Elkhart County's foreclosure rate rose throughout 2009

Foreclosure activity in the Elkhart-Goshen region continued to be higher than the national foreclosure rate, according to First American CoreLogic, which analyzes national real estate and foreclosure data.

For November 2009, the most current local data, 10.31 percent of mortgage loans were 90 days or more delinquent, compared with 6.18 percent for November 2008.

The amount of foreclosed homes for sale in the Elkhart County Sheriff's Sale has doubled since 2006, said Capt. Ron Robinson, who coordinates the sale for the department.

In 2006, 723 homes were auctioned, compared with 1,509 in 2009. For March, there are more than 120 properties on the sale list, and 40 are homes on which the owner owes the bank more than $100,000.

"A lot of attorneys are saying that it could even get worse," Robinson said.

Until now, most of the foreclosures were the result of variable-rate loans, he said. When the rate reset, people could no longer afford their payments.

Now, the foreclosures are coming in from fixed-rate loans, Robinson said. He said most of those delinquencies are likely driven by long-term job loss.

Except for a handful, "All of the ones that go to the sale sell," he said. Those few properties that do not sell may roll over onto next month's sheriff's sale list.

Most of the homes on the list are bought by the banks holding the mortgages, usually for the amount the property owner owes the bank. The bank then will receive the title for the property. He said only a few homeowners have come to the sale to see the outcome. Most steer clear.

Robinson, who is running as a candidate for sheriff, said it's been difficult to watch the large number of homes fall into foreclosure.

"Your house -- that's the biggest thing you'll ever buy," Robinson said. "People dream of homeownership and growing old in that house."

But for many people in Elkhart County, the outcome has been more of a nightmare than a dream.

Foreclosure has affected people from all walks of life and rampant foreclosure affects everyone in the community, he added. Foreclosures reduce neighborhood home values and the tax base, which is harmful to the community as a whole.

The team at LaCasa, a Goshen-based neighborhood improvement and stability organization, continues to provide counseling and assistance to homeowners at risk of foreclosure.

"Some people are understanding their (own) situation a bit more," said Eddie Sauceda, homeownership counselor at LaCasa. He had one client who had exhausted his unemployment benefits and was of the age where he was doubting his future job prospects.

Sauceda counseled him on selling his property in a short sale, rather than waiting it out and possibly risking foreclosure, he said.

"At all costs, we're trying to avoid foreclosure," primarily because of the long-term damage to a person's credit.