Foreclosures up and experts say the worst is yet to come - WMC Action News 5 - Memphis, Tennessee

Foreclosures up and experts say the worst is yet to come

The sub-prime mortgage crisis signs are evident from Wall Street to Main Street.

According to foreclosure filing tracking company RealtyTrac, the number of homes that fell into some stage of foreclosure in 2007 spiked 79 percent from the previous year.

Tennessee ranked 11th for foreclosures, up 25 percent from 2006.

Millions more are expected by the end of 2009.

"Experts predict the worst is still ahead. As the large majority of sub-prime borrowers will face a 40 percent or higher increase in their monthly mortgage payments once the teaser rates expire," Rep. Loretta Sanchez said.

Homeowners in nearly every region of the country have been snagged in a foreclosure net of ballooning adjustable mortgages they can't afford, a tightening credit market, and falling home prices.

The federal reserve is considering lowering interest rates again Wednesday when it meets.

It could give cash-strapped banks and homeowners another chance to hold on to their investments.

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