortgages are mostly to blame. Many of the notorious "teaser" rates that lured homeowners and new buyers in are expiring, causing the loan to adjust to a higher interest rate and a new higher payment that the homeowner can no longer afford. The Journal reported that there are a lot more loans that will reset in 2009 through 2011, so the level of defaults is likely to continue to climb for several years. Unfortunately, even when the economy rebounds it will take some time for consumers to respond. This is because even if business improves or an unemployed consumer finds a job, it will still take time to build up the funds to start repaying.
If you are in an adjustable rate mortgage and are no longer able to make your payment there are options available. If you decide you are simply unable to afford the mortgage and your situation is not likely to improve, you can use a Chapter 7 bankruptcy to cancel the mortgage, return the house to the lender and end your responsibility for payments on the first mortgage as well as a second mortgage or home equity line of credit. If you have significant equity in your house and would like to keep it, but need a way to catch up on payments that have fallen behind and prevent foreclosure, a Chapter 13 bankruptcy will help. If you are behind on your mortgage or your mortgage has adjusted and you are no longer able to meet your payment you should contact an experienced bankruptcy attorney right away to discuss your options.
