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Foreclosures hitting record highs across Miami Valley
Officials are worried the problem is worsening, thanks to predatory lending, rising mortgage rates and other factors.
Sunday, November 26, 2006
DAYTON — When Dan Foley walks through certain Dayton neighborhoods, he can trace the devastation left by home foreclosures in the form of boarded-up, neglected, deteriorating houses.
"Santa Clara has really been hurt by foreclosures. Five Oaks as well," said Foley, the Montgomery County clerk of courts and county commissioner-elect. "And the problem seems to be growing."
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As of earlier this month, 4,355 foreclosure actions had been filed in Montgomery County this year, already surpassing the previous record year of 4,281 foreclosures in 2003, Foley said.
Foreclosures are up elsewhere, as well. Greene County also has surpassed its previous annual record. Earlier this month, it hit 571 cases. The previous record for a year was 566 in 2004. And Warren County is on pace to surpass last year's record 938 filings. This month, it hit 882 foreclosures.
Foley said mortgage foreclosures account for 48 percent of Montgomery County's civil court caseload. According to Policy Matters Ohio, a nonprofit economic research organization, Montgomery County ranked second behind Cuyahoga in foreclosures per capita last year. Montgomery County led the state in 2004.
Foley said predatory lending is apparently a factor, but other factors also are important.
"Medical expenses can be a problem. Divorces are big; people find out they can't keep up with their mortgage when one of the workers in the house leaves," he said.
Foley said he's afraid the area is heading for a bigger problem as interest rates rise on adjustable rate mortgages.
"A lot of these adjustable rate mortgages that people got when rates were low are about to come due," he said. "People are going to start getting hit with payments that might be twice as large as they're used to. It's frightening to think what that may mean for foreclosure rates."
