By Brenda Showalter, The Republic
bshowalter@therepublic.com
More than 300 Bartholomew County families lost their homes in 2006 as part of a nationwide epidemic of home foreclosures.
The crisis that grabbed national headlines has directly affected local residents who were forced to abandon their homes and start over.
Many discovered high rental costs and long waiting lists for income-based apartment complexes.
Parents had to enroll children in new schools and scramble to find money for moving expenses and utility deposits.
Others moved in with relatives and friends.
Many who lost their homes were part of the subprime market that includes consumers with low credit scores who had loans with high fees or adjustable rate mortgages.
Lisa Piercefield, a counselor at Momentive Consumer Credit Counseling in Columbus, said some subprime borrowers started with "teaser" rates as low as 5 percent, but saw them increase to 10 percent or more.
"I have some clients whose payments increased $400 or $500 a month," Piercefield said.
Starting over
When Richard and Wuanita England of Columbus began receiving notices from their mortgage company that they were behind on their payments, they didn't understand.
They had been making the same $446 monthly payment for six years on a home that once belonged to Wuanita's grandparents.
"We kept making payments, and they kept saying we were late. It didn't make any sense," Wuanita said.
After sorting through paperwork and seeking advice from an accountant, they learned changes were made to their loan after it had been sold to another mortgage company.
The new company expected increased monthly payments that would be escrowed to cover insurance and taxes.
The Englands always had paid their insurance and taxes separately and said they were never told the loan terms had been changed.
Once they understood the problem, they sent the company an extra $1,200 in one month.
The mortgage company told them it was too late, that they could not accept the extra payment and proceeded with foreclosure.
"We tried to work with them, but they wouldn't work with us," said a frustrated Wuanita.
"It just tore up my heart," she said. "My grandparents lived there, and I grew up there."
The couple, married for 21 years, spent a short time in a rental house that cost $1,000 a month, and recently purchased a used mobile home.
Nearly homeless
Margaret Dougherty of Columbus, a single mother of four children ages 3 to 10, thought her family would be homeless when she learned her home was in foreclosure.
She was buying the house on contract from a Bartholomew County man and learned he defaulted on the home's mortgage with the bank.
"All of a sudden I got a knock on the door from a representative of the bank," Dougherty said.
Given only a few weeks to be out of the house, she didn't know where she would go.
Dougherty wiped away tears as she recalled the difficult days, but is thankful that she found a place for her and her children.
She said luck, prayer and many phone calls helped her secure a three-bedroom apartment at Lincoln Village where her rent is based on her income.
Unemployed because of health problems, Dougherty survives on Medicaid, child support and food stamps, but is thankful for everything she has.
She only wishes she would not have been placed in such a difficult situation.
When she first moved into her downtown home, she made a $4,000 down payment. She also spent two years making monthly payments before she had to abandon the home.
With help of Legal Aid of Bartholomew County, Dougherty was successful in receiving a civil judgment from the court for $11,000, but she has yet to see any of the money and doubts she will.
Dougherty also doubts she'll ever be in a position again to buy a home, but is content to have a new place for her children.
"I'll stay here until they drag me out of here," she said with a smile.
The Englands also doubt they'll ever be homeowners again.
"I know I'll never buy a house again," Wuanita said. "There's too many scary stories out there."
No typical case
Those who deal with housing issues and foreclosures say the stories of families cover a wide range of circumstances.
Deputy Randy Clark of the Bartholomew County Sheriff's Department, who handles sheriff's sales of foreclosed homes, said there is no typical case.
Monthly sales at the sheriff's department attract the curious, former homeowners, investors and those looking for a bargain.
Price range of the homes vary from under $50,000 to more than $200,000.
"The houses are from all over," Clark said. "A lot of times it's just good people down on their luck."