According to a report by Forbes, the city of Jacksonville could become the foreclosure capital in America with 1,000 filed foreclosures per month, up from 4,000 foreclosures for the whole of last year.

Forecasts were made based on the number of delinquencies still in the offing and the trend of unemployment in the area. As a response, city councilmen called for a public hearing of city officials and community leaders as well as experts in foreclosures, in a bid to call the attention of businesses, government agencies and nonprofit organizations based in the area.

The crisis on foreclosures have been blamed by some sectors on adjustable rate loans from subprime lending, the same reason that caused the housing boom a few years ago. These allowed debtors to take on the maximum amount that they could get from the loan, without consideration to the possible consequences should the rates adjusted.

Both speculators and homeowners who were in it for the long haul were attracted by these loans. Some people, like elderly couples living off their pensions, fell victim to lenders using predatory tactics in getting these people to sign agreements without explaining the repercussions of adjustable rates. It all came back now to haunt them in the form of foreclosures as the market collapsed.

The City Council has been worried that people are not taking steps to try and reverse the impact of the crisis. According to officials, 99 percent of foreclosures are not being contested by involved homeowners.

Experts are saying that the majority of these cases should not have ended in a formal filing, as homeowners could leverage their legal rights to have a discussion or a negotiation with the lenders before any formal filing or application could commence. It seems that these homeowners have accepted their faith without putting up a fight.

The task of city officials right now would be to educate the community regarding their rights and options that they have to prevent foreclosures, saving not only their homes, but the economy as well.