Foreclosures Double In Vanderburgh County

Posted in Foreclosures, September 9th, 2008 |

The figures of the last six years show that foreclosures have doubled in Vanderburgh County. It has caught the attention of the media and Vanderburgh is now in the vortex of the foreclosure crisis. Today the problem is not merely about being able to buy a house but primarily about keeping it. Sheriff Eric Williams comments that the situation in Vanderburgh County is explosive.

The Sheriff and his staff deal with the houses after the lenders foreclose on these. Most of them are auctioned off at the Sheriff’s Sale. The numbers of such foreclosed auctions have gone up to 1,000 this year. Previously in the entire 12 months of 2002 it was 500. Consequently the workload for the Sheriff and his office has considerably increased. Williams complained, “It’s becoming more and more difficult for my people who were doing that to keep up with them in addition to all their other jobs.” With no other way out, the Sheriff is no taking the help of an outside firm to deal with the surging tide of foreclosures.

With the increase in evictions from foreclosure a demand has risen for rental accommodation. People can no longer afford houses of their own and so they are becoming tenants. In Sugar Mill Creek all the 400 rented units are booked. This tendency has not set the ball rolling for purchase of houses. It continues to be a buyer’s market. There are several houses in the market but loans are not easily available.

Local managers of property however opine that there is no direct link between increase in foreclosures and rising demand for rented houses. One factor is that of job transfer. The other causes are the slump in general economy, rising property taxes and inflation. Experts opine that foreclosure numbers will not go down and this will lead to a greater demand for rented units.

The sub-prime ARM loans are primarily accused for the unprecedented foreclosure crisis that is sweeping across the country. Millions of houses have been sucked in by the foreclosure tornado. Millions more are about to meet the similar fate. It has become a socio economic problem of jumbo proportions. No part of the country or any section of the society has remained immune to its onslaught. The chain reaction that is triggered is even more devastating. Many cannot afford even to pay the rent and are staying in their cars. The pressure on shelter homes has increased but the state budgets are decreasing.