Wednesday, May 13, 2009

Rep. Tom Perriello Holds Foreclosure Roundtable at Bodo's

Representative Tom Perriello (D-Ivy) held a "roundtable" for constituents of the 5th District at Bodo's Bagels on Preston Avenue, reports Brian McNeill of The DP.

Perriello appeared along with U.S. Rep. Edolphus Towns, D-N.Y., chairman of the House Committee on Oversight and Government Reform, concerning the rising rate of home foreclosures as well as problems in mortgage lending and modifications.

From the article:

Since the financial crisis began in earnest last fall, the number of foreclosures in Perriello’s district has climbed sharply. On Oct. 1, the 5th District saw a total of 24 homes in foreclosure go to auction. On May 1, 237 homes went to auction.

At the same time, the district’s inventory of foreclosed homes rose from 55 on Oct. 1 to 369 on May 1 — an increase of 571 percent.

Charlottesville bankruptcy lawyer Bob Stevens said that he is seeing homeowners with mortgage loans that have interest rates of 8 percent to 14 percent.

“Unfortunately, we’re probably going to see a whole lot of people just walking away from their homes that they can’t afford anymore,” he said.

In this economy, many people are just one serious illness, one divorce, one death, or a couple of months of unemployment away from default, foreclosure, or bankruptcy.

The 5th Congressional District stretches from Charlottesville all the way down to the Danville/Martinsville area, where unemployment rates are much higher than locally, which results in more foreclosures. The issue with rising foreclosures in the Cville/Albemarle area is rising unemployment (doubled from a year ago) but also Option ARMs due to reset, as well as Jumbo loans that can't be modified because they're beyond the price cap for the Obama "Making Home Affordable" program.

Read all of The DP story, including what some local homeowners and regional housing advocates have to say, here.

Related Reading:
US Foreclosure Filings At Record High Q1 2009
Bank Forecloses, Resells For 50% Less Than Original Price
Location, Location, Location. Foreclosure.
4886 Dick Woods Road
332 Minor Ridge Road - Bank Lists at 37% Discount

1404 Westwood: Listed By Bank at $315K, Sold for $239K
A Tale of Two Foreclosures And Other Properties Nearby

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