Foreclosures Triple In 2007!

Within a span of ten years the number of foreclosures on Porter County has actually tripled to nearly 500. 2007 has in fact seen the highest number of foreclosed properties in the last decade. Ex- Courts Clerk Dale Brewer has recorded that about 192 foreclosures out of her offices in 1999 alone, there had been a sudden rise in foreclosure to 406 in 2003. So the records reveal that it was from last year that foreclosures started rising. She also noted that people came from different sectors and classes to get involved with foreclosures.

The Sheriff of Porter County Sheriff’s Warrant Division and Civil Bureau Supervisor, Kathy Nichols, also noted something similar through her studies. She stated that from 152 sales order made for houses in 1992, the number had risen to 493 in 2007.

Some properties were in fact pre-worked out in their foreclosure status, i.e. even before they actually reached the point where they would reach the foreclosure status. The statistics showed that people are relying on credit a bit more than they should.

There have also been changes in the lending and mortgaging structure which led to the boom of a number of unregulated mortgage companies. Both Bill Vaughn, the vice president of the First National Bank of Valparaiso as well as Allen Watkins, the owner of Choice Home Realty and Housing Resource Center in Lake Station agree to the fact that this has caused the massive explosion of foreclosures in the last few years. However, Vaughn says that the high tide has not yet hit the market and that there is more to come.

Watkins has said that he has already offered people bought homes as alternatives to foreclosures in Porter County for over 11 years. But he blames the lenders for thwarting projects like this with their propaganda in guidelines in supermarkets and such popular public places. He also observes that the adjustable mortgage rates will actually increase in the market in the coming year.

According to this analysis, as long as competition for borrowers stays on the rise, the risk of running into higher loans remains. Also, the risk of low credit remains among people not making the whole scenario too pliable after all. As payments will rise higher then people will not be able to pay them or get so frustrated that they will perhaps bunk the whole thing altogether. So this is going to be a simple path for failure.

Federal guidelines do not allow the banks to make the similar type of loans that unregulated mortgage loaners did in recent times.

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