House Foreclosures - Foreclosures Overtake Civil Cases

Foreclosures Overtake Civil Cases

January 4th, 2008

In 2007 foreclosures have outraced civil cases in Tuscarawas County – although it was below the apprehended levels. It accounts for 43% of the year’s civil cases. According to Rockne Clarke, citing records from the County court, in 1997 foreclosure comprised of 14% of the total number of cases. However although the numbers are not as bad as initially feared, experts are still hesitant to use the term slow-down. In fact the lurking fear persists that this is just the lull before the storm. The lenders are under great pressure from the public and administration to work out new formulas with the borrowers. But how much it will tell on the overall picture has yet to be seen. Meanwhile the game continues – foreclosed houses are being sold at the sheriff’s auction.

The Chief Civil Deputy of the Sheriff’s office says that in the previous year 359 units were sold as compared to 335 sold in 2006. In fact more houses were listed but they have been put up for 2008 sales. Uhrichsville and Dennison are the worst hit pockets although to some extent the entire region including Phila, Dover and Bolivar have been affected.

However the sale value of the properties are rising. From $20,000 and $40,000 the range has gone up to $100,000. Previously the units were sold at two thirds the mortgaged value but today it is slowly touching the loan value. Banks are desperately trying to get back the amount they had advanced.

Clarke however added that the picture is bleak for 2008 – in fact it is going to be worse. A lot of factors are at play –ARM’s, predatory lending and the general weak pallor of the economy. Plans are afoot at the state and national levels to correct the picture but how much impact it will have seems to be anybody’s guess. The step of freezing interest rates seems to have come too late.

Dealing with a local lender is always preferred but unfortunately these entities cannot carry the load for long 20 or 30 years. That is why it goes beyond the hands of the local groups. Countrywide and Wells Fargo are the two main loan agencies whose names pop up repeatedly in foreclosure listings. They buy up the local mortgages and then follow up the foreclosures that later follow. This has led to a grand mix up with the original lenders and servicers.