By Bill Strother, For The Reporter-Times
bstrother@heraldt.com
In Morgan County, foreclosure rates have been increasing considerably, according to Myla Magennis, coordinator for the county's sheriff's sales. She said 506 foreclosures were recorded in Morgan in 2008, compared to the 163 in Monroe the same year. In 2007, there were 411 in Morgan County, while Monroe recorded 136.
The number of sheriff's sales are probably the best indicator of how many homeowners are in financial distress.
Foreclosures only become part of the official record when the new deed is recorded, and with banks and mortgage companies in no hurry to announce that they've had to repossess a home, delays in recording foreclosures are commonplace.
Some homeowners also are able to renegotiate with their bank or find someone new to underwrite a different mortgage - or they make a deal that returns the house to the lender before foreclosure.
Morgan County's foreclosure numbers are in stark contrast to 1999, when she began her current job. Then, Magennis said, "If we had two or three a month, that was considered a lot. Now, oh my gosh, they're horrible."
A lot of 2007 foreclosures were concentrated in the northern tier of the county, many in the huge Heartland Crossing development that sprawls across parts of Marion and Hendricks counties as well, she said. "Now, it's just all over the county."
Layoffs, reductions in overtime that workers had become accustomed to and home loans for 100 percent of the home's value plus closing costs, or loans with adjustable rates, all have contributed to the problem. And home values have fallen, with a house in a newer subdivision that originally sold for perhaps $140,000 now listing at between $110,000 and $118,000, she said.
No-money-down loans, while they allowed people to own homes without first saving for years for a 20-percent down payment, also make it a lot easier for those people to walk away from a home that's become a struggle to pay for, Magennis said.