Foreclosures
in Wichita KS
As in other communities around the country, foreclosure rates
in Kansas have been steadily increasing over the last couple of years. Subprime
foreclosure rates in Wichita, although high, didn't show a clear upward trend
in 2008 and may signal that the subprime crisis has peaked here. |
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While the subprime mortgage situation in Kansas is far less
dire than in coastal markets, many homeowners in Wichita have fallen behind on
their mortgage payments because of the adjusting mortgage rates. At present,
554 houses are in foreclosure in Wichita -- more than usual and at rates below
the national averages, Wichita looks pretty good compared to the soaring rate
of foreclosures in the nation as a whole. The foreclosure rate in Wichita among
outstanding mortgages was 0.74 percent during July, up from 0.69 percent from a
year earlier. That was lower than the national foreclosure rate of 1.6
percent.
According to a January report by the Center for Responsible
Lending, lenders wrote more than 25,000 subprime mortgages in Kansas in
2005-06. In January of 2006, about 20 percent of subprime mortgages in Kansas
were late on payments and 5.5 percent were in foreclosure, according to
statistics from the mortgage monitoring firm First American CoreLogic. By July
of this year, nearly 35 percent of subprime Kansas mortgages were behind in
payments and foreclosures statewide had doubled to 11.5 percent.
The
idea of being upside down on a vehicle is not that new. This commonly occurs
when a consumer makes the decision to purchase a new vehicle before they have
paid off their existing vehicle. As a result, the balance of the loan on the
existing vehicle is added to the note for the new vehicle. The result is that
the consumer owes more on the new vehicle than it is actually worth.
Today, however, many homeowners are finding they are now upside down as
well on their mortgages. This didn't happen because they bought a new house and
added in the cost of their old home to the new mortgage. This situation
occurred in many cases because of the rapid rise of home values in many areas
followed by the real estate market crash that sent home values subsequently
spiraling downward.
If you find yourself in this situation, you may be
wondering what you can do. Options are often based on whether the homeowner is
able to continue making their monthly mortgage payments. While some are able to
pay their monthly mortgages, especially if they have a fixed rate mortgage,
that is not the case with others who took out adjustable rate
mortgages.
Homeowners who can still afford their monthly mortgage
payments and who are not feeling the pressure to sell due to employment reasons
may find they are better off by riding out the market decline. There is a wide
belief that once the market bottoms out it will begin to rebound. If that
occurs, these homeowners could still be poised to make a profit on their home
once the market does rebound.
Other homeowners are not so fortunate;
however. In some cases, homeowners simply have no choice but to move now rather
than wait as a result of relocation or job loss. Homeowners who have adjustable
mortgages may also find they are simply no longer able to afford their mortgage
payments as they continue to rise. These homeowners are now facing the bitter
reality of foreclosure when they are not able to pay off their debts or
refinance their home loans because of tightening loan restrictions.
Homeowners are also facing the reality that their options are reduced
because they have little if any equity in their homes. Some homeowners find
themselves overleveraged with either zero or NO equity in their property as a
result of using their homes as ATM machines, having drained all the equity out
that they had accumulated over previous years. Others have little or no equity
because during the housing boom it was quite common for many buyers to purchase
homes with very little, if any, down payment. At the time it seemed like a good
deal; however, today it is causing significant problems as housing values
continue to decline.
Foreclosure Articles
What
Is A Foreclosure
A foreclosure is an action taken against a
property owner by seizure of his/her real property. It can be for many reasons.
The main cause is delinquent payments on a mortgage. The mortgage company or
second...
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Its probably
happened to you... Folks learn that you know something about real estate
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general assumption is that they can buy...
How Can I Stop Foreclosure On My House
We
understand the being in foreclosure is a scary thing. You are probably
wondering how can I stop foreclosure on my house. There are many options
available when facing foreclosure. They may include reinstating... |
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