Foreclosure - Kitsap Hit By Foreclosure Blues

Kitsap Hit By Foreclosure Blues

March 24th, 2008

There are a rising number of families affected by foreclosures in Kitsap County. The rate is up by 140% since 2007. Most of it is due to the debacle in sub-prime mortgages. But there are other factors differing from one person to another.

Few Years the Burghs were on top of the world with the engineer husband earning $100,000. They had four cars and other frills. Then he developed cancer. He struggled to hang on to work as kidneys began to fail. Last September he just could not carry on. Today a disability cheque is all that he has. Karen has taken on a job as a substitute teacher, paid on an hourly basis of $10.37. From a previous marriage a child support dole comes in. Meanwhile creditors are honing in. Three of the cars have been taken back and today they are in debt for $400,000. Sometime ago they had availed of a subprime loan. That has become the prime cause for the grave situation they are facing today. They are seeking the shelter of bankruptcy laws.

The number of houses listed in Kitsap is 140% higher than what it was the previous year. In the first two months it was 140% higher than what it was the previous year during the same time. This year 140 properties are on the auction list. In 2007 there were 46. Forced sales have more than tripled during these two months compared to the previous year. Many are walking away from unbearable loans. There were 332 forced sales in 2007. 259 units in Kitsap County are ready for future foreclosure auctions.

Walt Bailey of Northwest Mortgage & Escrow says that this spell in four years is the worst he has seen during the last 20 years he has been operating. He is optimistic the wave will subside. Everything seems to follow a cyclical order. He opines that the reverse cycle is going back 10 years. He blames the shady brokers for the situation of today. Today the numbers of active brokers have sharply declined. Many of their offices in Silverdale have pulled down shutters. More will leave when federal licensing rules come into force in July.

Nationally foreclosures rose by 60% in February 2008 as compared to February of the previous year. Relatively the northwest seems to be better off with an increase of 4% in January this year from last year.