Home foreclosures surpass previous records in the region
DAYTON (AP) -- The number of home foreclosures is setting area records.
So far this year, 4,355 foreclosure actions had been filed in Montgomery County, already surpassing the previous record year of 4,281 foreclosures in 2003, said Dan Foley, the county's clerk of courts.
Nearby Greene County also has surpassed its previous annual record. Earlier this month, it hit 571 cases. The previous record for a year was 566 in 2004.
And nearby Warren County is on pace to surpass last year's record 938 filings. This month, it hit 882 foreclosures.
Montgomery County ranked second behind Cuyahoga in foreclosures per capita last year, according to Policy Matters Ohio, an economic research organization. Montgomery County led the state in 2004.
Foley said predatory lending is apparently a factor, but other factors also are important.
"Medical expenses can be a problem. Divorces are big; people find out they can't keep up with their mortgage when one of the workers in the house leaves," he said.
Foley said he fears that the area is heading for a bigger problem as interest rates rise on adjustable rate mortgages.
"A lot of these adjustable rate mortgages that people got when rates were low are about to come due," he said. "People are going to start getting hit with payments that might be twice as large as they're used to. It's frightening to think what that may mean for foreclosure rates."