The Foreclosure Report

Carolinas Experience Big Jump In Foreclosures

The Carolinas Newswire has the latest on foreclosures in those states. "Foreclosure rates in both Carolinas continued to climb in 2005 despite solid economic conditions and historically low interest rates, which also have begun to move higher. Christian Werner says there is a lack of restraint among lenders and lack of discipline among mortgagees that is causing the problem."

"'We've been seeing double digit month-to-month increases in foreclosure in North and South Carolina virtually all year. In November, homes in some stage of foreclosure increased in NC by 23 percent and in SC by 75 percent from the previous month,' says Werner. 'I think there is some greed on the part of lenders and some recklessness on the part of homebuyers affecting the foreclosure rate. And it is not just at the low end of the market that we are seeing foreclosures.'"

"Werner says he often loses business because he won't qualify potential homebuyers for more home than they can realistically afford. Unfortunately, he says, there are plenty of lenders who will qualify them for the maximum loan amount possible. Additionally, foreclosure is an easy way to get out of a mortgage with virtually no effect on the mortgagee's ability to buy another home."

"'If we don't begin to see some restraint from the industry, and some discipline on the part of mortgage holders, a legislative solution to this increasing problem may be the answer,' he says."

posted by Ben Jones @ 8:54 AM