However, while these loans often have low introductory rates that stay stable for the first year, after this time they go into a period of adjustment. Often times this means a drastic rate hike which many homeowners cannot keep up with. The result of many defaults on these kinds of mortgages is foreclosure, as late fees and short payment windows make catching up with late payments nearly impossible for many.

Since many sub-prime and low-income loan borrowers tend to live in urban areas, the spike in foreclosures in Ohio was mainly concentrated in areas like Cleveland, Dayton and Cincinatti. However, experts are now seeing a new trend in foreclosures, as they spread out into suburban areas.

The interesting aspect of this trend is that while sub-prime loans are involved roughly 65% of all foreclosures in Ohio, only 35% of all sub-prime loans issued were issued in urban areas. The other 65% were issued in suburban areas.

One assertion drawn from these statistics is that during the housing boom, when real estate was voraciously bought up with the hopes for investment profits, many investors bought up suburban homes in Ohio in hopes that growth in the areas would create demand for middle and upper class buyers looking to live near, but not in, urban areas.

The fact that only now are these suburban homes going into foreclosure may have something to do with the fact that investors are starting to give up on their investments. While lower income borrowers may be hit with the ramifications of adjustable rate mortgages faster, paying high monthly rates for an extended period of time at some point becomes just as unaffordable for more well-off investors. Since the housing market has since slowed to a crawl and property values have fallen drastically, investors are not finding buyers for their homes, and thus must face foreclosure.

What this may mean for those interested in foreclosure purchase is that investors will be looking to sell for extremely discounted prices, simply to get rid of the hassle of throwing increasing sums at mortgage payments every month. After foreclosures jumped by nearly 25% over 2006 in Ohio, with thousands more sub-prime loans scheduled to go into adjustment over the next two years, many experts feel this may be only the beginning of an ever-worsening scenario. Now is an excellent time to take advantage of falling property values and foreclosure sales in many Ohio cities and towns.

ForeclosureDeals.com is a leading online source of foreclosure listings and information on current events in real estate all over the United States. We provide updates on the rising trend in foreclosures by state and all kinds of information to homebuyers and investors, as well as homeowners looking to find a way out of mortgages that have become a financial burden.