The Christy Allen Team

Mecklenburg home losses could skyrocket

Despite the struggling economy, fewer people lost their Mecklenburg County homes to foreclosure last year, but the small decline could be sharply reversed this year.

There were 3,045 final foreclosures last year in Mecklenburg, down 2 percent from the previous year's record, according to court records. However, a surge in court filings that start the foreclosure process means there may be a big backlog that could drive a jump in homes lost this year.

Foreclosure filings rose more than 17 percent statewide to top 63,000 last year. Mecklenburg accounted for more than one-fifth of those filings, an increase of 52 percent from a year earlier, according to Observer analysis of court data.

If Mecklenburg's final foreclosures had risen as fast as filings, about 1,700 more homes would have been lost last year in the county. Those losses may only have been delayed because the system is bogged down.

More foreclosures are expected this year, largely because unemployment is forecast to remain high.

"It's an alarming increase," said Charlotte Mayor Anthony Foxx. "There's work on every level of government ... but when you have an unemployment rate at 12 percent, it's hard to help stem the tide."

Foreclosure filings are a barometer of people at risk of losing their homes. Some will work out payment plans. Others will lose their homes in final foreclosure sales, which have widespread ramifications, including depressing surrounding home values and increasing the drain on taxpayer-funded social services.

"It's a huge concern because with foreclosures comes a whole host of other issues, including homelessness," Foxx said.

In a telling sign of the struggle, about 40,000 people turned out last month for a five-day mortgage modification marathon in Charlotte. The national nonprofit that ran the session, Neighborhood Assistance Corporation of America, announced plans last year to expand its operations in Charlotte and hire a total of 2,000 workers here.

Posted at 04:55PM Jan 10, 2010 by Christy Allen in General  |  Comments[0]