Real estate experts fear a rise in foreclosures for homeowners with adjustable rate mortgages.
The Associated Press reports many homeowners are finding themselves trapped in too high monthly payments as adjustable rate mortgages adjust upward, and housing prices begin to drop.
It's reported that in the last several years, millions of Americans took equity out of their homes and refinanced when interest rates were at historical lows.
"The whole aspect of homeownership is to create an asset that is making money for you. But the responsibility in that asset making money for you is that you have to be responsible with the money it is making for you in a way that it doesn't cause a deficit," says Christic Henry, owner of Kingdom First Realty in Tallahassee, Florida.
It's reported that in states like Texas and Georgia, where the market is less active and supply is high, many homeowners can't find a buyer in time and are forced into foreclosure.