Georgia 7th highest in home foreclosures - WALB.com, Albany News, Weather, Sports

Georgia 7th highest in home foreclosures

June 13, 2007
by Delivrine Registre


Albany -- Owning a home is part of the American Dream. A dream becoming more of a reality for more people as new lending options become available. 

"You've got your FHA programs and gift letters where you can get a house with no money down," Mortgage Specialist Wanda Kenney said.

But for some the process can become a nightmare. "Some of them try to go to work things out on their own and agree to make payments they cannot make," Senior Housing Counselor B. J. Burton said.

Home foreclosures jumped 90% from last year with Georgia ranked the 7th worst state nationally. "It's a microwave society where everybody wants things now and don't want to go through the 12 to 36 months of saving," Burton said.

Kenney wants home owners to understand that they need to make sure they understand the terms of their loan. "A lot of people aren't aware of variable loans where they pay the interest- only in the first two years and then they make the principle payments. Sometimes the new payments can almost double," Kenney said.

Burton is a senior housing counselor for the Department for Community and Economic Development. She offers classes to help new and old homeowners prepare for these payment hikes. "We encourage new homeowners to not to get a lot of expenses," Burton said.

A payment increase is not the only thing homeowners should account for. "There are a lot of problems that can come-up; such as the lose of income, a layoff or a divorce," Kenney said.

It all comes down to being responsible with your budget. "Your house payment should come first, and the other costs have to be within your budget," Kenney said. 

Essentially your dream home can come true with the proper preparation and education. For more information for help with the home lending or mortgage refinancing process check with the Federal Housing Administration .

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