By David Kenney
david@wlbt.net

Ripple effects from the nationwide foreclosure problem are surfacing in the Jackson metro area. Every day, more and more victims of subprime loans are facing mortgages they can't afford, putting them in danger of losing their homes. Homeowners pressured by subprime lenders to pay soaring mortgage rates, or leave their homes behind.

According to the website foreclosure.com, there are currently 1,353 foreclosures in Mississippi. Over a third of those are in Hinds county where there are 452. In Rankin and Madison counties there are 60 and 31 foreclosures respectively.

Janette Bland of the Neighborhood Assistance Corportation of America says, "We've seen a recent increase because the rates are beginning to adjust."

N.A.C.A. helps homeowners facing foreclosure, fighting predatory lenders, to reduce their mortgage rates to an affordable level.

Bland says, "Foreclosures in your neighborhood are going to affect the price you have when you get ready to sell it. Ultimately, it will affect the state as well, then you're talking about people not being able to pay taxes on their home because they can't pay the mortgage."

Ellis and Wanda Smith say were shocked when their mortgage company told them their monthly house note was going to jump up by $400 dollars.

Through N.A.C.A., they have cut their interest rates nearly in half, they're fixed now and more importantly, they were able to avoid foreclosure.

Banking analysts say we're months away from seeing foreclosure rates peak.

John Allison, Mississippi Commissioner of Banking and Consumer Finance says,"You're going to see a lot of "for sale" signs and unfortunately those for sale signs are from the new owner of the property the mortgage holder and they would be willing to sell at a less than market rate."

With so many good deals out there it's now a buyer's market, but in a tight economy where homes sales could become few and far between.