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| ..... The opinions expressed in these articles and features are those of their author and do not necessarily reflect the positions of McANA or the opinion of its Directors or Officers. |
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Foreclosure
Alert -- Where are We Headed Indiana has been a proud national leader in both housing starts and minority home ownership rates. We have received national accolades for making the dream of home ownership a reality for so many. Many new loan programs have been created, underwriting standards relaxed, creative down payment programs implemented and widespread marketing have all been contributing factors in helping us achieve new heights in home ownership. Simultaneously (and not coincidentally) the foreclosure rate has skyrocketed. The state of Indiana has had the highest foreclosure rate in the UNITED STATES since 2001. We are on track to keep this dubious honor for 2003. Foreclosure is an equal opportunity problem. Throughout Indiana, in small towns, BIG towns, newer subdivisions and many older ones, young folk, OLD folk, of A-L-L income levels are losing their homes in record numbers. Over 580 homes were offered in the Marion county sheriff’s sale, July, 2003. One county, one month, over 580 families lost their home. Their dream. This is a very complex problem with several strong contributing factors. While the economy is a very obvious factor we would be making a serious mistake if we failed to look closely at the impact of other, not so obvious factors. Relaxed lending practices and down payment assistance offered by government backed loan programs are leading to unprecedented foreclosure rates, especially in new construction. Likewise, mortgage fraud is a thriving business in central Indiana, directly leading to thousands of forecloses. Predatory Lending continues to be a contributing factor for many who unwittingly refinance themselves into foreclosure. Seniors are especially vulnerable. The recent tax assessment will be the straw which literally pushes many over the financial brink into foreclosure. Again, seniors will be hardest hit. They have less flexibility in their budgets and therefore fewer resources to pay tax bills which may have doubled or tripled. A reasonable person might ask, “Where are we headed?” “Can we slow the rate of foreclosures in our state?” My response is that we can and we must. The picture is bleak but real. We must take corrective action, NOW. I believe homeowners are ready to demand aggressive leadership, constructive action plans and political accountability. I believe the solution is twofold: 1.
Legislative changes The Mayor’s office and City Council have been asked to implement 2 hours of housing education, per week, on Channel 16 for the next year. This would allow homeowners and potential homeowners to get answers to questions such as: “How, exactly, do you complete the paperwork to file an appeal to your tax assessment?” Such a program would be invaluable. There are no financial restraints to prevent this program from being offered immediately. It may, in fact, be in place by the time this reaches publication. If it is not, call Mayor Bart Peterson (327-2650) or your City Councilman to express your support. In the meantime, visit www.HomeOwnershipMatters.com for housing information, in a format you can understand. Mildred Wilkins, President, Home Ownership Matters. HOM offers professional in-service and training for real estate professionals and consumers on housing and financial literacy. Contact Ms. Wilkins at (317) 549-3918 Email: mildred_b_w@msn.com send comments
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2003
