Vermont Foreclosures Increases

April 15th, 2008 | Tags: Foreclosures

So far Vermont had been spared the bite of foreclosures. For some reason or the other the storm seemed to bypass Vermont. All around the monthly interest rates kept rising and houses falling like nine pins to the onslaught of foreclosures as borrowers could not cope with the increased commitments.

But the front page of the Times on Friday, gave out warning signals. Vermont cannot continue to remain in isolation. This was the opinion of experts who showed grave concern for the situation in Vermont. Nevertheless the numbers continue to show that the intensity here is far less than elsewhere. Groping for explanations some opine that this is because of the conservative lending in Vermont. Very few out of the state lenders have encroached into Vermont. Unlike Florida, Vermont has not been a subject of real estate speculation and investing frenzy. In Florida and other places the rapid rise in population also led to a rising demand in housing.

George Mathias, an expert in housing matters, compares the situation to deadly gas warnings inside coal mines before the outburst of the actual tragedy. He warned that the coughing of the canary should not be ignored. The number of people afraid of impending foreclosures seeking help has risen considerably – in fact it has doubled in the last one year. Harry Sanderson of Central Vermont Community Land Trust agreed that the situation is slowly going from bad to worse. Bruce Whitney speaking on behalf of Rockingham Area Community Land Trust repeats the same story. In 2007 there were 222 calls for help but this year already 237 messages have come through. In March 2007 there were 117 foreclosure filings but this year there are 142 postings. Although all the listings do not end in the court auction, nevertheless the warning signals cannot and should not be ignored. It is of little consolation to individuals facing foreclosures that even today the numbers are far below the national average.

In the capital the Senate voted 84/12 including the support of 35 Republicans a bill to give tax breaks to the construction industry and mortgage lenders. Also it added incentives to those who would buy foreclosed houses. $150 million was sanctioned to increase the strength of the counselors and related agencies. $4 billion was set aside for local governments to purchase the abandoned foreclosed units. White House did not veto but was opposed to the bill.