Indiana Leads Nation In Mortgage Foreclosures
July 28, 2016 at 4:25 p.m.
Indiana leads the nation in mortgage foreclosure and loan delinquency rates.
The most recent data available, compiled by the Indiana Mortgage Banker's Association in 2002, shows Indiana's foreclosure rate is more than double the nation's.
Nationwide, more than $8.9 trillion in mortgage loans are delinquent with a national foreclosure rate of 1.15 percent. In Indiana, foreclosures are twice the national average, with 2.38 percent of all mortgages foreclosed.
Indiana has not historically been a state with high delinquency rates. According to a report prepared by the IMBA, throughout the 1990s, Indiana actually had a lower rate than the national average. Only in 2001 did Indiana begin to lead the nation in its foreclosure rate.
Why such a high rate of foreclosure in the state? In that same report, the IMBA cites the slump in the manufacturing sector, a field in which many Hoosiers traditionally work, as one dominant reason. The highest interest rates in the country also may be a factor, as is the fact that Indiana has the highest rate of homeownership in the nation.
While a large percentage of homeowners can be construed as a good thing, first-time homebuyers have the highest rate of delinqunecy, which adds to the state's overall foreclosure rate.
In Kosciusko County, Lake City Bank mortgage official Dennis Dolby, says that in 2003 and 2002 he saw a dramatic rise in foreclosures. Prior to 2002, he knew of one or two per year, now he sees approximately 20 per year.
Locally, Dolby attributes the loss of a home mainly to work, family and health problems.
"I'd say the main reasons we see are job or divorce related," Dolby said.
"People bought too much house a few years ago, counting on overtime. Now they've lost their overtime and can't afford the payments."
Divorce has similar effects, when a couple buys a house based on two incomes and separate, only one earner is responsible for the mortgage.
How can one avoid foreclosure? According to Dolby, communication with your lender is key.
Many bankers, he says, are willing to work with customers if they are kept in the know on any financial situations.
"With communication, cooperation and effort, we will try to resolve it without going to foreclosure," Dolby said. [[In-content Ad]]
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Indiana leads the nation in mortgage foreclosure and loan delinquency rates.
The most recent data available, compiled by the Indiana Mortgage Banker's Association in 2002, shows Indiana's foreclosure rate is more than double the nation's.
Nationwide, more than $8.9 trillion in mortgage loans are delinquent with a national foreclosure rate of 1.15 percent. In Indiana, foreclosures are twice the national average, with 2.38 percent of all mortgages foreclosed.
Indiana has not historically been a state with high delinquency rates. According to a report prepared by the IMBA, throughout the 1990s, Indiana actually had a lower rate than the national average. Only in 2001 did Indiana begin to lead the nation in its foreclosure rate.
Why such a high rate of foreclosure in the state? In that same report, the IMBA cites the slump in the manufacturing sector, a field in which many Hoosiers traditionally work, as one dominant reason. The highest interest rates in the country also may be a factor, as is the fact that Indiana has the highest rate of homeownership in the nation.
While a large percentage of homeowners can be construed as a good thing, first-time homebuyers have the highest rate of delinqunecy, which adds to the state's overall foreclosure rate.
In Kosciusko County, Lake City Bank mortgage official Dennis Dolby, says that in 2003 and 2002 he saw a dramatic rise in foreclosures. Prior to 2002, he knew of one or two per year, now he sees approximately 20 per year.
Locally, Dolby attributes the loss of a home mainly to work, family and health problems.
"I'd say the main reasons we see are job or divorce related," Dolby said.
"People bought too much house a few years ago, counting on overtime. Now they've lost their overtime and can't afford the payments."
Divorce has similar effects, when a couple buys a house based on two incomes and separate, only one earner is responsible for the mortgage.
How can one avoid foreclosure? According to Dolby, communication with your lender is key.
Many bankers, he says, are willing to work with customers if they are kept in the know on any financial situations.
"With communication, cooperation and effort, we will try to resolve it without going to foreclosure," Dolby said. [[In-content Ad]]