The Boston Herald reports on the 'affordable' part of town. "New figures show house prices in Boston’s traditionally affordable neighborhoods rising at a double-digit clip even as foreclosure woes in those areas soar. The Boston Department of Neighborhood Development reported yesterday that median house prices rose 10 percent to 17 percent during 2005 in East Boston, Mattapan and Roxbury."

"But at the same time, figures also show a rising number of Hub homeowners in mortgage trouble. The city said banks seized 60 Hub residences last year for mortgage non-payment, a 140 percent increase from 2004."

"An even larger number of properties faced 'notices of default,' the first step banks take when homeowners fall behind on loans. Citywide, 385 homes faced such notices in 2005, a 53.5 percent rise from 2004."

"Problems particularly worsened in traditionally working- and middle-class neighborhoods, with default filings doubling in Hyde Park, Roxbury and Jamaica Plain. Filings also rose more than 50 percent in Mattapan, East Boston and South Boston."

"Experts blame much of the problem on the wide use in recent years of risky loans like interest-only mortgages. These loans offer low monthly payments for a time, but costs often rise sharply after a few years."

"City spokesman DeWayne Lehman said mortgage bills can shoot up as much as 50 percent when such loans’ introductory periods end. 'Interest rates are going up on many of these loans at a time when..wages are not increasing, where jobs for blue-collar homeowners are diminishing,' he said."

"Jeremy Shapiro added that banks loosened lending standards during the recent housing boom. 'When a housing market is appreciating as rapidly as Boston was, banks tend to be a lot more lax, because they can make up (for default risks) through price appreciation,' he said."