Washington State Cuts Down Repo Homes with $250,000

A total of $250,000 was set aside by Washington State legislators to help reduce the number of repo homes in the state. The bill to allot the money was unanimously approved by the state legislature last week and is expected to be signed by Governor Chris Gregoire within the week.

The money will be spent to fund a group of volunteer lawyers, mortgage brokers and real estate professionals to help homeowners save their houses from becoming repo homes. The group will negotiate loan modifications and other affordable payment arrangements with the lenders under the supervision of the Washington Housing Finance Commission.

The legislation was sponsored by State Senator Jean Berkey of Everett, who expects workshops held by volunteer lawyers and mortgage professionals to help many homeowners save their houses from becoming repo homes.

Dee Taylor, head of the Housing Finance Commission, said the money will help fund several HUD-approved agencies that offer foreclosure prevention counseling across the state. Taylor said the agencies have been deluged with requests from distressed homeowners, including borrowers who have been victimized by foreclosure counseling scammers.

Based on RealtyTrac’s research for the first quarter, Washington foreclosures reached 9,713 and a foreclosure rate of 1 house in every 283 housing units, higher than the nationwide average foreclosure rate of 1 unit in every 159 properties. Washington is 21st in Realty Trac’s ranking of state foreclosure rates.

Meanwhile, the number of repo homes in the counties of King, Snohomish and Pierce has tripled in the past two years, increasing the number of abandoned properties.

Rich Faires, property manager for Lakeland neighborhoods, said 1 house in every 13 homes in Lakeland since 2006 has become repo homes. He said the abandoned homes represent the end of an era when lenders gave out loans without requiring down payments and without checking employment records.

South King County and Pierce County had the most number of repo homes, with new suburban neighborhoods like Lakeland getting the most hits. In Verona subdivisions in Lakeland, just outside Seattle and Tacoma, home prices dropped by over 25 percent in the past two years. About three-fourths of the 38 Verona repo homes were bought with adjustable-rate subprime loans.

In Washington, especially in Puget Sound towns, the number of repo homes owned by banks has risen because few people were buying at foreclosure auctions. Few homeowners were also able to negotiate loan modifications with their lenders under President Obama’s Making Home Affordable program.

Comments

Name (required)

Mail (will not be published) (required)

Website

Sponsored Links:

Related Posts:

• Redevelopment Agency Plans to Buy Homes on Foreclosure Lists
• Foreclosure Business: Tips to Finance Foreclosures
• Aid for Illinois Neighborhoods to Address Foreclosure Homes
• Repossessed Houses Rising due to Higher Loan Payments
• Anti-Foreclosure Homes Plan Too Late for Some Families