The number of Americans losing their homes because of an inability to pay continues to grow nationally.
“Foreclosures have become more frequent here, but nothing like other places in the nation,” said Brian Monge, an agent with Jim Maloof Realtor.
The good news is that the problem hasn’t hit central Illinois as badly as it has other parts of the country.
But it’s still a problem that’s plaguing the American economy. More than 80,000 U.S. families lost their homes in April, according to Hope Now, an alliance of mortgage lenders, investors and community advocacy groups. That’s up from 72,000 who lost homes in March, the group stated.
Among the headlines: The nation’s foreclosure rate doubled in 2007; U.S. home values dropped by more than 7 percent last year as new-home sales hit a 25-year low.
The rash of foreclosures serves as a sobering reminder of the subprime loan crisis that’s been making so much economic noise.
The nation’s foreclosure problem is not equally distributed, said Paul Lueken, president of Lombard-based Illinois Association of Mortgage Professionals.
“Four states – Florida, Arizona, Nevada and California – experienced too much home appreciation while three others – Indiana, Ohio and Michigan – are suffering from recession. Those states skew the national foreclosure figures,” he said.
In the Peoria market, foreclosures have been on the rise but still represent a very small percentage of homes – just more than one-half of 1 percent, said Brad Horton, recorder of deeds for Peoria County.
A tightening housing market has aggravated the problem for those who face defaults on house payments, he said. “In the past, people would sell their home to get out from under a loan. But when you can’t sell your house, homeowners get in trouble,” said Lueken.
There were 501 foreclosures recorded in Peoria County in 2007, up from 436 in 2006 and 370 in 2005. So far this year, there have been 203 foreclosures in the county, compared with 172 over the same period last year, said Horton.
“We’ve seen a huge jump (in foreclosures) from March to May,” said Flemming, who works to help families in financial crisis. “We try to get people refinanced, to see if their loan is salvageable,” she said.
While Peoria hasn’t seen rampant foreclosures, some in the area have been hit. “We’ve seen foreclosure activity quadruple from last year,” said Shayla Flemming, senior housing counselor for Metec, a faith-based, not-for-profit organization at Mount Zion Baptist Church, 305 Madison Park Terrace.
The foreclosure problem is not confined to any specific part of the Peoria area, said Becky Peterson, president of the Peoria Area Association of Realtors. “They’re everywhere,” she said.
Sometimes foreclosed homes can sit idle for some time, said Peterson. “It’s a process,” she said, referring to the reselling of a home through a lending institution once the previous owners move out.
Peterson estimated it can take three to six months to move a home through foreclosure.
Tags: foreclosure, foreclosures, house lost, lost home
