Lucas County foreclosures rates rise

Monday, July 23, 2007

There are more foreclosures than ever before in Lucas County, turning the American dream of home ownership into a nightmare. A lot of neighborhoods in Lucas County are loaded with "For Sale" signs and there has been a huge increase in the number of foreclosures in the county. More and more of those foreclosures are in the high end of the market.  Rod Culler is a local realtor who specializes in foreclosures and his business is booming.

"I traditionally handle about 320 units a year and my business has been increasing annually by about twenty percent."

Here is a look at the Lucas County numbers: In the first six months of 2006, there were nearly 2100 foreclosures. In the first six months of 2007, that number shot up by 51 percent. Statewide, there were nearly 39,000 foreclosures in the first half of 2006. In the same time period in 2007, that number went up by 56 percent.

Welles Bowen realtor Renee Potter says, "Some people have taken out adjustable rate mortgages. It has put a crimp in their ability to pay back the loan>

But Potter expects things to begin turning around in the first quarter of next year.

"We have a tremendous oversupply of homes and not as many buyers. There is no crystal ball, but I do see some market corrections in the next six to eight months and the rates are still very good."

If you are in danger of losing your home, experts say taking action quickly is key.

"Contact your lender right away, they don't want to own your home, they are in the business of lending money not owning real estate."

The increase in the number of foreclosures and homes on the market is not unique to Lucas County; in fact, realtors say our area has actually weathered the storm better than many other cities.

"We are not seeing 25 percent drops in value like the west, the south and in Florida where they can drop by as much as 30 percent."

An Ohio law that took effect in January has made it more difficult to get a loan and it curbs predatory lending practices. There is a silver lining in the local real estate market, there's a large inventory and interest rates are still relatively low so if you are in the market there are plenty of good deals out there. Local realtors say Toledo is a steady market, so we don't have the extreme highs and lows that are often seen in places like California, Nevada, Florida and New York.

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