Calls from worried homeowners were on the rise this month at Consumer Credit Counseling Service of Northwest Indiana.

"We're getting at least two or three calls a day," compared to a one or two per month a few years ago, Executive Director Pamela Stalling said.

"It's alarming," Stalling said.

Callers sought help with adjustable rate mortgages headed into the unaffordable range for some, as payments rise along with interest rates.

"It's big issue," Stalling said.

Local homeowners are among those nationwide caught in a crunch that has foreclosure and delinquency rates climbing.

In a quarterly report this week, the Mortgage Bankers Association said late mortgage payments shot up to a 3.5-year high nationwide, and new foreclosures surged to a record high.

The increases came as borrowers with poor credit ratings had trouble keeping up with monthly payments.

The percentage of payments that were 30 or more days past due for all loans jumped to 4.95 percent from October to December, up from 4.67 percent in the third-quarter and the worst showing since 4.97 percent in spring of 2003.

The rate of mortgages that started the foreclosure process rose to 0.54 percent nationwide, a record high.

Both rates were higher for subprime borrowers - borrowers with spotty credit histories - especially those with adjustable-rate mortgages, the report said.

The late-payment rate for subprime loans increased to 13.33 percent in the nation, the highest in four years. For subprime borrowers with adjustable-rate mortgages, the delinquency rate climbed to 14.4 percent.

In Indiana, the late-payment rate for adjustable-rate subprime loans stood at 19.15 percent, and the state's 2.97 percent foreclosure rate for all types of loans was the second highest in the nation, trailing only Ohio.

Indiana's showing reflects factors in the state's economy, said Gary Avery, a mortgage banker with First Republic Mortgage Co. and a member of the Indiana Mortgage Bankers Association.

A downturn in manufacturing jobs in Indiana continues to play a role, Avery said.

"People are not able to quickly get back and take care of their employment situation," Avery said.

A lack of wage growth in the state and flattened property values also are factors.

Some homebuyers were placed in the wrong mortgage product, Avery said.

"Homeowner education is very important," he said.

Consumer Credit Counseling urges homeowners to seek solutions at its office before they're face with foreclosure, Stalling said.

"We urge consumers to not just walk away from the house," she said.

The Associated Press contributed to this report.