Published: May 16, 2008 10:32 pm         

Foreclosure rate rises

With local manufacturing companies laying off workers and the cost of gasoline reaching almost $4 a gallon, many families have found it difficult to make ends meet.

Evidence of the hard times can be seen in Elkhart County, where officials have reported a rise in the number of homes in foreclosure.

“The economy is a big part of it,” said Capt. Ron Robinson, administrative services commander for the Elkhart County Sheriff’s Department.

Robinson handles the monthly sheriff’s sales, in which typically about 50 to 60 homes are sold. In most cases, the homeowners have fallen on hard times and are no longer able to afford their mortgage payments.

Already this year (as of May 5) there have been 578 foreclosures filed in the county. At that rate, the number is expected to surpass the 928 filed in 2007 and 723 filed in 2006.

Robinson said it’s sad to see someone lose their home to foreclosure, particularly if the person lost his or her job and has children.

He explained that at a sheriff’s sale, the bank is often the only bidder on a foreclosed property. The bank will make a bid that will cover the amount owed. If there is someone else interested in the property, that person can enter a bid, but it must be higher than the bank bid.

Sometimes, a “voice bid” takes place to determine who gets the property.

Once a sale is made, the sale is final, Robinson said.

“There is no redemption, like a tax sale,” he said. Also, if someone does bid and gets the property, the successful bidder must pay for the property by 3 p.m. that day with a bank check.

One common misconception, according to Robinson, is that the homes can be shown to people who are considering purchasing them.

“It is still owned by the people (living there) up until the sale,” he said. “We don’t have keys.”

Also, he said, if the previous owners are still living in the house, the new owner must file for an eviction with a court, Robinson said.

“A lot of times they (the residents) have moved out, but sometimes they haven’t,” he said.

Staff at LaCasa of Goshen has seen a significant increase in the number of foreclosure clients and families who have missed mortgage payments.

Amy Kennedy, director of the home ownership center at LaCasa, said that the agency has seen 107 such clients in the first quarter of 2008. The agency saw 69 all of last year.

“The majority of people we see have bad loan products,” Kennedy said, explaining that adjustable rate mortgages are one of the culprits.

However, even some families with 30-year fixed loans have found themselves in trouble, she said.

Kennedy said it’s so important for homeowners having problems to contact the loan servicer (whoever they make the payment to) as soon as possible. She said banks want to work with homeowners and get to know them.

Homeowners can also contact LaCasa, which is a Housing and Urban Development (HUD) counseling agency. LaCasa has many certified counselors who can help, she said.

So far this year, LaCasa has helped nine individuals and families retain their homes. In some cases, the clients were able to have their mortgages modified, she said.

Kennedy said there are 22 other families in various stages of loss mitigation. Many are trying to sell their homes or are looking for employment.

LaCasa provides free one-on-one counseling with persons who are struggling to keep their homes. Kennedy said that unfortunately, she has seen people charged as much as $600 for this type of counseling.

Another good resource, she said, is the Home Ownership Preservation Foundation, which can be reached at 1-888-995-HOPE.

Assistance may also be available from the township trustee’s office.

Chuck Cheek, Elkhart Township trustee, said that in some cases his office can provide emergency services to assist with rent or mortgage payments.