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Home foreclosures in FL expected to rise this year
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Wednesday, 09 April 2008
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Jennifer Larson
Staff Writer
The number of expected home foreclosures in the Forest Lake area this year is a crisis of great magnitude.
Rich Malloy, deputy executive director for Washington County Housing and Redevelopment Authority, updated the Forest Lake City Council on recent foreclosure figures during it’s regular meeting on March 24.
He said that in 2006 there were 26 homes foreclosed in Forest Lake and 97 last year. The county processed about 16 foreclosures in Forest Lake through January 2008, which Malloy said is the only month of the year with available statistics.
Officials are projecting 1,200 home foreclosures county-wide in 2008, he noted.
Malloy said the HRA has a three-point strategy; establish foreclosure prevention programs, establish a “clearing house” for foreclosure remediation programs and establish neighborhood stabilization and rehabilitation programs for post-foreclosure impacts to deal with abandoned homes like left behind junk and vehicles.
In addition, he said the county is working with MN Housing Corp and other non-profit agencies. They have hired two counselors with extensive experience and understanding of budgeting in negotiating with lenders.
He said the counselors are trying to get the word out earlier as to what home owners should do if they’re behind on their mortgages.
“Fifty percent don’t bother to get help,” Malloy said.
He said that many people are having a difficult time making their house payments. Malloy said there are a variety of reasons such as a loss of employment, a decrease to income as well as bad loans. They are working on financing options and alternatives, if financing is not available.
Washington County will provide the city with monthly reports of sheriff sale locations and identify vacant homes, Malloy added.
Although a lot of the homes will not be in shape for immediate sale, he said there may be a burden to Forest Lake and the city needs to be proactive. Malloy said they will continue to monitor legislation and advocate where necessary.
Mayor Steve Stegner said the county should notify the city faster of the foreclosed homes in Forest Lake so they can identify properties that need code related improvements to keep from having a blighted community.
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