St.Louis Ranks First In Foreclosures
The race started in 1998. Since then St. Louis County has come first with the highest number of foreclosure units. Most of these are concentrated in North County. There is no hope of the pace slowing down – rather it is picking up. Another wave of house owners are about to get entrapped. Since 2001 foreclosure figures have been steadily rising. The areas of concentration are those with the highest number of sub-prime borrowers.
The sub-prime market was created with the specific purpose of giving those with weak credit a chance to avail of loan and have a house of their own. The initial offers were teasers but later interest rates rose together with the threat of various penalty clauses. The sub-prime loans are suspected to be main culprits behind this foreclosure storm raging across the length and breadth of America. Most of the borrowers are finding it beyond their means to cope with increased monthly installments.
Sub-prime loans are most found in low-income zones. In these areas the sub-prime loans comprise of 54% of the mortgage figures. Areas with the highest number of foreclosure filings are identical with regions with the most sub-prime borrowers. These pockets are Dellwood, Spanish Lake, Ferguson, Bellefontaine Neighbors, Jennings, Berkeley, Pine Lawn and Glasgow Village. It should be noted however that the figures may be confusing because it includes only those units that are going through the foreclosure process and not the numbers owners are filing.
Foreclosures are not isolated zones – its effect touches the entire neighborhood. Real estate prices fall en masse. As such the community development of the regions is being affected. Various agencies have come up to succour help but even they are running out of funds because of the sheer pressure of increasing numbers. It is apprehended that another tidal wave will hit the markets in October because that is the time when another bunch will have to face the music of rising interest rates.
The counseling groups are more than just busy with having to attend to more than 150 calls per day. One agency is tackling 1,040 mortgage cases from Saint Louis alone. The agencies give financial help by often mixing one available fund with another. But all avenues are drying up and by Octobers things will be really bleak. The borrowers are being repeatedly advised to contact a national hotline that has been set up.
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September 3rd, 2007 at 5:20 pm
Modesto and Stockton, California is right behind. It’s sad to see so many vacant and abandoned homes.