The Foreclosure Report

More Foreclosures Than Loans In North Carolina

The Charlotte Observer continues to follow the foreclosure situation. "North Carolina's lively real estate market has been a boon for home buyers, giving them a chance to own a new home or get a better deal on their existing loan through refinancing. But the boom has been chased by a thud for some, with foreclosures also increasing across the state, outpacing even new home loans, according to state banking commissioner Joe Smith."

"'If we compared the increase in foreclosures to the number of new mortgages, it's clearly much higher,' he told the High Point Enterprise last week."

"Home foreclosures in North Carolina have nearly tripled during the last seven years, from 15,282 in 1998 to 42,832 in 2005. The reasons are unclear. In February, Smith told the N.C. House Select Committee on Home Foreclosures that mortgage market growth has increased the risks for both home buyers and lenders. It's also led to an increase of predatory lending and mortgage fraud."

"He said problems also have arisen because of the increasing ease with which buyers can get a loan with little or no down payment. And he also cited rising consumer debt and job loss. It's impossible to say which has had the biggest impact, Smith said."

posted by Ben Jones @ 4:24 PM