Moratorium on Mississippi foreclosures ends on Oct. 4

The foreclosure protection victims of Hurricane Katrina have had on their homes for two years is about to end. A 1980 Mississippi law allowed courts to delay foreclosures for up to two years after a state disaster is declared, which allowed many to keep their properties. The law allowed a homeowner to pay a reasonable "carrying charge" rather than the full mortgage payment. The protection ends on Oct. 4.

Jeremy Eisler of the Mississippi Center for Legal Services told Ana Radelat of The Clarion-Ledger that  the expiration date will see a rash of home and business foreclosures in the state. Foreclosures and delinquencies have already increased sharply in Mississippi as a result of a nationwide housing crisis fueled by rising interest rates on subprime mortgages.

The Mortgage Bankers Association said the delinquency rate has risen sharply across the nation this year. In the second quarter, which ended June 30, more than five percent of the mortgages in the nation were delinquent (at least 30 days past due). The rate was almost double for Mississippi (at 9.33 percent).

Mississippi leads the nation in delinquencies - with many in that number attributed to the problems Katrina victims have faced trying to recover from the storm.