House Repossession Remained Unabated in Wisconsin in July

Wisconsin’s foreclosure rate has set a one-month record high last month. Filings for house repossession surged to a record level as the increasing unemployment rendered thousands of homeowners unable to afford their monthly mortgage payments.

Last month, foreclosure filings were made on 2,729 properties in Wisconsin, representing an increase of 52 percent from the 1,793 posted for the same month last year. Industry experts said that last month’s numbers are an all-time monthly total record.

Wisconsin experienced the highest number of foreclosure filings in November last year with 2,706. Russell Kashian, economics professor at the University of Wisconsin-Whitewater, said that the resetting of adjustable-rate mortgages into unaffordable payment terms is partly to be blamed for the rise in the number of repo properties in Wisconsin last month.

But he added that unemployment was the major driver of home foreclosures in the state. According to industry experts, people then did not have difficulty in paying their mortgages. However, losing their source of income left them with no choice but to default on their mortgage payments. Wisconsin’s unemployment rate for June reached 9.2 percent.

Some counties in the southeastern area of the state experienced the most increase in foreclosed homes in July. Kenosha County posted 132 foreclosure filings, a rise of 43.5 percent, Milwaukee County had 667 filings, up by 3.9 percent and Ozaukee County posted 31 filings, representing an increase of 34.8 percent.

Additionally, Racine County‘s filings rose by 9.8 percent to 111, Walworth County had 77 filings, an increase of 28.3 percent, Washington County‘s 49 filings was an increase of 8.9 percent and lastly, Waukesha County had 138 filings, up by 15 percent.

Kashian said that there is a possibility that the July situation could be the worst that the state would ever experience in terms of foreclosure activity. However, he pointed out that new foreclosure filings will remain high for a while.

He said that until unemployment rate show some decline, there will be no improvement in the number of foreclosed houses in Wisconsin.

Filings for foreclosed properties last month rose by 9 percent compared with figures in June and a whopping 75 percent from July the prior year.

Kashian doubted that foreclosure moratoriums are making a dent on the problem in the state. He said that unless some resources are provided to distressed homeowners, the government is just delaying the inevitable.

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