As promised last month I am providing an update on HB1229, The Indiana Home Owner Protection Act. I am pleased to announce that this bill which addresses several of the most inherently abusive practices in consumer mortgage lending, was signed by the Governor on March 6, 2004. The new restrictions will become effective later this year. For details go to: http://www.in.gov/legislative/bills/2004/PDF/HE/HE1229.1.pdf

Indiana, my “adopted” home state for the past 28 years, is in the midst of a housing crisis. We have enjoyed a dramatic increase in minority home ownership rates while our overall rate has also increased significantly. These two factors are cause for pride but we would be remiss if we did not also acknowledge that our bankruptcies and foreclosure rate have skyrocketed during the past 4 years. It only makes sense that we stop to consider realistic ways to decrease those numbers because those numbers represent people whose dreams have been destroyed, whose faith in the American dream has been shattered, people whose credit is now challenged. If they have lost a home to foreclosure where will they go? They must attain housing -- but where? How? Is it possible that by offering the American dream either too soon, with too little preparation, that we created the current situation as an unintended con-sequence?

I recently spoke with someone who commented that many of us discuss the problem of foreclosures in our state in the same manner that we discuss the weather — as though there is nothing we can do about it.

There is much we can do—beginning with an honest look at the contributing factors. Who is responsible for this mess is a reasonable question but has no clear-cut answer. What is crystal clear is that we need to take action. Unless all parties who have the ability to make inroads join together with less finger pointing but a willingness to honestly evaluate our ACTUAL housing numbers as opposed to the number of loans we generated or the number of dwellings we sold, we will continue to lose ground as we have for the past 4 years.

It would not be difficult to assess the number of vacancies in newer subdivisions. In the simplest accounting terms, high levels of vacancies indicate a surplus and a need to cut down on production. Production of new housing in Indiana has outstripped demand by consumers who are qualified and able to SUSTAIN homeownership. The economy is a factor: but not the sole culprit. We need to take corrective steps to achieve balance: well qualified and educated buyers who are making wise choices about building or buying at all so that we have successful consumers who are able to SUSTAIN AND RETAIN THEIR HOMES.

Did you know that Momemtive Consumer Credit Counseling Services will schedule an appointment to review your documents if you are planning to re-finance? MCCC offers Low-cost pre-purchase and default counseling services. Call (317) 266-1300 or 1-866-722-WAIT.

If there is a particular subject you would like to see explored, please contact Ms. Wilkins via email: mildredwilkins@homeownershipmatters.com.