Audrey and Stephen Riser thought they had found the perfect spot for their dream home back in 1994, when they bought a lot in Lake Ridge, an upscale community in far southwest Dallas County spanning Cedar Hill and Grand Prairie.

But burned-out homes and a number of foreclosures along Rolling Oaks Ridge, where they built their 3,940-square-foot home in 1998, have soured the couple on their neighborhood.

“Lake Ridge has just ruined my dream,” said Ms. Riser, who lives across the street from a home at 2519 Rolling Oaks Ridge that burned in January. Another home around the corner on Golden Pond also sustained fire damage several months ago, and both houses are exposed to the weather.

As we commemorate June as National Homeownership Month, government and housing industry officials are trying to ensure that all homeowners continue to have a reason to celebrate.

Officials are worried about the surge in foreclosures caused by rising interest rates on adjustable-rate mortgages, especially subprime loans made to borrowers with poor credit.

The issue is so hot that a foreclosure program last week by the Federal Reserve Bank of Dallas and the U.S. Department of Housing and Urban Development sold out.

Throughout the event, one message rang loud and clear: Get to troubled homeowners before they’re so far behind on their mortgage that the only option is foreclosure.

Mortgage disclosure forms fail to convey key mortgage costs and terms to many consumers, according to a Federal Trade Commission study that tested forms with 819 mortgage customers.

Both prime and subprime borrowers misunderstood key loan terms, and both groups benefited from better disclosures, the study found. Better disclosures provided the greatest benefit for complex loans in which borrowers had trouble understanding the terms.

The potential for improving consumer understanding of mortgage costs was tested using prototype disclosures developed for fixed-rate loans — including those with interest-only and balloon payments. The prototype disclosures used in the study could be extended to incorporate the key features of adjustable-rate, hybrid and payment-option loans, the study’s authors said.