Four of Arkansas's largest populated counties, Benton, Washington, Sebastian and Crawford counties reported an increase in foreclosures during the 4th quarter of 2006 and all except Washington County had an increase in 2006 over 2005.?Statewide figures show an over all decrease in foreclosures for both the fourth quarter and the year.

Benton County's foreclosures increased the most with a 16 percent increase in 2006. The number of households affected by foreclosure in Benton County was one in every 225 households or .44%.?This is the 2nd highest number of households affected. Mortgage company officials insist that several factors lead to foreclosures. In additional to adjustable rate mortgages and sub prime loans, a cooling housing market, short-term rates and a stagnant economy can all play a role in increasing foreclosure rates.

Short-term mortgage rates have increased, in contrast to long-term rates leaving adjustable rate mortgage holders from late 2003 now facing upward climbing rates.?These are the same people to whom the extra $50 to $75 monthly is enough to bring down the house of cards.

Carroll County's foreclosure rate increased by 42% in 2006, but dropped 60% in the fourth quarter. In Washington County, foreclosures dropped 7% overall but climbed 2% in the fourth quarter of 2006. In Washington County, there was one foreclosure for every 350 households or .30% of the households were affected. Crawford County's foreclosure rate increased 33% overall and 22 percent in the fourth quarter. In Crawford County, households in foreclosure during the fourth quarter of 2006 numbered .52% or one foreclosure for every 190 households.

Some lenders may not see a direct increase in foreclosure rates because they sell their mortgages off into the secondary market.?Van Buren bankers blame higher foreclosure rates on cost-of-living increases, which don't match increasing housing prices.?Other factors are interest rate fluctuations, and an increasing number of sub prime loans, which now have escalation clauses kicking in for the first time.

A slow economic growth, such as in Sebastian County doesn't prevent defaults on mortgages.?In 2006 Sebastian County's rate increased by 12 percent and a 20 growth over the third quarter rates.?This equates to one foreclosure for every 270 households in the County.

Sequoyah County in Oklahoma had a 73% increase over last year.

Statewide in Arkansas during the fourth quarter of 2006 there was one foreclosure recorded for every 465 households.?This equates to .22 percent of the total.