By JUAN McCARTNEY, Guardian Senior Reporter, juan@nasguard.com

A wave of home foreclosures could soon sweep throughout the country if The Bahamas Mortgage Corporation (BMC) doesn't see a drop in its number of delinquent accounts.

BMC Managing Director Jerome Godfrey disclosed on Tuesday that 817 of the corporation's 2,978 homeowner accounts are delinquent, accounting for $4.67 million (or 27.43 percent) in mortgages financed by the corporation.

At a press conference at BMC headquarters on Russell Road, Godfrey said the average monthly mortgage payment collected by the homeowner was around $600. He said despite the manageable amount, a significant number of account holders refused to pay in a timely manner.

"This [27.43 percent] is too high and despite our efforts to cause our Bahamian borrowers to meet their mortgage obligations, we have discovered that priority to repayment of their mortgage at the Bahamas Mortgage Corporation is not what it ought to be," he said.

"These obligations appear to be relegated very low on their list of priorities and most definitely second to consumer loans by other banks, financial institutions, travel opportunities and even furniture companies."

Godfrey said delinquent homeowners should settle their accounts with the BMC before things get worse.

"However, before that time comes, the corporation is again reaching out to persons with mortgage loans in arrears to come into our Loan Administration Department here in Nassau, Abaco and Freeport to update their delinquent mortgages," Godfrey said. "Over the next few months, we will be issuing letters to delinquent borrowers giving them deadlines to come in to the corporation to update their account."

Godfrey said if those delinquent accounts aren't settled, foreclosure proceedings are imminent. But he added that the BMC would prefer to avoid such drastic measures.

"This is not the way we would prefer to go as the corporation is not in the business of selling properties; however, there comes a time when the corporation must take a 'get tough' attitude. That time is now," he said.

"We are cognizant of the predictions of a marginalized growth in our economy in the months ahead and therefore feel that this effort now to encourage borrowers to fix what is wrong will act as a hedge if our borrowers were to be effected by such marginalization of our economy."

Godfrey said that advertisements that aired before the last holiday season urged delinquent account holders to come in and arrange a program to update their mortgage arrears.

He said many people did not take advantage of the opportunity.

Over the last 25 years the corporation has approved loans to Bahamians in excess of $346.9 million.

However, Godfrey added that for some Bahamians the repayment of government loans takes a back seat to other financial commitments.