Foreclosures in southeastern Wisconsin up 15% in August

Wisconsin Foreclosure News

By PAUL GORES
pgores@journalsentinel.com

Posted: Sept. 3, 2008

After easing a bit in July, foreclosures rose 15% in southeastern Wisconsin in August, court records show.

A jump in filings in Racine and Milwaukee counties accounted for almost all of the increase to 792 foreclosures in August from 689 in July in Kenosha, Milwaukee, Ozaukee, Racine, Walworth, Washington and Waukesha counties, a review of records indicated.

In Milwaukee County, foreclosures grew to 469 in August from 394 in July, while in Racine County, foreclosures increased to 90 from 50 a month earlier. Filings decreased in Ozaukee, Walworth and Washington counties in that period.

Statewide, 1,848 foreclosures were filed in August, bringing the year-to-date Wisconsin total to 16,139 for the first eight months of 2008, according to ForeclosuresWI.com. That is nearly 25% higher than in the first eight months of 2007.

Court records show that, from January through June, there was a monthly average of more than 900 foreclosure filings in southeastern Wisconsin. The average for July and August was about 740.

There may be some indications that filings are peaking, but it will take time for the properties to move through the system, said Robert Jansen, president of ForeclosuresWI.com, a Milwaukee firm that provides foreclosure listings and statistics to homebuyers, investors and real estate professionals.

“Wisconsin foreclosures have been building up to the current levels for the past three years,” Jansen said. “While new foreclosure filings appear to be leveling off, monthly filings remain over double what they were just five years ago.”

There were 1,025 monthly foreclosures in the state on average in 2005 compared with 2,017 a month this year, ForeclosuresWI.com reported.

Bankers say the inability of some to make their monthly mortgage payments has produced a troubling trend — homeowners unwilling to tell their bank they’re having financial trouble or even to return calls to the bank.

“It is indeed the most perplexing part of this whole foreclosure crisis that we’re experiencing nationwide,” said Kurt Bauer, chief executive of the Wisconsin Bankers Association.

Banks prefer to work with customers during tough financial times rather than foreclose, Bauer said. Foreclosure puts banks in the unwanted position of selling homes and often taking a loss.

Bauer said the lack of communication with struggling homeowners “is eliminating an option available to them that can perhaps keep them in that house and protect their financial future so that they don’t have this black mark on their credit report going forward.”

Bauer said he thinks it’s pride or embarrassment that keeps homeowners from talking with the bank.

“From our perspective we think that the first thing you need to do if you’re going to be late on a payment — or maybe not even be able to make a monthly payment on your house — is to contact your financial institution and talk through the problem. More times than not, the financial institution is going to work with you,” Bauer said. “Obviously the last thing a bank wants to do is foreclose.”

 

Article Source