Lane County Foreclosures

March 3rd, 2008 | Tags: Foreclosure

The January foreclosure figures, released by RealtyTrac, indicate that Lane County foreclosures are on the rise. In January 2008 there were 125 foreclosure listings – an increase of 36% over January 2007. In December there were 117 foreclosures. It is apprehended by mortgage experts that the numbers will rise further.

Loan officer Jeff Nunley of Evergreen Pacific Mortgage dittos the fear and feels that there is no doubt about the increase. The only consolation is that Lane County is better off than other regions of US like California and Florida. He added that the most troubling factor is that the real estate rates are dropping in Bethle-Danebo and Thurston regions. It is well nigh impossible to refinance when the value of houses drop. The loan amount increases and therefore it is not possible to pay off the due by selling the house. The media focus makes one get the feeling of being surrounded by foreclosures. The numbers may be confusing but there is an underlying truth that cannot be ignored. It is difficult to gauge from the statistics how many people are able to avoid foreclosure by either refinancing or short selling.

A spokesperson of Discover Mortgage, Jonathan Hatmaker, based in Eugene says that their business tripled in January 2008. As interest rates increased many mortgage holders knocked on their doors for refinancing. In some case the rates rose from 5.5% to 10.5%. Hatmaker comments that they have been trying to work out viable comfortable modifications with the borrowers so that they do not lose their houses. Many distressed borrowers cannot simply manage and sell their houses.

Christine White is a real estate broker. She says that since last autumn some of her clients have started to sell their units to evade foreclosures. Most of these were saddled with adjustable rate mortgages and personal problems like illness compelled them to fall behind. However the news to cheer about is that many who sold their houses have been able to put their finances in order.

The wave of foreclosures is affecting all – lenders, borrowers, state and federal governments as well as communities. The banks are weighed down with thousands of houses that do not sell or bring in money, the dispossessed are disgruntled voters, tax collection has gone down and criminals are having a ball playing around in abandoned houses. Everybody is grappling for solutions that will satisfy all – mortgage industry and borrowers included. It is difficult.