BY BOB KASARDA, Times of Northwest Indiana
bkasarda@nwitimes.com
VALPARAISO | Home foreclosures in Porter County reached at least a 10-year high in 2008 and there is no sign of the trend letting up.
There were 603 foreclosures last year, which amounted to a 22 percent increase from the year before, according to Kathy Nichols, who arranges for the homes to be auctioned off by the Porter County Sheriff's Department.
She believes the number of foreclosures may have been kept artificially low as a result of the banks' interest in securing federal bailout money. The number of foreclosures already in the pipeline for this year include 33 for January, 38 for February and 75 for March.
The picture is even more bleak when collection cases for 2008 are figured into the mix, which includes credit card, medical and contractual debt.
The number of these filings reached 2,829 last year, which is nearly 45 percent more than the year before, according to figures provided by the county court administrator's office.
The surge in foreclosures is being felt by Judith L. Samson, a foreclosure prevention counselor at Consumer Credit Counseling Service of Northwest Indiana.
The majority of the mortgage holders she is meeting with are in trouble as a result of lost income caused by the downturn in the economy, she said. Some people have had their work hours cut and others have lost their jobs, she said.
The most important step for anyone who is unable to make a mortgage payment on time is to immediately contact the lender and attempt to start a conversation, Samson said.
If that effort is not successful or if the financial situation is worsening, she recommends the homeowner seek the help of a certified debt management counseling service. A certified agency, such as Consumer Credit Counseling Service, will not charge for the help, unlike other groups.
"They take thousands and thousands from the individual, which could be put on their mortgage," Samson said.
She recommends contacting the Indiana Foreclosure Prevention Network at (877) GET-HOPE.
A certified counselor will not only work one-on-one with the mortgage holder, but also will contact the lender to discuss options, she said. Often, the lender is more cooperative with a third party.
Homeowners who wait too late in the process to respond, lose options, Samson said.
"You can't wait until the sheriff's sale," she said.